Mark,
The first thing you need to do is learn what homes sell for in your market. You need to look at a LOT of them and keep notes as to what they sold for (public info at the recorder’s office).
As for actually prospecting, quit looking at houses. Read the articles, money ideas and success stories here then do an archive search for “motivated seller” (they exist in EVERY market, even the hot ones). Finding those sellers is what will lead to good deals.
Lyal
I am a First Time Home Buyer looking to get started into the RE game. I am not afraid to get started but rather confused as to where to begin. I have limited funds to put down on a home, about $20K and not sure which area to start in.
Even though it is still a seller’s market in my area the homes are not turning over as they were a couple months ago. So right now I am just looking at homes in the paper and driving around looking for RE signs. Unfortunately, in option 1 all the homes I have seen represent a negative cashflow on a monthly basis, requiring me to dip into my own pocket to help pay off the mortgage and this is without me even living in the house.
What I am asking is for a Good starting point considering my position of low fundage. Once I gather some more funds, either Equity or cash, I figure there will be more options open to me.
Any input would be greatly appreciate and reciprocated.