I know there are good real estate investments out there, how do I find one?
The answer is: Hard Work!
If it were easy everyone would be getting rich quick. (We all thought it was easy five years ago and look at what happened!) My recommendation: have a plan, don’t deviate from it, pursue it diligently, and be patient.
In this current real estate market with prices and interest rates down and rents relatively stable and in some cases up, you should expect a positive cash flow right away. Too many novice investors have been willing to supplement a rental house with a negative cash flow knowing that rents, values or both will eventually make it worthwhile. You can now buy those homes from the lending institutions that have foreclosed on them.
There will always be parties that need to sell and are willing to give you a “good deal.” In this market there are more than we have seen in a long time, primarily REO’s and homeowners in a financial crisis. Don’t be afraid to make a low offer that may seem insulting. As a buyer you can’t make a seller accept your offer. The worst they can say is “no” and they may be thankful just to have any offer. Don’t get me wrong, there are not amazing bargains around every corner. You have to be diligent to find them.
I highly recommend using the services of an experienced real estate professional. Perhaps I’m biased, but seriously, we do most of the research and the seller pays our commission. A savvy buyer should take advantage of this. Most real estate professionals have access to automated systems that constantly monitor their local MLS for any new properties that fit the criteria for which you are looking. You and your agent need to act fast when a good prospect appears. Even in a down market the really good properties sell FAST! The faster you are in your pursuit, the more competition you avoid.
And what about your “Plan?” I also recommend talking to an experienced real estate professional if you don’t already have a clearly defined objective. Your plan may change slightly as you watch and learn about your local market conditions, but don’t sacrifice a good common sense goal just for the sake of buying something. Remember…patience and diligence.
-Tim Sellers, Broker with Barb Sellers & Associates Realty Inc.
