Top 5 Ways to Find Lucrative REI Deals
For many new investors, the most difficult part of fixing and flipping homes for a profit is finding the lucrative property in the first place. Ideally, you want them to be in fantastic neighborhoods with great amenities and home values on the rise, but those types of properties selling for a discounted price can be tough to pinpoint. Fortunately, you don’t have to do this alone.
Do Hard Money takes pride in helping every client find, fund and flip lucrative properties by providing a vast number of resources in addition to financing. To help you in your search for the golden deal – one that can qualify for 100% financing – we’ve compiled a list of Top 5 Ways to Find Lucrative Deals:
1. Have a Go at Wholesaling
If you’re brand new to real estate investing, wholesaling properties is a very smart way to go. It takes less time, less work and less investment capital on your part. The traditional, retail fix-and-flip process requires you to:
- Find a property
- Secure funding for the property
- Purchase the property
- Rehab the property
- Resell the property
However, when you wholesale a property most of the work is done for you! Wholesaling a property involves someone else finding the property, performing the evaluations and even rehabbing and reselling the property for you. All you have to do is get the property under contract and then sell it for a profit to another individual who will perform the rehab and put the house on the market. Here’s an example of the wholesaling process:
- You receive an email from us listing a wholesale deal with an after-repair value of $100,000
- You get the property under contract for $50,000
- You sell the property to a buyer for $60,000
- The buyer walks into a deal with instant equity and you pocket the remaining $10,000
After you successfully flip a few wholesaling deals, you will receive a far greater understanding of the investment process, plus you’ll have the added advantage of seeing where many wholesale deals are coming from. Those areas can be great places to start finding excellent retail properties for you to fix and flip.
2. Investigate Investment Areas
Have you seen our funded deal blog posts? …You haven’t? Well, go take a look! Many of those cities are fantastic places to start looking for lucrative properties to rehab and flip. If you live near or in those cities, you have the phenomenal advantage of doing some in-depth investigation of those areas. Drive through and around the areas in which you’re interested in investing and look for homes for sale or vacant houses.
Be sure to keep a sharp eye out for the eyesores of the neighborhoods; the best investment properties are those which look like they’ve been vacant for a while. These include properties with overgrown or trashed yards, broken windows and/or peeling paint. You can also tell which homes are vacant by taking a look at the property’s electric meter – a lot of counties will red tag the meter if utilities are currently shut down. You can ask neighbors or county officials who owns the vacant properties and send them a letter indicating interest in purchasing the home as an investment opportunity. Sending a hand-written, personalized letter can go a long way in securing a property for a discounted price.
3. Research REO Realtors
Networking with REO realtors can definitely give you a leg up over other investors competing for fantastic deals. REO realtors have the inside scoop on properties which are in foreclosure, being sold at auction or have failed to sell at an auction. They can hook you up with an excellent discounted price for a property, as long as you take the time to network property. Building a relationship with REO realtors is crucial: they receive tons of calls every day from excited investors like you wanting a great deal on a potentially lucrative property. You need to be able to offer them something that will make them want to do business with you. Offering extras, such as cleaning out the house for them or having your contractor change out the locks, can go a long way in snagging the realtor’s interest.
4. Connect with Code Compliance
This is another excellent networking resource that will help you track down some excellent deals. Get in touch with the code compliance officers in the area where you’re looking to invest and inquire after a list of properties that have had code compliance complaints against them. Some areas are more free with this information distribution than others, but it never hurts to ask. Once you compile a list of properties with code compliance issues, try to contact the owners and see if they would be interested in you taking the property off of their hands. You can find a ton of discounted properties by contacting the owner directly and making an offer.
5. A-B-C: Advertise with Business Cards
A highly efficient way of finding excellent rehab opportunities is to get the word out that you’re looking. You can print out a thousand full-color business cards for twenty bucks and start distributing them. The message can be extremely simple, such as “We Buy Houses CASH,” or “Will Buy Homes As-Is and Close FAST.” Getting the word out that you’re looking for investment properties will generate a great deal of feedback, especially if you distribute them in areas in which you’re looking to invest. This way, you can have the properties come to you rather than having to track them down yourself, one by one. This method can save you a great deal of time and energy in the finding process.
In addition to these finding resources, Do Hard Money provides you with your very own investment associate to help you get started, regardless of what level of REI experience you may have.
To find out more, just click on this link to schedule a time to chat with one of our investment associates. They can help you take the next steps toward REI success and discover what you need to do to open the door to financial freedom. Schedule your appointment today or give us a call at 801-948-9774.