At the top of the list for every buyer and investor is finding great real estate deals. For investors, it can make a huge difference in your ROI, especially if the property requires little work. Owner managers can see larger monthly profit margins from rent. Even families win when they can find a new home below market.
Don’t Overlook Foreclosures
There are some stigmas attached to foreclosed homes. Most people worry about the repairs and upgrades that will be needed. We have all heard about homes missing appliances and fixtures. However, foreclosed homes are some of the best real estate deals on the market.
Banks do not want to hold on to properties. Their business is in lending money. Unsold property is a liability to them. Discounts can be significant. Banks often work through agents. Contact local agents to see what is available.
First One To The Gate Wins
Some people think buyers are always looking for the highest offer. In reality, many buyers jump on the first offer they get. If you see a home you want to move quickly. Have your loan pre-approved and have your agent notify you of new listings.
Be The Last To Offer
Another perspective is to seek out properties that have been on the market a long time. Sometimes owners who have been waiting for offers or have missed opportunities are ready to negotiate. Once mortgage payments are factored in, it is advantageous for them to work with you.
Play The Numbers
You have to be diligent about searching for properties. Don’t be discouraged if you can’t find a good deal immediately. The more you look the better the odds stack in your favor. This is especially true for investors. Looking at two to three hundred properties is reasonable if your goal is to get the best deal. Out of those properties, you may find less than ten real possibilities, but they should be good ones.
Other tips are to:
- – get on the ground and look for vacant properties. Public records will get you owner info.
- – Invest in purchasing an aggregate-list.
- – Approach landlords with smaller properties and see if they are willing to sell.
The meat of it is to be creative and willing to do the work. If it were easy to find amazing deals, everyone would be getting them. The old saying about good things not coming easily is true. Just remember, because it is not easy does not mean it is not doable. You can do it.