IRS and other Government Auctions
Here’s a link to the IRS and other government real estate auction sites. I purchased one of my first flips from a Treasury Department auction. They don’t advertise them very well, so there is often very little competition. As always, DO YOUR OWN DUE DILIGENCE!
This is the story of how your Mom can help your business! When I first started investing, they advised me to tell everyone you know you’re buying properties. I explained the whole Bird Dog process to my Mom, who loves driving around looking at houses. She asked if I would pay her if she gave me leads on properties. Well, sure. Mom found me dozens of great leads and three properties that year!
This property was only advertised in the local newspaper. She told me about the ad and I went and checked out the open house advertised. There were only 7 people who signed into the Open House visitor log. The house itself was an incomplete build, nice 3-2 on a full acre; 3 city lots in total. ARV was about $110k, just on the house, and $30k on the each lot. I purchased it at less than 50% of the house ARV. It took awhile to get the project finished but I immediately sold one of the lots via owner financing. Eventually we sold the house and extra lot for a nice profit as well.
Local newspapers can be a great source of leads for you. Many government entities and probate leads are required to notify the public but many still do not use website or do much other advertising. So while you’re sitting in your living room, search and bookmark all the local print newspapers in your area. Almost all of them have freely accessible classified ads. At last once a week skim through those sites to see if there are any good leads. If you want to automate the process, you can use several online services to notify you of new ad matching your keywords. More on that later.