This system is not just about making low offers on property. It is not simply about seeing a house listed for $150,000 and offering $130,000, although you may make such offers. As you start to work this system, you will begin to find houses listed for less than what they are worth. For example, you may find a $150,000 house listed for $130,000. You could buy the house for the full listed price and still be getting a great deal.
Most real estate sales or title transfer information is publicly available. The Internet has made the gathering and organization of raw data easier. With minimal efforts, you should be able to find data on property sales including: the names of the buyers and sellers, the sale price, the amount of the mortgage, the name of the lender giving the loan, the lot size, the size of the house, etc. If you like the formats, make databases and charts galore.
Researching property data is your job. Do your job. Don’t be lulled into complacency. To become an expert on real estate values, you’ve got to get out of your chair and into your car. There is a lot of potential profit at stake. This is not the time to take shortcuts. You can’t see beautiful room colors, shoddy construction, a great tiled bathroom, wet basement problems or attic expansion possibilities from a listing sheet or a newspaper ad. Your goal will be to inspect each and every property that comes on the market in your area. Yes, some properties will be out of your price range but you still want to see many of them. Even if your target buys are in the $100,000 to $200,000 price ranges, you still will want to see and understand why some properties sell for $300,000, $400,000 or more. Inspecting properties will become your part-time job. Generally, making an appointment and seeing a property will take less than 30 minutes. In another half hour, you can make an offer and be on your way to a handsome profit.