There are many ways in which you can find a great property for your real estate investment. The problem lies in the fact that many would-be investors are not exactly certain what specific types of investment they wish to make. Unfortunately, the type of investing will greatly affect the type of property that will best suit your real estate needs. This article focuses on finding a great property for the purpose of buying to resale or flipping a property.
Seek Bargains
This is absolutely a necessary step when it comes to finding properties with excellent potential as flipped properties. Bargains are often sold at bargain prices for a reason. The good news is that many of these reasons are purely cosmetic and quite simple to fix. Finding an estate agent that is willing to work with you for lower priced, bargain properties offers an excellent place to begin. If your estate agent is knowledgeable enough you should have access to properties that would have been unavailable to you had you continued the search without the assistance of an estate agent.
Another great place to find bargains of this nature is to search through foreclosures, auctions, and homes that are preparing to enter into foreclosure. While not always the case, there are many in these situations that are willing to be a bit more flexible with price. Never offer full asking price first. Start low and negotiate up – not too low though as this will wipe out trust from the vendor or estate agent. You will lose some properties but in the end it will be a much more profitable venture if you can get the properties you want for a smaller investment.
Know the Neighbourhood Trends
Before placing an offer on a potential property for flipping you need to learn as much about the neighbourhood as possible. You do not want to place a family home in the middle of a “retirement” neighbourhood, nor do you want to place a potential bachelor-pad in that type of area. You also want to avoid areas that are entering a state of decline, as the rehab efforts are unlikely to achieve the profits you are hoping to receive. Instead, look for bargains in areas that are approaching some sort of renewal or have very low theft or excellent growth potential.
If you are investing in a home that is meant to appeal to families make sure the neighbourhood is safe, has a relatively low thefts or criminal incidences, access to good schools, and entertainment opportunities that may appeal to families. These things will affect the price you are likely to be able to expect once the renovations have been completed as well as the type of renovations you will need to perform on the property. Buying a property in an area that you know nothing about is like buying a property without an inspection.
Get a Thorough Inspection
This is one of the most important steps in the process of selecting the perfect property for your real estate investment needs. A qualified inspection will prepare you for any problems that may arise during the course of your work on the home. These are things that will affect the amount of money you should offer on the home, the amount of money you will need to invest in repairs, and the amount of money you can expect once all is complete.
Failing to have a complete and proper inspection can lead to disaster when the renovations begin costing extra money and time as efforts are undone in order to get to the root of the problems as you go. There are very few things that can save you the time or money that having a decent inspection can manage to save. Inspections can also make you aware of any structural problems, wiring problems, and other problems that may mean the difference between the property offering a possible profit or a probable loss. It is much better to be armed with this knowledge before making an offer.
Need help finding bargain deals for your investment needs? Let’s have a chat.
**Photo by Tierra Mallorca on Unsplash
