If you want to invest in real estate, you need to learn how to find suitable properties at the right price, among other things pointed out below.
Once you have bought the property, one of the critical steps is to set your rents according to the market, and you can do that with a handy rent estimate report tool.
The first step to finding profitable investment properties is to learn your market by talking to people. You can find real estate investor groups on sites like Meetup and Biggerpockets.
When you visit these meetings, talk to successful investors about the neighborhoods where they buy property. These vital contacts can give you the information you need on where and how to look for properties that will make you money.
Your growing network also can give you information about rising neighborhoods where you can buy houses that are still inexpensive but should appreciate in the future.
One of the best ways to get a deal on a house is to find a seller who is in a bind. For example, some homeowners may fall behind on their property taxes and have a lien on their homes.
These folks need to either pay the taxes or sell fast. So you can get a good deal in this scenario that works for both sides.
There are websites where you can get lists of homes about to go into foreclosure, as well as vacant properties, homes with liens, and more.
It’s an old-school method, but checking Craigslist every day for FSBO (for sale by owner) properties is still a great way to find a deal now and then.
You can find homes that need a lot of repair on Craigslist, as well as turnkey properties that are ready to rent.
However, you need to have a sharp eye for scammers and criminals on this site, so use caution when you contact anyone you don’t know.
Some investors have coined this ‘driving for dollars.’ For example, the real estate investor hops in their car and drives neighborhoods for signs of houses that have fallen into disrepair.
Some investors think driving for dollars is a waste of time, but it can produce excellent results if you are patient and have a sharp eye.
When you drive for dollars, look for the following things:
- Does the home look unoccupied with an overgrown yard or flyers on the porch?
- Are there signs of disrepair, indicating the homeowner cannot afford the maintenance?
- Is the home in an area with a higher number of foreclosures recently?
If you find a home that interests you, the next step is to knock on the door and talk to the homeowner. This part takes tact and diplomacy, and it’s possible your inquiry won’t be met with kindness. But this is how many investors have gotten great deals, so keep at it.
One of the best ways to find good investment properties is through a real estate agent who often works with investors.
Look for an agent that says they cater to real estate investors, as well as those who have experience in the neighborhoods in which you’re interested.
After you get a few deals done, you also can get your real estate license to find your deals. So while being an agent isn’t essential to a successful real estate career, it can help.
Finding great investment property deals takes a lot of work, but many people do it successfully every day. When you put in the hours and try some of the proven methods above, you can find deals that will make you money.