SMARTERLANDLORDING

ADVICE FROM EXPERIENCE

Finding Deals

Looking At Properties? Take These Tools

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You’ve read the books.

You’ve found the blogs

You’ve networked with investors.

You’re ready to jump in!

There are a few things that you absolutely have to have before purchasing an investment property. These tools will be a resource to you as you analyze potential deals. Keep them in your car because you never know which corner opportunity happens to be hiding behind.

  1. Camera (or phone with a camera and flash). As you look through properties, keep them organized by first taking a picture of the address. Then, make sure to take pictures of each potential repair. This approach will be invaluable. You could look at a hundred properties before you find the right one.
  2. Hammer. When looking at properties, there are going to be some areas you don’t want to touch. Maybe you want to check out the siding or wood strength/malleability. Maybe you smell a dead animal in the walls. A hammer is a good tool to bring along, and also a tool you’ll use again and again.
  3. Tape measure. A tape measure can also serve as a level. If think the floor is sloped, pull out the tape measure and find out. I have 4 tape measures…
  4. Flashlight. I looked at plenty of properties that didn’t have electricity. It also helps when you want to check out those small crawl spaces and underneath sinks. I recommend picking one that you can also wear on your head. Since I do a good deal of rehab after working hours, having a hands-free flashlight is a gem.

It should go without saying that the internet will be one of your best resources as well. Make sure you are searching through the brick and mortar—as well and combing through the paper trail of each property.

 

Kevin—have I left anything out?

Finding the Real Estate Deals

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There are many ways that real estate investors go about finding their next acquisition.  Driving for dollars is one way while sending targeted letters or buying from wholesalers are others.  I myself have used these techniques and more.  In today’s market however I find the source that works the best for me is the good old realtor Multiple Listing System or MLS.

If you are unfamiliar with the MLS, it is the database that realtors use to list all of the properties that they have for sale in a particular area.  True, this list does not include all properties that are currently for sale, but it is going to include most of them.  And it is the source where I have found most of the properties that make up my portfolio.

Why is that?

I think mainly because when a property becomes distressed, either through foreclosure or through poor management the owner wants to unload it.  They are naturally going to turn to a realtor to list the property because that is the traditional way properties are sold.  They believe that a listing will bring them the best possible price.

Most foreclosures are there.  Most short sales are there.  Many estate properties are there.  In essence, many properties are there.  So I am there too.

So how do you get access to the MLS?  You can do that one of two ways.  Either find an investor friendly realtor to work with you or become a realtor yourself.  There are advantages and disadvantages to both methods and I will discuss those in another post.  But as an investor, you need to have access in one of these two ways.

Once you have access, set up a daily search.  Simply apply the criteria you are looking for such as the desired locations, types of properties, etc.  You can also set the search to look for keywords such as “foreclosure” or “as-is.”  Set your search to e-mail you either daily or immediately when a property that meets your criteria has been listed.

From there, you need to know your market.  You need to be able to recognize a potential deal when you see it.  Because honestly, there will likely be many properties listed that are not worth an investor’s effort.  Learn how to weed them out by understanding your market.

From there you need to have your financing ready.  Others are looking too and if you can move quickly and provide a solid offer, it just may get you the deal.

So get tuned in to the MLS.  Set up a search and begin writing offers.  You and your portfolio will be glad you did.