Finding Bargain Properties, So, the question of the day is this: How do you, as a real estate investor, find great bargains?
Before we get into finding good real estate deals, we first have to identify what a good deal is. You should evaluate each possible real estate investment on the basis of two scenarios.
First, consider a steeply discounted purchase using ALL CASH as closing.
When you pay all cash, you must buy at a significant discount. Here are three examples when a seller could accept your all cash offer, (1) your seller owns the property free and clear from any loans or liens, (2) your seller has significant enough equity so you can buy significantly below market value or (3) your seller has a lender that is willing to accept less than what is owed - also called a Short Sale.
Second, consider using TERMS, or existing financing to purchase the property. Here are a couple of examples of where these types of real estate investment deals can be found (1) the seller realizes that by selling on terms, they can make more money over time than they could by taking all cash today and putting the money in the bank at a low rate of return, (2) the seller owes too much on the property for an all cash offer to work and is more interested in covering their payments and stopping the bleeding than they are in getting all cash today or (3) your seller wants someone else to deal with the property
