Education and news for smart DIY landlords!
Every real estate investor needs to be resourceful in finding great deals to succeed in the business. To do so, you must look around to find those who need help with keeping their homes including those who are keen on selling their properties. You should also look for property owners that aren’t interested in possessing their assets anymore.
Most importantly, you should consider traditional means of advertising. There's less competition in advertising yourself through radio stations or real estate magazines. With that said, here are useful tips you can follow.
Banks, in general, are in the trade of lending money, not managing properties. As a result, they want to sell the homes they have foreclosed on as soon as possible by offering huge discounts.
Be the first to send an offer to newly listed homes. Increase your chance of securing the deal by shutting out your competitors. For properties that have sat on the market for a long time, it’s also good to send your offer last because owners are tired of holding on to the property - use this to your advantage to ask for a discount.
Get in your car and drive around neighborhoods. Search for vacant houses. Save the addresses and research who owns the properties. Give them a call and strike a deal.
You’ll never know who’s out there looking for someone to sell their home. Make your friends, colleagues, family, or people in your social circle know you’re out buying properties. If they don’t plan to sell their houses, you can ask them to help you find a seller.
Town halls keep a variety of records including vacant and foreclosed properties as well as eviction notices. You can use this information to contact the property owners and negotiate a good deal.
Old-school marketing tactics are not totally obsolete. In the case of radio advertising, you can introduce yourself on business-focused stations. You can also start your own station where you can attract other real estate investors or home sellers to do business with.
Most homeowners don’t consider selling their homes unless they’re presented with a good offer. What you should do is send them postcards or business letters straight to their mailboxes. However, you’ll need patience and persistence as you won’t get a response right away.
Aside from taking advantage of bank foreclosures and town hall information, you can also find properties with selling discounts at local real estate auctions. Keep in mind that these properties are sold “as is”. You need to ready your cash and have renovation plans in mind.
There are still plenty of investors and home sellers reading magazines to look for houses to buy and people to sell their homes to. If you advertise yourself there, you’re increasing your chances of being contacted for a deal.
Networking is paramount as an investor. There’s no better place to get the latest deals than the social circles of real estate professionals. Find one in your local area and join them. They might know plenty of other properties on the market that they have no interest in and would give the extra opportunities to you.
Homeowners who have struggled to pay their mortgages in the past few months are desperate in keeping their homes. You can get a good deal here by contacting them before their house is foreclosed. The technique is to pay for their remaining mortgage balance and have them pay your costs through rents plus an interest.
Don’t just settle for the tips found on this list. Be observant of your local real estate market. When you have found an opportunity for a great deal, do your research on the property owner and create an approach that would really entice them to do business with you.
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