Securing a good real estate deal in an environment where many investors vie for the same inventory can be difficult. In such a situation, getting win-win agreements with sellers requires extra effort and a more thoughtful approach to property investing.
Considering Foreclosed Property
Lenders move in to repossess property if the occupant defaults on the mortgage payments for an extended period. While the foreclosure itself is not a good turn of events, some of these properties can be among the market’s best bets. Banks are generally not in the business of managing property, so they may be open to offering large discounts to get the deal off their books.
In some cases, the foreclosure process can take years, meaning the property will require repairs by the time it is taken up. A savvy buyer might ask for further discounts based on the state of the property. Regardless, it is advisable to keep an eye on foreclosures in the area.
Being the Early Bird
On many occasions, especially in competitive markets, it’s the first offer for a property that gets accepted rather than the highest. Investors looking for favourable deals should make their interest known immediately and act quickly when a seller responds to their offer.
Conversely, property owners who have been on the market for an extended period may also be willing to sell for a discount. As such, pursuing such property has its benefits, as the seller might be open to a reasonable offer to get it off their hands.
Finding a Niche
Becoming a master of a particular niche, be it an investment strategy, property type or specific area, is far better than being a ‘jack of all trades’. The advantage of focusing on a particular area is that it’s easier to learn all there is to know about it and find deals. Specialising also makes it easier for the investor to position themselves as the go-to resource for clients.
Establishing a Wide, Strong Network
Strong networks can be a good source of investment opportunities. As an investor, take the time to cultivate meaningful relationships with experienced agents and brokers in the industry. In competitive markets, these networks can provide greater access to distressed or off-market opportunities.