Like most single-family rental property investors in Magnolia, you are most likely looking for a great real estate deal. Although there are many ways to find that perfect bargain property, some of the most successful strategies take a more creative approach. No matter what it is you’re looking for in a rental house, dodge the competition by using these four creative ways to find that next Magnolia real estate deal.
1. Contact Absentee Owners Directly
In a competitive real estate market, finding a good deal on a property can prove to be difficult, especially when it’s on multiple listing services. Because a lot of people are searching for affordable housing, you are going to be competing with other investors and individual homebuyers.
When you find yourself in a situation like this, it wouldn’t be a surprise if you’re thinking about going for a different approach. One creative tactic used by many successful rental property investors is to contact absentee property owners directly and ask them to sell to you. Absentee owners are property owners who don’t live in their property. This means that the house is either vacant or being used as a rental. Best to ask, just to be sure. Plus, tracking down absentee owners isn’t really that big of a deal. You could drive around looking for houses that look vacant, call ads for rental properties listed by mom-and-pop landlords, or check through public records. When you finally settle on a potential property, set your offer on the table and see what the owner has to say.
2. Try Bank-Owned Properties
Foreclosed properties can occasionally turn out to be a source for great real estate deals. In a lot of settings, foreclosures happen because the bank has repossessed the home due to the nonpayment of the mortgage. What ends up happening is the bank will oftentimes sell the property to recuperate some of their money. They have no interest in holding a foreclosed property. That can mean major savings for a savvy real estate investor.
Be careful, though, before you decide to jump in on a foreclosure. The foreclosure process can be long and complex, and bidding and buying a foreclosure is different in many ways from buying a property from a private seller. Do your due diligence of the process before you decide on anything. Also, foreclosures are notorious for being in disrepair, so you’ll need to be prepared to make improvements on a foreclosed property.
3. Watch for New Listings and Very Old Listings
In real estate, occasionally, a motivated seller will take the first offer they get. Because of this, it would do you well to do whatever it takes to be the first in line. See to it that you are pre-approved for financing. You can then work with your real estate agent to set up alerts when new properties are listed so that you can be one of the first to make an offer.
You might also want to try searching for listed properties that have been on the market for a long time. Because their properties have been on the listing for a long time, most of these owners are becoming desperate for an offer. If you can manage it, and if the property fits your profile for a good rental house, you might be able to negotiate your way to a great deal.
4. Wait for the Right Deal
When looking for your next investment property, make sure to look at a lot of real estate deals. For a professional investor, finding great deals in Magnolia is typically about playing the numbers. You will most likely sift through a pile of potential properties before you get to a few that show enough promise for a deeper analysis. Then, you’ll make less than ten offers, out of which only one or two will be accepted. However, if that one “yes” is a great bargain, it’s definitely worth the effort.
Follow these creative approaches to find a real estate deal, and then build your wealth at a faster pace by securing instant equity in each new property you acquire. Accordingly, you’re protected from future downturns while ensuring a solid financial future. Once you have your property, Real Property Management Republic would be happy to help you manage it. Contact us online today to learn how we can help you save time and money.
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