3 Tips to Find Good Deals on Investment Properties
Over the years, Tarek and I have learned a lot about the house flipping world. We’ve taught ourselves how to DIY a majority of our projects, how to find the best professionals to work with and even how to find good deals on investment properties. Learning the fundamentals when you first begin house flipping, will prevent you from sinking a lot of unnecessary time and money into a house.
When you begin searching for houses to buy, even if you have a fantastic realtor who is willing to help you find foreclosures or other cheap properties, it is going to take a lot of perseverance and determination on your part. These tips will help make sure you get the best deals on investment properties.
Look for Motivated Sellers
One of the keys to getting a great deal on a property is seeking out the motivated sellers. Motivated sellers are a good source for deals as they are much more willing to negotiate a property’s price with you. Most likely, these sellers have held onto a property for a while and would be happy if you took it off their hands.
To find motivated sellers, search for houses that have been vacant for a while, are overgrown with weeds or are on the verge of being foreclosed. These houses will be your best leads. Even if you have to contact several sellers before you hear back from one, your persistence will almost always pay off in this situation.
Be the First or the Last to Make an Offer
Depending on how bad a seller wants to get rid of a property, they may often take the first offer that comes their way. If you find a property that’s only been on the market for a couple of hours, don’t be afraid to make an offer on it! You never know what could happen. On the opposite side, if you find a property that has been on the market for quite some time, the seller could be willing to negotiate a steep discount especially if they really want to get rid of the property.
Don’t Let “No” Stop You
I wish I could say that all of the offers you make on properties would automatically be accepted, but the truth is it takes a lot of hard work, dedication and a lot of rejections. Many new investors aren’t able to find good deals because they give up on making additional offers after their first or second rejection. The best deals come when you are willing to contact multiple sellers and make several offers, regardless of rejections you’ve faced in the past.
Although it can be discouraging, receiving rejected offers is part of the real estate game and is something you have to learn to work with if you want to be successful as a real estate investor. I promise it will get easier if you are willing to persevere through the initial rejections. Even if you can nail only one or two good deals during the year, it may be all you need to kick start your real estate business.
Finding good deals on investment properties is not easy, but it’s certainly doable. If you are willing to persevere and put in the hard work, your efforts will definitely pay off. Put these tips to the test when you are searching for your next property. Who knows, you may even land a great investment deal tomorrow!
For more information about real estate investing, visit Real Estate Elevated's BiggerPockets blog.