The best way to find the best real estate deals

<<>> If you’re just shopping for the cheapest price you’re making a big mistake when buying real estate. An investor from CA purchased some real estate in my area. He thought that what he was looking at was some of the best real estate deals. His intention was to purchase this cheap real estate and rent it out for a positive cash flow. As it turns out, he couldn’t rent his cheap home.

He picked the worst neighborhood in this entire county to buy a rental home. Most decent people that move into this area, move out of this area because they felt threatened or people keep stealing their things and breaking into their cars. While you may not make much money from selecting a rental in the nicest neighborhood, you surely wont make any money by picking the worst neighborhood and the cheapest home and if you do this, you’ll have to deal with problems every day.

Do you think that REO's or foreclosures are a good idea? Once the owner’s home goes back to the bank, there’s a good chance that you won’t get a good deal. Banks will hire an appraiser and find out the value of the home. the bank will list the home based on what they feel the home will sell for or what the home is worth "as is" "subject to" and both "as is" and "subject to" a specific marketing time. This is why foreclosures may be the worst way to find a good deal. Now let's talk about the best way to find homes.

Find homes that have been listed and are expired and contact the owner to see if you can purchase the home. Once the owner understands that his home will not sell for what he had the home listed for and his home has been on the market for a year or so, he/she wants to sell before they lose there home to the bank. If your timing is correct and the home owners have some equity in their home, you have a good probability of finding a good deal.

Find “don’t wanters” These are home owners who really don’t care anymore. They just want to sell their home fast and move on. Many times, these homes will have small problems such as a cosmetic fixer or larger problems like a leaking roof that they just don’t want to deal with. Many times you can get a screaming deal if you understand how to negotiate. Divorces, home owners that will be moving (military or job change) to a new location, problem homes, job lose are all sad situation, but you may be able to help someone in a bind and in return, find a good real estate deal. But be sure that you always get a full real estate appraisal and a home inspection on these types of homes and make sure you really know what you’re doing. I’ve seen a lot of people get burned and buy someone else’s problems.