Real estate investors must move quickly if they want to beat the competition. Success is knowing where to find the most up-to-date property information. Improve your odds by using some of these proven sources to find the best investment properties to buy.
WORK WITH A REALTOR
Locate a Realtor who is experienced in locating investment properties and build a good working relationship with them. Ask other investors for referrals or research local real estate brokers at sites such as Redfin.com, Realtor.com, or Zillow.com. A Realtor can provide insight on whether the property is good source of rental income or a potential rehab and sell property. They can also negotiate the deal for you, which is a valuable time saver.
BUY FORECLOSURES
Foreclosures are often sold at auction at the county courthouse, usually live, in front of the courthouse or in a room inside. They are free and open to the public.
If you want to bid on a foreclosed property, keep these things in mind:
- You can access information about the exact location at county clerk’s office and/or on their website as well as a list of the properties to be sold at auction.
- Registration to bid at the auction is required.
- Be sure you read and understand all due diligence documents and transaction details prior to the auction.
- Drive by the property, if possible.
- These sales typically require cash payments—no financing. That can be risky due to the lack of information on the condition of the property.
ONLINE AUCTIONS
Online auctions allow investors to view properties all over the country and provide bidders access to inventory immediately after a bank has repossessed a property. Investors generally prefer hard money loans for these sales as the contract is executed in 30-45 days. A few online REO auctions can be found at the following sites:
Remember that winning bids are legally binding and there are no contingencies. Sales are kept private and your anonymity is maintained.
DIRECT MAIL/SOCIAL POSTS/WEBSITE
One highly effective method of finding properties is to mail postcards to homeowners whose properties fit your deal criteria. Homeowners who are looking to sell their house quickly due to costly repairs, death, divorce or other situations often will consider a fast sale of the property. Distressed sellers are some of the better sources for inventory. Because the deals are direct and off-market, the potential profit is significantly higher.
You can also attract potential sellers to your website. If you don’t have one, that’s one of things you should put at the top of your to-do list for this year. A website will give your business credibility even before you are getting leads from it. Collect the name, phone number or email address of visitors to your website. Also, having a social media profile with followers can attract potential sellers as well.
UNIQUE WAYS TO FIND INVESTMENT PROPERTIES
- Networking and word of mouth: Join a local Real Estate networking group such as a Real Estate Investor Association chapter to gain insight into the market. You will have the opportunity to network with seasoned investors and potentially find a mentor.
- Work with a real estate wholesaler: Wholesalers contract with home sellers, market the home to potential buyers and then assign the contract to the buyer. This is a great way to find off-market inventory and there are very quick close times. Remember that, typically, there are bigger potential margins because you are acquiring a distressed property at a discount.
Once you have evaluated all the ways to locate a profitable investment property and found the right deal, a reputable hard money lender can assist with obtaining the funds to close quickly. Getting your money faster means you’ll be able to take advantage of the best deals instead of losing them while you wait for financing. When you buy a property you want to rehab and sell, getting the money to purchase and repair it quickly allows you to sell faster and move on to the next property. Turning your project quickly means more potential profit and more time to move on to the next deal!
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ABOUT LONGHORN INVESTMENTS
Longhorn III Investments, LLC is a direct private lender offering short term acquisition and renovation capital to real estate investors for both residential and commercial assets. We operate in major metropolitan areas throughout Texas, Missouri, Indiana, and North Carolina. Highlights of our loan program include:
– Up to 70% of ARV (after repair value)
– Finance up to 100% of cost
– Close in 3 – 5 business days
– No income requirements
– Streamlined, simple approval process
– No pre-payment penalty
Longhorn was formed in 2008 and has funded over 1600 loans since inception. Our complementary businesses include a title company and real estate law practice operating out of our corporate office. Our wealth of experience puts us in the unique position of being able to help investors through all aspects of each transaction.
