Finding great deals in real estate is a crucial if you wish to succeed in the business. Many new real estate investors wait for deals to fall from the sky, but that is not the case. You have to work in order beat your competition when it comes to buying and selling property.
The problem that many real estate investors face, is not knowing where they can find good deals,and if they have managed to get some deals, then they have not tapped the full potential of other options. As an investor you have to know where to look. The following are the top 5 ways real estate investors are finding deals in 2016.
1. Foreclosed Property
Failing to pay mortgage for an extended time period will ultimately lead the lender to repossess the property and evacuate the tenants.Once the house is empty, the lender will list the house for sale.
Even though no one rejoices when people lose their house,these properties are among the best deals you can find in real state. By talking to local real estate agents, you can find about foreclosures in that area and start checking them out one by one.
2. Approach Property Owners Directly
Finding a great deal can be very hard as more and more people are looking to settle in homes. You won’t be surprised when you find a house on sale gets many offers in the first several days. Using the listing service will put in line among other interested buyers waiting for a deal that you might not get.
Real estate investors nowadays look outside the listing service by contacting the owners directly and convincing them to consider selling. A considerable number of home owners, especially those who own a home but do not live there will entertain that option. You can drive around the neighborhoods looking for homes that look vacant, buying public records list, or calling landlords and letting them know you are interested.
3. Always Be the First or the Last to Make An Offer
Sometimes when property owners decide to sell the house, they accept the first deal that comes through the door. By making sure that you are first to offer a deal, gives you an advantage over your competitors. You can make sure you are the first by having your real estate agent set up automatic email alerts of new properties in the market. Once the email hits your inbox,check out the property quickly and if possible, make an offer on that very same day.
Another way of getting a great deal is by looking for properties that have been in the market for a long time. The owners are usually willing to sell because they are tired of holding house for a long time. If presented with a good deal at a discount, they will sell.
4. Auction Properties
Auctions might not be well known as foreclosures but they will indeed help you in finding a good deals. Properties are placed for action if the owner neglects to play property taxes or the property has gone into foreclosure. These auctioned houses can receive a starting bid of equal to or less than remaining balance on the mortgage.
Before attending the auction, check the property out and conduct a thorough research of the property as it will aid you in knowing how much you should spend on the property. During the auction you should act quickly if you intend to purchase the property.
5. Implement Your Own Ways of Finding Deals
There are many ways in which you can get a great deal. By using the above ways, you will have acquired some experience and formed business relationships with many people. The more you make great deals with property owners, the more they will recommend you to their friends hence more deals. Think of what would make you, as property owner, consider in selling your house.
6. Buying Seller Leads From Online Sources
Many investors around the county would rather skip the mundane and tedious work that goes into putting together a direct mail campaign or building a lead generation website with an Adwords campaign to drive traffic. And most investors definitely are not going to learn the ins and outs of SEO, especially because it can take months on end to actually start generating the first lead. This is precisely why many investors opt to find motivated seller leads online, the easy way; by simply purchasing them exclusively from other sites like BiggerPockets, where investors sell real estate leads from motivated homeowners.
7. Other strategies that you can use include:
Use cash when negotiating for a deal. Cash can really speed up the transactions by eliminating a lot hassles. When proposing a deal, the mention of strait up cash will entertain the sellers.
Search online for real estate deals. The internet is a very crucial tool that you should use to find deals. Listing websites like Craigslist will aid you especially if you are the first respond to a post.