‘Will 2021 be a good year to buy investment properties for sale?’ This is a question many people are asking in the midst of the coronavirus crisis. With many tenants struggling to pay rent, eviction moratoriums issued, and falling rents in some locations, the situation looks very bleak.
However, there are several reasons why investing in real estate in 2021 is a good idea. According to Freddie Mac, mortgage rates are lower than they were one year ago. The rates are likely to remain low through 2021, thus presenting a great opportunity for real estate investors to buy a property. This is creating high demand across the US, which was already dealing with low inventory. As such, real estate prices continue to climb and some experts are forecasting that, because of a growing affordability issue combined with financial issues introduced by COVID-19, the US will become a renter nation. Owning rental properties in such a market will definitely bring about cash flow and a good return on investment in 2021.
Of course, the first step to achieving a good return on investment is to learn how to find investment properties for sale in the US. We’ve put together this guide on 7 ways to do just that.
How to Find Investment Properties for Sale: 7 Ways to Try in 2021
Here are some of the ways to find investment property for sale in 2021:
The Multiple Listing Service (MLS)
The MLS is one of the most common methods used to find the best investment property for sale. The multiple listing service is simply a collection of properties that are currently listed on the market. However, you can only access the MLS through a licensed real estate agent. Though you may have to pay agent fees, working with an agent will enhance your chances of finding a real estate investment quickly that fits your criteria. Besides helping you find good real estate deals, your agent will also come in handy at the negotiation and closing steps of the transaction.
Related: Why Real Estate Investors Don’t Need MLS Access
Widen your network
The wider your network, the higher your chances of finding a great real estate deal. Besides real estate agents, your network should also include professionals like property managers, title agents, contractors, attorneys, private money lenders, wholesalers, and even fellow investors. You can build relationships with such people by joining relevant groups on Facebook and LinkedIn. Better still, attend in-person (or virtual) networking events such as Real Estate Investor Association (REIA) sponsored functions.
Related: The Secrets of Effective Real Estate Networking
Driving for dollars
Driving for dollars is an old-fashioned, yet very effective strategy for finding investment properties for sale. It simply involves driving around neighborhoods you want to invest in and looking for distressed properties. Drooping gutters, overgrown grass, uncollected mail, and debris in the front yard are some of the signs that a home is neglected. When the property is in a state of disrepair, there is a high chance that the owner might be interested in selling.
Related: What to Look for When Driving for Dollars: 19 Things
Once you’ve located such investment properties for sale, you could look up the owner’s phone number or email address and contact them to express your interest in buying their home. Get access to Mashvisor’s homeowner data now to quickly get ahold of such info. Driving for dollars is a great strategy for finding income properties that are not listed, thus avoiding competition from other real estate investors and homebuyers.
Facebook is the biggest social media network globally. In the second quarter of 2020, there were about 2.7 billion monthly active users (source: Statista.com). Facebook advertising is therefore the most effective online paid advertising strategy for finding investment properties for sale. The best thing about this network is that you can narrow down your search using many metrics. For example, you could target potential sellers based on age, gender, zip code, interests, behavior, and marital status. Facebook advertising is also very affordable. With as little as $5, you can run an ad and reach hundreds of people.
Real estate investor websites
Whether you are a seasoned or beginner investor, real estate investor websites are a great place to start looking for investment properties for sale. Some of the sites you might want to check out include LoopNet.com, Auction.com, Craigslist.com, Trulia.com, and PropertyShark.com. Most of these sites come with filters that allow you to narrow down your search based on specific metrics. You might also be able to see crime statistics, school statistics, market trends, and comparable properties for any neighborhood you are interested in.
This is a great tool for finding townhouses, condos/co-ops, single-family homes, small multi-family investment properties for sale, and other residential properties. Unlike some of the other real estate websites listed above, Mashvisor will allow you to find and analyze properties. With Mashvisor’s real estate investment software, you get access to a few different tools that you can use to find a rental property:
Looking for the best places to invest in the US housing market? Mashvisor’s real estate heatmap is the perfect tool for this:
Want to quickly find a top-performing property? The property finder is an investment property search tool that uses both predictive and traditional analytics to help investors find what they are looking for. You can look for income properties in several locations at the same time, and also determine which area would generate the highest return on investment. The search tool comes with filters like location, miles from the location, rental strategy, budget, number of bathrooms/bedrooms, and property type.
Looking for off market properties like short sales, foreclosures, or REO properties? Try the Mashvisor Property Marketplace.
Finding investment properties for sale is made easy with Mashvisor every time. Sign up now for Mashvisor and get 15% off.
Just like driving for dollars, direct mail is another classic strategy for finding investment properties for sale. It involves sending materials like newsletters or postcards to a specific audience with the aim of generating interest. For example, you could target people in bankruptcy, probate, or foreclosure. Direct mail marketing is not only affordable but also has a higher response rate compared to other marketing strategies. To boost your response rate, be sure to write great copy that will compel your audience to take action. You could also include an incentive such as a coupon which potential sellers can redeem.
A Few Final Tips
Being a real estate investor in today’s environment comes with many challenges. Before you invest in rental properties, take into consideration the changing habits of travelers and tenants. Watch the news and read real estate blogs to stay updated on the latest news and trends. You should also research the laws and regulations of the area where you are thinking of buying investment properties for sale. Do your due diligence to avoid pitfalls and enhance your chances of making a good return on investment. Doing all of this along with implementing a few of the strategies above should help you achieve success with an investment property for sale in 2021.