Realtors and real estate agents. Some people think that they will snatch up the good deals for themselves. Apart from being ethically wrong and illegal in most states without full disclosure, it just doesn’t happen that often. Amazingly enough, most real estate agents don’t invest in real estate beyond their own home. We like houses that have been on the market for a little while and the agent has stopped marketing it actively. If the home is vacant and owned by an out of state owner, this is a big plus.
Foreclosures before the property is sold. (Buy from home owner). Be aware they have been hit up by every foreclosure shark in the area. They have been threatened and told how their credit is going to be ruined.
Also be aware that in many cases the property is worth LESS than the now outstanding mortgage and legal fees. Is it possible to buy a house like this and still make money? Maybe, if you can get the lender to agree to take a short sale, that is satisfy the mortgage for less than the amount owing on it.
Foreclosures at the court house or trustee’s sale. (Full cash is needed). There can be a redemption right for the home owner to get their house back AFTER the courthouse sale. The time varies from state to state from 6 hours to many months. Check the law in your state.
Foreclosures after bank or other lender owns property. Often call REO for Real Estate Owned. Sometimes the lender will offer special financing to credit worthy investors to move these properties off their books. But be aware, the days when these properties could be bought for way under market price are mostly gone. Lender owned properties may or may not be a great deal.
HUD or VA foreclosures. Both of these require you submit a bid through a qualified real estate broker. Be aware, in many cases these properties are not good deals because of the excellent financing often offered. Avoid bidding on houses that look attractive and will be bid on by people who want to live in the house. Ugly houses, with tall grass, fleas and termites are best, provided you can fix the problems and still make money! See our Fix Up Online Calculator (also available as a FREE Spreadsheet Download).
Classifieds Ads, call on the properties to RENT ads. (Many landlords would sooner sell than be a landlord). This is also a great way to find potential sandwich lease option properties. A sandwich lease option is where you have an option to buy the house and rent it from the home owner and then give another lease option to a buyer who intends to live in it at a slightly higher price and higher monthly rent. See our FREE Forms Downloads.
Driving along look out for abandoned, unkempt properties. You can find the owners through public records in most states.
Review court filings of recent eviction cases. This is a great place to find motivated sellers. Don’t waste time with apartment buildings. These are usually professionals who regard the occasional eviction as inevitable as property taxes. Look for the private owner who has let several months rent build up while he listens to hard luck stories, only to find that his kindness has been repaid by the tenant trashing his property.
Magic words to use, “I can solve your problem. I can take over your property and you’ll never get another phone call about that house again.”
Drive around looking for For Sale signs. Perhaps you could offer the newspaper delivery person or mail person a few bucks if they give you the address of a suitable looking house.
Penny saver type ads.
Attorneys. Remember that an attorney will never give you the name of his client for ethical reasons. But he could refer his or her client to call you. Or call you himself if he is involved with an estate sale, divorce or foreclosure.
Divorce filings. Don’t get between the feuding couple, just be diplomatic and a problem solver.
Probate filings. 2/3 of all deaths eventually result in the sale of real estate. A sensitive touch is essential. Don’t show up at the funeral and say, “Wanna sell your dad’s house.”
Write instead to the personal representative. Explain that you are a real estate investor and would be interested in buying the real estate in the estate for full cash. TIP. Typically, the further away the relative who ends up with the house, both in relationship and physical distance, the better deal you will get.
People being transferred.
Moving companies.
Bankruptcy filings. You may need to get the creditors approval.
Put out flyers on notice boards or even on light poles (don’t blame us if the electric company gets mad at you).
Magnetic signs on your car. “We Buy Houses” plus your phone number.
Wear a T shirt. “We will buy your house today.” You can print custom T shirts on your computer or order them in many malls or over the Internet.
