Where To Find Cheap Houses For Real Estate Investing

In real estate investing, you must have a continuous flow of good deals to make a profit. This means you must buy houses at low prices and turn around and make a profit, regardless of your business model.

So where do you find these houses at below the market prices?

<b>1) Motivated sellers</b>
This is my favorite source of good deals. It is the easiest method to find deals below market value even before they find their way into the market.

A motivated seller is the one that really needs to sell their house. In most cases they are behind on their mortgage, facing foreclosure, divorced, burned by bad tenants, have inherited property, and so on. They can do anything to get rid of these properties which have become a big bother in their lives.

So how do you find motivated sellers?

Simply targeting home owners facing some legal trouble is enough. In my local area, I get a listing of all filings in the county court system every day. I put them in my mailing list if they own real estate.

These people are ready to do business once they call.

<b>2) Wholesalers</b>
Other real estate investors that sell houses at wholesale prices form an alternative source of cheap houses.

I usually have a lot of good deals, most of which I cannot pursue. I just wholesale them to other real estate investors who then put them back in the market.

When you buy wholesale deals, you take over the original contract, or you get the property in simultaneous closing. Check our other articles for details of these transactions.

<b>3) Local REI meetings</b>
It is most likely there is a local meeting of real estate investors near where you live. These are people who buy and sell real estate actively in your local market.

This is a place where you can find good deals.

<b>4) REOs and the MLS</b>
I have to say that these will not be the best deals you can find. The asking price is usually too high for most real estate investors even though thousands of properties are sitting out there with no buyers.

This is because they are too over-shopped and price breaks are not that high.

You may get a good deal from time to time, but these are my least recommended sources for investment property.

<b>5) Courthouse auctions</b>
In order to get good deals from court house auctions, you need to do a lot of home work. I do not recommend this method unless you know what you are doing.

<b>6) Craigslist and other online sources</b>
Again, good investment deals are rare here because the resource is too over-shopped and most Realtors and FSBO owners advertise here. It is not easy to get a good deal from Craigslist.

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