How To Find Real Estate Deals
With more and more people getting into the business of real estate investing, you’re going to want to know how to find real estate deals amidst the competition. And yes, real estate investment is a local industry, so finding the best investment opportunities is going to be a different process for everyone. However, there are a couple of strategies that could help you get the upper hand in future real estate transactions in any market.
How to Find Real Estate Deals: 4 Strategies
There are so many different ways to go about getting a deal when buying real estate investment property; there are traditional methods, and then there are some edgier, more modern strategies. What will work best for you? Check them out.
#1. Multiple Listing Service
The MLS is the traditional method for house hunting. If you have a house to sell or are looking for a house to buy, the MLS is where your agent turns to. It’s the first place most people go when they’re looking to buy real estate in the US housing market.
But as a real estate investor, we have a couple of pointers on how to find real estate deals before anyone else on the MLS. It starts by working with an agent who specializes in real estate investment. These agents know what you’re looking for as an investor and can help you in negotiating the best deals for the best value.
An example of what investor-friendly agents can bring to the table is that they know how to spot a hidden potential. They’ll help you comb through the many listings until you hit the jackpot. Whether that be a fixer-upper investment property that you can buy below market value or a luxury home, you’ll have an easier time finding it with an agent who understands the industry.
Wholesaling is how to find real estate deals if you’re not looking to do the hard work. Here’s a basic breakdown of how it works. The wholesaler finds great real estate deals, puts them under contract and sells the contract to an investor at a small profit. You do end up paying a slightly higher price than what was originally agreed upon in the contract, but to some investors, the saved time and effort is worth it.
You want to find a good wholesaler who actually knows what they’re doing to ensure you’re really getting the best deal and actually saving money when buying a house. But once you’ve located a great wholesaling business, consider your real estate hunt taken care of. They’ll find motivated sellers listing profitable investment property for sale so you don’t have to spend the time looking for deals yourself.
#3. Buying Foreclosed Homes
This is a great strategy for finding discounted property. Bank-foreclosed properties are ones that the lender had to take away after too many missed mortgages. Although it’s not the happiest of terms, this property does end up getting re-listed for sale and is then waiting for a new buyer. This is where you swoop in.
Banks are lenders, not property managers. So they’re trying to get these foreclosed properties sold as quickly as possible. Learn about the foreclosures in your local market and check out some of the properties; you might find your next investment property this way. The properties might need some minor updates after withstanding the long foreclosure process, but it’s still a great way to find affordable real estate.
#4. Be the First or the Last
Real estate investing is sometimes a race. Sometimes sellers are in a hurry to get their homes off their hands, so they’ll accept the first offer. So if you’re looking for a deal, you’re going to want to be ready to strike the moment you spot an opportunity.
Now, of course, we’re not saying rush your real estate deal analysis. That’s something you should never do. But if you have your bases covered before an investment property even gets listed, your chances of getting a great deal are higher. This means get pre-approved by your bank, know what to look for, and inspect the property as soon as you can to make your offer.
On the other side of the spectrum, targeting investment properties that have been on the market for a long time is another way of how to find real estate deals. These are properties that no one else is looking at, and because of that, the sellers are a lot more motivated to close a deal. Keep in mind, however, that these properties may be stagnant for a reason. So conduct a proper inspection and investment property analysis.