The first thing that people investing in real estate need to know is that you cannot do what everyone else is doing. It’s about setting yourself apart, finding a niche and looking for the least obvious opportunities. Cheap homes aren’t always easy to come by. When cheap homes become available, they usually get bought fairly quickly. In this sense, a lot of real estate investing involves spotting and taking advantage of opportunities. It is important not to rely on conventional information too much when searching for these kinds of deals.
To find sellers who want to sell their homes at an extreme discount you should not rely on multiple listing services (MLS). Although this database can be helpful, typically these are listings of owners that want to get the highest sales price for their properties. Sellers know how popular multiple listing services really are, which is why they would often pay commission to a Realtor for the exposure.
In contrast, people who are willing sell their properties at an extreme discount, usually need to sell fast. They can be people who recently experienced an accident, a family illness, divorce, frustrated landlords, people who inherited properties or are seniors planning to retire to a different home. Whatever the case may be, these kinds of sellers are usually more likely to sell their property for very affordable costs. These types of home owners are not concerned with getting the best deal, and in most cases, they don’t have the time participate in a lengthy negotiation.
Sellers that fit this description are extremely hard to find on multiple listing services. Due to the attractiveness of these kinds of offers, it’s best to contact these home owners directly. The most effective way to find out about these homes is through direct marketing and word of mouth. By telling people what type of properties you are looking for, you are raising the odds of coming across a deal that will work for you.