No matter how wealthy people are, everyone loves to get a great deal. It makes us feel good when we buy something on sale as when we buy things at substantial discounts like 50% -70% off, it’s natural for us to get excited about the money that we saved. We go as far posting our finds on social media, and we tell our colleagues, our friends, our family, and basically anyone who will listen to us.
When it comes to real estate investments, not only is it important to find great deals, it’s actually essential if you want to make more money than the average investor. I have clients who, before meeting me, have bought property at market prices who thought that they had bought a good deal. When they looked at the numbers at the end of the month, however, they found that they were actually in negative cash flow and having to put their own money into their investment property and essentially paying their tenants to live there. When this happens each month, it’s no longer called an “investment property”. It’s now called a LIABILITY.
I have been finding great investment deals for myself, and for my clients for a number of years and have compiled a list of the top 5 things to do to find great deals:
- Drive by homes in the area you want to purchase and try to find “For Sale By Owner” signs.
- Find property foreclosures at the Courthouse. You must have cash in order to bid for these properties.
- Look in the local newspapers, Craigslist and Kijiji for properties posted by home owners. You may find a desperate seller which can make negotiating price and terms of the sale easier for you.
- Deliver mail to homes in an area you want to purchase with a professional letter asking if the owner would like to sell.
- It’s important to find a realtor who knows where to buy and how to analyze properties as investments so you know you are buying investments and not liabilities.
Some people prefer to find deals on their own and some with the help of a realtor. If you have good investment real estate knowledge and have successfully purchased investment property before, then by all means, find deals on your own. However, if you are lacking knowledge or have never bought investment property before, then it is best to consult an investment realtor to avoid costly mistakes.
By: Teresa Leung
INVESTOR | REALTOR® | AUTHOR | SPEAKER