Have you ever wondered how to find an investment property in today’s market environment? With real estate drastically different than it was even just a few short years ago, finding properties to invest in isn’t what it used to be. A lot has changed, but I digress. The more things change, the more they stay the same. The changes aren’t as much insurmountable obstacles as they are inconveniences. Those that find themselves able to adapt to 2017 should have no trouble learning how to find an investment property. What’s more, you may already have the tools to succeed.
Learning how to find an investment property is as simple as keeping your ears to the ground. Pay special consideration to what successful investors in your area are doing, and take note. Sometimes it’s as easy as asking around for a great marketing strategy; sometimes it’s a little more difficult. Either way, it’s time that we took a look at what the new year has in store for investors everywhere, and how they can adapt their strategies to meet the challenges of today.
YOU ALREADY KNOW HOW TO FIND AN INVESTMENT PROPERTY
I want to make it abundantly clear: simply because a solution to a problem seems antiquated, doesn’t mean it is. Take, for example, the concept of a direct mail strategy; these marketing techniques have been used since before I can even remember. It’s worth noting, however, that direct mail marketing is as relevant today as it was when it was first introduced to the real estate investor community all those years ago. So while direct mail may not represent the pinnacle of twenty-first century technology, it certainly has its place, and those that want to learn how to find an investment property in 2017 had better not ignore it.
Having said that, direct mail isn’t the only way to find an investment property, nor should it be the only strategy you implement in 2017. If for nothing else, the single, greatest mistake one can make as an investor is to ignore multiple marketing platforms. Real estate is a numbers game; the more marketing strategies you implement, the more likely you are to uncover a hot lead. But what types of marketing strategies are real estate investors using to find investment properties in 2017?
In addition to direct mail, which I wholeheartedly endorse as a viable real estate marketing strategy, there are a number of ways to find an investment property in 2017. I maintain that one of the best ways to find an investment property this year — if not the best — is to establish a qualified, reliable network. In other words, like-minded professionals may not be your worst enemy, but rather your best friend. Those that align themselves with the right people can very easily find the prospect of looking for their next investment property to be a lot easier than anticipated.
Remember, real estate is a people business; it always has been and always will be. The sooner you remember that, the better. There is no excuse for neglecting to put yourself out on a limb to meet new and potentially great partners. You never know who could have a deal waiting in the pipeline. Don’t forget that everyone you meet — literally everyone — is either a potential lead themselves or even a possible referral candidate. It’s entirely possible to meet people that doesn’t even realize they can help you, until they do; therein lies the true power of networking.
If there is one thing I have learned as a real estate investor, it’s that you never know where your next deal is going to come from. Having said that, you miss every shot you don’t take. Why not place the odds in your favor by attempting to make genuine connections with those in your industry? I recommend aligning yourself with other investors, real estate agents, brokers, mortgage brokers, attorneys and anyone else that may have valuable information pertaining to an opportunity.
Consider anyone with a connection to the housing industry to be a viable source of real estate leads. That means you should constantly strive to better relationships with title agents, insurance agents, hard-money lenders, building department officials, contractors, and even friends or family members. There is no reason to believe individuals in these positions wouldn’t come across the occasional deal. The key is to align yourself in a way that puts their needs ahead of your own. Find out how you can be of assistance to them, and the likelihood of them reciprocating their appreciation increases ten-fold.
Speaking of your own network, what about that social network you have been building for the better part of a decade? That’s right, there is no reason real estate investors shouldn’t consider their own social networks as a viable source of deals. If for nothing else, nothing allows investors to reach a broader audience in as little time as something like Facebook or Twitter. Nothing else, as far as I am concerned, will allow you to market to such a large audience in such a cost-effective manner. Use today’s most popular social media platforms to build on the relationships you already have, and establish some new ones in the process
If you are convinced you have tapped every resource within your own contacts, don’t hesitate to think outside of the box. After all, learning how to find an investment property has as much to do with thinking outside of the box as it does thinking inside of it. That said, there is one strategy worth paying special considerations to: driving for dollars.
While far from revolutionary, driving for dollars entails exactly what you might think: driving around neighborhoods looking for red flags. If for nothing else, great deals have become synonymous with telltale indicators that only those paying attention might be able to recognize. It’s entirely possible to drive around a respective neighborhood and identify potential homes that may be worth pursuing as a real estate investor.
Provided you set out to drive for dollars, have an idea of what type of home you are looking for. Seeing as how you are looking to acquire relatively cheap properties, you can already rule out those properties that are well-kept and look like they are receiving the attention they deserve. Instead, look for those homes that appear otherwise neglected. Boarded windows, overgrown grass, and overflowing mailboxes are all a sign that something may be askew. That’s not to say the homeowner wants to get rid of the home, but it does suggest that they may be more willing to part with it than those who take great care of their homes. Remember the signs the next time you go out looking for deals.
If you aren’t sure of how to find an investment property in the fast-paced real estate environment of today’s housing industry, don’t fret; it’s not as hard as you may think. If for nothing else, the time-tested real estate marketing strategies of our predecessors still reign true. And while they may not come complete with the latest and greatest technologies, they aren’t antiquated in the least. In fact, I maintain that there may be no better way to find an investment deal in today’s landscape than by using the strategies I mention above.