In teleseminars and college classes for beginning real estate investors, this is the most frequently asked question.

Investors want to know:How do you find a bargain house?

If you want to get started investing in real estate, here are five ways to find bargain houses.

1. Meet your neighbors. The best way to find properties is to get to know the people in a selected neighborhood. Pick out your "farm," just like any good listing agent. Get out of your car and walk around the neighborhood. Talk to people outside.
2. Meet your bankers. Ask your bank if they have a REO department--real estate owned. Get to know the bankers who work in the RIO department and ask them to notify you of new properties. Ask for the Internet link to their web page with current listings.
3. Meet your real estate agents. Identify the most active listing agents. Look for agents whose listings sell quickly. Many of these agents consistently list properties low. Also, find an agent who knows how to negotiate and who will make many offers for you.
4. Tell your friends, family, and co-workers that you buy houses. Give them your business cards and ask them to pass them on.
5. Make new friends. Talk to people you meet while shopping. Give them a post card with your information. Post cards stand out more than business cards and won't get lost.

Get to be the expert in ONE area. People will tell you when they want to sell. You have to know the area well to know when you find a bargain house and be ready to close fast.

That's the key--stay finance ready. People love to get out from under their problem house right away. When you have financing pre-arranged, you can really get the best deal--because sellers take you seriously.

Copyright