With more arrows in your quiver, finding deals can be a repeatable thing for your business.
Finding real estate investment properties can be challenging, especially if you’re in a hot market. I’ve got five places to look for fix & flip properties besides the MLS. Want to know what they are?
First, just to make sure we’re all on the same page, let’s talk about the MLS. The MLS (Multiple Listing Service) is a database of properties for sale. It’s a great place to start your search because it has all the properties currently for sale in a given area. However, there are a few things to keep in mind when using the MLS as your only source of information.
1) The MLS is updated every day, but not always at the same time as other sources of information. So if you’re looking for something specific, it may be best to check back later in the day or week when more recent listings have been published.
2)The MLS carries listings made by real estate agents and sometimes banks or auction houses. However, the details can often be vague (especially about auctions), and the information and pictures can be, let’s say, a little rough to get through (real estate agents, please just hire professional photographers!).
3)The MLS is designed for retail buyers, not investors. The verbiage, staging, info, pricing, everything on the MLS is tailored to those who are buying a home for their families and not as investment properties, so if you’re looking for fix & flips, you’ll want to look elsewhere.
This may sound strange, seeing that the MLS is one of the most popular sites to find and potentially purchase a home. However, that’s the exact reason why you shouldn’t look there. It’s TOO popular.
Here are a few other reasons why you shouldn’t look on the MLS for fix & flip properties:
So, now you know where you shouldn’t look, let’s focus on where you should look. Here are my top five places to find lucrative properties quickly:
Bank foreclosure listings are a phenomenal resource for the following reasons:
While foreclosures usually sell for fantastic discounts, be sure to investigate the neighborhood and get a complete understanding of the needed repairs for the property. First of all, it won’t do you much good to purchase a home only to find it’s in a terrible area. Second, it doesn’t make sense to buy at a low price only to find it needs a new roof and has significant foundation issues.
Short sales, like foreclosures, are bargain-priced with very motivated sellers. Short sales differ from bank foreclosures in that the seller is looking to sell a property before the bank seizes it and goes into foreclosure. You can lock down a short-sale property more quickly if you already have a hard money lender and down payment or proof of funds ready to go.
Where to Look: For bank foreclosure listings, check out Foreclosure.com. For short sales, you can either do a regional search online or go to Foreclosure.com for short sales. You can also check out RealtyTrac and Re/Max.
You can find some excellent properties selling for low prices at real estate auctions. To ensure you bid on the right property, go into an auction with the following information ahead of time:
You can calculate a lot of this information using our helpful tool, the Advanced Deal Analyzer. As a result, you’ll get the solid numbers you need about the property and your potential profit. Once you obtain the numbers on each auction property, stick to those numbers. Don’t let the heat of an auction get the best of you. You don’t want to be stuck with a property you paid far too much for.
Where to Look: For auction listings, check out Auction.com and Hubzu.
So many flippers ended up securing a profitable deal just by attending an estate sale. Typically, estate sales are held by the relatives of an individual who recently passed away.
What’s interesting for investors is that the majority of the time, those relatives may seek to offload an older, outdated property quickly. We’ve seen many borrowers seek out estate sales and ask the person running the sale about the house. Then, they offer to take the home off their hands fast with an offer. More often than not, these relatives are incredibly grateful to find someone to take care of the property they no longer want to keep around. As a result of simply asking, our borrowers find themselves with an excellent REI deal.
Probate situations are similar: someone has passed, and relatives aren’t sure what to do with their property. That’s where you come in and make an offer. You can snag an excellent rehab opportunity for a low price. Again, make sure these probate properties are in good locations.
Where to Look: Check your local newspaper and online obituary listings. You can also look in the classified ads for estate sales in the area. Another option is to request online probate court records.
Have you ever seen those yellow and black signs around offering cash for houses? Guess what? They’re from investors, just like you! They pound the pavement and take advantage of strategic marketing to find deals. There are many ways you can get the word out, but here are a few of the best:
Where to Look: You can design your own bandit sign online by clicking here. You can also send out mass postcards to mailing lists by clicking here.
To find profitable deals fast, networking is absolutely crucial. Here are some of the best people to know in the real estate investment industry:
Finally, be sure to do your own research. There’s no substitute for doing your own legwork and finding the right property for you and your family.
Where to Look: First off, contact The Investor's Edge. We can help you right away. You can also search Facebook and Meetup for local REI groups. Also, try your local Chamber of Commerce as they’re an excellent networking source for investors since it’s based around the local community.
https://www.youtube.com/watch?v=Jt4sqiC7T1g
Something I’ve noticed is that new investors get intimidated about reaching out directly to potential leads. I think this stems from being afraid you’re bothering them, hurting the relationship, seeming pushy, or whatever reason. That’s just the wrong mindset to have if you want to be successful.
Real estate investing is about solving problems for others and is a completely ethical business so you should never feel like you’re doing something wrong or are imposing on someone. If you know someone who’s looking to sell or lease property, reach out. They may not have known you were interested, but they may be open to the idea now that they know you’re interested. Plus, it never hurts to ask!
There are many ways to find properties quickly and efficiently, but these are my favorite five. Be sure to use all of the resources at your disposal, including contacting professionals and groups, doing your own research, and checking out listings. Using these methods will help you find the perfect property for your investment portfolio.
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