The initial price paid for your real estate flip is crucial in making a profit.
Some of the best opportunities for locating the right properties are found not on the MIL (Multiple Listing Services) but off-market – properties not listed on any public real estate listing sites.
Here are a few suggestions on how to find these off-market properties.
1. Use a wholesaler. If you don’t have the time and can afford to pay the fee associated with using a wholesaler this can be an advantage providing you know the area and the scope of repair costs. The disadvantage is not understanding the wholesalers contract or the laws governing a double closing in your state.
2. Enlist the services of a real estate agent familiar with the area in which you are interested. Some agents are active on social media may have information about off-market properties.
3. Good old legwork – or driving for dollars. After you have identified an area you want to invest in, look for vacant homes or homes in disrepair. You can either knock on the door to speak to an owner or research the ownership through the address at the office(s) of the county tax records or property deeds.
4. Networking. Beyond family and friends, let other investors, local contractors, and local real estate agents know your intentions.
5. Direct Mail. Send flyers to the area(s) you want to work or use public records to identify foreclosed homes. Use the MIL or other online real estate services to find expired listings and try to negotiate a deal.