Finding the right investment property: 5 ways to find your next investment
Published on: Friday, December 18th, 2015
During the last year and a half I’ve had hundreds of investment properties cross my desk. I have personally evaluated at least a hundred, made offers on several, and bought a few. This might sound like a lot of work, and it is, but it is definitively worth it when you buy the right investment property. The right investment property can pay you for years to come and just one can make you wealthy.
It is important to be choosy. To be successful as a real estate investor you don’t need to buy everything you evaluate. Not everything is going to be a fit. In fact few are. You want to focus on the properties that are the best fit for you. If you have ever felt like pulling your hair out because you were frustrated from not having enough properties to consider, you are not alone. It’s one of the most frustrating aspects of being a new investor. You want to invest, but you don’t know where you’re going to find that next deal.
Deal flow (inflow of available properties) is extremely important to a thriving real estate investment business. You need to have quality properties to evaluate and make offers on a continuous basis. Without a flow of quality opportunities coming your way, you probably feel like you have to make the next one work. That pressure can force you into making bad decisions. Bad decisions will not make you wealthy.
Having opportunities cross your desk every day is essential to success as a real estate investor. There are several things you can do on a daily basis to make sure you have a continuous flow of quality opportunities to evaluate. If you use even a few of these sources, you will be assured to have an endless flow of opportunities to consider.
5 ways to increase your deal flow and help you find your next real estate investment property:
- Real Estate Brokers – Brokers are always going to be one of the main ways you find real estate investments. They make their living by finding opportunities for investors. Brokers have the new listings on a regular basis. You need to have a strong relationship with brokers in the area you would like to invest. Let them know what you are looking for and keep up with them. Make it your goal to reach out to them on a monthly basis so that the next time they run across the type of property you desire, you will be the first to know. Make sure to register on their websites with your property criteria so that you will get their new listing notices. This can be one of the best ways to ensure you will see a lot of deals flowing your way.
- Direct Marketing – Direct marketing has been one of the best ways that we have found to locate potential properties for purchase. Letter campaigns, postcards, and even calls to property owners have produced a lot of great leads for our company. They are cheap to do, allow you to talk directly with the property owner, and will allow you to bypass the competition.
- Networking – Real estate is a relationship business. Tell people what you are doing and what you are looking for. You’ll be surprised at how many people will want to help you. You will start getting calls from property owners or “deal scouts,” people who find others properties for a small fee or a piece of the equity, with potential opportunities. Go to your local real estate investment group and start networking. Deals will flow your way.
- Online and Social Media – One of the least understood ways of uncovering opportunities is through the use of the internet and social media. Over the last 18 months, this has really picked up as a great way to find potential opportunities. Everyone knows about the big real estate listing websites, but have you ever started networking on LinkedIn, Facebook, or Twitter? It’s amazing what you can find. People from all over the United States will help you find what you are looking for. Give it a try and you’ll be amazed.
- Lenders – Lenders can be a great source of real estate opportunities. Do you have banks or mortgage brokers who you have worked with before? If so, give them a call and let them know what you are looking for. I recently did that with a mortgage broker who we have worked with and lucky for me, he was in the process of working with another client of his about refinancing his property. After talking to me, he talked to the property owner and now we are evaluating it for purchase instead of the owner refinancing. It happens every day all across the nation. Next time, it can be you who gets that deal.
Having an endless stream of real estate opportunities cross your desk on a daily basis is the lifeblood of your investment business. Real estate is and always will be a relationship business. Tell people what you are doing and what you are looking for, and you will have opportunities flowing your way every day.