Posted over 4 years ago

Locating Real Estate Deals

 Finding motivated sellers is the key to real estate bargains. The better the bargain, the more you can profit. You should spend 90% of your time locating deals. You can’t make any money if you cant find the deals. There are several factors to consider when choosing an area to start in. Lets review some of those factors:

  • Price range
  • Types of properties
  • Investment Methods
  • State and local laws
  • Growth
  • Rents
  • Exit strategies
  • Desirability
  • Proximity to where you live
  • Types of neighborhoods

There are 4 basic types of neighborhoods in every market.

“A” Neighborhoods – High Income

  • High price point
  • Large homes
  • Historic areas
  • Gated communities
  • Highly desirable location

“B” Neighborhoods – Middle to High Income

  • One step down from the “A” neighborhood
  • Nearby shopping which include chain stores
  • Mostly owner-occupied
  • Vacant homes stand out
  • Fewer rentals

“C” Neighborhoods – Middle Income

  • Small businesses nearby
  • Mix of older and newer homes
  • Mix of owner-occupied and rentals
  • More flexible sellers
  • Good cash flow properties

“D” Neighborhoods – Low Income

  • War zones
  • Depreciation
  • Good cash flow

Once you determine your Investment strategy, you can then determine which 

neighborhood would be best. Check out our Real Estate Investor Blueprint Home Study 

course which covers every faucet of finding deals, which strategies work best in each 

type of neighborhood.

Comments (1)

  1. Tiny 1399666016 avatar ireallylikethis

    This post has some good information, but covers so many different issues that I had a hard time putting it all together. For example, your title is about location, but your opening sentence is about sellers. I personally love reading blogs that tell an investor's story, not just information. I do appreciate the A,B,C,D clarification, as that was not part of my neighborhood labeling system.