#1: Purchase a list of pre-foreclosure homes from a listing service. Here are just four such services: Foreclosure.com, RealtyTrac, Default Research, and ForclosureS.com. However, one of the drawbacks to a listing service is the cost. Also, be aware that some services have more recent information than others.

#2: Look into the classified ads section of major Newspapers. Their classified sections are on the web. You want to search the ads to find words such as “divorce”, “desperate”, “must sell” or “estate sale” to name just a few examples of keywords that indicate the seller is desperate. Think of some on your own and have fun with it.

#3: Send Postcards and fliers to targeted homes. However, it is highly advisable that you find someone who can do what is called good copywriting. Good copywriting is combining words, fonts, phrases, pictures, a call-to-action, etc. that will compel your potential home buyers to call your number. Make sure you do this type of marketing correctly otherwise you will be wasting your hard earned money.

#4: Use of bandit signs. A bandit sign is a small sign that is posted near major streets with a simple phrase to let home owners know that you buy houses quickly. Don’t forget to have your phone number listed in large letters, so distressed owners know who to call. Just be aware that in many places bandit signs are not allowed.

#5: Look for a real estate investing deal is the MLS (Multiple Listing Service), however, you must be a licensed real estate agent in order to gain access to the MLS database. A word about the MLS, I know some real estate investors who swear by it and I know others who say it’s not worth your time. Who’s correct? Well, believe it or not, both are right. If you are a licensed agent who can jump on a property that is a good deal when it is put on MLS, you have a good chance to finds deals, otherwise, it will be more difficult.

#6: Enlist the help of a realtor. If you don’t know anyone who is a realtor, you can find those who work with real estate investors, just by going to realtor.com. You will need to find a realtor who is willing to work with you and to email you a listing with your criteria. What sort of criteria do you use to search for a property? Again look for words like “divorce”, “desperate”, “must sell”, “condemned”, “gutted”, “mold” and any other word that would be undesirable for regular buyers, but a potential deal for a real estate investor.

#7: Get your deal through what is called a wholesaler. A wholesaler is one who controls or purchases a property at a deep discount and passes the savings on to you, the real estate investor. They typically send the deal right to your email box where you can read about the deal, do your due diligence and then make an offer.

So, as you can see there are various methods that you can use to find your deals. You may be wondering how may deals does it take before an offer is accepted? Well, I know many who say there is a 100-10-1 rule. It says it takes looking at 100 deals to make 10 offers to get one accepted. Choose a method or better yet, a set of methods that works for you and your budget.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Step 1: The In-Office Evaluation

Before even leaving the comforts of your own house or office most of the initial evaluation can be done right at your desk. This first step can save you a lot of wasted time and energy. The first thing you want to do is look up the public record of the property. This information is usually available online and give you valuable information such as the style of the property, square footage, number of bedrooms and baths, what the property value is assessed at, what the property was last sold for and sometimes even a picture of the property.

Step 2: Look up Comparable Properties

There are several websites available to the public that you can use to look up estimated property values but sometimes these may not always be completely accurate and should not be used as a final determining factor. The best way is to establish a relationship with a realtor who can look up comparable properties (comps) and what they have recently sold for. When looking up compass you will be able to determine both the “as-is” value of a property as well as the after repair value (ARV). You can look up properties that are currently listed, those that have expired and those that have sold. You can also compare the condition of these properties to the one you are evaluating as well as the similarity of neighborhoods.

Step 3: Property Walkthrough

After you have done your “in-office” evaluation it’s time to hit the pavement. You will need to evaluate the actual physical condition of the property. This will help you determine the as-is and after repair values. When you first meet the seller have them show you around the property, just let them know you are trying to get a general idea of how much work the property needs, if any. You should primarily be looking for major items that need work and that will quickly eat up a repair budget.

Step 4: Negotiating with the Seller

The first step when purchasing a deal is getting the property under contract at a price well below the market value. In this step successful communication is a necessity. You must be able to handle seller objections or it will break the deal. This will greatly increase your success. You should practice and prepare your responses to different objections you may face. This will help you avoid a costly learning curve if you know how to handle objections prior to be confronted with them.

Step 5: Contract Signing and Closing

Once you negotiate your purchase price with the seller the next thing to do is get it under contract. It’s best to use a standard purchase and sale agreement for your state or have your attorney draft one for you. Once you have the property under contract the next step is managing and executing the closing process. In this step it is important to keep a close eye on the details and don’t let anything slip through the cracks. It’s always a good idea to have a checklist in order to manage the various stages of the closing process. The various parties involved in the closing process include you, seller, attorneys, lenders, title companies, appraisers, and insurance brokers. It is very important that communication with all parties involved in this process be frequent and continuous. This will insure that nothing is left to chance and will allow for a smooth transaction. dealsdea

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.