Is the internet a good tool for finding a good deal?

[Joe L.]

I'm getting mixed messages regarding finding deals on the internet. I'm looking to fix and flip and some people tell me "don't waste your time looking online, if it was a good deal it wouldn't have ended up on Zillow, Trulia, Auction.com etc" and yet, others, say they spend hours online looking for deals.

My question is, what is your experience with finding deals online? and are the websites I mentioned above a good tool for investors in finding a deal? or should I rather spend my energy networking and calling brokers?

[Mike Bryant]

The old adage that I've heard (and lived by) is this: The easier it is to "find", the less of a deal you can get. This is true for lists (i.e. Pre-foreclosure NOD's), or killer deals on property (i.e. listed on the MLS). It may depend on your area, but most GREAT deals that are "public" won't last long, so it would be a matter of timing to get one, such as waking up and pulling up a brand new listing and getting an offer in before thousands of other investors get involved.

A better way for most investors I know is to target market to motivated sellers. Again, the easier the list to get, the more competition you will have. But you might be alone in an area or in a smaller town and you can have the market to yourself. In any case, know your market and run your numbers, and who knows? Maybe you can find those gems online!