There are many roads to buying real estate properties. You can always check out newspapers, the internet, or even ask brokers around you. However, since there are many other people buying real estate properties through these sources too you must be ready because competition will surely be tight when it comes to great buys.
If you want an amazing deal without having to battle other real estate investors, buying real estate that’s not for sale is the way to go. There are a number of people who are able to do this. You can start by placing an ad that shouts your preferences and wait for sellers to call. Not only will you be able to see a wide array of options through this, you will also be able to save quite a sum as you skip paying broker’s fees.
There are three basic steps in buying real estate properties that are not for sale:
- Identify what kind of real estate property you are looking for. Do you plan to invest in home or apartment rentals or are you looking to invest in commercial real estate properties?
- Write down the core criteria of the properties you are looking to buy.
- Contact the owners or sellers of the properties that fit those criteria.
Some people settle for problem properties because they think they can easily close a deal. Problem properties are those that can be considered fixture uppers, properties that will need quite a lot of work before buyers will want them. Don’t be one of them. Studies show that many investment real estate property owners have had thoughts of selling their properties. This simply means that you are not limited to properties that are already on sale – pick any building you want and ask. That property might just be your gold mine.
In buying real estate that’s not for sale, you will need to take several things into consideration. Since the property is not for sale, you must be able to explain to the owner why you are interested in buying. Don’t forget to say that you are an investor and not a broker too. If he declines to entertain you, don’t be pushy but make sure that he gets your card. It is common that they will initially decline. Then again if you are able to pitch your interests well, they will most likely change their minds and sell.
Alternatively, if the owner shows even the smallest interest then make sure to take advantage of the opportunity to buy. If you are looking into investment real estate properties make it clear to the owner why you need to see the books as your offer will depend on it. It is important that you are able to make the owner understand why they have to show you the operating expenses, rent roll, and current occupancy details of the property as these are sensitive information that not many will be willing to share.
Prepare before making a call too. It is vital that you have a confidentiality agreement ready for the owner to sign, should you be successful in convincing him to show you the books. Conversely, understand that inspecting the premises will have to wait as most owners will not want their tenants to know they have plans of selling the property. Nevertheless make sure you include a clause of acceptable inspection in your offer.
Investors venture to buying real estate that’s not for sale to eliminate the tough competition. They are able to save money too and there is a bigger chance they are going to get a better price. You save time as well as you don’t have to waste a minute waiting for your desired property to be available or listed for sale. Why do tomorrow what you can do today, right? So when you see a real estate property you fancy, act on it right away – don’t forget you can effectively go buying real estate that’s not for sale.