2) prerelease auctions.  These are domains where the auction venue has contracted with the registrar, like Fabulous or Moniker, to auction off non-renewed domains.  Just before a domain enters the pending delete process, it goes to a private auction to any person who has backordered the name.  Some people feel that back links on these type of auctions still provide a SEO benifit. My testing indicates that there is zero SEO benifit when these domains are redirected into another site.  So if you get a domain with "pink squirels" in a lot of achor text to a domain and then point it at your domain, you don't rank for "pink squirels"

If your domain name is related to a particular niche, then you may find success by advertising in forums that are related to that niche. Simply placing a link in the signature of your posts can tremendously speed up the selling process. While it may be possible to find prospective webmasters on niche-specific forums, it is generally better to advertise on webmaster forums, where there is a high volume of potential customers.
Keyword relevancy is not the only thing that matters when it comes to SEO. However, domain names that were previously used by other businesses usually have a lot of backlinks and a decent ranking on PageRank. Even though such domain names are usually about to expire, they are still worth a lot of money if they have a good number of backlinks and a ranking of five or more.
Since the Buyer pays Escrow.com and not the Seller, Escrow.com can withhold payment until we're satisfied the domain name has been transferred by the Seller. One of the ways Escrow.com does this is by checking the WHOIS database of the appropriate Registrar to make certain it properly reflects the new Buyer's name as the domain name Registrant. Once this has been verified, Escrow.com releases payment to the Seller.
That said, my recommended budget for beginners would be $500+. Using this budget you could buy a bunch of high-potential $10 domain names, expired/dropped domain names or a mix of both. It’s very important to invest only what you can afford to lose and treat this as a side hustle till you get the momentum going. As you gain experience, industry expertise and some sales under your belt, you can then consider slowly growing your business into a full-time gig.