Article # 11

Date Posted: 17/08/08 08:06

When I got started investing in Real Estate I made a lot of mistakes and lost a ton of money because I rushed into deals that just did not make financial sense. Most people involved in the Real Estate investing game know that you make money when you buy, not when you sell. The major problem that I encountered was finding those good deals. As my business matured I discovered a number of different outlets that not only supplied the inventory I needed, but also reduced the amount of energy and time I spent looking for that one right property.

In the current market there are excellent discounts available through public listings on the Multiple Listing Service. The most important first step in identifying those great opportunities is finding the right Realtor. I cannot tell you how many times I have spoken with agents that want to send me some “real discounts.” When I get their list I am overwhelmed with the sheer volume of properties. They’ve sent me a pile of junk that’s been sitting on the market too long and that I wouldn’t take if the seller was giving it away. A good Realtor should be able to sit down with you and determine exactly what type of property you feel comfortable with. Do you want a rental property or something to fix and flip? Are you interested in a townhouse or a single family dwelling? They should then be able to send you a short list of properties that might be what you want and keep you apprised on new listings that meet your criteria. You’ll find that the Realtors that hustle and know what investors want are already working with a network of other investors. Ask other people that have bought investment properties through a Realtor. I am sure they can provide an excellent referral, and if not, call our office. We can provide you a list of competent agents that would love to earn your business.

In my opinion the best deals come directly from motivated sellers. These people have a real NEED to sell their property and are often more concerned with moving the house than with the size of the check in their pocket after settlement. These people can be reached through direct mail, from signs on telephone posts, ads in the newspaper, through Craigslist or any number of different outlets. When you can find them and negotiate a great deal, this is the best prospect to buy right. The biggest problem I have run into is finding these leads. It is certainly time consuming. It is expensive. Many companies, including mine, spend thousands and tens of thousands of dollars every month to find a few gems in the rough. If you have the resources and the time to spend, motivated sellers can be great sources for your next deal.

The most convenient and often best source (though my opinion is biased) for discounted properties is wholesale companies like mine. These companies spend a lot of money on marketing to generate dozens, if not hundreds, of leads per month. They will then identify the best deals in the bunch and place the property under contract. Investors then have the opportunity to purchase the sales contract from the wholesale company at a slightly higher price. The real value in these companies lies in the added options they can offer with the deal. These can include contractor referrals to complete any construction, financing to purchase and remodel the property and property management once the house is ready to rent. Wholesalers free up your time to invest, not run around and search for the next project.

There are countless creative ways to search for the next good deal. I have found that Realtors, motivated sellers and wholesalers offer the best resources for my business. If you have any interest in purchasing an investment property in the Philadelphia or Central Pennsylvania areas, please visit my website at WeSellHomes2Fix.com or email me at info@webuyhomes2fix.com. We would love the chance to help you build a more successful financial future.

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