If you are new to real estate investing, you are probably wondering “where am I going to find my first real estate deal”? There are actually a number of very effective methods you can use. Below I will touch on 7 different methods to find deals. They are a pre-foreclosure listing service, major newspapers, post cards & fliers, bandit signs, MLS, a realtor, and a wholesaler.
Method one is to 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.
Another method would be to 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.
Another method would be to 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.
Method number four is the 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.
Another method that is more obvious is to 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.
Method six is to 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.
Finally, there is another method that is simple, yet very effective. 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.
About The Author
James O’Bannon is a real estate investor who is committed to finding the best real estate training for investors. You can learn more about his free training offers, as well as receive a free report on real estate investing secrets by visiting www.GreatDeals4Buyers.com. Author grants full reprintrights to this article. You may reprint and electronically distribute this article so long as its contents remain unchanged and the author’s byline remains in place.