There are several ways for a Real Estate Investor to find Investment Properties. Many of these take serious research and time but are worth the work. As I mentioned in many previous blogs, Real Estate Investing is not a get rich quick scheme but requires lots of hard work. The rewards are worth the time and effort allowing you to eventually experience financial freedom.
“Don’t want to be a Landlord any longer!” properties –
Some Landlords have had their properties for years. Being a landlord is not an easy career choice. Collecting late rent payments, answering maintenance calls in the middle of the night, evictions and finding tenants can wear on an Investor that handles all of this own their own. They have held the property long enough there is usually equity in the property as it remains under market value. These properties are desirable because rehab has been done and in many cases a tenant is in place. They are usually higher than some wholesale houses but are nice cash flow properties.
Unless you live under a rock, everyone is aware of the number of houses in the foreclosure process. The economic downturn put many homeowners in a critical situation and one of the results is losing their house. An Investor can find properties in many different stages of this process. A short sale is purchasing the house from the bank with the owner’s participation at a greatly reduced price. Some banks will sell the mortgage or note at a discount. In this scenario, the Investor owns the mortgage not the property. The last method to obtain properties is buying at the auctions. Each has its own risk and methods of attainment. Some times the process can take months to close but you can obtain homes well below market value.
Probate properties –
Probate is the process in which a judge decides the distribution of assets after a death. The property can be sold for many reasons. No interest in owning from beneficiaries, sold to pay outstanding debt on the estate or just because there are several beneficiaries and the property is sold so proceeds are split between each member. Probate procedure is different in every county, so research is extremely necessary.
Out of State Owners –
Usually for a small fee, the County will provide you a list of owners that do not live in the state but are paying taxes on property here. For example, they purchased a lot 10 years ago with building a retirement home there 10-15 years after the purchase. They are paying taxes every year and need to keep the grass mowed. After all these years, their plans may have changed and building on this lot is no longer one of their dreams. Investors can still offer these owners an amount that will give them a profit but still be a below market find for the Investor.
All of these properties take time to investigate, make offers and finally buy. If you are a full time investor, you may have the time and knowledge to dedicate time to your portfolio. If not, get a Realtor involved. This is what we do! In our office, I have several agents dedicated to working just with Investors. Our contact information is below. Let us spend the time researching, making offers and getting you to closing!
Broker/Owner, Investment Property Consultant
Real Estate Solutions of SWFL, LLC