Investing in real estate can be a profitable venture, but first, you need to find the right property. Experienced real estate investors, landlords, and flippers go beyond MLS listings to turn a profit. If you’re looking for affordable real estate investments, look in these five places.
1. Foreclosures
When property owners fail to make payments or fall behind, lenders repossess the property and attempt to sell it at public auction. Foreclosed properties often sell for the amount owed rather than their true worth. These sales are publicized in local news sources.
2. Courthouse Auctions
Failure to pay property taxes or state/federal income taxes can result in a tax lien allowing the government to sell the property at a courthouse auction to recoup the funds. These sales are advertised well in advance and are easy to find in local news sources.
3. Expired listings
Real estate investors benefit from fostering relationships with real estate agents to take advantage of expired listings (properties that didn’t sell in the contract period). Homeowners may be more motivated to sell when their property spends a long time on the market.
4. Vacant properties
Owners of vacant property are also motivated sellers. Often, a vacant property isn’t in the best condition, so owners are ready to take the money and let the purchaser invest in the repairs. A public records search will tell you who owns vacant properties.
5. Absentee ownership
Some people who own rental property turn the day-to-day operations over to a property manager. Reaching out to these owners with the right offer can motivate them to sell the property because they bought it for investment purposes in the first place.
Investment property is out there if you know where to look. Successful real estate investors look beyond the obvious sources to find the best deals.
