Ways to Find a Good Real Estate Bargain

One of the best ways to start your career in real estate is to acquire a good, small, older apartment, building, which is well located, and at a low price, with a small cash down payment.

There are many ways to find this kind of real estate bargain. Some are unconventional, which can result in real bargains, and then there are the conventional methods which can also be used.

However, it is important to remember that you cannot apply a single formula and expect it to work every time. One of the key factors of success in this industry is building a network of people who recognize you as a real estate investor. These people keep you informed about the market, like troubled sellers, vacant properties, and other such opportunities that you may not have been able to find on your own.

So, to build a lucrative career, build an organization of people to help you, and create a system according to the following guidelines:

Unconventional ways to find a bargain

1. Try to befriend an owner of a junk and disposal service business.

It is often seen that the owners of hauling businesses make larger profits from real estate investments rather than their hauling services. What happens generally is that someone who is considering moving, like a new widow or widower, contacts the disposal service to clean out his or her premises. Since the reason the caller gives for the clean-up is about moving, hence the disposal service operator is usually the first one to know about properties being put up for sale. A smart buyer can thus make some really profitable deals by setting up a mutual understanding with the hauler. For example, the investor can offer the hauler $25 for any information, and $500 on buying the property.

2. Keep an eye on the death notices in the newspaper.

Often, when there is a death notice in the papers, the name of the attorney handling the case is also mentioned. Or, you could find out who the attorney is by asking the neighbors, friends, relatives, or the spouse of the deceased. Thus you can be the first one to make your sales offer to the attorney, who may be in charge of disposing off the real estate of the deceased. In these cases, the lawyers usually do not demand a commission.

3. Work on a personal level with local attorneys.

Many out of state and other kinds of sellers usually prefer to hire the services of these attorneys to sell their property, rather than hiring real estate brokers.

4. A newspaper is a useful source to find out about public auctions, divorce settlements, and bank foreclosures.

5. In order to buy homes for no money down, follow FHA and VA foreclosure sales.

6. The filings of deaths and divorces can be checked from the Probate Courts.

7. To find out about vacant buildings, you can ask mailmen and other Spotters.

The owners then can be traced through the tax collectors offices and local assessors. Or, you could get in touch with the owners friends and neighbors, or even a tenant in the same building.

8. Investor groups are often a good source of support, and can guide you to finding good deals in bargain properties.

Normal ways to find a real estate bargain

1. Newspaper advertising

Check out the properties that are listed by the owners, and not real estate brokers. The motive of the sellers who dont list their properties with brokers is to avoid commissions. You can also make use of the Real Estate Wanted columns for placing your ads. Use the local and larger city newspapers for this. It is one of the most effective ways to get calls from both owners selling directly and brokers.

2. Real Estate Brokers.

A real estate agent has an in-depth knowledge about the different types of properties that are available. They also have an overall knowledge of the market.
They are conversant with the zoning rules and the building plans on highways. He or she can also help you to inspect the buildings you are interested in, and provide you information like the likely maintenance costs, repairs, taxes and so on. However, since they work for the seller who pays them the commission, they usually go to extreme lengths to close a deal.

3. Internet Search of FSBOs.

These days, the Internet is one of the best sources of information for real estate investors. However, it is still not fully exploited, so you can experiment to try out its full potential. And before long you will be able to locate many lucrative deals.