To be a successful real estate investor you have to keep your business growing.
That means finding real estate to invest in and not just any real estate will do.We investors have to find real estate deals! We have to find properties where the numbers make sense, properties which will provide a decent return for our investment.
Finding these deals however is not always easy. In fact, sometimes you really have to search for them. But that is just the way this business is. If this business was easy and deals were a dime a dozen, then everyone would be investing in real estate.
What I am saying is that finding deals takes work and effort.It takes work and effort each and every day. As an investor, you need to be tuned into and looking at many various sources to find potential deals. Just one will never be enough! Here are some thoughts on where you might want to focus part of your daily efforts to find deals:
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1. The Realtor’s Multiple Listing System (MLS)
This is the database that nearly every Realtor plugs their listings into.There is simply no alternative. I have found many a good deal on the MLS simply by looking at the listings day after day. Depending on how hot your market is, you may have to look several times a day. Looking here every day will also allow you to become very familiar with your market. Be warned though, everyone else is searching here too so competition can be fierce.
This is a website that has grown in importance over the last few years.Many a desperate seller will list their property here rather than with a Realtor on the MLS. Again, lots of eyes looking here as well. Be ready to jump if something interests you.
I look at these listings every day. Most of the time, foreclosures are taken back by the big players like Freddie and Fannie. I can watch those go through the process and make contacts with the local realtors that will list them later on.
4. Property Sales
I subscribe to a service that provides me a list of all the deeds recorded in my county every business day. There is a wealth of information to be mined in those records.
5. Driving Around
Believe it or not, this is one of the best ways to find deals. Anytime I see something that looks interesting like overgrown yards or stacked up mail, I jot down the address and investigate further. Plus, you may find you are the only one who might know about it, which gives you a big advantage.
There is nothing like having other people look for deals for you! I find bird-dogs at my local REIA meetings. Simply tell them what I am looking for and off they go. Keep in regular contact with them to let them know you are still in the market. If they bring you a deal, be ready to move as you are likely not the only one on their buyers list.
Everyone should find a niche and develop a marketing program to get sellers to call you. Others have written in great detail about marketing so no need to go on about that here. The great advantage of such a program is that you are likely the only one who is aware of the deal.
So that is what in part keeps me busy.
How about you?
What sources do you look at every day?
Are they similar to mine?
Share your comments below!