To be a successful real estate investor,you must buy properties with positve cash flow along with positvie equity. I mean that when you buy a property, you need to buy it at below market value. The only way you can do this is by finding and purchasing homes from motivated sellers. Finding motivated sellers and negotiating profitable deals can be a full time job. Here is an example of motivated sellers. People in divorce, bankruptcy, burned out landlord, probate, or the big one today is people who owe more than the house is worth and cant afford the house payments.
You can find these types of people through attorneys, county records. You could find burned out burned out landlords at the courts where the eviction cases are held. You can subscribe to online services to receive notices on people who are recieving a notice of default. These services can also give you a rough idea on how much more they owe compared to the value of the house. You can also find below market properties from wholesalers. These people make it their business to locate motivated sellers and then transfer the right to buy a property for a fee to an investor. You can also sometimes find discounted properties from realtors that list bank owned houses. Before you close on this discounted property, remember to check out the rental rates for a similar type of house. You can check out rental rates online at www.rentslicer.com or I found a new one at www.zilpy.com.