Finding the properties to invest in is the first step to real estate investing. There is no one special place to find great deals. Often it will depend on many factors, one of which is your location in the country. Therefore, it is up to you to do some research and find the deals in your area. Do not worry if you miss one, another will be along shortly. You cannot find them all, but you can find enough to make you wealthy if you are willing to look.
Newspapers: Many owner-sellers who are not using a real estate agent advertise in the classified advertisements of their local newspaper. These will not be the big display ads by real estate companies, but rather the small three or four-line ads. Many of these owners will be asking way above the market value, but often they will be way below. If you know how to evaluate properties, this can be a great opportunity. These properties often have less competition than those listed with real estate firms, since the small ads and the sign on the front lawn do not reach as many people as the real estate firms reach with their web pages, real estate magazines, and the multiple listing networks. Once in a while you will even find a good deal in the newspaper that was put there by an agent. A good deal is a good deal, no matter how you find it.
Real Estate Magazines: Real estate magazines nearly all have color photos of each listing. A knowledgeable investor can quickly peruse the listing in particular areas, the number of rooms, asking price, and look of it in the photo and make a decision as to whether it is worth looking at in more detail. One problem with these magazines is that they tend to go out of date much quicker than newspaper ads. Depending on the market, the best deals may be gone right after, or even before, the magazine is printed and circulated.
Real Estate Agents: Forming a relationship with a real estate agent is a must if you wish to become a serious real estate investor. A real estate agent can offer a stream of recommendations that may not be listed in the newspapers or magazines yet. Many of the best deals are never even advertised. Your real estate agent should know what you are looking for, and therefore not waste your time with properties you would turn down quickly. And do not stick to just one agent. Yes, you should be loyal and develop a relationship, but know that every agent will not have access to every property on the market, and will not necessarily hear about every good deal that comes along. Ask people you trust for recommendations for a real estate agent, and then interview them. You may want to interview a few at random. Just be sure to find a good agent that you can work with, and one that understands investing in property. You are not out looking for a residence or home, you are looking for an investment that will provide a positive return. If your agent is also an investor, he will provide you with the information you want to know when analyzing the deal.
Other Sources: The three sources above are probably the most common and where the majority of people think of first when looking for property. There are, however, other sources if you look. There are foreclosure sales, bank owned properties, and places that have not been listed yet. Do not forget the importance of networking. Once people know you are a real estate investor, you may be provided "inside" information and learn of hot properties before they are known to the public. People may seek you out, knowing you invest in real estate, to offer you deals. You can also run your own advertisements. Rather than sit and wait for deals, proactively look for and find them. Take the initiative and offer to buy properties in your own advertisements. Investment properties are out there. Good and great deals are out there. It is up to you to find them.