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Step 1
Houses can be bargains just like any other product for sale. Usually, bargains fall into one of three categories. Interest rates are great. The time of the year is slow in your particular market. And there are special circumstances. The major special circumstance is foreclosure or pending foreclosure. Look for a home that falls into at least one of these categories, and two or more is obviously better.
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Step 2
To find these homes you have to look, look, and look. First, you should have settled on the neighborhoods where you want to invest. You should have found a real estate agent who knows what you want and will work with you. You should know how to use the Internet for real estate searches. Once you have all of this sorted out, then use a lot of shoe leather.
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Step 3
Drive through your target neighborhoods. Talk to residents who are out doing yard work or walking. Get out of your car to talk to them. If you see a mailman or delivery man, ask them if they know of any house that might fit your criteria. Walk the neighborhood. Look for homes that are currently not being kept up.
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Step 4
Today you may see a sign on a property that says bank owned home. Investigate that property. Look for home owners with other large change of life issues like divorce, death of the owner, job transfer, or job loss.
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Step 5
When you find the right house, try talking to the owner. See if you can use an attorney to buy the home with a quit claim deed or better a warranty deed. Owners may be very anxious to get out from under the mortgage and will sell for bringing the mortgage and taxes up to date and a little equity. Sometimes you can find a short sale where the mortgage holder is a willing partner in the process.
