Congratulations, you know what they say “showing up is half the battle”.
In my previous posts I referred to craigslist, for sale by owner and other sources I’ve used. The problem with these sources is that they are not hidden deals anymore, they are already published and available to Millions of “looky loos”.
Hidden deals are sometimes hard to spot, sometimes they are right in front of your nose. There are a lot of really skilled people out there, looking for these deals and making good money.
For starters, keep your eyes open when driving to work, your favorite bar or the gym. You will see houses that are vacant or boarded up. If you don’t see a Realtor sign, you should go on your computer, check the County assessors’ website for property and owner information; also use Zillow. If you don’t have the exact address, you have to think outside the box, ask somebody. Sometimes the mailman can be a great source of information, also your friends. Neighborhoodscout.com offers good info, but they charge for it.
Another possibility, damaged properties. Sometimes the owner is financially not able to do the repairs, or just lost interest.
Have you heard about tax sales for foreclosure properties? Not so nice but …. divorce can change a situation and people want to move on, same if a death occurred and the relatives live out of State.
Most of the so called good deals have a big problem. Sometimes it’s the condition of the house, that’s why you need a home inspector – call me, sometimes it’s the crime rate or it’s just like the current owner needs cash now.
If you want to get a really good deal you need some cash on hand to pay for the property, a down payment or for repairs, back taxes, closing costs etc.
The hardest part is not finding a hidden deal, it is closing the deal. Do your background check of the current owner and his situation. Try to understand his situation.
These are just a few tips. If you want to get really good in this, you need to be trained by someone who’s really successful as a Real Estate investor. You find classes and training opportunities all over the Internet.
I attended some, but I won’t endorse a specific one.
I’m my best Realtor.
First, the definition of a Realtor:
A Realtor is a person who acts as an agent for the sale/ purchase of buildings and land for the highest possible price in the shortest period of time.
I’m sure you caught it, there are basically two categories of Realtors. The sellers’ Realtor and the buyers’ Realtor. Both of them usually get a commission that’s based on the sales price.
I like being my own Realtor, and I bought, sold, flipped, renovated and rented many objects. Since I’m a home inspector I know a little bit more about what’s involved with Real Estate than the average person.
So, if you know nothing about Real Estate, do NOT try to buy or sell without good assistance.
What actually are the benefits of doing it on your own?
You know what you want, what kind of home you are looking for, or how much money you want to get in case you’re selling. Most times your heart takes over common sense.
Be careful, and if you have any doubts, ask for help. Direct legal questions to a lawyer or title company. Get a home inspection to find out about the condition of the object; talk to a financial advisor, and of course use the Internet to collect information, like crime rate, job opportunities, future developments, comparisons, and tax; check “for sale by owner”, they have really good tips.
Too many times I’ve heard that you save the high Realtor commission when you do it on your own. That’s possible, but consider that if somebody assists you, you spend less time. They have some expenses to find objects or the right customer and they spend many hours doing this. There are phone costs and driving, if you do it on your own, this is all on you. Most of the available Real Estate is under contract anyway.
How to find possible hidden deals, just read my next post. I’ll tell you what worked for me.
Hi - this is Werner with Home Inspection Tennessee