Real estate investors typically use a variety of tactics to find properties below market value before they go for sale on the market. Some common tactics include:
- Networking: Building relationships with real estate agents, mortgage brokers, and other industry professionals can give investors access to properties before they are listed on the market.
- Direct mail: Sending postcards or letters to homeowners in a specific area can generate leads on properties that may be up for sale soon.
- Driving for dollars: Investors will drive through neighborhoods looking for properties that are in need of repairs or that appear to be vacant, and then contact the owners to see if they are interested in selling.
- Online marketplaces: Investors can use online marketplaces like auction.com, hudhomestore.com, and reo.com to search for foreclosures and other properties that are being sold at a discount.
- Tax delinquent: investors research and find properties that are delinquent on their taxes and contact the owner to see if they are willing to sell.
- Wholesaling: Investors will find properties that are below market value and then find a buyer, acting as a middleman and making a profit off the difference.