Tuesday, May 18, 2010

How to find deals

I spend a lot of time seeking out the best deals in investment properties.  To increase your odds of finding more deals, I have put together some suggestions below.

I search many different sources to find the best opportunities.  Think about it, who is more likely to get a cheap apartment building?  An investor that looks through the MLS listings and calls it a day, or the one that uses multiple resources?

Here are some additional options:


1. Talk. Let people know you are looking to invest in real estate.  Getting the message out there will produce some surprising results.  Sometimes the properties will come to you, especially when you get a reputation for closing deals.  There are a lot of owners out there who want to sell, but haven't yet listed their property.


2. Use the internet. Go to a search engine and enter the type of real estate you are looking for, along with the city you want to invest in. You never know what you might find.  Sites like Kijiji and Craigslist are great places to start.


3. Drive around looking for "For Sale By Owner" signs. Owners often don't want to pay to keep the ad in the paper every week, so you won't see all properties there.  Sometimes owners want to sell but are not actively pursuing the the sale.


4. Find abandoned properties. That's a pretty clear sign that the owner doesn't want to deal with the property. He might sell cheap.  Be careful though, there might be other problems with the property, make sure these are inspected fully.


5. Find old "For Rent" ads. Call if they are a few weeks old. Landlords are often ready to sell, especially if the haven't yet rented the units out.  This might allow you to do minor updating and raise the rents significantly.


6. Talk to bankers. You might get a foreclosed-on investment property cheaper if you buy it before they list it with a real estate agent. 


7. Target certain properties. Identify the properties that appeal to you and call me to search out the owner and contact them to gauge their interest in selling.


8. Eviction notices. With privacy legislation this gets harder, but you can get the information at the courthouse or the Landlord Tenant Board. A landlord who just went through the procees of evicting tenants is a likely seller.


9. Old FSBO ads. If you call on two-month-old "For sale By Owner" ads, and they haven't sold, they may be ready to deal. Owners often give up the effort, but still would love to sell. Help them out!


10. Put an ad in the paper or on the internet. "Looking for investment properties to buy," might be sufficient to generate a few calls.


Bonus Idea:
11. Drive around looking for rent ads on buildings and chart how long they have been advertising.  The longer the ads are posted, the better, the change the owner will want to sell.

4 comments:

  1. Well i think that this will be sufficient details to find a accurate deal.Actually from my point of view finding a deal is no so tedious but as doing a deal.

    Richmond Virginia homes for sale

    ReplyDelete
  2. Sometimes, that depends on the market in which you operate.
    Greg

    ReplyDelete
  3. A real estate professional will help you identify what you want in your new home, and compare your needs, wants and budget with what is available on the market. Their needs may include a minimum number of bedrooms, building style, or a particular neighborhood.

    ReplyDelete
  4. yes, these services are provided and much more, including helping you look to the future for what the future opportunities are in said area
    G

    ReplyDelete