The best way is through referrals from people that are already successful. Due diligence is always prudent to verify claims of success.
Here are 3 due diligence actions that can also be used to find them directly:
- Search public property records via the county recorder’s office or via a title company. County Recorders have all of this information, but usually do not make it convenient to access it. The title companies have online services you can search for a fee. All you have to do is sort the data on the number of properties owned by any one entity. The Uncommon ones rise to the top.
- Join a Real Estate Club and go to meetings weekly or monthly to get entrance into the trusted network of people who are out making all of this happen. They are the ones marketing directly to owners, answering responses, getting repair estimates, comping property values, negotiating purchases, arranging financing, closing purchases, managing repairs, advertising their complete properties, and closing sales! (and making profits repeatedly)
- Talk to lenders that lend to the same Rehabbers over and over.
A final comment: every business makes unprofitable deals. In this business it can be 1 to 2 out of every 10 deals. A borrower should be able to show their losses and their profits that exceed them, if they are telling the truth. If they have been in the business long enough, there will be deals that are minimally profitable or have a loss.
When you are ready to make a loan, you’ll want a system to manage the details. Here’s a quick list of the items to consider: Loan Elements