The recent influx of foreclosures and distressed properties creates a wonderful opportunity for investors. However, in order to find great deals on real estate, you can’t just have a few coming across your plate every couple days. Instead, use these seven tips to keep the bargains flooding your desk:
1. Connect With Lots of Agents
When properties go into foreclosure, it often ends up as real estate owned (REO) property. Agents who deal with these types of properties are your closest allies. Don’t just work with one. Instead, create a list of local REO agents. Take some time to meet with them and establish a good working relationship. Let them know what you’re looking for – you’ll find they will do a lot of the grunt work for you.
2. Work with Asset Managers
Asset managers can notify you of potential properties before they reach the multiple listing services. Some of these deals are far too good to pass up! And if you’re able to close quickly on these great bargains, the bank will just keep feeding you more and more.
3. Market Yourself to Local Individuals
While they may not be in foreclosure, there are many families experiencing financial difficulty that would love to sell their home. Don’t be afraid to spend some money on a strong marketing plan that targets these distressed homeowners. These individuals are looking to sell for whatever they can get, and you can find some profitable bargains when negotiating one-on-one with the seller.
4. Go to the Court House
There’s very little competition on real estate owned homes that have yet to hit the multiple listing services. While you can’t do a thorough inspection inside the house, you can find some great deals if you purchase on the courthouse steps.
5. Homes Being Sold by Owners
Since the homeowner isn’t paying a real estate agent to sell his home, these types of sales can present great bargaining opportunities. They aren’t listed and don’t get nearly as much activity as those homes on the multiple listing services. At first, the owner may not be ready to meet your low price. However, keep in contact and see if he’s willing to negotiate later on.
6. Search Ads and Respond Promptly
Motivated sellers advertise their homes in as many places as possible. Check the ads in your local newspaper or other publications. You can also find ads on social media websites, online home listing websites and even Craigslist. Check these ads on a daily basis and respond as quickly as possible in order to secure the best deals.
7. Let Friends and Family Know About Your Investments
As with any type of business, word of mouth is one of the most effective means of gaining clients. Let your friends and family know that you’re looking for great deals on real estate. Ask them to let you know when they or their friends are selling homes, especially if the price is low. Investors find many of their best bargains through word of mouth interaction!