How To Buy Houses Low For Real Estate Investing | Real Estate ...

In real estate investing, you must have a continuous flow of good deals to make a profit. This means you must buy houses at low prices and turn around and make a profit, regardless of your business model.

So where do you find these houses at below the market prices?

Buying real estate can still be a good investment, even in a market that has taken a turn for the worse. But the fact that many houses are having a hard time selling, can be a good deal for the potential buyer.

1) Motivated sellers This is my favorite source of good deals. It still remains the most profitable way of getting the best deals that never find their way into the open market.

A motivated seller is someone who badly needs to get rid of their house. Usually, they could be behind on their mortgage, facing foreclosure, divorced, burned by bad tenants, have inherited property, and so on. These people can do anything to get rid of the properties which have become a thorn in the flesh and move on with their lives.

So how do you find motivated sellers?

Simply targeting home owners facing some legal trouble is enough. In my local area, I get a listing of all filings in the county court system every day. Out of these, I check to find of they own any real estate and if they do, they get into my mailing list.

These people are ready to do business once they call.

2) Wholesalers Other real estate investors that sell houses at wholesale prices form an alternative source of cheap houses.

I normally get a lot 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 wholesale deals, you take over the original contract, or you get the property in simultaneous closing. Check our other articles for details of these transactions.

3) Local REI meetingsIt is most likely there is a local meeting of real estate investors near where you live. These are like minded people that buy and sell houses in your local market.

This is a place where you can find good deals.

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.

This is because they are too over-shopped and price breaks are not 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 In order to get good deals from court house auctions, you need to do a lot of home work. Do not use this route unless you know what you are doing.

6) Craigslist and other online sourcesAgain this is too over-shopped and most FSBO owners and realtors market here. Getting a good deal from Craigslist is therefore not easy.

Source: http://realestateinvesting.com/blog/2012/02/03/how-to-buy-houses-low-for-real-estate-investing/

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