6 Proven Sources of Discounted Properties for Real Estate Investors

6 Reliable Ways to Find Discounted Properties for Real Estate Investing

Introduction

Let’s be real: you make your money when you buy the deal.
Whether you're wholesaling, flipping, or holding rentals, the #1 key to profit is simple—buy below market value.

But with competition rising and inventory tight in many markets, how do you actually find discounted properties consistently?

The good news? There are multiple proven sources of motivated sellers—you just need to know where (and how) to look. Let’s break down 6 powerful sources of discounted properties every investor should be tapping into.

1. Off-Market Properties Through Direct-to-Seller Marketing

This is the goldmine for wholesalers and flippers.

These are homes not listed on the MLS, often owned by people dealing with distress—divorce, job loss, back taxes, inherited property, etc.

How to Find Them:

• Drive for Dollars (look for vacant or neglected homes)

• Send direct mail to niche lists (probates, absentee owners, pre-foreclosures)

• Use cold calling, SMS, and door knocking campaigns

🔑 Off-market = less competition and more room to negotiate.

2. Foreclosures and Pre-Foreclosures

Foreclosures can offer deep discounts—but timing is everything.

Pre-foreclosure leads give you the chance to solve the seller’s problem before the bank takes over.

How to Access:

• Use platforms like PropStream, BatchLeads, or your county recorder’s office

• Build rapport fast—these homeowners are under pressure

• Consider subject-to or creative financing to help them avoid foreclosure

3. Auctions and Sheriff’s Sales

Real estate auctions (online or in-person) can be a great source for underpriced properties—especially if you have cash and know how to move fast.

Key Tips:

• Do your homework—some auctions don’t allow property access

• Know your max bid in advance

• Factor in liens or back taxes before buying

⚠️ Auctions can be risky—educate yourself or start small.

4. Wholesalers and Investor-Friendly Agents

Not every deal has to come from your own marketing. Smart investors build a network of deal finders who bring opportunities their way.

Where to Look:

• Join local REIAs or investor Facebook groups

• Let wholesalers know your criteria

• Partner with agents who specialize in investor deals or distressed properties

🤝 Relationships = deal flow. Stay top of mind.

5. Inherited Properties and Probates

Heirs often inherit properties they don’t want to manage or maintain—making them prime candidates for a cash offer.

How to Find Them:

• Use probate leads services or check public records

• Send a tactful, compassionate letter offering a hassle-free solution

• Offer to pay for closing costs and handle everything for them

🧾 These sellers care more about simplicity than squeezing every dollar out.

6. Tired Landlords and Burned-Out Owners

Some landlords are DONE—with tenants, maintenance, regulations, or life changes. They’re often sitting on equity and just want to cash out.

Tactics That Work:

• Pull absentee owner lists (especially those with long ownership)

• Send targeted mail or cold call with an offer to buy as-is

• Position yourself as a problem-solver, not just another buyer

🏚️ Their pain = your opportunity to add value.

Conclusion: Deals Aren’t Found—They’re Created

Finding discounted properties isn’t just about luck—it’s about knowing where to look, being consistent, and offering real solutions.

The investors who win are the ones who:

• Build multiple lead channels

• Focus on solving seller problems

• Stay disciplined with their numbers

If you want to grow your pipeline, increase your profit margins, and create sustainable deal flow—start sourcing smarter.

🚀 Ready to Fill Your Pipeline with Better Deals?

Join The Profit Playbook and learn the systems, tools, and scripts our members use to find off-market deals and negotiate with confidence.