@Marc Amedee Okay, here's what I recommend based on what I've learned:
Some investors would disagree, but I would make contact with a few cash buyers first before putting any homes under contract. The best way to do this is to go to your local REIA meeting. Introduce yourself, tell people what you do, and you'll definitely meet some buyers. You can be looking for deals in the meantime though.
I wouldn't use Zillow as a lead source because, in my experience, the leads aren't all that great. However, you can use Zillow for other things, like seeing the prices that homes are going for in your area. You can also take note of the landlords, especially the ones that own multiple properties, and call them and see if they're looking for more rentals. If the answer is yes, you have another cash buyer you can add to your list. (However, do NOT go by the "Zestimate" feature that Zillow lists as the value of each home--it's usually way off).
As far as leads, there's a few things you can do. One is to get a pre-foreclosure list from listsource, which will run you about 25 bucks (or that's what it does me). Another is probate leads--you can visit your courthouse, ask them to see the probate records, and then see who has died, who their heir is, and if they bequeathed a property. If so, mail to the heir and see if you can take the property off their hands.
Also, yes, you can drive around and look for distressed homes--that's driving for dollars. If you see one, make sure you take note of the address. Then, you should be able to find out who the owner is online. Most counties have a property appraiser section on their courthouse website. You'll just have to play around with this and see what you can find. Sometimes they call it something else. But if you can find that, you can input the address and it should give you the owner's name and info. (You can use the website www.netronline.com to input your city, and it will tell you all the records that your area makes available online). If that doesn't work or you can't find that info, you could try asking the neighbors around the house to see if they have the owner's info.
Oh, and for pre-foreclosures, I will tell you that this a very popular target to for investors, so you'll have some competition. One way to stand out , instead of direct mailing them or something, is to physically go to these houses, knock on their door, and offer to help them avoid foreclosure. Yes, some people will tell you to go away. Dogs will bark at you. Some people may even yell at you. You have to have a pretty thick skin to do this, so it's up to you, but if you have fifty people tell you no and one person say yes, which leads to a $10,000 profit, I say it's worth it.
The last thing I wanted to mention is, in addition to networking with cash buyers, meet the other wholesalers in your market too. Make connections with them, because I guarantee you that they'll have things that you don't. You may even be able to do a joint venture.
