So, Im playing around with things on the internet, trying to come up with a strategy to not waste an RE's time by going to 100 different homes that would not work to begin with. So, I am trying to build a strategy that maximizes the chance that one of the homes we look at will be one I would reasonably make an offer on.
Ive been playing with this for a week and here is what I have come up with. Using Realty Trac, I select my farm area and use the map mode. From there, I select Bank owned properties and properties that have sold in the past 3 months.
From there, I can see neighborhood by neighborhood whether the REO prices are favorably les than retail. Im comparing REO and retail prices based on the House Flipping book by J Scott. Further, I can check bedrooms and other things to make sure I am comparing similar properties and price points.
With this, I can select 20 or so REO properties that are favorable for purchase and go visit them with an RE agent and, I know that I have a better chance of being able to have success finding a good REO to start with. This would be my 1st attempt at real estate investing of any kind.
Is this a good strategy?
@Charles Montgomery , I would drive by all of these before involving the agent to qualify. Once that is done, do some quick forecasts on them to prioritize them based on potential return. From there, pick 5 to focus on with the agent. If you haven't done it before, qualify as much as possible before going on site with an agent. Also, send the ones you have picked to the agent to get some feedback on the potential from his/her perspective. An agent can offer a lot of market insight if you have found the right one.
Thanks. Its going to be a fun weekend for a trial run at driving by all the houses. At that rate, I can pick 30 or so that are listed at a % less than recent sales in the area (or for my specifics the same neighborhood).
So my idea of using Realty Trac to look at REO's and recently solds in a neighborhood is a good way to narrow my search?