Sometimes we have to be creative finding cheap and economical but worth-your-time deals in property investing, we have to do our homework, and take action when we are on a tight budget.
Here are the 3 Economical Ways Without Going Broke
1. Drive for Dollars.
This is the easiest and one of the most effective Cheap Ways to Find Deals in Real Estate.
Although it may seems easy to do, I have come across people that want to start investing in real estate by don’t like the idea to drive around neighborhoods, because they are too comfortable browsing properties in the MLS and Zillow. It does not make any sense, but it is the truth.
To Start, pick 3 zip codes in your area ideally near to your place of residency.
Search for neighborhoods where houses have been built in 1990 or below. Usually if you go online in the local MLS website you can do this or just ask a realtor to pull this list for you.
If you cannot find the neighborhoods, just go to google maps and type the zip code, and the map will show the area. Print it and get ready for a drive.
Download the Zillow app on your phone, this will help you place a map to navigate in the subdivision and usually if you cannot find the address of the house, the Zillow app will help you.
Look for vacant or distress houses, usually they have overgrown grass, broken windows, trash in the yards, peeling paint, etc. This is a great Article on Driving for dollars that you can read to help you.
If house is vacant you can talk to the neighbors to get the owners information.
The goal is to get at least 20-30 houses or just drive for 2-4 hours and see how many you can find.
Once you have collected all the addresses, go back home and look in the county records for the owner name and place of residency
To get in contact with the person you can ask the neighborhoods about the owner number if the house is vacant and call later. Or if house is occupied you can know on their doors.
I usually prefer to send a yellow letter if the house is occupied. The yellow letter usually gets the most responses, and everyone that call is already qualified by you, so you know the house is distressed.
Here is a yellow sample message
Dear [insert owner name],
My name is [your name]. My wife and I were driving around [neighborhood name here] and noticed your house at [enter address here]. We are looking to buy investment properties in the area. If you would like to sell your house, please call today, as we are only buying a couple of houses. We can pay cash and close quickly.
Sincerely, [your name]
Mail it in a personal-sized envelope that is hand addressed (very important!) and stamped (not metered).
2. Find local Wholesalers
Wholesalers are an awesome way to get deals. Why not benefit from leveraging other people’s marketing?
Don’t automatically assume that they all ask too much and there is not enough room in their deals. Some wholesalers consistently provide spectacular deals and those are the ones worth finding. They are out there. While you are rehabbing and making money, they are finding more deals for you.
Spend time at your local Real Estate Investment Groups and calling other investors for referrals. Look for those wholesalers and get to know them personally. Have lunch. Get the deals.
Working with Wholesalers is one of the Cheap but effective ways to Find Deals in Real Estate that you need to consider.
3. Online Classifieds or For sale by owner sites
Use Craigslist, Backpage, Ebay classifieds, Zillow, and Section 8 and other For Sale by Owner sites.
Call all houses for sale that you can.
Then go to the for rent by owner and call them. Just tell them that you like the area where the house is located and you would like to know if they are interested in selling it. Some landlords, do no take care of their properties the right way, and they will be happy to sell.
I hope you start applying these Cheap Ways to Find Deals in Real Estate soon as part of your marketing strategy.