Many people often have difficulty with investing in real estate because they claim that there aren’t any good deals available. Well, to be honest, there are a lot of rental properties out there, but people just don’t look hard enough.
A good eye is one of the most valuable tools that can help you find opportunities in the investment properties arena. The idea is to look for ways to buy property that can keep you ahead of the game, with as little competition as possible. This requires creativity and a will to do things that most people won’t do or won't think of doing when it comes to buying real estate.
Take the initiative and make things happen. This is especially true if things are moving slowly or if you want to jump start your investment experience. Sometimes to get the ball rolling in your court, you have to make the first move.
As a result of your good eye, you will have to be knowledgeable and experienced so that you can be convincing, competent, and ultimately, successful. But be forewarned: there is often more risk involved with these types of ventures, so tread carefully. But even so, when faced with risks and obstacles, success is always much more rewarding.
To get started, here’s a tip: there’s no need to only look at properties that are for sale. The major drawback to seeing a “For Sale” sign is that it’s often too late to buy because there are so many people involved, each one raising the price as more bids are placed. In order to get a better deal, try scouting out properties that you think might be for sale but are not listed for various reasons.
For example, you can approach people who you think might want to sell their property, or you could simply knock on doors, asking owners if they want to sell. This is called “hitting the pavement” and can land you some good deals that advertisements, listings, and agents can’t offer you. Many investors don’t do this because they simply don’t know what to say. If you can find a way to break the ice and eventually persuade the owner into discussing business, then you’re good to go. Maybe you can tell the owner that you were in the courthouse one day and noticed a pending problem with the property. If they admit to this, then you can follow with other questions that will convince them to use your assistance.
If you don’t feel confident enough with this kind of direct and upfront social approach, then consider another method. You can visit areas where owners don’t have an extensive knowledge base about the industry, or don’t possess an imagination for how the property’s value can be raised after upgrades, additions, or remodeling have been provided.
For instance, a shabby and run-down property might be the first indicator that the owner/manager lacks a clear vision or potential value for the property. Maybe this person is unhappy and just wants to sell. These guys might have a messy office and wear a facial appearance that conveys unease and frustration. Observe the condition of the property (inside and out), the office, the owner’s behavior, tone of voice, and other body language that could signal a willingness to sell.
As you know, curb appeal is a key selling point for many people when searching for properties. Because this can increase the value of the property to heights unseen even by angels, this is the perfect opportunity for you to add your own curb appeal to a property that doesn’t have any. This will save you a ton of money in the long run, especially since the added value will more than pay for the renovations—you’ll be making a profit. For this reason, try approaching the owner of the property before you see a “For Sale” sign posted outside.
Or maybe you see a property that looks run down but the owner plans to improve the appearance and renovate the interior. Don’t give up yet because there might be a good chance that the owner has another property that he/she would like to get rid of for a low price. And if not, ask to spread the word that you're interested in such endeavors. If you can’t walk away with a secured deal or even the potential of one, then at least get your name out there and acquire a contact for the future. The key is to not get disappointed and discouraged, but always move ahead and look for the next opportunity.
If you chance upon a property that can become even more valuable through means other than renovations, then ask the owner if he/she is interested in selling. Say, for example, you’ve acquired some insider information about a new shopping development that’s coming into the area, or perhaps improvements in a major highway that soon will occur. In a sense, then, you’re not looking at properties first, but rather secondly, after acting upon valuable insider information. Again, you’re scouting for deals wherever you can find them, usually where most people don’t even consider.
It’s possible that owners need to move immediately in order to take advantage of better opportunities, such as accepting a new job or expecting a new addition to the family. These people might be willing to sell to you for a cheap price just to get rid of the property.
Seniors Moving to Warming Climates
Likewise, older owners might want to move to the city or the country in order to change their lifestyle. Maybe they want easier access to friends, restaurants, stores, family, doctors, hospitals, or other amenities that are not readily available to them in their current locale. Or maybe they just want to get away from it all, quit the business, or retire.
Read more on - foreclosures & REOs