Foreclosure Properties: It's A Numbers Game

Due to the high level of competition in the real estate market, it is actually very difficult to find foreclosure properties. There are many means for doing so now, but it's important to be the first person to actually get to these homes. Some of the ways for finding a foreclosure are the internet, physical mail, friends and relatives, trade groups, seminars, and in the good old fashioned newspaper. I will walk you through a number of these areas methods in this article, but as we go through them, remember that you should never rely on any one single method. These methods are presented to you with the intention of having you build out your toolbox, so that dependent on the situation, you can easily adapt and become creative.

The United States government requires that foreclosed properties publish a public notice of auction in the local newspaper. By subscribing to the paper and looking for these ads, it's possible to find foreclosures that may, for some reason or another, not make it onto the internet or mainstream radar. Furthermore, I recommend that you go a step farther and publish your own ads int he papers. You can write that you purchased foreclosed properties, and that you welcome anyone who is about to foreclose to contact you to see if you both can work out a mutually satisfying agreement.

One of the most time-intensive, yet productive, ways to find quality foreclosure properties is to go the Direct Mail route. If you opt to use Direct Mail, you can generally talk to the person who is in pre-foreclosure and negotiate a win-win situation. The person gets out of the property before reaching foreclosure, and you will negotiate a good discount on the house. Furthermore, this seriously cuts down on the competition, since the property never reaches the stage where it needs to be published.

Real Estate agents can be another excellent source of leads for foreclosed, distressed, and REO properties. The reason for this is because banks work with real estate agents to sell the properties that they end up with. Banks are good at lending money, not so much at selling property. Therefore, by networking with your local realtors, you can form a powerful network of people who will alert you to people who are ready and willing to make a deal.

And one method that should never be forgotten is to keep networking! Use word of mouth, and let everyone you know that you are looking to purchased foreclosed homes. You can even consider making business cards to give away to everyone you see. People have connections, and they want to help other people they know. Using this technique will massively expand your range of focus when it comes to competing in this competitive market. Therefore, there are a lot of great ways to located foreclosure properties. Use these techniques as a toolbox. It's strictly a numbers game, and you should always be pushing to find your next property.