In real estate investing, you must have a continuous flow of good deals to make a profit. What this means is that you must buy your houses low enough so you can make a profit.

So how can you buy houses at prices low enough to make a profit?

1) Motivated sellers
This is my favorite source of good deals. It is the easiest method to find deals below market value even before they find their way into the market.

A motivated seller is a seller who really needs to sell their house. Usually, they could be behind on their mortgage, facing foreclosure, divorced, burned by bad tenants, have inherited property, and so on. The properties have become a thorn in the flesh to them, and they can do anything to get rid of them.

So how do you find motivated sellers?

You simply need to market to home owners who are in legal trouble. In my market, I am able to get a listing of all county court filings every day. If they own real estate, they get into my mailing list.

These people are usually very motivated and ready to do business today.

2) Wholesalers
You can also buy these houses from other real estate investors at wholesale prices if you do not have time to market to motivated sellers.

I usually have a lot of good deals, most of which I cannot pursue. For this reason, I wholesale them to other real estate investors who will probably fix them up and put them back on the market either as rentals or resale.

When you buy wholesale deals, you take over the original contract, or you get the property in simultaneous closing. The details of these deals are discussed in a separate article.

3) Local REI meetings
I can bet that right near where you live, there is a group of real estate investors that meet close by. These are people who buy and sell real estate actively in your local market.

This means you can find great deals from these groups.

4) REOs and the MLS
I have to say that these will not be the best deals you can find. The asking price is usually too high for most real estate investors even though thousands of properties are sitting out there with no buyers.

This is because they have been too over-shopped and the prices inevitably remain too high.

These deals are the least recommended for investment purposes.

5) Courthouse auctions
A lot of home work is needed in order to get good deals from court house auctions. I do not recommend this method unless you know what you are doing.

6) Craigslist and other online sources
Again, good investment deals are rare here because the resource is too over-shopped and most Realtors and FSBO owners advertise here. It is not easy to get a good deal from Craigslist.

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