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Ways of Finding and Buying Distressed Properties

Time is money. You need to know how to find the specific information that will lead you to investment opportunities that you can use.

Here are 11 resources you can utilize to identify lucrative distressed properties near you to locate the premier opportunities in your market.

For many, the easiest way to find distressed homes might be browsing distressed property websites and connecting with sellers in just a couple of clicks.

Below, we suggest six online resources and tools that can help you find distressed properties without leaving your home or office.

#1 HouseCashin Investment Property Marketplace

Using HouseCashin investment property marketplace is perhaps the easiest and overall the best way to find distressed properties for wholesaling, flipping, rental and other real estate investing strategies.

HouseCashin investment property marketplace is a one-of-a-kind online search engine for off-market properties.

It lists properties posted by owners in various distressed situations such as income loss, divorce, delinquent taxes, pre-foreclosure, probate and more.

There are also distressed properties listed by wholesalers. So if you are a wholesaler, you can find and put motivated sellers under contract and then locate an end buyer (investor) on the same marketplace.

You can easily view distressed homes in your target area by using filters. Enter your location and choose one or more deal types such as:

  • Behind on mortgage payments
  • Delinquent property taxes
  • Tax lien certificates
  • Government owned (HUD)
  • Bank owned
  • Short sales

A listing will have a tag indicating whether it’s a FSBO property, wholesale deal or agent-assisted listing.

For FSBO deals, to be able to view contact information of the owner, you will need to purchase a subscription plan.

Visit the HouseCashin investment property marketplace to learn more about it.

#2 MLS

Now, let’s discuss how to find distressed properties on MLS, as it’s the most basic tool for many investors.

The Multiple Listing Service (MLS) is a private database of information on residential properties for sale. Your local MLS is probably owned by the local or regional Board of Realtors or a similar organization.

To access the MLS, you will need to be a licensed agent and possibly a Realtor. A Realtor is a licensed real estate agent who is a member of the National Association of Realtors.

If you are not a real estate licensee, there is another way that you can get pertinent MLS data that helps you locate distressed properties.

Investors starting their careers should consider associating with a licensed agent. They can not only help them identify distressed properties, but they can also place their listing on the MLS when it’s time to flip.

In order to generate repeat business from builders or investors, many real estate agents and real estate brokerage firms will strike a deal on commissions.

#3 Home Listing Websites

Websites like Zillow and Realtor.com can help you access enough MLS data to help you identify distressed properties for successful investments.

A lot of their information comes from the various local MLS databases. This includes information such as foreclosures, FSBOs, and days on market.

Be aware that the seller can opt out of placing their property on these websites in some states.

Some boards have set up their own service to sell information directly to the public. These services don’t provide all the MLS data, but they include the critical information you need.

#4 Government Websites

Investors always want to know, “how do you find distressed properties for free?”. This method is free.

When learning how to find distressed homes, remember that some sellers are the people or entities that loaned or guaranteed the loans made to the homeowner.

When the homeowner stops making loan payments, the lender or guarantor has the right to sell the collateral to reimburse themselves. This includes several government entities.

The US government provides information to the public, including a distressed property list of foreclosed homes whose owners defaulted on mortgage loans that were issued, purchased, or guaranteed by the federal government.

In addition, federal law enforcement agencies are responsible for seizing and disposing of assets that were acquired in court-ordered asset forfeitures. These assets often include residential real estate.

A prepared list of distressed properties can be a big help to real estate investors in locating opportunities and evaluating prospective investment markets.

Residential properties purchased with HUD or FHA insured loans are sometimes foreclosed on by HUD for default by the borrowers.

The Veterans Administration (VA) and the US Department of Agriculture (USDA) also have residential mortgage loan programs.

To find HUD multifamily property foreclosures for sale, go to the HUD website. Here you can sign up for their regular mailing list of available properties.

You can find single-family homes with FHA loans that HUD is foreclosing on by visiting this web page.

The Federal Housing Finance Agency (FHFA) oversees the Government Sponsored Enterprises (GSE) that support the US mortgage markets: Freddie Mac, Fannie Mae, and the Federal Home Loan Bank.

FHFA sometimes forecloses on properties that secure loans purchased by these entities. You can find these properties by going to this page.

For convenient one-stop shopping for government foreclosures, go to hud.gov and enter “houses for sale” in the search window.

This takes you to a list of links. Click on the one for “Houses For Sale.”

You’ll be directed to sites that detail foreclosures by HUD/FHA, VA, FDIC, USDA, Fannie Mae, Freddie Mac, IRS, US Customs, US Marshall’s Service, and the General Services Administration.

#5 Banks’ Websites

When a bank forecloses on a home and doesn’t sell it at auction, the property is kept on their books as Real Estate Owned (REO) property.

These properties are liabilities for the bank, and they are eager to get rid of them.

Some banks show their REO offerings on their websites. Today, some banks set up a separate site for this purpose. Here are the top U.S. banks and their REO pages/sites:

  • Chase
  • Bank of America
  • Wells Fargo
  • Citibank

US Bank – They do not participate in the listing or sale of REO properties, preferring to work through “real estate disposition vendors.”

To find REO properties for other banks in your area, search online for that bank’s name followed by REO (example: chase reo). This often shows you their REO site or website page.

Lastly, you will have to persuade the bank that you qualify as a buyer. Read advice from our experts who discuss how to get foreclosure listings from banks in our article.

#6 CRMs

CRM stands for Customer Relationship Management. CRM software and online platforms provide real estate investors with market analytics, lead tracking, prospect communication, contact follow-up, and more.

Some CRM providers offer market data that can lead you to suitable investment properties. Much of this data comes from the local MLS as well as public records and third-party data sources.

Some CRMs work as lead generation sources for real estate investors. This service may be included in a basic or more advanced payment plan.

To find the best CRM for your needs, review our guide to the best CRM software for real estate investors.

How to Find Distressed Properties Offline

#7 Tax and Lender Foreclosure Auctions

Research the national and local real estate lenders that are active in your area to find out what auction firm they use for foreclosures.

If you contact those firms, you can usually get on an email or mailing list to be notified of upcoming auctions.

It’s not unusual for the lender to be the high bidder at auction. They then sell the property for at least enough to make themselves whole.

When you get to know the local banks’ REO managers, you can probably get a call from them when they have something you might be interested in.

Private firms like CWS Marketing often handle national government tax lien foreclosure. They might also notify you of scheduled foreclosures.

Additionally, think about developing a relationship with your local property tax attorneys and property tax protest companies. They could send you leads when their client’s property is going into foreclosure.

#8 Driving for Dollars

Investors should regularly spend time in their markets. You’d be surprised at the opportunities you can find ahead of your competition by consistently driving your market.

One thing you’ll see periodically is foreclosure notices that are posted on properties being sold.

Moving vans or rental trucks at a house with no For Sale/Sold sign in the yard may mean that they are keeping the house as a rental property.

But it could also mean that they have to move without selling the home because their lender has taken it over.

Look for properties where the home and the landscaping haven’t been kept up with. Other clues are a mailbox packed with junk mail that hasn’t been removed and multiple notices stuck to the door.

Although this method is time consuming, it’s one of the popular ways of finding motivated distressed home seller leads for investors and wholesalers.

#9 Networking

Regular networking is critical to a sustainable investment business. Your network should include real estate attorneys, real estate CPAs, mortgage brokers and lenders, short sale processors, and home appraisers.

These people are a good source of information and referrals that can keep you on top of the trends in your markets.

Find opportunities to benefit them with leads that help their business, and they’ll respond with tips that help you.

#10 Real Estate Wholesalers

A wholesaler’s strategy involves putting a property under contract at a price that works for investors like you. Don’t be put off because they charge a fee for their services.

Outsourcing your property search to wholesalers can give your investment business a repeating pipeline of opportunities. They are professionals who know how to generate motivated seller leads on autopilot.

Real estate wholesalers in your area are an excellent addition to your network of real estate professionals. They may be able to refer you to other resources that can help your business.

An alternative to wholesalers is employing real estate bird dogs. They specialize in locating distressed properties and referring them to you at a fee, without entering a purchase contract with the owner.

#11 Public Records

Here is another method of how to find free motivated seller leads.

The local county’s website will provide a list of properties being sold for delinquent county property taxes.

Many of them now have interactive maps that show the location of each foreclosed property.

Neighborhoods with multiple foreclosed properties may indicate an area on the way down or a good investment asset hunting ground.

If not, search for notices of foreclosures. These might be called a Notice of Sale or Notice of Default.

One good thing about public records is that they contain historical information on the property and its value.

Best Lead Generation Sources for Real Estate Investors.

 REB Leads

The REB Leads program is an exclusive collaboration between Real Estate Bees and HouseCashin.

These two online platforms generate motivated seller leads and offer them to real estate investors: flippers, landlords, and wholesalers.

REB Leads offers the most affordable cost per lead: just $12.50 or $20, depending on the subscription plan (discussed in detail below).

Despite the low price, the leads are of exceptional quality. This service is the newest compared to the other lead providers reviewed in this guide.

REB Leads sets such a low price to help their brand new service boost its popularity.

At present, the number of subscription spots is limited to 100. Once this number is reached, the program will close indefinitely.

For now, there is still a place for a few new subscribers.

Features

  1. 20 motivated seller leads per month
  2. Facebook & Linkedin inner circle group access
  3. 24/7 email support
  4. Free publicity (PR) program allowing to get mentioned by popular media publications
  5. Priority access to becoming an expert web content contributor for Real Estate Bees

Lead Quality and Type

REB Leads offers motivated seller leads that are highly converting and prequalified.

The web assets used for lead generation are meticulously designed to collect significantly more information about the leads than other lead providers offer.

Based on the detailed information about the homeowners, you can pick and choose the leads before claiming them.

Claiming more than 20 leads for a month is possible, at an additional cost.

The motivated seller leads include a wide variety of homeowner types, such as:

  • distressed home owners
  • heirs
  • fixer-upper home owners
  • relocating families
  • people surviving income loss

and others.

Pricing

There are two subscription options: 6-month plan ($397 per month) and 12-month plan ($247 per month).

This brings you to $20 per lead with the 6-month plan and $12.50 per lead with the 12-month plan.

When signing up, the payment should be submitted for 6 or 12 months at once.

REB Leads has a refund policy according to which they replace a bad lead with another one.2CHAPTER

2. iSpeedtoLead

You do not need any experience with Google Ads to get leads from Speed to Lead, as it handles them for you.

They sell freshly generated motivated seller leads that come in through their ad campaigns.

The iSpeedtoLead.com website allows you to see details of the lead, the repairs needed, and reason for selling before committing.

They currently have over 6,000 investors using the platform. Also, the service is available in every state. If the homeowner has already listed with an agent, they’ll refund your money.

According to their website:

“We ONLY generate motivated sellers, no tire kickers and “what’s my home worth” leads. We guarantee that every lead is off market. If it’s listed or already under contract, it’s your money back.”

Features

Investors sign up for free and get notified via email and SMS whenever there’s a new lead in their area. Speed to Lead doesn’t charge a monthly subscription.

Lead Quality and Type

Speed to Lead promises to connect you with off-market leads in any city or state. They provide as much information on the lead as possible: their motivation, repairs needed, and more.

Thus, investors wouldn’t have to waste time on unqualified leads.

The information provided is what the seller already entered into their lead form. However, there have been complaints of lackluster customer care with Speed to Lead.

Pricing

There are no subscription fees. You can get motivated seller leads for real estate investors à la carte. A lead price ranges between $250-$400. First-time users get 50% off their first lead.3CHAPTER

3. USLeadList.com

This company has been supplying high-quality data to real estate investors for more than 11 years.

USLeadlist.com offers an exclusive list of inheritance leads that only comes out every 3 months. That is, their lists only come out in January, April, July, and October.

So if you missed out in January, you may have to wait till April.

That’s not all. Only 3 people can have access to their lists per county.

On the other hand, they provide some of the most reliable data on the market.

USLeadlist started out in California, helping investors send out targeted direct mail to older homeowners, who have equity and are motivated to sell or invest.

These are under-the-radar leads, unlike foreclosure or divorce leads, and are not as overworked.

Features

  1. Direct mail lists. They provide targeted direct mail lists of inheritance leads for your direct mail campaigns. This service is available nationwide, and sales are limited per area. They create new unique lists every quarter.
  2. Skip tracing. They offer a skip tracing service.
  3. YellowLetter.com direct mail. With over 500 real estate templates, YellowLetter is one of the most popular direct mail providers for investors and realtors. Yellowletter is a subsidiary of USLeadlist.

Lead Quality and Type

USLeadlist is one of the biggest providers of inheritance leads. These are low competition leads since they are highly targeted and only available to 3 investors per county.

According to USLeadlist, sellers already have equity and are ready to sell. But you should know that with inheritance leads, there is less urgency to sell.

Pricing

For a list of 250 inherited houses, USLeadList costs about $400. Mailing via Yellowletter costs about $125.4CHAPTER

4. Needtosellmyhousefast

NeedToSellMyHouseFast was founded in 2010 to help South Florida homeowners who were looking for alternative solutions to sell their homes.

Today, the company has expanded to cover more than five hundred cities across the US.

They have more than two hundred local landing pages for motivated home sellers, some of which rank very high on Google.

They also run targeted Google ads to generate pre-foreclosure, divorce, probate leads, and more.

Features

  1. Qualified leads. With their network of sites, Needtosellmyhousefast.com generates lots of qualified leads. Some of these leads may come with more information than others. But each lead comes with the seller’s name, email, phone number, and property address.
  2. Integration with the best CRMs for real estate investors like Podio, Salesforce, Follow Up Boss, Pipedrive, and Zoho.

Lead Quality and Type

Need to Sell My House Fast offers a refund if the lead contains false information or is not a seller lead.

Users can submit a dispute within the first 48 hours of receiving the lead. They promise high lead quality.

According to their landing page, “our most successful investors close as many as one in five leads”. However, that is if they do the work of nurturing the leads adequately and patiently.

“Successful investors build a strong lead pipeline and implement robust follow-up sequences that span months or even years”.

Pricing

Investors set a bid price for leads per county. New leads are forwarded to the highest bidder for that county.

The lead is sent to the next highest bidder in the event the monthly budget of the highest bidder is exhausted. Bid prices are set in 25-dollar increments.

We buy houses in Pinellas Park Fast!