Look for sellers who are forced to liquidate their real estate .
Look for mortgage holders who are anxious to liquidate their mortgages at a discount to solve a cash need.
B. Distressed Properties:.
Look for sellers who are anxious to unload properties that are in a crisis --- problem tenants, natural disasters, floods, fire, etc.
Look for properties that are run-down and need repair or major fix-up. Often a total face-lift will dramatically increase rents and property value.
C. Conversion Opportunities:.
Look for properties that are ripe for conversion to another use --- apartments to condominiums, apartments to office space, office space to retail space, vacant farm land to building lots commercially zoned acreage. Converting from one use to another can increase value.
CONCEPT OF BUY LOW/SELL HIGH.
Become Proficient in 3 Specific Skills to play the game of Real Estate Investing:.
Finding deals: Get good at finding real estate bargains.
Funding deals: Have ability to qualify for mortgages and find down payments.
Flipping deals: Have ability to remarket the property quickly for profit.
Seven Possible Steps of the Process:.
1. Buy residential property within 50 miles of your home.
Single-family homes, apartment buildings, condominiums are easier to sell, to rent, and to finance.
2. Pick a target territory about one mile square and be the expert there. There could be 3 to 10 good bargains a year in this area. The trick is to be there first --- always on the lookout.
3. Though there are many ways to locate motivated sellers, here are nine ways to use: 1. Classified ads for Houses for Sale, Condos for Sale, Investment Properties for Sale, Houses for Rent or Lease, Houses for Lease Option, 2. run your own ads, 3. Realtors, 4. canvass a target area, 5. friends and contacts, 6. Banks, 7. the county courthouse, 8. Investment clubs, 9. Professionals (accounts, attorneys, etc.). Circle the ads that sound flexible. You do not want problem properties.