If you’re a real estate investor, your greatest challenge is to locate bargain properties. While you can search for properties by sending out direct mail pieces, flyers, cards, knocking on doorsteps, and checking out vacant properties; one great resource to locate additional bargain homes is government-owned properties. Many of these can be bought at great discount, if you know how to locate them. There are certain loan programs that are guaranteed or insured by the Federal government. The Federal Housing Administration (FHA) Which functions under the Department of Housing And Urban Department (HUD), guarantees certain types of loans aimed at first time home buyers in less well to do neighborhoods. The Veterans Administration does the same thing by guaranteeing loans for individuals and families serving in the military.

Many of these homes are listed and sold through the services of a local Realtor. The home is first offered to new owner occupied buyers in a bid process, if an owner occupant isn’t found, the property is then offered to all parties, including investors. You can start a bid on these homes with minimal down, such as $1000, and if your bid wins, you have approximately 60 days to complete the transaction. With an additional payment, you can push the date farther out.

The bidding process can be complicated, and you need the experience of a sharp realtor to help you. One disadvantage of HUD/VA loans is they aren’t assignable, so in order for you to flip a home to another investor, you’ll need to perform a double closing. If you time the transaction correctly, 60 days will give you more than enough time to complete the transaction.

If you’re trying to purchase real estate in Orange County, and you don’t know which Realtor to use, try contacting these local Orange County Realtors or Orange CA Realtors.