Now that you’ve decided that you want to find some real estate to invest in, you now have the problem of having to find something. Unlike the stock exchange, there’s not really one central place that you can go to get started. Of course there are several websites to help you get started and pointed in the right direction. Typically you won’t be owning the real estate with others. (The focus for this post will be on 1-4 units so a single family home all the way to a quadplex.
Looking for a property to potentially invest in is in reality lead generation. You are looking to generate enough leads so that you can find a deal that will work for you. I’ll reference this idea of leads more as we go.
The market that you’re in is going to help dictate where the best leads will come from. In a buyer’s market, you’ll probably be able to find great leads with on market properties. In a sellers market, you’ll most likely find the best leads with off market properties.
So you want to know how to find real estate for investing
First we’re going to break things down into on the market and off market. What’s that even mean? Any property that is publicly listed for sale is going to be considered on the market. That includes realtors, for sale by owner, and public auctions. Any property that is not publicly listed for sale is off market.
On market properties
Properties that are on the market are much easier to find. You just open up your browser and start searching on a real estate website right? That’s the main gist to get started, but you can’t forget that it’s the internet and there’s not one place that will have everything. You also will have to verify that the information is updated and correct information.
On the market properties are easy to find, but you’ll want to make sure that you can check the updated status that really lets you know if they have gone under contract or if they have cancelled and are back on the market.
Off market properties
The off market properties are ones that have not been publicly put up for sell. The ways that you can go about finding off market leads are what most people won’t really talk about as much. These off market properties are going to be some of the best leads you can find.
You’ll find that a lot of old school methods are still working. Things like direct mail, door hangers, and calling are all prospecting lead generation methods that can really help you get leads. Not every single lead is going to b e a good lead so you will want to get a good amount of leads that is in excess of what you’ll need. Every market and lead ratio will be different so you might need more or fewer leads to come to a successful deal than other markets.
It’s important to think in terms of generating multiple leads. You want to get more leads than the deals you want to close. You might look at one lead to get one house or you might need to look at 100 to get one house. The more leads that you can generate, the quicker it will be to find a deal that will work for you.