Real Estate Elevated: 5 Tips for Finding the Best Real Estate Deals
The main key to success as a real estate investor is knowing how to find good deals on investment properties. If you know how to get the good deals from the start, you’ll be able to make the most profit off of your hard work when it comes time to list the property. Since Tarek and I are former real estate agents, we have a bit of an advantage as we know exactly where and what to look for when we are searching for our next flip. Luckily, you don’t have to have past experience as a realtor to find the best deals. You only need to know the best places to search.
Search the MLS
I’m sure you’ve heard it many times, but the MLS (multiple listing service) is an excellent resource for real estate investors. The one downside about the MLS is that it is very popular, which means the best new deals are going to get snatched up right away. This is why I recommend looking for properties that have been on the market for a while, instead of going directly to the new listings. Properties that have been on the market for a few months often have sellers who just want to make the sell, meaning they will be more likely to negotiate with you and you’ll be able to get a great deal.
Use Online Real Estate Sites
The internet is packed with real estate listings. Some of my favorite websites include Craigslist, Zillow and Trulia. These websites allow you to search for properties by location, price, type, etc. making the process super easy to find the best property for you and your budget. Plus, these websites are free so you don’t have to pay to have access to their listings. Chances are, you’ll find hundreds of listings when you are searching, so you can definitely be choosy when it comes to finding the perfect fixer upper.
Look for the Potential Value
A property may be cheap, but that doesn’t automatically mean you've found yourself a good deal. In order for you to make money off of your flip, you need to be able to add value to the property and not spend a fortune while doing so. When searching for a flip, determine if you can add value through painting, replacing flooring or appliances, updating hardware, etc. The value you are able to add to a property will determine if you are able to make money off of your flip or not.
Looking for an easy and inexpensive way to find some good deals? Take the car out for a spin in the area that you are interested in investing. Focus on properties that look like they could use some work. A lawn that hasn’t been taken care of or a home with a roof in disrepair are often signs of a property that may be worth your time.
When you are driving around town, you’ll find many potential properties. Take down information and do some research on the properties to decide if they are something you really want to invest in.
Work with a Wholesaler
If you don’t want to do all of the work of trying to find a good property yourself, you could consider working with a wholesaler. Wholesalers find the best real estate deals and sell them to investors for a slightly higher amount. Both parties win as the wholesaler is able to make profit off of their sale and the investor is able to find a great deal. When pursuing this option, make sure you find a good wholesaler who knows what they are doing. Good wholesalers know how to handle every aspect of the transaction and are truly able to get you the best deals.
Finding the best real estate deals isn’t hard, but it is a matter of knowing where to look. If you are able to find good deals, you’ll be able to have a successful and profitable real estate investing business in no time.
For more information about real estate investing, visit Real Estate Elevated's BiggerPockets blog.