The Three Levels of Finding Great Real Estate Deals

One of my favorite things about real estate is that you can tailor it to fit your life. There is no one-size-fits-all.

And there are three levels to finding deals. Level one is on-market deals. Level two is other people’s off-market deals. Level three is your own off-market deals. Each one has its own challenges and levels of discomfort.

On-Market vs. Off-Market

On-market means a property is listed on the MLS with an agent. It’s easy to find, but there is more competition. You usually pay closer to retail price here.

Off-market means the house isn’t publicly listed. You might deal directly with the seller. This takes more work, but it often leads to the best deals with the most profit.

Stop Looking for Houses

The key to finding a great deal is to stop looking for a house. Instead, look for a situation. You want to find a seller who has a reason to sell at a discount.

Maybe the house has been on the market for 90 days. Or it is an expired listing that didn’t sell the first time. These are clues that the seller might be motivated. And you can find these clues in the property descriptions too. Look for words like “as-is,” “motivated seller,” or “handyman special.”

Get the Right Agent

You need an agent who understands investors. Most agents only know the retail side of things. But an investor-friendly agent will know how to analyze a deal and find underpriced properties.

Vet your agent. Ask them about the properties they own. Ask for references from other investors. A good agent is your inside source and advocate. They might even hear about a deal that fell through and send it to you before anyone else knows.

Stick to your numbers. Don’t let your emotions drive your decisions. If a deal doesn’t work at your price, walk away. There is always another one.

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