Investment pros reveal their secrets for generating hot real estate seller leads in a competitive market.
It’s probably no surprise that some of the most seasoned property investment professionals have some tricks up their sleeves when it comes to generating real estate seller leads. So whether you’ve been in the real estate game for years or you’re just getting your feet wet, it might be helpful to take a look at some of these tried and true methods used by the pros to get their hands on hot properties.
Whatever Your Niche, This Will Help
Whether you’re investing in your local neighborhood, or you’ve decided to spread your wings and go county- or state wide (or beyond), it’s always useful to discover what works in your chosen market for drumming up good investment properties. And it doesn’t matter if you’re looking for land on which to build spec houses, or you need distressed, undervalued homes to fix and flip, it’s helpful to know how to lay your hands on a good property.
Due to the strengthening US economy, there is now a lot more competition in buying and rehabbing properties, whether for resale or to keep as rental property. Because of this, it has become more difficult to find suitable investment properties. In 2008 and 2009 you could go on MLS and have your pick of property deals because nobody was buying, but that can’t be done anymore. The housing market is crowded with investors coming onto the scene in droves. But have no fear, because there are still places to find great deals.
- Wholesalers – These are people who do a lot of the legwork for the investor. They will market themselves to the public, they review each property to make sure it’s in decent shape and worth the price, and they’ll negotiate with the seller. It’s worth paying these guys a couple of thousand dollars per house to have all that work done for you. You simply make arrangements directly with the wholesaler to purchase the property. Wholesalers can be found on Craigslist.
- Tax Auctions – These are local auctions of properties that have overdue taxes on them. They are auctioned off to pay the property taxes. This is a great way to pick up properties at below market prices. As explained above, the auctions have become much more competitive as the economy improves, but it’s still a great way to pick up good deals.
- Pre-Auction Tax Delinquent Properties – these are properties that owe back taxes but haven’t gone to auction yet. A list of these properties is always made available to the public, often in newspaper notices prior to the auction or in the county’s property tax office. Simply create a tasteful but plainspoken letter to pique the property owner’s interest.
So what’s the takeaway? The improved economy is making it more difficult to find and buy investment properties, but it’s certainly not impossible. By taking advantage of some of the methods outlined above, you can still find good deals in your local market.