Finding a bargain property, one that is being sold well-below its worth or potential worth, is not as easy as riding a bike or watching T.V. Not that it is that difficult either, but the task of getting a good deal on an investment property can at times be cumbersome.
In the brief list below, four methods for finding and grabbing that good deal are explained, and although the descriptive nature of the list is brief, it will give you just enough to ignite your thought.
1.) Distressed sellers – These are people who are eager to sell due to personal reasons, such as changing jobs, upsizing or downsizing, family issues.
2.) Vacant Properties – Here’s a simply one: drive around an area and look for homes that have tall grass and a crummy exterior. You can then go to the Land Titles office to search for the owner, get in contact with them and see if they are open to an offer being made. Often it is a case of the owner not having the time, means or inclination to renovate the property, which is a prime opportunity for someone with all three! Win-Win is the best!
3.) University Towns - Here there are often an abundance of rentals and a plentiful stock of professors and students to rent the properties. In these areas, there are always landlords wanting out of the game for various reasons. Not only can you get a property that is already a rental, but often you can buy them with a tenant under lease, lessening the risk of an upfront vacancy. Usually these properties are priced around their actual value, but the bargain is the fact that they usually demand a higher-than-average rent because of the continuous demand for housing.
4.) Repossessions – Homes that have been repossessed by banks due to mortgage defaults will almost certainly be auctioned by a real estate agent, and clearly advertised. Simply search the internet, or ask agent’s to keep you informed of any upcoming repossessions.
Whilst these options may seem somewhat unconventional, remember that you generally make money when you buy a property rather than when you sell. Good luck. Simon Turner