A real estate agent is almost a must when looking for rental properties, especially for new real estate investors. However, if you are experienced and looking to go solo in finding rental properties for sale, then keep reading.
A real estate agent is someone who is specialized in selling and buying real estate properties. Therefore, real estate agents are there to help real estate investors with finding the best deals on investment properties. However, this does not mean that you can’t go without one. Therefore, here is how you can find rental properties for sale without a real estate agent.
Related: What’s a Better Career Choice: Being a Real Estate Investor or Being a Real Estate Developer?
Why find rental properties for sale without a real estate agent?
Finding rental properties for sale could be a good thing in terms of finances. Keep in mind that most real estate agents charge somewhere between 4% to 6% per deal. When you think about it, it is a good sum of money deducted from your budget. So, it is a great way to save up and minimize your expenses.
It also means that you will get the chance to gain experience when it comes to dealing with rental properties for sale.
What would it take to find rental properties for sale without a real estate agent?
When looking for rental properties for sale, you should expect to sacrifice some things in return. Understand that buying rental properties takes time, effort, knowledge, and patience. Therefore, you have to be willing to invest your time and energy in it.
Moreover, in terms of knowledge, you must have real estate education in order to be able to work alone. You have to have some kind of background in real estate investing and rental properties. So, make sure to learn the basics which include real estate metrics, real estate market analysis, and investment property analysis. You will have to perform these on your own while looking for rental properties for sale.
What are some obstacles you might face when looking for rental properties without a real estate agent?
We are not saying that there won’t be any obstacles if you work with a real estate agent. What we actually mean is that you are the one who is going to deal with them. Therefore, if you are OK with that, then go ahead and start looking for rental properties for sale on your own. But here is what you should expect along the way:
First of all, you might find trouble with connections, unless you have your own list of connections, of course. But if you don’t, then this might be a problem. Understand that a real estate agent’s job depends heavily on connections. They do not work with people they do not know or do not trust.
Second, a huge part of a real estate agent’s tasks is to evaluate the pricing. If you are doing it alone, then you have to know the pricing rates. You can manage that by learning all about real estate market analysis. This tool helps you evaluate the price of the rental property compared to other properties that were sold in that area.
How to find rental properties for sale without a real estate agent?
Education is the first step to everything. Therefore, if you want to find rental properties for sale, then you have to acquire real estate education. This includes property types, real estate investment strategies, budgeting, expenses, property management, and investment property analysis.
Gather up your finances
Now that you know all about rental properties, get your financial plan straight. By that we mean that you should decide what financing method you want to go with. Are you investing all in cash? Or do you want to get a loan? Is seller financing an option?
Related: Do You Need to Hire a Certified Financial Planner for Your Real Estate Investing Business?
Decide on a rental strategy
There are two rental strategies available: traditional rentals and Airbnb rentals. They are different, and this can help you decide what type of rental property you are looking for. For example, if you decide to go with traditional rentals, there are plenty of property types to choose from. You can invest in single-family homes, multi-family homes, condos, apartments, or even studios.
Related: The Best Cash on Cash Return Places for Traditional Rentals Right Now
Choose the right location
Location plays a major role in your real estate investing business’s success. If you are an experienced real estate investor, then look for whatever location that makes sense with good cap rate properties. However, if you are a beginner real estate investor, then we suggest you start looking for rental properties for sale in your local area. You know the area which makes it easier for you to find good rental properties for sale.
Make a list of rental properties for sale that make sense to you
When you look for rental properties for sale, you will have to go over tens or hundreds of properties. To make the process easier, make a list of rental properties for sale. However, to make things easier, try to include only investment properties within a certain range of price or area.
Visit each real estate property on the list and inspect them thoroughly
Now that your list is ready, go ahead and visit these real estate properties. Make sure to go through all the little details. Check for any major damages. Take a look at the outside as well as the inside. Remember, looking for rental properties for sale without a real estate agent will consume your time. So, if you have the time, then make sure to invest it wisely.
Choose the right investment property
After you have inspected the rental properties on your list, you have to make a choice. Choose based on your own criteria as well as other major factors in real estate investing. Make sure the cap rate is good, the location is right, and the price is realistic.
Proceed with the financial and legal procedure!
The last thing is obviously going through the paperwork in terms of financing and legal aspects. Finalize your deal by paying for the rental property and getting through other procedures required by the authorities. Make sure not to neglect any legal aspects required in order to avoid any legal issues in the future.