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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.