Get The Best Deal On Your Next Purchase With These 4 Tricks
Real estate is an expensive investment. Unlike stocks and other investment methods that let you buy-in at whichever amount you can afford to, real estate almost always requires a significant amount of money up-front. So, it is not rare to find investors out there doing whatever it takes to get the best deal for their next property.
However, before you can get out there and start hunting for the best deals on high-quality real estate, you need to understand something. Every investor on the market is going to be hunting for the best price and you are likely to run into competition on the way. So, you cannot get discouraged if another investor manages to get the edge and beat you to a property that you saw potential in. Instead, you need to stay motivated and get back out there until you find the best deal for your investment strategy.
So, if you are ready to start growing your portfolio at the best prices, start by clicking the link below to book a free strategy call with us at LendCity. From there we will help you connect with a lender that is going to give you the best deal on your mortgage so that things go even smoother.
Weigh Your Options
The real estate market is massive, and cities are packed with a variety of properties ranging from all different shapes, sizes, and purposes. This means that there is almost never going to be one specific property that is the ‘best deal’ for any given situation. Instead, there are going to be multiple properties and investment opportunities that each come with their own strengths and weaknesses.
This means that when you are hunting for a property to add to your portfolio, you need to make sure you do not wind up with tunnel vision honing into a single property instead of embracing the full scope of the market.
Sometimes you may find a cheap deal on a rental property in one neighbourhood, but another property with a higher potential for cash flow and appreciation in a more expensive area. Neither are necessarily the wrong answer for your investment, so it will be up to you to weigh these options and choose the property that is going to fit your portfolio while getting the best deal.
If you need help finding these properties or making a decision, talk to your realtor. They have almost certainly seen a wide array of buyers and may be able to give you keen insight into which property is going to best suit your needs at a given time.
Make the First Offer
You may find this surprising but often the winning offer on a property is not the highest offer, but the earliest – especially if you find a motivated seller. Unless you are currently looking at market conditions where sellers are getting multiple offers on a property within the first day or two of the property hitting the market, most sellers are not going to want to wait to see if someone potentially makes a better offer as long as your initial offer is not below their asking price. Otherwise, they are choosing to run the risk of losing a buyer to another property while they wait to confirm an offer.
So, if you find a property that looks like it has some serious potential after you go over all of the details, do not hesitate to make an offer. Sometimes, you will be able to score an excellent property purely because you did not leave enough time for people to make competing offers.
If you are early, but there are still competing offers, there are still methods to get the property without spending extra money.
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Buy The Property In Cash
One of the best ways to secure the best deal on a property regardless of whether you are competing against other buyers or not is to make your offer in cash. This way, the seller can see two key things about you. First, you are a serious buyer who intends to follow through on the purchase, and second, by choosing your offer they can avoid an extended closing while lenders sort through paperwork to make sure everything is in order.
Sometimes sellers will even accept lower offers for their properties in exchange for a quick closing with a cash offer.
Of course, this only works if you have the cash available to pay the full value up front. So, this method is probably not going to work for the majority of new investors. However, if you have enough equity built in other investments that you can draw upon, this is a strong strategy.
Look For Foreclosure Deals
When a property is about to go into foreclosure or is currently in the possession of a lender who had to take possession of it after the previous owner defaulted on their loan, there is usually a strong push to sell the property as quickly as possible. This can often lead to the best deals as the seller looks to offload the property and recoup as much of their investment as possible to avoid unnecessary debt and expenses.
Often these properties will be available at auction or will be listed as foreclosure sales on their MLS (Multiple Listing Service) listings. So, can be incredibly valuable to check for these regularly.
Getting The Best Deal On Your Mortgage
If you are ready to get the best deal on mortgage financing for your next investment property, give us a calla t LendCity today. Our agents will gladly run your application through our network of experienced lenders in order to help you secure the best available rates and monthly payments for your investments every single time. To get started, visit us at LendCity.ca or call our office at 519-960-0370. Alternatively, click the link below to book a free strategy call to discuss how you can get the best deal on your next mortgage.