When it comes to investing in real estate, your goal is to find a property from which you can generate money. However, keep in mind that not all real estate properties make for good real estate investments; buying an investment property isn’t the same thing as buying a house for you to live in. So, whatever investment strategy you choose to opt for (buy and hold, renting out, fix and flip), the key is to know how and where to find investment properties for sale that will generate a high return on investment. Continue reading to find out all the different ways you can go about searching for and finding real estate investment properties for sale.
How to Find Investment Properties for Sale: 6 Different Ways
Look for “For Sale” Signs
One of the easiest ways to find investment properties for sale is by searching for properties that have a “For Sale” sign up. After all, investment properties are real estate properties! So, get in your car, drive around your target neighborhood, and look for all the “For Sale” signs you see. Take note of the names and phone numbers written on them so you can contact the property owners or the real estate agents of the properties for sale. This strategy is particularly useful if you are looking for rental properties for sale in your own city because you will easily see any new signs once they are put up.
Look for Ads in Print Media
Another way to find investment properties for sale is through printed media. As with any real estate property, you can also find investment homes for sale in the ads section of various local newspapers and magazines.
Ask People You Know
You can also find investment property by simply asking people around you if they know of any real estate investment for sale. Talk to everyone – from family members to friends and workmates – and let them know that you are looking for investment properties. They might know someone who is looking to sell, or they themselves might want to sell their own property. There are even many homeowners who are willing to sell but haven’t yet listed their property on the open market.
Network with Other Real Estate Investors
A great way to find investment properties for sale is through a solid and extensive real estate investment network. Connecting with other real estate investors can help you immensely in your investment property search. Experienced investors can refer you to many real estate opportunities that fit your portfolio and that match your investment goals. They sometimes might even offer to sell some of their own properties.
So start making connections and forming relationships with the largest possible number of investors and other professionals. Go to real estate investing clubs, meetups, and networking events so you can meet people in person. You can also connect with investors online through internet forums and social media platforms such as Facebook and LinkedIn. Keep in mind that the more people you know in the industry, the more opportunities and real estate deals you’ll find.
Related: How to Build and Maintain a Real Estate Investment Network
Check Real Estate Websites
Real estate websites are becoming a very popular choice for finding investment properties for sale. There are hundreds of websites that have investment property listings. The most popular sites for real estate investing include the following ones:
Mashvisor: If you are looking for residential investment properties for sale, then Mashvisor is the perfect website for you. It not only lists available investment properties, but it also helps you identify the optimal investment opportunities for you to invest in. Thanks to its unique Investment Property Calculator, Mashvisor can provide you with an analysis of the expected return on investment, including rental income, cap rate, and cash on cash return.
LoopNet: LoopNet is a great resource for investors focused on commercial real estate investing. You can find listings of industrial properties, land parcels, large multi family investment properties for sale, as well as other types of commercial properties.
Auction.com: Auction.com is a site that allows you to bid on housing auctions. You can find all types of real estate properties, including residential homes, bank-owned homes, and foreclosures. You can also visit the Mashvisor Property Marketplace and find property listing from Auction.com and analyze them with our tools!
Trulia: Trulia is a very user-friendly platform. You can find some of the best real estate investments based on your search criteria. You can also get in-depth insights into neighborhoods such as crime rates, schools, walkability scores, etc.
Hire a Real Estate Agent
If you are serious about finding good investment properties for sale, there is no better way than hiring a real estate agent. Real estate agents are experts at matters related to real estate investing and know very well how to find investment property. They have great knowledge of the local property market and have personal access to the Multiple Listing Service (MLS), which is the official database for all local properties for sale. They can use their expertise and skills to help you find a property that suits your needs and purchase it at the best price possible. So if you are a beginner real estate investor or if you are considering investing in a new housing market, you might want to consider contacting a real estate agent.
But don’t just hire any agent! Look for a professional agent with investment property experience. Look up their sales history, as well as their past and current real estate listings to know if they have the required qualifications and experience. You can check out Mashvisor to get a list of licensed real estate agents.
Related: Do You Need to Find a Real Estate Agent to Buy Investment Rental Properties?
How to Find Investment Properties for Sale in 5 Easy Steps
We’ve prepared for you a list with different steps that you can follow so you can be 100% sure to find a good investment property.
- The first thing you need to do is check if the investment property you are interested in is situated in a good location, i.e. where the local housing market has favorable buying conditions, the local economy is strong, and the laws are advantageous for real estate investors.
- Carry out real estate market analysis to get an idea of the local housing market and to see how your potential investment property compares with other properties around in terms of prices and performance.
- Conduct investment property analysis to estimate the expected return on investment. Only choose properties that yield positive cash flow, good cap rate, and good cash on cash return.
- Examine all the different investment property financing methods, and carefully choose the one that suits you best and that allows you to maximize profits.
- Carry out an inspection of the investment property itself to evaluate its state and condition. Make sure that it is in good condition so you won’t find yourself spending lots of money on repairs.
Mashvisor’s Investment Property Calculator will help you perform both the real estate market analysis and investment property analysis. All you have to do is input the data you have, and then the calculator outputs accurate predictions for rental income, rental expenses, cash on cash return, cap rate, and more! It also allows you to compare returns on traditional (long-term) and Airbnb (short-term) rentals.
Related: What Should You Look at in an Investment Property for Sale?
The Bottom Line
So, to all of you wondering: What is the best way to find investment properties for sale? Well, we can tell you this: There is no one single way that will work for every real estate investor! There are lots of different ways of finding houses for sale and you should look anywhere you can. The most important thing is that you take your time doing the property research and analysis to make sure that your real estate investment will be lucrative.
Are you looking for profitable and cheap investment properties for sale? Sign up for Mashvisor to find real estate investment deals that are like no other. Mashvisor is the perfect platform for real estate investing for beginners.