My Top 10 Favorite Ways to Find Houses to Flip

Updated:  January 2021

The lifeblood of any house flipping business is being able to find a steady supply of houses to flip. 

If you’re new to real estate investing though, you might be struggling with how to find flip houses. 

So I created this list of my top 10 favorite ways to find houses to flip.  

1. Driving or Walking for Dollars

Driving or walking for dollars when real estate investing is really very simple and as the name implies simply involves driving or walking neighborhoods you are interested in investing in.

Remember though you are not just out for a leisurely stroll or drive, as you are specifically walking or driving neighborhoods of interest to find potential real estate flips.  

While there are many variations to this technique, in general, you want to walk or slowly drive through neighborhoods and look for houses that show signs of neglect and deferred maintenance or signs that might indicate an absentee owner. 

Things to look for might include overgrown bushes or lawns, missing shingles or a tarp on the roof, peeling or faded paint, and newspapers or circulars piling up in the mailbox or near the front door, etc…  

Once you have located a house that is showing signs of neglect there are two potential paths you can take to potentially turn it into your next flip, the first is more direct and the second is more subtle. 

Option 1

The more direct path is to simply walk up and knock on the front door to ask the seller if they are interested in selling. 

Option 2

The second and more passive way is to write down the address of the house and send them a handwritten letter letting them know you are a real estate investor and have an interest in purchasing their home. 

Also, don’t be afraid to send more than one letter as you may have to make several attempts before getting a response. 

As a word of caution though if you plan to use the mail approach, make sure you are sending the letter to the owner of record, which might not always be the same as the house address, as the home could be a rental property.

A good place to find the owner of records address is through your local tax or assessor’s office or through public records. 

2. Online and Offline Real Estate Auctions

Real estate auctions can take two main forms including online and offline. 

While online and offline auctions will operate in a similar fashion it’s important when bidding on a piece of property that you fully understand how the auction works. 

Items that are important to know about the auction include what fees you will be charged, how the escrow process will take place, whether financing is an option or if cash is required, and what type of title you will receive for the property if you are the winning bidder.

A couple of good national real estate auction sites to check out when getting started include auction.com, hubzu.com, and xome.com.

Don’t forget about the local auctions companies though especially ones that require bidding to take place on-site and in-person, as these auctions can be a great way to reduce the amount of competition you face when trying to buy your next flip.

3. How to Find Flips Houses Using For Sale By Owners

A great resource for potential house flips is for sale by owners or FSBO’s as there often called. 

While this source of flip does require a disciplined and consistent approach you can absolutely find great deals on for sale by owner properties.

It’s important when looking for sale by owners to set up a systematic and consistent approach when on the FSBO hunt to ensure you don’t miss one.  

A great place to look for FSBO’s is forsalebyowner.com, which is used by people trying to sell their house on their own.  

Another good place to check when looking for FSBO’s is zillow.com, just make sure you select the For Sale By Owner filter to remove other types of properties in the search.

For more information on Zillow and FSBO’s check out this great video, I found on YouTube that goes through the entire process of finding for sale by owner houses on Zillow.  

Even though online can be a great source for FSBO’s don’t forget about the more old school or tried and true methods such as classified ads, yard signs, and word of mouth.

For sale by owner properties are not always the easiest to locate.

But remember the harder the property is to find the less competition you will face when you find a good deal.

4. Using Real Estate Agents to Find Potential House Flips

Most professional real estate investors work with not only one but usually several real estate agents to help them find good deals on real estate to flip. 

This is because professional real estate investors know that real estate agents can be an invaluable source for good deals on properties.  

When seeking out real estate agents for your own house flipping needs though it’s important to remember that not all real estate agents are created equal and skill levels and ability to find good deals on real estate can vary wildly from agent to agent.

So, when looking for a good real estate agent to partner with look for an agent that has been in the business a few years, is well connected to the community, and preferably has a background or understands the investing side of real estate.

Also, don’t forget that you don’t need to be loyal to just one real estate agent, instead, you should use the moto that you will do business with whoever brings you the deal.   

5. How to Find Flip Houses Using Foreclosures

One of the best ways to acquire a property below market value is to purchase a foreclosure or real estate owned property which is often referred to as an REO.

A Foreclosure is a property that was taken back by the bank or whoever issued the loan on the property that was in default.

Since the property has gone through the foreclosure process the property is referred to as an REO or real estate owned, meaning it’s a property that is owned by the lender, which is usually a bank, government entity, or loan insurer.

The good news for you as a flipper is that this lender or government entity does not want to own the property and is usually a motivated seller allowing you to sometimes buy the property below market value. 

Tips for Buying Foreclosures

• REO property will usually but now always require substantial rehab and money to fix the property up for resale.
• Many foreclosures due to their poor condition will not be able to be financed meaning you will need the cash not only for the purchase of the property but also for the rehab.
• Always do your due diligence when purchasing an REO by having the home inspected and making sure you have a clear title.
• Just because a property is a foreclosure doesn’t mean it’s a good deal.  In fact, many foreclosures will not be a good deal at all especially when you figure in the cost of the needed rehab on the property.  
• Depending on who the owner is each type of REO will be sold a little differently.  
• If you’re new to the foreclosure buying process it’s a good idea to enlist the help of a seasoned real estate agent that understands the foreclosure buying process thoroughly to help you avoid pitfalls.

6. Using Real Estate Wholesalers to Find Flips

Real estate wholesalers can be another great avenue when looking for property to flip.

A real estate wholesaler can either be a fellow flipper that perhaps has more flips than they can handle and is looking to unload a flip at a wholesale price or someone that does nothing but wholesales property they find a deal on instead of fixing and flipping themselves.

Regardless of the scenario though, the concept is the same when going through a wholesaler to buy a property. 

How Real Estate Wholesaling Works

A real estate wholesaler will sell the property to you at a wholesale price instead of fixing and flipping the property themselves. 

Selling the property to you with a small mark up from what they paid for it, that still allows you to make a profit on the property once you’ve fixed the home up.  

Now I know what you might be thinking why would I use a wholesaler when I can just go find the property myself and avoid the markup. 

But the thing to remember is that it is not always easy to find properties to flip, so while in a perfect world you would find all the property you flip directly with no middle man, it’s better to have a property to flip with a little less profit than no flip at all.

With that being said as with all other avenues when finding houses to flip it’s important that you do your own homework and due diligence on a property and not just take the wholesaler’s word about the amount of potential profit or what type of condition the home is in. 

7. Join a Real Estate Investment Group

While a real estate investment group or club might not be the first resource that comes to mind when looking for potential house flips, it can actually be a great avenue for finding deals on houses.

As the flipper that knows the most people or sources of property is typically the one that flips the most houses and makes the most money.  

So what better way to get a head start on building out your flipping network and resources than by joining a club or group filled with like-mind people who are all interested in real estate investing. 

Who knows you might even get a good lead on a house the first time you attend a meeting.  

Just remember though that real estate investment groups only work if everyone not only takes but also gives.

So be sure to give as much as you take, so you don’t wear out your welcome.

8. Using a Targeted Direct Mail Campaign to Find Off-Market Deals

The next way to find potential deals on real estate is by using the direct mail approach.

But instead of targeting a specific address that you handpicked by driving the neighborhood, in this technique you pick a particular neighborhood or area of town that you would like to invest in and send mail to all the houses in that area.

How to Use Direct Mail to Find Off-Market Deals

In order to use this method, you first need to draft a professional-looking letter or flyer that will get people’s attention, letting them know that you buy houses in any condition. 

In this letter or flyer, you want to let them know the reasons why they should sell their house to you such as you can pay cash, can close quickly, will buy property in any condition, and can take away all the hassles of trying to sell their home.

Also, when using this method don’t forget about the envelope you are using to send out these letters or flyers in. 

As the more enticing you can make the envelope the better chance you will have of it being opened.

And if you really want to go the extra mile to help ensure they open your letter, you can handwrite all the addresses. 

While this will certainly take more time you can substantially increase your open rate by doing this.

Once you have your letter and envelope ready you simply need to pick a neighborhood or area you want to invest in and mail to every house in your target area on a consistent basis.

It’s important to remember that this technique is a long play and consistency is key for this method to yield results. 

So don’t expect to send out one round of letters and have your phone ringing off the hook with deals on real estate. 

And if you find yourself getting discouraged with this method, remind yourself that it only takes one really great flip to make all the hard work pay off.

9. Build Your Own Lead Generation Website

While this last way to find houses to flip might seem a bit overwhelming at first, thanks to companies like Squarespace and Wix it’s easier than ever to build a website.

In order to use this method to find potential houses to flip, you first need to create a basic website that is both professional and enticing listing the same reasons you used in the direct mail flyer on why a seller should sell their house to you. 

The whole point of the website is so that people will leave their contact information on the site to be contacted about selling their home.

The next step is to then promote the website to potential house sellers in your area. 

While it might be difficult to focus down to a very small area or specific neighborhood you can certainly tailor a website to focus on a particular city or town.   

10.  Don’t Forget About Retail Sellers

Just because a home is listed on the MLS by a real estate agent and is for sale by a retail seller, don’t just instantly discount these sellers or houses.

One of the hardest parts about finding houses to flip is often just finding enough houses that are for sale.

And by discounting these types of sellers and homes you are greatly reducing the number of opportunities and homes you have to look at.

So while most of these sellers are not going to be able or willing to sell you their home at a number that makes sense to a flipper.

You never really know how motivated a seller might be or how much of a discount you can get off the list price until you ask. 

How to Find Flip Houses Conclusion

I hope this list has provided you with a ton of great ideas and inspiration on the different ways you can find houses to flip.

Also, as a bonus tip, don’t just use one of these ways to find houses to flip.

Instead, use as many sources as possible, as it will greatly increase your chances of finding a great deal on a piece of real estate.

Remember it’s always better to have too many potential real estate deals than not enough!