Finding hidden real estate gems and great deals takes some work, but it can pay off hugely if you’re able to uncover properties with unrealized potential. With the right research, creativity and vision, you may be able to get properties far below market value that you can fix up, rent out or flip for big profits. Here are some tips for finding hidden real estate gems and great deals.

Use Online Listing Sites Creatively

The Multiple Listing Service (MLS) and sites like Zillow and Realtor.com are obvious places to search for home listings. But don’t just look for homes in your target price range. Expand your search criteria and get creative. Look for:

• Homes that have been on the market for a long time. The sellers may be getting desperate to unload the property.
• Unusual properties like mother-in-law suites, guest houses, duplexes, land/fixer-uppers. Many buyers overlook these types of listings.
• Out-of-area owners. They may be more motivated to sell if the property is located far away.
• Absentee owners. Owners who don’t live in the home may be less emotionally attached.
• Estate sales. Heirs are often looking to liquidate properties quickly.

When you find an interesting but imperfect property, don’t dismiss it right away. Use a software tool to plan your room and visualize the changes you could make to help the property reach its full potential.

Drive Around Target Neighborhoods

Look for hidden gems by taking a drive through neighborhoods you’d like to invest in. Watch for:

• Some homeowners want to sell but haven’t officially listed their home yet.
• Neglected homes. Badly maintained yards and exterior paint jobs may mean the owners are ready to sell.
• Unique homes. Keep an eye out for cottages, guest houses and other properties that aren’t typical but could be great investments.
• Homes under construction. Chat with builders and contractors in case they know of any deals or leads.

As you drive, jot down addresses and take photos so you remember properties that pique your interest.

Network and Talk to Locals

Connecting with knowledgeable locals can provide insider tips about deals before they hit the mass market. Build relationships with:

• Real estate agents. Let them know what you’re looking for. They may think of a hidden gem when an unusual listing comes in.
• They often hear about fixer uppers before anyone else. Offer your rehab business in exchange for leads.
• Chat them up for leads on who may be selling soon or inheritances hitting the market.
• Property managers. They deal with distressed properties and may know of great deals.
• Local real estate investors. Find ones who invest in your market and pick their brains. Most are open to networking.

By developing a strong local network, you’re much more likely to find out about deals and hidden gems early. Act fast once you get a solid lead.

Think Outside the Box

Sometimes you can find real estate deals in unexpected places if you think creatively. Look for listings or leads on:

• Auction sites. Monitor both live and online auctions.
• Bank websites. Banks will often list repossessed homes or distressed properties they’re looking to unload.
• Public records. Look for pre-foreclosure listings, probate records and court proceedings.
• Vacant land. Consider buying just the land and adding a manufactured or modular home.
• Commercial spaces. Some empty office/retail buildings could potentially be converted to residential.
• Condos with high HOA fees. Other buyers may be turned off by the fees, so you could negotiate a better deal.
• Unconventional spaces. Maybe an old church, warehouse or school could be converted into apartments or condos. Think outside the norms.

By keeping an eye out for properties in unlikely places, you may find an under-valued gem no one else has spotted. Crunch the numbers to see if the deal works.

Explore Alternative Financing Options

Some real estate deals may seem unattainable if you only consider traditional financing methods. By getting creative with financing, you may be able to secure great deals other investors have to pass up. Consider seller financing, private lending, partnerships, lease-to-own arrangements, crowdfunding, grants and incentives for rehabbing historic properties. The more flexible you can be with financing, the more hidden gems you may be able to find. Discuss options with your real estate agent, lender and attorney to see if alternative financing could make an unconventional property work for you. With the right financing, almost any deal is possible.

Discovering hidden real estate gems takes effort, but the payoff for finding undervalued properties can be tremendous. Use online listing sites creatively, drive around your target neighborhoods, network with locals, and think far outside the box. With persistence and creativity, you can uncover deals other investors miss and build an impressive real estate portfolio.