Investing in properties can be a very lucrative endeavor, and many people have been successful doing so. But when it comes to finding investment properties, while there isn’t necessarily a right or wrong way to go about doing it, there are ways that can help speed up the process, and make things a little easier. In this blog, we’re going to go over some tips to help you find your next investment property, and what to look out for before purchasing your next home.
Work with a Realtor
Trying to find the right property on your own can be a bit of a challenge if you don’t know what you’re looking for, or where to look. One of the first, and more obvious ways to find your next investment property is by hiring a realtor. They are able to identify off-market listings – properties that are for sale but have not yet been listed online – which is an upper hand when it comes to finding prime properties. Additionally, most reputable realtors have special credentials when it comes to negotiating, which can help you get a better deal on a property.
Explore Real Estate Websites
Real estate websites are another great way to find properties in your area, and they give you an idea of what’s out there for price and trends in the housing market. It’s important to note that some sites aren’t always up-to-date with information on their available listings, so be sure to conduct enough research on any prospective properties to find out if they are a good fit for you.
Courthouse Auction Properties
Foreclosure properties and those going through tax sale are typically required to go through a public auction. This is another good way to find off-market listings below market value. Most auctions are in-person; however, they can be virtual depending on where you live. Many of these properties tend to be fixer-uppers, and experienced buyers tend to purchase these properties as fix-and-flips. If this is something you’re considering, it’s advised to have money set aside for renovations, repairs, or any other expenses.
Connect Directly with a Seller
If you come across a property in your area, you can connect with the seller directly to learn more about the property, asking price, and potential buying options. This is a good option if you’re planning on buying a property without a realtor, otherwise, you may want to consider looping in a real estate professional. If you’re still familiarizing yourself with real estate investing, it may benefit you to have a realtor to ensure all the right information is gathered and the right questions are asked.
What to Look for in Investment Properties
There’s a lot more that goes into investing in real estate aside from finding the properties. Here are a few things to keep in mind when finding properties for generating passive income:
Neighborhood: Tenants usually prefer rentals that are close to parks, public transportation, grocery stores, and schools or other educational institutions.
Local Rent Demand: There should be a local demand for rental properties to avoid vacancies and actually generate a profit through your property.
Amenities: The more amenities your property can offer, the easier it will be to generate interest. Amenities can be a nice addition to your monthly profit as well.
It’s important to not get discouraged when getting into real estate investing, so knowing what you want to invest in before getting started is a vital step. There are many options when it comes to investing in real estate, including buy and hold, fix-and-flip, wholesaling, and more. The right investment strategy for you can also depend on your age, risk profile, and financial situation.
Looking to Finance Your Next Investment?
RCN Capital offers short-term and long-term financing options for real estate investors. Whether you’re looking to fix and flip properties or hold properties for rental income, RCN has flexible options that are suited to your needs. Connect with us today to discuss your next investment property.