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How To Find Investment Properties

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What is the one thing that makes a successful real estate investor? A steady and constant stream of leads. Without them, your real estate business will struggle. Whether you are a flipper or trying to build your rental portfolio, you need new leads on a daily basis. So how do you keep a good flow of deals coming to you? That’s what we will cover here.

It’s a question and a complaint that I hear often from most investors, where do you find good deals? You may or may not like the answer. If you are a solo investor more than likely most of your time is going to be spent finding good properties. If you have a small staff, it may be a little easier for you to dedicate one person to this task.  Now you may be thinking about the cost involved of having someone trying to find deals for you all the time, but how much are you NOT making by not having enough deals?

Investment Property Sources

Bird Dogs

One way method that you may be able to utilize is the help of what is sometimes referred to as “bird dogs”. These are other investors that usually have a property under contract and are willing to sell you that property for a small fee that is usually paid at the closing table. What is actually happening here is that they are assigning you the contract to purchase the subject property and then in the HUD they have a line item for anywhere to $2500, $5000 or more paid to them. If you find a good a good bird dog they will leave you plenty of meat on the bone to make money yourself.

So how do you find these bird dogs? There are a few ways. One is to visit your local REIA (Real Estate Investor Association). In most big cities there are multiple REIA’s that you can attend. Network the room and find some of these people, let them know the types of properties and areas that you are investing in and they will be more than happy to add you to their cash buyer list.

Another great way to find them is to use the internet. The power of the internet has really exploded over the past few years. Just go to your favorite search engine and perform a search for wholesale real estate deals or discount real estate investments and you will probably find a few good companies to do business with. You may have to use a local modifier at the beginning or at the end of your query to make sure you are getting local results. And if you prefer not to read don’t forget that you can also do a search on Youtube like off market properties and get good results as well.

Other Methods

The good news is that there are still a lot of other ways to find great real estate investments. One method is using foreclosure lists. Jake Borjas wrote an extensive article about using this method:

Foreclosures Lists: This is my favorite way of finding investment properties. The main reasons for foreclosures are missed payments due to job interruptions, divorce, and health problems. The easiest way to get a hold of this list is to perform an internet search in any of the main search engines for the words ‘foreclosure list”. The monthly subscription price varies from $28 to $35. This money is well spent. I have found very nice investment properties using this method. For instance in 2003, I found a 4 year old house with 3 bedrooms and 2 baths in a nice neighborhood. I knew that this was a good deal because the bank was asking for $87,000 and the original sales price was $105,000 two years before. In addition, the tax assessor had valued this property for $106,000. You are able to obtain all this information without leaving your house. The internet is a wonderful tool to get information. After looking at the house, I decided that this was an excellent deal. The Real Estate Agent almost fell off his chair after he saw my initial offer of $69,000. After more negotiations, I ended up buying the investment property for $72,000. The current assessed value is $115,000.

Continue reading “How to Find Profitable Investment Properties

Good info in his article about foreclosure lists. Another point that he makes is using real estate agents. We like this method as well, however you need to find a good agent that understands your business and what you are looking for. Not all real estate agents are created equal.

Conclusion

This is just the tip of the iceberg if you will. You can also get lists for probate properties, divorce lists, absentee or out of town owners and try sending a “yellow letter” or even a post card to see if they are interested in selling their property. In the future we may add another post or just add to this one to give you a lot more ways to find your next investment property. In the mean time, here is some recommended reading for you on finding wholesale investment properties:

How to Find Profitable Investment Properties

How To Find The Best Investment Homes For Sale

How to Find a Real Estate Investment Property

 

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