As a real estate investor, just like any other business owner, you want to be sure that you have good, quality “inventory” for your customers. So, when going out to locate property for potential rentals, you need to ensure that you are using all of the possible sources, because in this particular business, you just never know when – or from whom – the best deals will come about.
When it comes to purchasing property, many people think that they have to stick only with what is listed in the MLS (the Multiple Listing Service). But by doing so, you will really limit yourself. And, there are a multitude of other potential sources for great deals. Just some of these can include the following:
FSBO (For Sale By Owner)
A FSBO is a property that is being offered for sale by owner, without the assistance of a real estate agent. Selling one’s property this way has both some advantages and some drawbacks. While it can save the seller a commission, it also means that they need to devote time and energy in marketing and showing the property, as well as in learning and following the legalities that go along with it.
Because these properties aren’t typically advertised as well as a home that is listed, there may be less competition – so, you could find that you may get a good deal on a FSBO property. This is especially the case if the property has been sitting for some time. You will usually find FSBOs advertised in the local newspaper and on various local websites like craigslist. You can also find them by simply driving around in the areas of town that you are interested in and looking for For Sale signs in the yard.
A trustee sale is a sale by a property in foreclosure due to default in the loan made from the lender, who holds a trustee deed on the property. State statutes can govern the notice requirements for publication of the sale of the foreclosed property. A foreclosure sale can take place at public auction and the property may be sold to a third party bidder – or, it could revert back to the lender for a certain amount.
If you are a member of an investment club, you may hear of other members in the club who want to sell their rental property. In this case, you may be able to purchase a property that has a good, paying tenant already in place.
Another place to locate property for sale is on auction sites. There are many websites that are devoted to selling property online. Some of these are focused on certain types of property or situations, such as foreclosures. If going this route, it is essential that you know exactly what you are bidding on and how the process works. This is because sometimes you are bidding on the actual property, and other times you may only be bidding on the down payment.
Real Estate Agent
While many real estate agents focus on working with people who are looking for homes, there are some who focus on working with real estate investors. By working with an agent in this niche, you could save a tremendous amount of time and effort, as he or she could narrow down the type(s) of property you are seeking in and around your desired location.
After you have purchased investment property, it can take time and effort to manage it. But partnering with a property manager can allow you to reap the benefits of your investment, while still allowing you to do other things. For more details on the many benefits of working with a property manager in and around the Orlando area, Contact Us.