There are great systems out there but investors have forgotten that there are great sources too.
I get to network with tons of active investors and I have observed one fatal flaw that is causing so many new investors to fail. There are so many investors that I know personally that are going crazy trying to pick up REO properties to flip to make a profit. They have amazing systems to Real Estate Investing but unfortunately they haven't realized that there are tons of other sources of properties that they are not tapping into.
I know we all have heard the saying "Don't put all your eggs in one basket." So why are so many investors out there looking for properties with tunnel vision and only going after REO deals? I got a message from one investor that said he had been placing 100's of offers to the banks since March 2010 and had yet to get an offer accepted. This means in almost a year he has not succeeded in purchasing a property. This investor wasn't the only one telling me this either.
The flaw is not the system that they have in place, the flaw is that they are only using the system for one source of properties. There are so many different sources of buying investment properties it is unreal. I want those of you who have been struggling to get a property under contract and are dying to do your first flip to start looking for motivated sellers too. There are so many motivated sellers in today's market right now in every ones back yard. There will always be motivated sellers in every market. You can find them on craigslist, www.forsalebyowner.com, www.fsbo.com, and many other sites. You can definitely find them in your local newspaper too.
You can also pick up Probate properties. Probate is the legal process of proving the written will or last testament of a deceased person is genuine and then following the deceased wishes in that document. When assets of the deceased, such as a house, are probated, the locale probate court procedure gives creditors several months to file their unpaid claims against the deceased estate. The unpaid bills will be paid once the property is sold. Probate properties are a little more difficult to find but can be purchased up to 40% below market value. This is were your networking skills come in. Search the Internet and see what you can find concerning how to buy probate properties in your area and contact them for more information.
Sometimes are source can change from property types too. Income producing properties such as duplexes and multi units are in demand in areas around the country. Do some market research in your area and see what you come up with. Two great market analysis sites we use are www.altosresearch.com and www.neighborhoodscout.com. These websites can give you basic information concerning real estate markets nationwide. Your Realtors can also help you find out what other types of properties besides SFR's are in demand in your area too.
Realtors are also great sources of properties. Did you notice the (s) on the word Realtor. I know some investors that only have one realtor sending them deals and placing offers in for them. You need to establish relationships with as many Realtors as you can. You are not a one time buyer so you don't have to feel like you have to only work with one realtor. I know some Realtors make you feel that way but they should not be afraid of competition and should welcome you having other Realtors if they truly care to see you succeed in this business.
There are other sources of properties out there but we will save them for another blog. Let's get out there and put our systems to work by implementing other sources of deals into our arsenal.
antonio macias
real estate investor
on facebook
Antonio Macias
On Twitter
@FlippinAntonio
Websites
Seller http://www.offerin12hours.com/
Buyer www.RentToOwnBuyer.com
Investor www.RealEstateInvestorDeals.com
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