What is your best technique for finding real estate deals?

[DarioEM]

I'm more than half way through reading a great real estate book and here are some of their recommendations:

Classified ads
Real estate magazines
Real estate agents
Off-market sales (asking people if they are interested in selling)
Writing your own advertisements

Please share your ideas.

[arebelspy]

It really depends on your model, end goals, etc.

Are you looking for constant deal flow in a particular area for your crews to work rehabs or to wholesale (say 3-5 a month?)  Better be doing some direct marketing (yellow letters being my personal favorite).

Are you looking for one off deals to hold, only purchasing 5-10 annually?  Networking will be your best method, IMO.

It really depends on how many deals you're looking for, for what purpose (i.e. exit strategy), and the types of deals.

Most those ideas you posted are fairly mediocre, IMO, but really, anything can work if you put the effort in.

Which book are you reading?

(EDIT: Nevermind, saw in this thread you recommended Real Estate Riches by Dolf de Roos, I'm assuming that's the one you're reading.)

[clarkfan1979]

You have to see value in something that other people do not see.

One of my friends loved buying properties that had strong odor problems. Most of the time the smell was related to pet issues or smoking. It really turned off buyers and he could negotiate a super low price. He was really good and comfortable with getting rid of the smell. Most of the time it required replacing carpeting and re-paints. Occasionally you might have to replace the A/C ducting.  I do not have his same confidence for fixing odor problems. He was really good at running the numbers on how much it would cost to get rid of the smell instead of being immediately turned off like most people.

He was able to see value that no one else saw.

[MaxRules]

I have been looking for "deals" on real estate for about 8 months. I have come close to two houses but lost them in bidding under multiple offers. It is discouraging to search for 8 months just to not get two houses. I am a new real estate agent and I primarily use the multi-list that agents have access to. Like I said, I almost got two houses from this, but the list is really not the ideal way to find deals in my opinion. For one it gives everyone a chance at it at the same time, and two, I think someone already buys the better deals before they hit the list. Foreclosures in my area are not a deal. Seems to be more like a marketing gimmick since everyone thinks a foreclosure is a steal due to the TV shows. Foreclosures I've looked at are nothing more than condemned houses that need to be bulldozed, and they are listed at full market value is if they were move in ready. I think I will look for/call more for sale by owner homes to try to get a deal. I'm looking to do the occasional flip and maybe collect some rental houses. I'd love to hear more ideas from people who have done this and how you found the deal.

[arebelspy]

It's really hard to find deals on the MLS.

Unless you're in a specific area where deals are plentiful due to the nature of the market at that time, in which case you're purposefully not buying deals in relation to that market (as you're paying near market value), but with the understanding that you're targeting that certain return or market and you're trying to time the cycle.

Buying off the MLS doesn't work 99% of the time in Real Estate for a real investor.  It's retail, not wholesale.

[greenmimama]

It's really hard to find deals on the MLS.

Unless you're in a specific area where deals are plentiful due to the nature of the market at that time, in which case you're purposefully not buying deals in relation to that market (as you're paying near market value), but with the understanding that you're targeting that certain return or market and you're trying to time the cycle.

Buying off the MLS doesn't work 99% of the time in Real Estate for a real investor.  It's retail, not wholesale.

So how do you get wholesale deals? I'm interested!

[Midwest]

Our strategy (moderately successful)

a) Look on the MLS for houses that need work as buyers don't want a fixer upper.
b) Be willing to close for cash
c) Network the real estate agents to put the word out about a & b.
d) Work with a flipper who has no cash and finance the properties for him

Open to other/better ideas.

Midwest
 

[arebelspy]

So how do you get wholesale deals? I'm interested!

Answered above.  See the second post in this thread.  :)  Your deal source will completely depend on your end game.  Without that info, I can't give more specifics.

Our strategy (moderately successful)

a) Look on the MLS for houses that need work as buyers don't want a fixer upper.
b) Be willing to close for cash
c) Network the real estate agents to put the word out about a & b.
d) Work with a flipper who has no cash and finance the properties for him

Open to other/better ideas.

All good.  You won't get steller deals with a), but you can get solid ones, especially if you're looking to hold for the long term rather than flip.

[Midwest]

We're looking to make money.  If renting makes sense on a particular property, we'll do it.  My experience has been that people who get in trouble on real estate are over leveraged or overpay.

Cash closings allow me to have a longer term view on the property.  If  a flip makes sense, we flip.  If the flip doesn't work out, we can rent if necessary until  the market turns.  Cash gives me options.

Midwest