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As a real estate investor, one of the most important skills you can master is the ability to find and purchase the best investment property available to suit your portfolio. However, sometimes that is easier said than done.
If the best real estate deals were always easy to find, they would almost certainly be bought up by eager investors who are waiting for the perfect house to hit the market. However, sometimes real estate investing is less about finding a shining star that you cannot ignore, but instead digging up the diamonds in the rough that other investors may wind up overlooking.
So, in order to help you find the best potential investment property opportunities you can, here are five tricks you can use to get the deal.
However, before we get started, if you want to ensure you are getting the best mortgage for your next investment property, click the link below to book a free strategy call with our team at LendCity today.
Check the MLS
Typically, finding properties on the MLS is going to be easy, but that does not mean they are all going to make worthwhile investments. The MLS is often looked at as a landing page for the majority of properties that are available for sale, which means that while great properties are certainly going to be listed there, many properties that are not profitable or worth your time will end up there as well.
Additionally, due to the public nature of the MLS, you are much more likely to find competition for the best investment property. This can result in bidding wars and higher purchase prices which can begin to cut into your potential profits on the investment property. As well, many experienced investors know how to find the best deals before they ever see the MLS, meaning that plenty of properties you could have used as a strong investment property will already be gone by the time you begin searching.
Rely on Your Network
If you are a well-connected investor – which you should be – then you need to go out and connect with members of your network in order to find the best available deals. By having a team of realtors, investors, wholesalers, and real estate professionals to rely on, you are capable of gaining access to properties that have not even been listed on the MLS yet. This is because many real estate professionals hear word of properties that are going to become available through their own networks and by listening to their clients discuss properties they may wish to sell soon.
Once your network has turned you onto an off-market real estate opportunity, you are free to explore your options to get the seller to allow you to purchase the investment property from them. This is a great strategy because many of these properties are in the hands of motivated sellers who would rather find a fast and affordable method of getting rid of the investment property instead of taking the time and money to properly list the house and wait for offers to begin rolling in.
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Browse Housing Auctions
Another great method of locating affordable investment properties is by turning to housing auctions. These homes are typically discounted when compared to MLS properties because the sellers are looking to move their inventory much faster than traditional home sellers.
Many of these properties end up at auction because the previous owner had foreclosed on the property, and it ended up getting repossessed by their lender. Naturally, lenders do not want to hold onto these properties for long because they are costing them money to hold onto. This is excellent for investors who would like to find quick closes on new properties for their portfolios.
Try a Direct Mail Campaign
There are plenty of people out there who are ready to sell their homes but have not started the process yet. As well, many people are holding onto properties that are causing them more problems than they are worth because they either do not know or are not equipped to go through the listing process. This is where direct mail campaigns come into play.
Essentially, a direct mail campaign is when you send postcards or letters to all of the homeowners in a particular market that you are interested in investing into offering to buy their homes. While this method does have a notable initial cost to get all of the mail prepared and sent, typically a single sale can recoup the entire cost and still turn a profit in the long run.
If you are not interest in mailing every single homeowner in a region, you can also use a more targeted method. If you want to take the targeted approach, you should try sending these letters to absentee homeowners and the owners of run down or distressed properties. These are property owners who typically are having more difficulty with a property than they are prepared to handle and as a result will be much more willing to sell their properties to you.
Keep an Eye for Online Deals
Another place to turn to in order to find real estate deals is the internet. Between social media, online forums and digital marketplaces, many people will express their interest in selling their homes online if they are not prepared or interested in listing their properties through traditional means such as the MLS.
Most of these properties are FSBO (for sale by owner) properties, meaning that the seller is listing the property without the assistance of a listing agent or real estate broker. As a result, you may need to be more careful with these properties to ensure that they are priced accurately and worth your time to invest into. However, often these sites such as Kijiji, Craigslist and Facebook can be full of hidden deals that can help lead to long-lasting success.
If You Are Ready to Start Searching For An Investment Property
If you are ready to start searching for your next investment property, put your best foot forward by getting started with a pre-approval. By getting pre-approved for your next mortgage with an experienced lender, you can rest easy knowing you have secured the lowest available rates and the highest available financing for your next deal. To get started, visit us online at LendCity.ca or give us a call at 519-960-0370. Alternatively, book a free strategy call to discuss financing your next investment property at the link below.