Investors looking for profitable fix and flip properties know that finding an “off-market” property is often the best way to find a great deal. These are properties that might be for sale or are definitely for sale but are not listed on the MLS or on any of the websites that run MLS listings. Investors who find these properties are often the first potential buyer to contact the seller and can negotiate favorable terms.
So how do you find these hot properties if they are not publicly advertised? Here are four ways to find profitable fix/flip opportunities.
Drive Around Neighborhoods
This low-cost way to find “off-market” properties only takes some time and a few gallons of gas. If you have a neighborhood in mind where you would like to invest, then drive up and down its streets and look for distressed properties.
These might be homes with an overgrown lawn, peeling paint, a crumbling driveway or other indications that the homeowner cannot afford the home or is uninterested in maintaining it. Use a reverse phone directory or public records to find the owner’s name and then contact him about selling.
Send Direct Mail
In the age of Facebook, Twitter and smartphones, sending postcards through the mail asking homeowners if they want to sell their property might seem old school, but it still works. Why? Because direct mail is personal, targeted and tangible.
It is personal because it lets you address people by name. It is targeted because it lets recipient’s know that you want to buy their home. It is tangible because it lets you place your advertisement directly in a homeowner’s hands. He can hold it, ponder the offer and then directly contact you if he wants to sell his home.
People who respond to these kinds of solicitations typically have been considering selling but do not want to deal with a real estate agent and all of the hassles of listing the home, having people come look at it and so forth. They might be owners who can no longer afford the home or who inherited it but do not want to keep it. Your direct mail advertisement might be what finally motivates them to sell. Even a 2% response to a direct mailing can yield a great real estate deal.
Contact Landlords
Being a landlord is not easy. Many people make the mistake of thinking that they can simply rent a property and make a bundle of cash in rental payments. They fail to consider the headaches that come with bad tenants, midnight repairs, end-of-lease clean-outs and more.
How many landlords wish they had never gotten into the rental business in the first place? How many are losing money on their rental and want to sell but do not have the finances to fix up the property first? More than you might think, and many of them are looking for a quick way out.
One of the easiest ways to find landlords willing to sell is on Craigslist. Do not contact professional management companies. Approach instead part-time landlords with just one or two properties. These ads are easy to spot because they often have a personal touch and slightly grainy pictures. Use the contact information in the ad itself and tell the owner that you are interested in purchasing his property.
Make Friends with an Estate Attorney
These kinds of lawyers take care of planning estates and liquidating estate property after a client passes away. They have the inside track on when properties might be coming available and often need to sell estate property, including the family home or rental properties, to pay off creditors. Befriending an estate attorney or two is a good way to find potential future real estate deals.
Are you an investor in need of fix and flip funding? If so, then please contact us. We provide short-term, asset-based funding in as little as 24 hours to residential property investors. Our job is to help make your real estate dreams a reality.
Center Street communications are not intended to provide business, legal, tax, investment or insurance advice. No Center Street communication should be construed as a recommendation for any business or investment strategy by Center Street or any third party. You are solely responsible for determining whether any investment, investment strategy, business strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.