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How To Find Bargain Houses Fast

Written by: Rob Swanson

So, the question of the day is this: How do you find great bargains real estate deals?

Before we get into finding good real estate deals, we first have to identify what a good deal is. You should evaluate each possible real estate investment on the basis of two scenarios.

First, consider a steeply discounted purchase using ALL CASH as closing.  When you pay all cash, you must buy at a significant discount. Here are three examples when a seller could accept your all cash offer, (1) your seller owns the property free and clear from any loans or liens, (2) your seller has significant enough equity so you can buy significantly below market value or (3) your seller has a lender that is willing to accept less than what is owed - also called a Short Sale.

Second, consider using TERMS, or existing financing to purchase the property. Here are a couple of examples of where these types of real estate investment deals can be found (1) the seller realizes that by selling on terms, they can make more money over time than they could by taking all cash today and putting the money in the bank at a low rate of return, (2) the seller owes too much on the property for an all cash offer to work and is more interested in covering their payments and stopping the bleeding than they are in getting all cash today or (3) your seller wants someone else to deal with the property

In either case, you are seeking Motivated Sellers, people that need to sell, they don't want to sell. This is a big difference and honestly it is where so many real estate investors wast so much time. You should only deal with sellers that need to sell. When the seller needs to sell, you can negotiate an offer that will work for you and will help the seller solve their problem.

Remember, as a real estate investor, you are either solving Property Problems (Beaters & Beauties) or you are solving People Problems (Financing Follies).

Now, on to finding great bargains.

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SELECT YOUR FARM AREA

Pick an area of town that you want to buy in, focus your efforts there and learn the market. This area is known as your Farm Area. When you first start, pick just one or two small areas, neighborhoods or square block regions.Get to know the streets, the types of properties, the values and whether you can resell or whether you must rent the property to profit. You neighborhood selection is critical to your success - don't try to flip in a hold area and don't try to hold in an area where rents don't support values.

DRIVE THE STREETS

After you have chosen your farm area, go drive the streets. Look for tall grass, boarded up and vacant properties, utility notices in the windows, disconnected gas meters and other signs of distress. Write down and create a list of the addresses of each house that appear to be "beaters" - the uglier the better, vacant the best.

When you're driving the streets, you'll find the beaters. Next, go back to your home or office, or down to the county courthouse and search for the owner of the beater. Send them a letter or call them and let them know that you are interested in buying their house.

MARKET TO YOUR FARM AREA

Now, as you develop in your skill of understanding your farm area you should begin to market your message. If people don't know that you buy houses, it's impossible for them to call you and sell you theirs. You must market to your farm area and tell the people what you do. Use flyers, postcards, street signs, business cards and just talk to people when you're out driving the streets.

Be consistant. If you have never tried to market a business, let me tell you, a lack of consistancy kills. You can not expect that if you distribute 200 flyers that you will buy 3 houses the first time.

Whether you are driving the streets or marketing an area, you need to consistantly send your message. Then, be prepared with the tools and skills to make your offer and close the deal.

NETWORK AND TELL OTHERS WHAT YOU DO

Let others know what you are looking for, what you will pay and how quickly you can close. Really your goal is to be everywhere, all the time - that is within your farm area. If it's a great real estate deal, you want to know about it. So, tell everyone what you do.

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In your role as a real estate investor, you must be able to fix the property problem or fix the financing problem. When you get motivated sellers calling you, you will buy more bargain real estate deals than you can handle. It's really that simple - try it!



Rob Swanson is a real estate wholesaler and publisher of the Wholesaling Newsletter, a free monthly newsletter publication specifically for real estate wholesalers and investors that want the best properties at the cheapest price.  You’ll learn proven ways to find deals fast, build a huge buyers list and increase your profits starting with the very first issue.  Claim your copy today at www.WholesalingNewsletter.com


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