Take out your bucket list and cross off the item “Save enough money to buy an investment property.” Having a clear idea of your budget and the type of property you want to buy is only the beginning. To find an investment property that fits your criteria and purchasing it, is something else completely. Some ways are easier than others, but it’s not a race. It is about commitment, pursuit and dedication to finding the right property in the right location, at the right price and yields the right returns to suit your needs.
The below five tips should serve as a useful starting point when it comes to searching for the perfect investment property!
The foreclosure auction may be a good way to grab a good deal on an investment property. Online auction sites that sell foreclosed homes include Auction.com; don’t forget to read the small print. There are risks involved such as
(1) Ability to have all the cash/cashier checks available on hand to buy the property;
(2) Inability to see the interior of the property before you make a bid and;
(3) Inability to receive clear title after purchase due to other outstanding loans or payments owed.
So buyer beware is in order, before a purchase is made at a foreclosure auction.
Network of Family, Friends and Influencers
After having a clear idea of what type of property you are looking for, reach out to family and friends to help in the search process. In addition to your familiar circle, you need to reach out to the real estate network in your community. You can easily join a real estate investor meet up where there are groups you can join to make the necessary contacts.
Meetup.com is one of the best resources for getting plugged into the investor network. Simply search for “real estate investing” and a handful of groups will appear. Go to multiple meet ups you are interested in to quickly grow your network. In short, a cup of coffee with your network will expand your chances and find an investment property.
This is exactly what the title indicates. An easy way to start is by exploring online real estate listings and knowledge services. It’s best to consider this list as a launch pad than a complete list.
- Online Real Estate Services: Sites like Movoto and Redfin have literally millions of listings that will surely match what you are looking for while Mashvisor is more focused on the investment knowledge. You will need to search and get familiar with the ins and outs of the sites. Spending a good amount of time on such sites will only help you get closer to finding the piece of property you want.
- Craigslist.org: is a great source to turn to find investment properties for sale, which can range from apartment buildings to single family homes. Many of the listed properties are for sale by the owner, so these properties will most likely not be listed on MLS sites. If you are on the hunt for a good deal and want something for free, then Craigslist must be explored further.
Direct Mail Marketing
Direct mail marketing is about the investor (you) sending out a large number of postcards or letters to a targeted audience who may be interested in selling their property. Although this option might require a higher budget upfront, this process is about bringing interested sellers to you. After sending out the mail, you will most likely have a small percent of sellers call you and of those sellers, a small percent will be actually interested in seeking to sell their properties. Although more time and energy is involved in direct mail marketing, you can still reach a network that you otherwise didn’t have access to.
Why is this method worth the effort? Because your outreach can target sellers who don’t want or can’t go through a real estate agent, those who may be facing foreclosure on their home or finding someone who inherited a home and doesn’t want it. You are simply finding a solution to a problem for a seller who may be in dire need of your help.
For Sale Properties
If you are looking to find an investment property near your current residence, then you can simply fill up the gas tank drive and look “For Sale Signs” in the area. But if you are like most people and want to explore a different neighborhood than your current one, this method will not prove useful. Instead, you simply need to get online and do some research. Search. Search. And then search some more. Good investment opportunities are out there! When you find an investment property you may be interested in, contact the owner directly offering to buy the property at hand. Even if the property isn’t for sale, still contact them and make an offer.
Although this list is not exhaustive, it provides a great start to searching and understanding what type of investment property you are after. From the get go, you will need to decide what your budget is, where is your destined location and what type of property you are looking for. The search at times will feel a bit overwhelming, but the more effort you put into your search, the more options you will have when it comes to selecting the property that is perfect for you. If you want to take it a step further, you can use an Airbnb calculator. The tool can provide you with an estimate of potential rental income from your Airbnb.
Where have you searched for investment properties lately? What tools have you used that have proved most beneficial? Leave a comment, and let’s chat!
Are you considering an investment property? Use Mashvisor to discover hidden investment opportunities nationwide.