How Real Estate Investors Identify Profitable Deals

Successful real estate investing requires that you purchase deals that will leave a profit for you no matter how you buy and sell houses.
The following tips will help you weed out bad deals and focus only on money makers.
1)After Repair Value
You must have a property market value before you can buy it. When I buy houses, I prefer to work with conservative market value to be safe.

The value at the county records can be a good indicator of the fair market value. It is usually lower than comparable sales of homes sold in the area. On the other hand in a depressed real estate market, house prices can be affected by foreclosures in local neighborhood. If you do not have access to your local MLS, it would be advisable to team up with a local realtor who can run comps for you from time to time.

2)Repair Estimates
You will need to do some kind of repair on most properties. You must reliably estimate repairs quickly without getting too detailed. As you get more experienced, you can reliably estimate repairs by looking at a house in 5 to 10 minutes.

I try to work with higher repair estimates to stay safe.

3)Mortgage Balance
You cannot make an offer on a house unless you know what is owed on it. If your offer cannot pay off the mortgage and leave a profit for you, then you may be better off looking for another deal.

If a motivated seller is not motivated enough to provide this information, you might want to move on to the next one.

4)Asking Price
If a seller wants full market value for their house, they are not motivated enough for you. Unless they can allow a margin for profit, you may be better off looking for the next deal.

Sometimes motivated sellers may not know the market value of their house, and showing them your numbers may change their minds and accept your offer.

5)Is It Vacant?
This indicates how motivated the seller is. If they are making more than one or more mortgage payments, they must sell fast. It also means you can take possession of the house as soon as you buy it.

How do you receive this information?
It is necessary to have a good real estate investor website to receive this information. The website should teach them how you buy houses, and provide them with the opportunity to submit their house information through your website.

The form should collect as little information as possible, but just enough to know whether it is a deal or not.

The less information you collect the more response you will get through your website. This will save you lots of time because you will not talk to sellers whose houses you cannot buy.

You can then ask them for any information you need as you talk to them.