When you are ready to get into real estate investing, you should have several things in place so that when you find the right property, you can take deliberate, immediate action before the deal is gone.
Once you have selected your area of opportunity, you can dial in on that to start farming. Location really matters and to maximize your profits, you want to be sure you are in an area that will be attractive to future buyers. You can narrow or widen your search depending on the response you get.
Pay attention to how long properties have been on the market and know what questions to ask to make your conversations effective. Sometimes in real estate, you only get one shot to get your questions answered and to make a first impression. If people feel comfortable talking freely about their situation, you may find more opportunities than you think.
Sometimes this means getting pre-approved for a mortgage. Other times, it is leveraging your own assets and/or other people’s money and assets. If you are buying a distressed property, it can be easier and smoother if you are already pre-approved for a loan.
Find an agent who has experience working with motivated sellers, other investors or at the very least, has been working in one market for a long time. Sometimes their network in a specific area can be enough for you to know what is going on and may even lead to a potential deal if they know someone locally who needs to get rid of a property.
The visible signs of neglect often are not the only issues with a property as there can sometimes be issues that are not visible. Before you agree to purchase the property, make sure you get a thorough inspection so you can run your numbers properly and renegotiate if necessary.
What we mean by this is make sure you do a public records search. You will want to familiarize yourself with the local government and country clerks. Potentially, the building department at these places will make your buying process more seamless if you know what each group does and how they function.
A cash offer can give you a leg up because it means you can close quickly. If someone is motivated, they like the idea of getting the property off their hands as quickly as possible. Sometimes, the seller may accept a lower offer if it is in cash because they know they can have all the funds immediately without having to deal with preapprovals or a bank.
Big picture takeaway points
Self-reflection questions to think more about the content
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