Finding cheap investment properties can be difficult sometimes. It requires a lot of patience and hunting, but sometimes it’s just about luck and good timing. Here are 10 tips to help you out.
- Create a strong network. Finding cheap investment properties is much easier when you have other people looking for you as well. Your best contact will likely be a mortgage broker. Why? Because an easy way to get a property for cheap is to buy it off someone who’s desperate to make a sale, and mortgage brokers know who those desperate vendors are.
- Focus on one area. The best areas to invest in are nearby communities with increasing population, diversified employment, and new infrastructure projects. By specializing in one area, you’ll learn what makes a good opportunity, and you’ll know a good price for a property before it gets listed.
- Stale properties typically have more desperate vendors and less competition. The REALTORS® for these properties are often desperate as well and will likely settle for a smaller commission.
- Double check your financing. Even if you were pre-qualified before, things change. Make sure your financing is ready to go.
- Keep up with your paperwork. Final mortgage documents may have specific requirements for tax assessments, bank statements, and proof that debts have been paid, and you need to be ready for that so you don’t lose a good opportunity.
- Keep your eyes open. Look for vacant homes when you’re driving to work or to the store. Take different routes. You may find what you’re looking for when you least expect to.
- Look for Foreclosure properties. Banks want to get these properties off their hands as quickly as possible. If you’re able to close quickly, you have an advantage. Don’t be afraid to make a low offer; you never know what they’ll accept.
- Strengthen your negotiation skills. Use open-ended questions to gauge how desperate a vendor is. A good question is “If I am able to close quickly and pay cash, what would you be willing to sell for?” Offer something that others can’t.
- Advertise yourself. Use free online classified sites. Run classified ads. Have your own website. Be consistent with your advertising. Get the word out that you are the investor they want.
- Remove emotions from the deal. Don’t feel embarrassed for giving low offers, and stay level headed. Don’t assume that a desperate-sounding vendor will give you a good deal. Don’t lead anyone on; be upfront. It’s necessary to have thick skin if you are planning on investing in cheap properties.
Realty Executives of Nanaimo have a team of REALTORS® who can help you look for an investment property in Nanaimo. Please contact us today to start searching for an investment in real estate.