Finding Below Market Deals
Whether you are investing to rent, wholesaling or flipping, you want to find the best deals you can. Unfortunately, not everyone is going to be honest with you about the condition of the property and its market value. Still, investors are making thousands on property they are buying at below market value. You don’t have to be left out. Finding these deals is a matter of persistence and smarts.
1. If you are a serious investor, you drive around the neighborhoods that appeal to you looking at properties. In some cities, foreclosure notices are prominently displayed. If the notice indicates that the home is scheduled to be auctioned off, the homeowner may be anxious to sell. Make a low offer but don’t expect them to take it. But if things get bad enough, they will call. And you will have a great deal.
2. Most investors only think of actual properties. Land is always a great investment and can be easier to sell. Many people would love to build their dream home instead of buying a home that is the dream of a home builder.
3. Read the MLS listings religiously. This will give you an idea of how much homes are selling for and what homes have been on the market for a while. If you notice a property that has been listed for a few months, make an offer to the realtor or homeowner. As mentioned above, they may not take it now, but they may consider it later.
4. Network. If you are not a realtor, make friends with realtor who can let you in on the latest deals. Talk to bankers who work with real estate owned properties (REOs). They may have a great property they are willing to let go of at below market value just to get it off their books.
Finally, think outside of the box. Home styles come and go. That two bedroom A-frame that seems to have gone out of style may be just what someone wants. Many people love older homes and are willing to pay for them, especially if they are in a good neighborhood.
Terence Young is a successful real estate investor experienced in rehabbing, wholesaling and buy/hold strategies. Learn more at http://www.pittsburghpropertydeals.com and http://www.superbigprofitdeals.com
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