How To Buy Houses Low For Real Estate Investing
It is mandatory to have a continuous flow of good deals in order to remain profitable in real estate investing. What this means is that you must buy your houses low enough so you can make a profit.
So how can you buy houses at prices low enough to make a profit?
1) Motivated sellers
This is my most preferred method of getting great deals. It is the easiest method to find deals below market value even before they find their way into the market.
A motivated seller is a seller who really needs to sell their house. In most cases they are behind on their mortgage, facing foreclosure, divorced, burned by bad tenants, have inherited property, and so on. The properties have become a thorn in the flesh to them, and they can do anything to get rid of them.
So how do you find motivated sellers?
Just market your services to people who are in legal trouble who own real estate. In my market, I am able to get a listing of all county court filings every day. I put them in my mailing list if they own real estate.
These people are ready to do business once they call.
2) Wholesalers
You can also buy these houses from other real estate investors at wholesale prices if you do not have time to market to motivated sellers.
I get lots of good deals most of which I cannot pursue. For this reason, I wholesale them to other real estate investors who will probably fix them up and put them back on the market either as rentals or resale.
When you buy a wholesale deal, you can buy the house in a simultaneous closing or take over the contract to buy the house. The details of these deals are discussed in a separate article.
3) Local REI meetings
I can bet there is a group of real estate investors who meet near where you live. These are like minded people that buy and sell houses in your local market.
If you are looking for good deals, this is the one place you are likely to find them.
4) REOs and the MLS
Unfortunately these are not the best deals you can find. The asking price is usually too high for most real estate investors even though thousands of properties are sitting out there with no buyers.
Do not forget this is the most over-shopped source of real estate deals and the price breaks may not be that high.
You may get a good deal from time to time, but these are my least recommended sources for investment property.
5) Courthouse auctions
A lot of home work is needed in order to get good deals from court house auctions. Do not use this route unless you know what you are doing.
6) Craigslist and other online sources
Again this is too over-shopped and most FSBO owners and realtors market here. It is not easy to get a good deal from Craigslist.
Most successful real estate investors close more deals using less effort, time and money by leveraging the power of technology to make their work easier. Learn how you can run your business from an interactive website for real estate investing that automates most of your tasks increasing profits for you.
Comments(0)