Learn me: Foreclosed/bank owned property

I have developed a good working relationship with a couple of realtors who handle distressed properties. They know the type I am looking for.

They will usually call me BEFORE a property hits the market and tell me "such and such" is about to be listed.

I know that I am not the only buyer, and that better deals are going to other bigger investors (their better friends). That's OK, I'm good with table scraps.

I make my working relationships good with them by not jerking their chain. I make sure that I am an easy deal for them. I make fast decisions, don't fuss about little crap, and buy for cash, sometimes sight unseen. I'll sign a contract within minutes of it being emailed to me, scan it, and return it. No home inspection, no crazy contracts, no financing for them to worry about. I can close as fast as they can get the legal work done. Usually 7 days. But I have no problem putting the entire purchase price in their escrow account.

Most buyers aren't willing to be that aggressive. By the time they wait for it to show up online, or ask their wife, or talk to the banker, I've closed the deal, and the realtor has received their commission.

There are MUCH bigger fish than me. If all you want to do is surf websites, don't waste your time. The good deals will be GONE.

If I had more money, I'd own more properties.

Note:

I would NEVER buy a property for me to live in that way. Investment only.

Poopie, what are you actually looking for? You said "cheap ass house", and mentioned "investment" in your first post, but later said it was a primary residence for a friend.

If the full description is "cheap ass house", you are looking for the EXACT same thing every other buyer on the planet is looking for. That's gonna be hard to find, because friends of the seller (or banker, or loan officer, or realtor, etc.) will get it first.

You need to set yourself apart. Look for a particular type of investment, a particular neighborhood, a specific program, or a particular individual relationship with someone who can bring you deals. Become an expert in that one thing. When you are the "go-to-guy", voila! stuff will come.

I was once looking for a house in a specific 4 block radius. Knew what I was willing to spend. Canvassed the neighborhood and put a nice letter in every mailbox describing what I was looking for, and how much I was willing to pay. I also noted it would be a cash deal, and we could close quickly. I had 14 houses to look at within 5 days. Made offers on 3 of them. 2 offers were accepted.