People interested in how to buy a rental property wonder how to a buy a real estate investment off market. Buying a real estate investment or buying a rental property can be a nerve racking experience. In fact purchasing any real estate investment can be intense and can make in the most confident person doubt themselves. Here are my tips on how to buy an investment/rental property:
Read more at my blog: http://www.cheaphouseswilmington.com/buy-rental-property-off-market/
Advantages of purchasing a rental property off-market:
You don’t have to pay seller commission
Any property is “up for sale”
Risky (if you don’t have an buyer agent)
If you’re not paying cash, TALK TO A LENDER BEFORE ANYTHING ELSE
As a real-estate agent, it is really irritating when investors want to go search for properties without getting a pre-qualification. Not because I don’t think you have the money, it’s really:
If you don’t have a specific “number” in mind when searching for properties, you will waste DAYS of time. Without a specific “vision” you will be almost lost. Searching aimlessly for properties and pissing off tons of sellers, buyers, and agents in the process.
If you are reading this, you may be a first time investor. Talk to a lender about FHA, VA, and/or USDA loans. They have lower interest rates and require less down payments.
2. Start marketing
There’s an old saying “Everything is for sale for the right price”. This is very true in real-estate. While the vast majority of real-estate is for sale on the open market, there are plenty of people out there who will sell off market.
Send letters to particular properties you like, if you don’t know how to find the owners of a property check out my blog post.
Call the property owner this scares many people, but the vast majority of property owners won’t care. Check out my blog post on how to find phone numbers (it’s for “expired” listings, but it works with any address really)
Door knocking is one that works, but I would not recommend. There’s countless potential properties that someone could by in any market. If you can’t find the owner, I’d just move on.
3. Find a motivated seller
Here is where things can get tricky. First, you want to find out how motivated the seller is. In any real-estate purchase, you want to find the most motivated seller you can. These people can come in many different forms:
A person that is about to get foreclosed on
A fed up landlord
An inherited property
A person going through a divorce
Somebody who wants money
These people are few and far between, but they do exist. Find a person that wants to sell, find their motivation, and DON’T talk about price.
4. Call a real-estate agent
Unless you’ve purchased hundreds of properties without an agent, NEVER purchase real-estate without an agent. A real-estate agent can help you purchase a rental that’s not for sale on the MLS. A real-estate agent will do these things:
Make sure you don’t overpay
Help negotiate on your behalf
Have all the necessary paper work
Will know what to do in case things go wrong
Help you navigate inspections, closing, and be a tremendous help.