How To Find Real Estate Deals: The Top 10 Proven MethodsAug 10, 2023
For new real estate investors, understanding how to find real estate deals is as important as just about anything else. Securing good real estate deals ensures profitable returns and provides a solid foundation for building a successful investment portfolio.
However, discovering lucrative opportunities may seem impossible for those on the outside looking in. For one reason or another, new investors are intimidated by locating and identifying properties that meet their criteria. Fortunately, learning how to find real estate deals isn’t as complicated as many new investors assume. As long as investors know where to look, they can significantly increase their chances of finding real estate deals.
- Top 10 Proven Methods In Finding Real Estate Deals
- The Right Mindset For Finding Real Estate Deals
- Final Thoughts
In this comprehensive guide, we unveil the top ten proven methods to help aspiring investors confidently navigate the real estate landscape and uncover the best deals that align with their investment goals.
But that's just the beginning! Dive deeper and expand your knowledge with our FREE real estate training course. Don't miss out on this invaluable resource to elevate your investment journey!
Top 10 Proven Methods For Finding Real Estate Deals
- Multiple Listing Service (MLS)
- Real Estate Networking
- Foreclosures, REOs &, Real Estate Auctions
- Direct Mail
- Driving For Dollars
- Town Halls, Courthouses, & Recorder’s Offices
- Bandit Signs
- Real Estate Websites
- Newspaper Ads
1. Multiple Listing Service
Learning how to find real estate deals may be as simple as gaining access to the MLS. A powerful ally in the search for real estate deals, the MLS is a comprehensive database that real estate agents use to enter information about properties available for sale. While the competition can be intense due to its popularity, tapping into the MLS can be a game-changer when utilized correctly. To stay ahead of the curve, set up automatic email alerts that notify you promptly when a property matching your criteria surfaces on the site.
The MLS is a goldmine for property deals, offering a wealth of helpful information. To uncover deals on the MLS, focus on properties with days-on-market counts above the market average, as they might present opportunities for negotiation. Keep an eye on properties taken off the MLS and then relisted or those marked as "back on the market" after a deal fell through—these scenarios can lead to motivated sellers open to attractive offers. Additionally, pay attention to homes repeatedly relisted by different brokers and expired listings where the property didn't sell, as these might have hidden potential waiting to be unlocked.
Whether you're a buyer seeking the perfect investment property or a seller looking to attract motivated buyers, leveraging the MLS can significantly impact your real estate success. While listing properties on the MLS may require working with licensed brokers or Realtors, exposure to a vast pool of potential buyers often translates to quicker sales and potentially higher profits.
Check out our in-depth video on "How to Gain Access to the MLS Without a License." We cover key insights and practical tips to unlock potential property opportunities you might have been missing out on!
2. Real Estate Networking
Viewing other industry professionals as valuable contacts rather than competitors can unlock a world of opportunities. Embrace the power of networking and recognize that every interaction could lead to a potential lead or referral. Engaging with like-minded professionals from various spheres of the real estate industry can be the key to discovering lucrative deals that align with your investment goals. That said, property investors should prioritize connections with:
- Other Investors: Embrace cooperation and build strong relationships within the investor community. Collaborating with fellow investors can open doors to joint ventures and lead to mutually beneficial exchanges. As other investors encounter deals that may not fit their criteria, they may refer these opportunities to anyone who asks.
- Real Estate Agents, Brokers & Realtors: Forge solid relationships with real estate agents, brokers, and Realtors, as they are often the first to know when properties go up for sale. Their insights and access to market listings can be invaluable in the pursuit of deals; they can help find off-market properties that are “for sale by owner (FSBO)” or identify the best real estate deals on sites like Zillow.
- Attorneys: Attorneys represent individuals facing various circumstances that may lead to property sales, such as pre-foreclosure, bankruptcy, probate, evictions, or divorce. Networking with attorneys informs investors about houses just hitting the market due to these situations.
- Contractors: Establish connections with contractors, as they know firsthand about ongoing real estate projects in the area. Networking with contractors can lead to insider information about potential investment opportunities. Their experience can be invaluable in identifying properties that may be perfect for investing.
3. Foreclosures, REOs, & Auctions
Understanding how to find real estate deals requires investors to gain familiarity with distressed homes. For seasoned real estate investors seeking off-market opportunities, foreclosures, bank-owned (REO) houses, and auction properties offer a wealth of potential deals. However, navigating these avenues requires experience and an understanding of the associated risks. Let's explore each option to help you make informed decisions and uncover hidden gems in the real estate market:
- Foreclosures: When homeowners fail to meet their mortgage obligations, lenders initiate the foreclosure process; this presents a "window of opportunity" for investors to approach distressed homeowners and negotiate a deal before the foreclosure is finalized. Many homeowners facing foreclosure are motivated sellers looking to avoid the stigma and credit implications of losing their homes to the bank. By offering a solution and buying the property from the owner, investors can capitalize on these motivated sellers and secure potentially favorable deals.
- Real Estate Owned (REO): Once the foreclosure process is complete, the property becomes REO, and the bank assumes ownership. Banks are not in the business of holding real estate and view REO properties as non-performing assets. As a result, they are often motivated to sell at a discount to investors to remove the property from their books.
- Auction Properties: Houses can be auctioned by banks post-foreclosure or by the county for unpaid property taxes. Auctions can be a source of potentially good deals, but they also come with a high level of risk as sales are "as is" and require cash payment. Investors must be well-prepared and mind due diligence about the properties they intend to bid on.
4. Direct Mail
Investors who know how to find real estate deals may need to resort to “snail mail.” A direct mail campaign, specifically, allows real estate investors to precisely target their ideal audiences, such as distressed homeowners, expired listings, or absentee property owners. By focusing on motivated sellers, investors increase the likelihood of quickly connecting with individuals open to selling their properties. This targeted approach maximizes the chances of finding lucrative deals in a competitive market.
Direct mail provides a personalized and tangible means of communication, allowing investors to craft compelling messages that resonate with potential sellers. By addressing the seller's unique situation and showcasing the benefits of working with the investor, a direct mail campaign helps build trust and rapport. Consistent follow-ups through direct mail enable investors to nurture relationships with potential sellers, staying top-of-mind when they are ready to decide.
Social media platforms like Facebook and Craigslist allow real estate investors to reach a vast and diverse audience. With billions of active users, these platforms provide access to potential sellers, buyers, property management companies with rental properties with cash flow, and investors from various demographics and locations. By leveraging targeted advertising features, investors can narrow down their audience based on specific criteria, such as location, interests, and behavior, ensuring that their message reaches the right people who are most likely to be interested in real estate deals.
Social media allows real estate investors to showcase their expertise, properties, and investment strategies through engaging content. By creating informative posts, videos, and images, investors can establish themselves as industry authorities and build credibility among their audience. Consistent and valuable content helps investors stay top-of-mind with potential sellers and buyers, increasing the chances of being approached for real estate deals.
6. Driving For Dollars
Driving for dollars is a hands-on and proactive approach that allows real estate investors to uncover hidden real estate deals not readily available on listing websites or online resources. By physically exploring neighborhoods and driving through target areas, investors can identify distressed or neglected properties that may not be apparent through online research. These "hidden gems" often present excellent opportunities for investors to negotiate favorable deals and acquire properties at discounted purchase prices.
In a competitive real estate market, driving for dollars gives investors a competitive advantage by allowing them to find deals before other investors or local real estate agents. By seeking opportunities, investors can secure properties without facing as much competition, ultimately increasing their chances of finding profitable deals and maximizing their returns on investment.
7. Town Halls, Courthouses, & Recorder’s Offices
Visiting the local town hall, courthouse, and Recorder's Office provides real estate investors valuable access to public records, including information on distressed properties. Foreclosures, tax liens, and other financial distress indicators are typically recorded in public records.
By reviewing these records, investors can identify properties facing financial difficulties or undergoing foreclosure proceedings, presenting potential opportunities for investors who can acquire a hard money loan or the necessary down payment.
8. Bandit Signs
Bandit signs strategically placed in high-traffic areas can be effective lead generators for real estate investors. These signs often display contact information for real estate professionals, such as wholesalers, real estate agents, or investors, actively looking to buy or sell homes.
While bandit signs primarily target homeowners, investors can also use these signs to connect with professionals who may have insider knowledge of potential deals or distressed properties.
9. Real Estate Websites
Real estate investors can leverage their websites to capture leads effectively. By implementing opt-in forms strategically placed on their website, investors can encourage visitors to subscribe to their mailing list or newsletter.
Offering valuable content, such as free e-books, guides, or market insights, in exchange for contact information can entice potential sellers and homebuyers to provide their details willingly. With the right platform, investors can locate multifamily homes, single-family homes, and other assets with an attractive market value.
10. Newspaper Ads
While the popularity of newspaper ads for real estate may have declined with the rise of digital marketing, they still hold relevance in real estate investing. As many investors shift their focus to online platforms, newspaper ads present a valuable niche for lead generation, offering opportunities that others may be overlooking.
By tapping into this often underutilized resource, investors can uncover potential deals that may not be easily found elsewhere.
The Right Mindset For Finding Real Estate Deals
Aspiring real estate investors must understand the significance of cultivating the right mindset for success. While finding great real estate deals may pose challenges and temporary dry spells, it is essential to maintain sight of goals and maintain a positive outlook throughout the process. Remember, every investor encounters obstacles, but these moments are not indicators of failure but opportunities for growth and learning.
To maintain motivation and find the best deals in real estate markets, draw inspiration from the success stories of renowned entrepreneurs and investors. Reflect on their struggles and how they persevered to overcome obstacles, as these insights can be applied to current situations and facilitate new opportunities. Embrace the concept of refining strategies, and carefully evaluating past marketing efforts to identify areas of improvement. Realize that trial and error are integral to the journey, continuously helping investors realize their full potential.
Developing the right mindset is paramount for investors who want to learn how to find real estate deals. With the right outlook, investors can remain focused on their goals, learn from challenges, and harness the power of visualization to realize success on every level. By adhering to a positive and entrepreneurial mindset, investors will gain the confidence and resilience needed to thrive in the dynamic world of real estate investment.
Learning how to find real estate deals is a fundamental task for any aspiring investor looking to thrive in the dynamic world of real estate. By embracing the top 10 proven methods discussed in this comprehensive guide, new investors can confidently navigate the market with valuable insights and effective strategies. Each approach listed above offers unique opportunities to discover the best deals that align with your investment goals.
Ready to take your real estate career to the next level? If you're eager to learn how to find real estate deals and achieve success as an investor, look no further. Contact Real Estate Skills today and unlock access to expert guidance and valuable resources that will empower you to navigate the real estate market confidently. From proven strategies to insightful tips, our team is here to support you every step of the way.