by Jeanette Joy Fisher

I'm often asked where we find the best real estate deals. It's a natural question, because people know we've been fixing and selling houses since 1979, and they've seen various infomercials and television shows that suggest how easy it is to get rich in real estate.

The first thing I have to do in that case is deliver some bad news. It's definitely not as easy as they make it sound on the TV. However, I then follow up with the good news, which is that it's possible to make great money as a real estate investor if you know where to look and do your homework. Here are a few ideas for locating great deals:

The first is to become an expert in a particular target area. There's money to be made even if you live in a smaller town, contrary to what you might have heard. In fact, small towns can be great places to make money, because not only are the sellers generally more flexible, but your competition is often less, which is a great combination for getting great deals.

You can take out ads in your local paper, telling people you're an investor interested in buying homes. You'll probably get calls, especially if you live in a less populated area, because your ad will stand out, as opposed to having to compete with lots of others in a big city newspaper. If you do have a lot of competition from other investors, be the one investor to answer the phone. I tested our competition one day; not one investor answered the phone and some didn't even have a message system.

If you see a garage sale or estate sale in your target area, stop in and ask if the house will also be coming up for sale. Eighty percent of the time that won't be the case, but if they are planning to sell, you may be the only person all day who asks. That increases your chances of success considerably.

Get out and drive around your preferred area and look for vacant houses, those that need repair, or those with lawns that haven't been mowed in awhile. If you find such a house, talk to neighbors to see if they know the status of the home. They can be very helpful, and they'll often be glad to talk to you, since a vacant or unsightly home lowers both their property value and the enjoyment of their neighborhood. You may have been told to take down the address and find out who owns the property to contact them by mail or phone. Because so many other investors do this, the home owners often don't want to have anything to do with you. However, if the neighbor gives you the owner's phone number, you have a much better chance of talking to the owner when you use the neighbor's name. You can also leave your card in the front door of the home. You just might get a call from a motivated seller.

Look at homes with an agent who understands your specific goals. The last home we purchased was listed. The listing didn't mention the house was vacant and involved a divorce situation. We made a ridiculous offer and the owner's accepted.

Finally, tell everyone you meet that you're an investor looking for homes in a particular area. You never know where your next lead will come from. You can offer a finder's fee for every lead that pans out. After all, it's well worth spending hundreds of dollars to make thousands.
 
Although it's not as easy as the infomercials make it sound, great deals are out there, and when you find them, you really CAN make money as a real estate investor.

Learn how to make money fixing and flipping houses.

Copyright © 2006 Jeanette J. Fisher
Lake Elsinore Real Estate