How to find a perfect real estate investment option
If you are looking to widen your investment portfolio, then real estate is your best and safest option. And whether you are a first-time real estate investor or not, you should always go for a positive cash flow property. In order to make profits out of your real estate investment, you need to buy smart. Finding a real estate investment option isn’t an easy job and finding the perfect real estate investment option is even harder. The perfect real estate investment option is the one that will be based on smart choices taken by utilizing every means possible to your advantage. Getting into real estate investment isn’t an easy task, but with the right tactics, you will be able to approach any property and seal the deal. Whether you are going for an investment property, a property for your business or simply a home for you and your family, below is your guide to finding the perfect real estate investment option.
Identify what you’re looking for
Before starting the hunt for the perfect real estate investment, you should create your selection criteria list first. And by that, we mean to identify the following,
- Property Size (Square-Ft)
- Property Conditions
- Return on investment (for buy-to-let properties)
- Number of units (in case of multi-family properties)
- Plot size
Understanding what you want from a property will make your hunt easy. You will now be able to exclude the properties that don’t fall within your criteria and save lots of time by focusing on searching for the ones you are interested in whether residential or commercial real estate.
Look for the offline properties
Not all properties are listed for sale, hence a savvy investor knows to look for those offline properties as they might be the perfect investment. Some landlords would use the help of a real estate agent to sell their property without going through the hassle of listing it online or doing an open house. So be sure to check with your real estate agent these properties first as you might find what you have been looking after all.
Look for plenty of properties
Now that you have known exactly what you are looking for, you should look for plenty of properties. Be a passive buyer, the type of buyer who like to look, attend open houses for years, and is still looking. This type of buyers can look at 100 houses or more over the course of years. So when looking for the perfect investment option, you should be patient, never get attached so easily and don’t rush your investment decision unless you are 100% the property you are eyeing is perfect for your investment needs.
If you are looking for a great deal, then you should act fast. Start by preparing your finances and get pre-approved from the bank to get a loan. If you are sure this is the property you want to invest in, then don’t delay, check it out quickly, and make an offer the same day if possible. You have to work faster than anyone else and make an offer within 24 hours of a new listing. If you want to seal the deal, then consider paying in cash to sweeten the deal for sellers who might have multiple offers.
Contact owners directly
Savvy real estate investors always follow this tactic when hunting for a real estate investment option. Approaching owners directly instead of dealing with the real estate broker. Even though many landlords won’t fancy such approach, but a savvy investor would lure them by putting a selling price that will be hard to resist and would seal the deal in a heartbeat.
When evaluating a property, keep supply and demand in mind
When investing in a buy-to-let property, you should always keep the supply and demand in mind. Location is a key factor in determining the demand that will exist for a property, while the availability of rentals in a specific neighborhood determines supply. Hence, when hunting for the perfect real estate investment option, make sure your property is located in a sought-after location and one that tenants are competing to secure a spot there.
For first time investors, it is advisable to start small and that is look for a good beginning property. A beginning property is located in your neighborhood. You know the area well, you know all its flaws and you are fully aware about the real market value. Real estate experts always advice first-time real estate investors to start their investment journey where they know best.
Look in other neighborhoods
Not all real estate investors are able to invest in a property in the same neighborhood they are living in. That is why, looking in other neighborhood and cities where properties prices are low is a wise investment choice. However, you need to be savvy and look for areas that have potential and are growing, in order to make the best out of your investment.