Whether I intend to flip the house, keep it as a rental, or do something completely else, it all starts with a terrific price. Here are four simple methods you can use to locate better real estate deals for yourself, whether you’re looking for an investment, a commercial property, or simply a house for your family.
1. Consider purchasing a foreclosed property from a bank.
When a borrower defaults on a mortgage payment for an extended period of time, the lender may take possession of the property and evict the residents. When the house is vacant, the lender usually lists it for sale on the market through a local real estate agent.
While the foreclosure is terrible in and of itself (no one enjoys losing a house), after the transaction is completed, these properties can be some of the best bargains in real estate. Because banks want to be in the business of lending money rather than managing property, they are frequently willing to make substantial discounts just to get the sale off their books. Translation: If you know how to buy foreclosures correctly, you can get a terrific deal on them.
Because the foreclosure process can take years, these homes are frequently in desperate need of repair or updating. As a result, additional discounts may be offered to buyers prepared to take on a renovation project.
Consult local tulum apartments for sale for information about foreclosures in your region, and begin looking at them. You might be amazed at the bargains available.
2. Be the first… or the last, depending on your preference.
In real estate, the old proverb “the early bird gets the worm” is often true.
It’s not always the highest bid for a house that is accepted, but rather the first. As a result, if you’re looking for a good offer, act quickly! Get a bank pre-approval so you can jump on any property right away, and have your real estate agent set you up with automatic email notifications so you’ll be the first to know when something new comes on the market.
Then act promptly to inspect the property and, if feasible, make an offer the same day.
Looking for properties that have been on the market for a long time is another approach to uncover fantastic deals. Because they are tired of holding on to that property, those owners are often significantly more eager to sell for a lower price. They may have been making two mortgage payments for months (or even years) and will consider practically any offer.
3. Make a personal approach to absentee owners.
Because of the enormous number of people looking for a property in a hot real estate market like the one that most of the United States is experiencing right now, amazing deals can be difficult to come by. A single house for sale in some locations may receive a dozen or more offers within the first few days.
As a result, one of the most effective strategies used by real estate investors today is to seek beyond your multiple listing service and personally contact property owners, urging them to consider selling. A large percentage of the population will consider that choice at any given time, so why not reach out before listing the home with a real estate agent?
Absentee owners, or people who own a property but don’t live there, are one of the finest types of people to target. They could be landlords who despise their tenants or homeowners who inherited their homes and have no idea what to do with them. These bargains can be found in a variety of places, including:
Driving around looking for residences that appear to be vacant and using public records online to locate the owner
Purchasing a public record list and calling mom-and-pop landlords who are putting houses “for rent” on sites like ListSource.com
Craigslist. Inform them that you are not interested in renting and would like to speak with them about purchasing.
4. Take a look at a variety of different deals.
Finally, keep in mind that discovering good bargains is really a “numbers game.” To find the prince, you frequently have to kiss a lot of frogs!
Deals are viewed through the lens of a funnel for me. Many leads come in at the top, but only a few come out at the bottom. As a result, if I want to increase the number of deals at the bottom of my funnel, I need to improve every component of it, including the quality and quantity of leads at the top. For instance, here’s what my funnel might look like:
- My real estate agent’s raw leads — 200
- I’d buy the property because of the location — 100.
- A short examination reveals potential — 20
- A deeper examination reveals promise – 10 deals on which I’ve made an offer — 8 offers that have been accepted – 1 deal on which I’ve made an offer.
Notice how my agent showed me 200 possible properties in the above funnel, but I only made offers on eight of them, and only one of them was approved. I know I’d have to go back through my funnel and find a way to boost my numbers if I wanted to buy two properties. Because, once again, it’s all about the statistics.
Whether you’re looking to buy an investment property, a home for yourself, or something else entirely, keep in mind that you make your money when you buy. You must locate fantastic real estate deals if you want to have immediate equity in your house, which can help you grow wealth in the future or save you in the event of an economic downturn.