Finding Direct Properties to Buy for Cash

9 Replies

Hey guys,

I'm interested in trying to find a direct seller or foreclosure for a cash property purchase. I live in a popular area so I'm trying to avoid going through properties that are already on the market and buying direct. Any ideas on how I could do this? Any help would  be appreciated. This would be my first home purchase. 

Thanks,

Jules

Jules, 

There are several marketing techniques you can use to find off-market properties. For example, you can use a Yellow-Letter campaign to reach out to motivated sellers. You could also hit the pavement and walk/ drive neighborhoods for homes that look distressed. Finally and potentially most importantly, start telling everyone around you what you are looking for. Begin speaking of yourself as an investor looking for a cash purchase. Don't stop talking about yourself and your real estate goals. You'll be astonished at how many people know someone who knows someone who wants to sell a house. 

Check out some of the forums on wholesaling to get some marketing ideas! 

Finding the motivated seller in todays hot markets is the problem.  Mailing absentee lists is not working that well.

The very best lists are delinquent tax lists. Some counties have these lists on line on the tax commissioners website. Some like my state / counties don;'t have the easy to down load lists. You search for tax commissioner. Click pay taxes. click search by name. You need to manually or pay a VA to enter just the first letter a-z then navigate all pages looking for the typical indication that the tax has not been paid. Scrape those addresses. Check in zillow if you even want to mail that address. Some times the owner does not live at the address. Go to the tax assessors page, always they have enter the address search. Often you'll find the owner has a different address.

The more work you have to put in, means fewer investors will be mailing them.  Go to the county court house for:  eviction court lists of landlords, some times code violations are avialble some times not.  Probate is a tough list even if you hvae the address of the executor.  Probate are expensive lists and marginal conversion rates.  Unless the family is hard to find and not on lists.

@Jules Dominguez

One thing you didn't mention in your post is your price point. Nor did you mention location. Nor did you mention whether you wanted to fix and flip or buy and hold. Los Angeles is a huge area with a huge range of home prices. You have a ton of options.

If low price points are important and you want to stay in LA County you'll have to look at the high desert areas. Palmdale-Lancaster and then Hesperia to Barstow. There are great prices in the Inland Empire (that's San Bernardino and Riverside counties).

Being in LA (i.e. Southern California) you have access to close to a dozen real estate investor clubs. Start going to them. Find the wholesalers there, introduce yourself as a cash buyer and they may begin to offer you their contracts. 

Also, drive the areas you want to buy in. do a little driving for dollars, contact the owners and you have an off market deal for yourself. And while you're driving around look for bandit signs. Call the phone numbers. These are the wholesalers in the area. Get on their lists, get their offers, buy their off market deals.

You could, of course, become a wholesaler yourself. Put up bandit signs, spend lots of money on heavy direct mail marketing but that's a another discussion all together.

I agree with Guy. While some of the bigger players may not always attend the clubs, the more savvy clubs will know who the players are in the market. I also use tools like PropertyRadar to find who they are. Have to love the Internet! 

Thanks for the advice guys. Really appreciate it and will start looking into your suggestions. I'm curious as to how I would go about finding real estate investor clubs to attend. As for contacting the owners of a property directly any suggestions with the best way to do this? Mailers or cold call? 

Also, I'm looking for properties in the West Hollywood, Beverly-Fairfax, and Hollywood Hills area although I'm open to location. I'm trying to find these direct buys because this is a very popular market. Low price points are important. I'm looking for a property in a good area for a good price. I think for this particular property I'm looking to fix and appreciate the value of the property and  then rent out. So, it's a buy and a hold.

I found a property that might be a foreclosure in a great area. Any suggestions on how I could find out if it is or about specific foreclosures? How I would find out who has ownership of the property? Or how I could go about making an offer on it? 

Thanks again for all the help.

And also the bank that might own the property?

Originally posted by @Jules Dominguez :

Hey guys,

I'm interested in trying to find a direct seller or foreclosure for a cash property purchase. I live in a popular area so I'm trying to avoid going through properties that are already on the market and buying direct. Any ideas on how I could do this? Any help would  be appreciated. This would be my first home purchase. 

Thanks,

Jules

 Which specific market are you trying to buy in? Also is this for a flip or rental investment?

Originally posted by Account Closed:
Originally posted by @Jules Dominguez:

Hey guys,

I'm interested in trying to find a direct seller or foreclosure for a cash property purchase. I live in a popular area so I'm trying to avoid going through properties that are already on the market and buying direct. Any ideas on how I could do this? Any help would  be appreciated. This would be my first home purchase. 

Thanks,

Jules

 Which specific market are you trying to buy in? Also is this for a flip or rental investment?

 Greg, this is for the West Hollywood, Hollywood Hills and Beverly-Fairfax market. I'm also looking for both flip and rental investment depending on the property.

Originally posted by @Jules Dominguez :

The real issue that you may have is finding a seller in some of the areas that you referenced that wants to sell at a discount of 30 to 35% of market value.

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