Real Estate Investing Basics

8 Ways to Find Great Real Estate Deals

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43 Articles Written

With so many foreclosures and distressed properties available, the current market conditions have resulted in the opportunity of a lifetime for savvy investors.  Finding great deals is one of the most important things for successful investors to do.  That said, it takes more than just evaluating a few deals.  Investors must get a ton of deals coming into their pipeline, efficiently weed out the duds and pick the best from the prospects.  Here are 8 ways to find great deals. 

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  1. Agents, Agents, Agents  – Contact a lot of agents.  Create a list of REO agents, even call title and get agent contact info. Find agents who have lots of REOs and are good with investors. Give them your criteria. They can and will do a lot of the work for you.
  2. Find asset managers at banks and agents that can send you properties before they go on the MLS – Being able to snatch up deals with no competition is huge.  If you prove that you can close on deals over and over you will keep getting fed great deals.  If you bail on deals without good cause you will risk ruining a very valuable relationship.  Treat the bank/sellers with respect and do not waste their time.
  3. Wholesalers – Create relationships with wholesalers.  They are experts at finding great deals.  Give them your criteria and when a prospect is worthy you can jump all over it.
  4. Marketing, Marketing, Marketing – There are so many foreclosures these days, but there are still distressed homeowners not in foreclosure. People face financial hardships, divorce, probate, absentee owners, etc. It is strongly recommended to have good targeted marketing campaigns to bring in more deals to your pipelines and the opportunity to negotiate straight with the seller.
  5. Court House Steps – I know many people who buy right at the court house steps. One huge advantage is there is often very little competition. One disadvantage is that you cannot get into the house to do an inspection and thorough due diligence. But you can see the outside and do as much due diligence as possible. Many great deals are purchased at the court house steps.
  6. For Sale by Owner – Homes sold by the owner are often not listed and do not get as much activity.  They usually go for much less than listed properties and present a great opportunity to negotiate straight with the seller.  Do not offend the seller, if you are too far apart simply decline but schedule a time to check back periodically as time will make the seller more negotiable.
  7. Respond to Ads – Respond to ads in newspapers, craiglist, publications, online and social media. There are a lot of great deals and motivated sellers posted on ads. You can even offer a lease option to for rent or for sale properties. Make sure to follow up.
  8. Word of Mouth – Tell everyone what you do and to let you know if they know of a home that has to be sold.  Many great deals are brought to investors by people they know.
    Brooks
    Replied almost 10 years ago
    Very interesting that top 3 involve networking and only cost your asset of time rather than money. I completely agree with your list Sir. Good job.
    Ryan Moeller
    Replied almost 10 years ago
    Thanks Brooks. I wish there was a lot more time, in fact, the best use of my time is looking for deals. I always try to make more time to do that and create systems to find more deals.
    Brian McCloud
    Replied almost 10 years ago
    Actually finding that out myself right now. The best use of my time is to actually get out from behind the desk and network with people. I am having much better results doing it the old fashioned way instead of trying to find deals online.
    Joshua Dorkin
    Replied almost 10 years ago
    Hey Brian – I hate to jump in and change the subject, but are you a member of our site at BiggerPockets (not just a reader of our blog)? Lots of fantastic networking happening on the forums and elsewhere on the site. I hope to see you there.
    Arnaldo González
    Replied about 7 years ago
    @Ryan Moeller , I’m Fairly new to the real estate investing field, I went ahead and got my license mainly just to learn the main basics of real estate. I’ve never been a huge fan of working under others so working for a broker to put more cash in his pocket than mine for closing a deal really dosnt float my boat , regardless before going ahead and putting my reputation and name at risk , I’m investing my time trying to create a well educated foundation reading as much as I can and gathering as much useful information and resources as possible before I start making moves. I understand that the answer to my questions are extremely long and broad but in advance it would be extremely appreciated if you can take a few min of your time to email me a quick step by step guide/list of the essential things that need to be done in a RE deal ( from the moment you find a deal, getting it funded so no money has to be used out of my pocket , seeking a buyer, and the closing process+ most convenient/recommended contracts for someone in my shoes ) .. Ive tried asking a few mentours on YouTube but majority of them send back a link to purchase there personal DVD tutorial bundle that’s priced at some crazy price. Another part of my question is if an active real estate license is actually needed for middle-manning properties in this manner ? Once again thank you in advance , my email is [email protected]
    Joshua Dorkin
    Replied about 7 years ago
    Arnaldo – If you have questions, why don’t you post them on the BiggerPockets Forums? We’ve got over 120,000 members and hundreds of thousands of posts. Jump in, ask questions, and you’ll see that we’re here to help you out with all your needs.