Investing in real estate means always being on top of finding new opportunities. Whether you do the searches on your own, work with an agent or an entire team, keeping the pipeline fresh full of leads is critical to your financial success. Perhaps one of the most common ways to find leads is to researchbuying construction foreclosures public records looking for notices of default and foreclosure filings.

That’s a proven method to find existing real estate opportunities for existing properties whose owners are in some state of financial disarray. But finding foreclosures doesn’t have to be just for existing properties. You may also find some excellent possibilities searching for construction projects where the builder is about to lose the property to the construction lender. If you see a house that is under construction but headed to foreclosure, is that something to take over?

Foreclosing on an existing property owner who falls behind on a mortgage and a home that is currently under construction follow a similar path. The owner gets behind on subsequent mortgage payments and if the lender feels there’s no other recourse other than to take back the house. In the instance of a home that’s not yet finished, there are some things to consider.

First, will the property be marketable if completed according to the plans and specs? Is the property nearly finished or has a long way to go? Has the builder and the bank communicated regularly as to the current status of the project and how much funds are left in the construction account? Your goal at this stage is to find out what the property is worth now, what it will be when finished and how much will you need to provide in order to finish out the home?

Banks that are looking at foreclosure possibilities on a home not yet built get pretty nervous. Their collateral has not yet been completed and the bank might be looking at taking a loss unless the home is finished and the construction note repaid. There’s quite a bit of leverage in such an instance. There’s a bit more legwork on such a prospect, but many times the rewards are far greater.