6 Ways to Land a Great Deal in Real Estate

One of the biggest challenges investors face is other investors. Competition is fierce in this business, and if a great piece of property has just been made available, chances are that multiple investors will be jumping on it in no time flat. This can be a bit frustrating, and it’s why many experienced investors rely on more than the standard practices of finding properties (i.e., working with an agent, browsing MLS). Exploring less conventional methods for finding properties can lead to some amazing deals, if you know where to look. Here are 6 out-of-the-box solutions to help you find and land great pieces of investment property.

1. Contact the owner directly. Let’s say you’re driving around and you see a property that is exactly what you’re looking for. Right area, right size, right everything - except it’s not for sale. Well, why not contact the owner and see if they’re interested in selling? If they say no, so what? You’re out nothing but the time spent making the phone call. But what if they are interested? You could have an incredible deal practically handed to you with no competition from other investors.
2. Don’t be afraid of foreclosures. Some investors shy away from bank-owned properties because they often need costly repairs, but that doesn’t mean you should. Foreclosures cost banks money, so they want to unload these homes to new buyers ASAP. This means these properties are frequently sold well below market value, resulting in a great deal for the savvy investor who snaps it up.
3. Timing is everything. If you can act quickly - as in putting in an offer the same day a property hits the market - you may be able to land an amazing deal. On the flip side, a home that’s been on the market for several weeks or even months can also result in a big win for an investor. Why? Because timing is everything. When you act fast, you get in ahead of the other guys, securing a contract before anyone has a chance to make an offer. The same goes for properties that have been for sale for a long time. Sellers are interested in selling their property (obviously) - not having it sit on the market for days on end. When this happens, they get anxious and become much more open to selling at a lower price.
4. Scour eviction records. Evictions are no fun for anyone involved, but they can be a good time to hit up the property owner to see if there’s any interest in selling. Stress levels and frustration are typically high when a property owner is dealing with an eviction - maybe even high enough for them to want to cut you a deal on the property just so they don’t have to deal with it anymore.
5. Find a wholesaler. Teaming up with a wholesaler can prove to be a mutually beneficial arrangement where both of you wind up happy. With a wholesale property, the home has already been purchased below market value, and the wholesaler is looking to resell it and make a profit of their own. Oftentimes, this will still turn out to be a deal that works in the investor’s favor, as the home can still be purchased under market value, saving the investor money while still turning a profit for the wholesaler.

Look for properties being auctioned. When properties hit the auction block, you can bet there will be other investors there looking to score. This makes sense, because these properties are often purchased for far less than they’re worth. Take note of real estate auctions in your area, scout the properties that are up for grabs, and get ready with your bid. It may be a fight between you and someone else (or multiple someone elses), but you just might be able to land an amazing investment.