Updated: Aug 24, 2021
So you want to find an amazing real estate deal, try any of these simple tips.
1. Tax Sales -
Most counties conduct Real Estate Tax auctions once a month. You can obtain subject property lists in advance of the auction from either the county or servicing attorney firms.
TIP: contact the current owner as-soon-as-possible and make an offer. They may lose their home anyway, so they may be willing to receive a smaller portion of equity in lieu of nothing at all. Adjust your offer price to include the payment of outstanding taxes.
2. Pre-Foreclosures -
When 30 days has passed after a homeowner missed a mortgage payment, they are considered to be in pre-foreclosure.
TIP: You can obtain a list of pre-foreclosure properties from: list services, bankruptcy attorneys, Realtors, banks, and mortgage companies. Locate a Realtor that has experience in Short Sales. Ask your Realtor to reach-out to the home owner to determine their status and whether they would like to sell their home. Work with your Realtor to determine a purchase price. Many times the mortgage lender will accept an offer less than what is actually owed.
3. Driving for Dollars -
This is when you drive through a neighborhood that you would like to call home. If a home looks run-down, mismanaged gardening (tall grass, over-grown bushes, etc.), mail piled up, or appears vacant, this is an opportunity for a great deal. Write down the street address.
TIP: Search and identify the owner through the County Tax Assessor's website. County records often show the owner's mailing address, even if different from the subject property. Write the owner a letter expressing your interest in buying their home, make sure you provide them a way to easily contact you.
Search their name online and find a phone number. Call them and let them know you were driving through the neighborhood and saw their property, ask them what their intentions are for this house. Ask if they are interested in selling? Never be the first to offer a purchase price!
4. Craigslist -
Many Wholesalers and FSBO (For Sale By Owner) list their properties on Craigslist. Look for a deal in your local Craigslist daily.
TIP: Why daily? Good deals sell the day they are posted. Be pre-qualified and prepared to act fast.
BONUS TIP: Place an ad in Craigslist: "WANTED - Looking for a house to buy on north side of town. Wholesalers welcome."
5. Facebook and Bigger Pockets -
Real Estate Investors spend time on the internet in special groups and pages. Join a couple of Facebook Real Estate Investing groups and create a Bigger Pockets account. Monitor the postings once a day.
TIP: Introduce yourself to the group, let them know you are buying, and specify an area or zip code, along with a description of the type of house you are looking for. Friend some Wholesalers. You will receive discounted houses to ready-mades. Be prepared to act fast, the good deals don't last long.
Above are some of the most successful ways to find discounted properties, fixer uppers, and ready mades. Don't be discouraged by run-down houses, these can be fixed and customized to your liking. Find a general contractor and bring them with you to review a property, they can provide options and rehab costs. Budget your offer and rehab costs relative to your pre-approval loan amount.
If habitable, you can "house hack" by fixing-up the house while living in it. If you live their for 3+ years, you can sell at a good profit and roll the value into a more expensive home and pay no additional taxes (consult your tax accountant for details). I know house hackers that pay and equivalent mortgage for a $100,000 home with an actual home value of over $1,000,000.
Rehabbers need to sell fast, they have daily holding costs that reduce profit. Not only that, they need the money tied-up in this house to put into the next rehab project. Many rehabbers try to profit $20,000 for every $100,000 value of the home. Use this general understanding when negotiating a ready made home (a home that has been fully rehabbed). Rehabbers are also known for paying closing costs to secure a deal. Start with these negotiating techniques to quickly find their bottom price and get a great home.
To learn more about other ways to find bargains in Real Estate, sell and get a fair market price for your home, contact Trinity Oasis Home Solutions for a free one-time real estate consultation.