The real estate market is one where a profitable investment is always to be found; somewhere amidst the foreclosure lists or lying dormant on a real estate agent’s desk. This guide aims to give you the background necessary to allow you to find profitable investment real estate.
The first key to profiting from real estate is to find a highly motivated and urgent seller. The idea is that to negotiate a lower price on a piece of real estate requires the seller to want to sell their house quickly or desperately. If you are talking to an unmotivated seller on the telephone then it will soon be very clear that you are not going to get a discounted price on this real estate. If the seller is unmotivated then you will be unable to negotiate a lucrative deal.
One counterintuitive aspect of real estate investment is that you normally make a profit when you buy real estate and not when you sell it. This means that, while there is often little you can do to increase the value of real estate; sellers are human and are often willing to negotiate their price. Saving money while buying real estate is the key to selling homes for a profit in the real estate market.
With that in mind, your first step is to develop a list of real estate properties that you are considering investing in. You are going to need to view around ten pieces of real estate before you careful choose which one will be your chosen investment.
One useful technique for sourcing profitable real estate properties is to interview real estate agents; the people that profit from real estate on a daily basis. Interviewing a real estate agent and finding out if they own any investment real estate they would be very useful. Remember, they will be more than willing to be interviewed because you are offering them your regular custom.
Real estate agents understand the market “inside out” and can be an excellent source of investment properties with low prices because others have not seen or understood the potential of them. After you create a good relationship with some local real estate agents you will typically receive a phone call every time they notice a good property reach their desk. Remember, they receive a lot in return for this relationship because the more real estate that they sell the more commission that they earn.
Another very useful method for sourcing great real estate deals is the use of foreclosure lists. All you have to do is to search Google for “foreclosure lists” in your local area. Typically, you will have to pay a subscription fee to access this but it is definitely worth the cost.
In order to profit from foreclosure lists easily and quickly, follow these steps:
-Firstly, buy the daily foreclosure list for your area and flip through the pages.
-Select the only the real estate that has been on the list for less than thirty days.
-Highlight the real estate that is within your budget.
-Look particularly for real estate that is located in nice surroundings or desirable neighbourhoods and only select properties that are within fifty miles from where you live.
-Using the internet, access the local tax records and obtain the tax value of this particular piece of real estate.
-Also, search for the real estate in question on meritrealty.org. This website is also designed to give clues as to the value of real estate.
Once you have picked a few potential properties then ask your real estate agent to take you for a viewing. If you are happy with this real estate then hire a real estate property surveyor to make sure that the house is structurally sound. This step is necessary to ensure the value of your investment. After this point you will be in a position to make an offer on this real estate and to attempt to “buy low” in order to “sell high”.