Real estate investing is by far one of the best ways to make a great deal of money in such a short amount of time. It is a very challenging, yet very rewarding experience. Yes, indeed many people have found riches in real estate and with a little research and determination, you too can make money in real estate investing.
So how does one find these great deals in real estate? Here are a few tips to get started:
* Network with other real estate investors. Joining local real estate investing (REI) clubs will expose you to experienced real estate investors who may be able to give you leads or advice on how or where to find great real estate deals. If you’re a newbie to real estate investing, a REI club will be a great place to find a mentor if you so choose to have one.
* Scour the newspapers or online classified ads. Look for home sellers who are “extremely motivated” or “desperate” to sell their home. They could be in a situation wherein they have to move to another city because of a job transfer or perhaps they can no longer afford to pay their mortgage. These are the people who are most likely to cut a deal with you in order to sell their home quickly.
* Enlist a team of “bird dogs”. These are people who can keep an eye out for potential deals. They will give you leads in exchange for a finder’s fee. The team can consist of the postman, your friends, family, or people who live in the neighborhood(s) you are targeting. Bird dogs are very valuable because they save a great deal of time and energy. Have people call you instead of having to waste time driving through the neighborhoods!
* Send a postcard to home owners in the areas you’d like to invest. Tell them that you buy homes and that you are also looking for “bird dogs” who can help you find real estate investments. Postcards don’t have to be fancy or expensive – just as long as you get the message across.
* Post an online ad or bulletin. If you don’t have the budget for postcards, there are many places online like Craigslist.com, Backpage.com, or even MySpace.com, where you can post your message.
* Partner with an experienced real estate agent. Most real estate investors shy away from using a real estate agents because of the commissions, but a real estate agent can be an invaluable resource. Agents have access to the Multiple Listing Service (MLS) whereby they are able to see how long homes have been on the market and can get a sense for whether or not a seller is truly motivated to sell. Real estate agents can also guide you through the home buying process and teach you how to structure a deal if you are a newbie and don’t have a mentor to work with.
* Attend county real estate property auctions. If you have the cash, you can find great real estate deals at the county courthouse auctions. This is where foreclosures are sold when the banks need to get rid of inventory.
For real estate investors, there is no “good” or “bad” time for investing. There are a plethora of opportunities to make money. The best thing about it is that there are many ways that you can approach real estate investing. Find those ways that you feel comfortable with and make the most of the resources and people that come your way. It’s important to treat it as a business and don’t let emotions get in the way of a good real estate deal. Find a balance between helping people and making money for yourself and you’ll be a success. Most of all, have fun!