How do I find good real estate deals?
If you think that great real estate deals are hard to find, then you’re probably not looking in the right place.
A lot of real estate investors make the tragic mistake of depending on the multiple listing service (MLS) as the sole source for finding an investment property. The fact is that many real estate deals get bought and sold before they even hit the MLS.
The secret to successfully investing in real estate knows how to find the opportunity that other investors miss. From networking to online real estate marketplaces, and everything in between, here are some ways to find great real estate deals in every market today.
Online Marketplaces
A growing number of new and experienced real estate investors are leveraging the power of online marketplaces to find a rental property. There are two main reasons for this:
The first reason is that most of the “heavy lifting” of locating and analyzing deals have already been done. All you have to do is choose among the options that are the best match for your real estate investment strategy. Another reason is that out-of-market investing is much easier. Geographically diversifying rental property portfolios helps to minimize risk and maximize reward by seizing opportunities that oftentimes can’t be found in your own backyard.
Crowdfunding
While not technically a marketplace, crowdfunding sites let real estate investors pool their money with other investors to buy commercial property, multi-family, and single-family homes, all of which are listed online.
While crowdfunding is a good way to diversify investment capital, one of the biggest drawbacks is that your own options are limited. Instead of directly owning the real property you receive a small share of the entity that owns the real estate. Fractional ownership of real estate does have some benefits, but investors should always have freedom of choice.
Multiple Listing Service
Good real estate deals can also be found on the MLS; you just need to know what to look for. The great thing about the multiple listing services is that it’s packed with all sorts of useful information for real estate investors.
To find deals on the MLS focus on:
· Houses with a total days-on-market count above the market average
· Property that has been taken off the MLS and then relisted
· Real estate that is “back on market” after a deal has fallen through
· Homes that have been repeatedly re-listed by different brokers
· Expired listings where the property never sold
Off-Market Real Estate
Investing in real estate is a numbers game. The more potential deals you have to choose from, the faster you’ll be able to scale up your business and grow your portfolio. One way to find real estate deals is by looking at off-market properties.
Off-market property is real estate that’s for sale but isn’t listed on the MLS or online marketplaces. Real estate agents call these “pocket listings.” Literally, this is information they keep in their back pocket until a qualified buyer comes along, without having to deal with the hassles of putting the home on the MLS.
Some of the best ways to find the off-market property is “Networking” with other investors in your local real estate investment club.
If you’re the type of investor that prefers to do things on your own, don’t get discouraged if you’re having trouble finding good deals. It’s important to have the right frame of mind when looking for deals. Eventually, they’ll come your way.
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