Where To Find Cheap Houses For Real Estate Investing

In order to make a profit in real estate investing, you must have a continuous flow of good deals. 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 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?

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.

The leads I get out of these are very motivated and are ready to do business today.

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.   I sell them at wholesale prices to other real estate investors who put them back on the market.

When you buy a wholesale deal, you can buy the house in a simultaneous closing or take over the contract to buy the house. Check our other articles for details of these transactions.

3)    Local REI meetings
I can bet that right near where you live, there is a group of real estate investors that meet close by. These are like minded people that buy and sell houses in your local market.

This means you can find great deals from these groups.

4)    REOs and the MLS
I have to say that these will not be 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.

These deals are the least recommended for investment purposes.

5)    Courthouse auctions
A lot of home work is needed in order to get good deals from court house auctions. I do not recommend this method unless you know what you are doing.

6)    Craigslist and other online sources
This is another source that is too over-shopped, and most Realtors and FSBO owners market here.   It is not easy to get a good deal from Craigslist.

About the Author

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Author (simon87). Submitted on Tue, 10 Jan 2012 Time: 9:27 AM

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