When searching for good sources for real estate deals, I rarely look to a Realtor or a public Real Estate site. I am looking for that diamond in the rough that no one has yet laid eyes on. The primary requirement for the houses that I buy is that they are coming from sources that have little-to-no competition. Essentially, we want as few people as possible to know about the houses that we are buying.
Why? Because more competition means higher prices. Higher prices means houses that don’t work for my business model. That ultimately means that we’re not making money on houses that are in a competitive environment.
To help clarify a bit, I want to provide you with some examples of places that have high-competition levels, and other places that have low competition levels.
HIGH COMPETITION HOMES / SOURCES FOR REAL ESTATE DEALS
- MLS Listed houses
- Houses from Realtors (Some exceptions below)
- Bank Foreclosures
- Craigslist houses
- Publicly advertised For Sale By Owner houses
- Bulk lists from other Wholesalers
LOW COMPETITION HOMES / SOURCES FOR REAL ESTATE DEALS
- Direct Mailing absentee owners
- Code Violation houses
- Vacant houses
- Realtor “Pocket Listings”
- Pre-list foreclosures
Set yourself apart by pursuing houses that are “off-the-radar”. The best sources for Real Estate deals are often those they are tough to find and less convenient, but they are worth finding because they are virtually unknown by the vast majority of the marketplace. By setting your sights on these opportunities that are more elusive. You are putting yourself in the position of highest authority because you will be one of the few, or possibly the only one, that is making an offer on the property – and that’s an excellent position to be in.