In order to find the best real estate deal, you need to go the extra mile and market in ways your competition isn’t. This means honing in on what works in your area (and what doesn’t) in order to identify the best leads. Reach out to other real estate investors in a different market. Since these real estate investors are not competing directly with you regarding investment property, they are often willing to network with you and offer advice about how to find real estate deals.
Now, spend time doing some research and getting to know the prices in that area. If you can become an expert in property values, you’ll easily be able to spot the good deals when they come up. Look at comparable sales, talk to real estate agents about what properties are selling for, and attend some auctions as a spectator.
Craigslist works best for 2-30 unit properties. Once in a while, I’ll come across a complex with upwards of 80 to 100 units. The first step in acquiring clarity on why you’re wanting to be involved with real estate investing is to figure out the emotional reasons why it’s important for you to find success in this business.
Tips for Finding Deals
- Spend time researching prices to become an expert and spot deals.
- Check listings early mornings when managers often post.
- Focus on what works to identify leads.
- Buy below market value and make repairs to drive up price for profit.
- Use comparable sales to determine best pricing.
- Let everyone know you’re looking and what you want.
- Attend auctions to learn.
- Participate in real estate clubs to make connections.
- Do direct mail marketing to target potential sellers.
- Drive around looking for fixer uppers.
- Identify pre-foreclosure properties in financial distress.
- Check online listings for comparables.
- Interview agents about sales data.
- Consider 2-30 unit buildings too.
- Determine your "why" and what success means for you.
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Identifying Real Estate Deals
When buying a home or investment property, knowing how to identify good deals ensures you get the best value. Here are some types of real estate deals, each with pros and cons:
- Pre-foreclosure sales: Owners are behind on payments and want to sell quickly before losing the property entirely.
We’ve listed 30 methods to find deals in today’s market. Some you may know, but many are likely new.
Defining a Good Deal
What makes a good real estate deal? To spot one, first clearly define your criteria for a good deal. With the right knowledge, you can avoid pitfalls and see if a property is a good investment.
Real estate investors don’t buy everything that comes along. They look for the deal that makes sense to them based on their criteria. A great deal is subjective. First, know your standards. Ask yourself: Do I want lump sum or cash flow? What type of property do I want?