How To Find People To Sell So Cheap?
I'm just getting into learning REI. The main question I have so far is how does one actually find someone willing to sell so cheap? I'm just hoping to get into the business to earn a little extra income and so I won't really need to find tons of properties but after reading the 70% rule I can't imagine how even one person would agree to sell at that price.
Please correct me if I'm wrong but my understanding of the 70% rule is as follows:
I find a property where comparable houses in the area (which do not need repairs) are selling for $150,000. I estimate that to bring this property up to this value it will require $25,000 in repairs. Therefore, the most I should pay would be $80,000. Am I correct in my understanding?
Basically I have to find someone to agree to sell me their property for a little over half the value of comparable homes in the area?
It seems like every single person who knows the comparable home sales in the area and understands that their teir house needs repairing (and I bet they would underestimate these costs) would ask at least $125,000.
Is finding properties as hard as it sounds?