Real estate investors that are looking to make that first real estate investment undoubtedly have become aware that finding a good income property to purchase can be daunting. How to find good real estate deals? investment deals don’t grow on trees, and unless we’re very fortunate, it’s unlikely they will simply fall into our lap.
It seemed needful, therefore, to discuss six resources where you might find good real estate deals. Perhaps they’re all rather obvious, but worth mentioning nonetheless.
A Real Estate Professional developing a good working relationship with a qualified real estate salesperson can be an excellent resource for you. There are just two suggestions: the more loyalty you give the agent, the better, and getting two or three agents to beat the bushes for you in the same community can be counter-productive. Because the most real estate agents won’t spend a lot of extra time trying to hunt down a property for a real estate investor when it looks like a dog race.
Builder-Developer Look for people who are in the business of selling their own real estate. Often you can find someone with a treasure trove of inventory motivated to sell off some of it.
Code Violations Local building codes sometimes change during the course of ownership and put a seller into a difficult spot. For example, the state now requires buildings of a certain category to have fire sprinklers installed, or earthquake reinforcement. A sudden added investment to do that work may be more than the owner has to spend, and in turn might motivate the owner to sell at a reduced price instead.
Foreclosure-REO When lenders foreclose on a delinquent loan and buy the property themselves at a foreclosure sale they end up with real estate owned property (REO) they prefer to sell rather than operate. REO properties can sometimes be a prime source for good deals.
For Sale By Owner, It’s common for owners to market their own properties to avoid paying a real estate commission. When properly handled, sale by owner (FSBOs) can be a good source for good deals.
Management Problems Properties in need of maintenance can be an indicator that the owner no longer has a heart (or the cash) to continue managing the property and might want to sell. A call to the owner expressing your interest in the property might be all it takes to negotiate a purchase and good deal for yourself.