Love them or hate them, if you are not on them, then you are at a HUGE disadvantage in the marketplace. Let’s weigh in on some of the reasons behind this, and how you can stay on top of deals moving in your desired markets.
Where does the dilemma come from? Let’s face it, the majority of real estate investors out there are building their portfolios part-time. Most of them have full-time jobs and are securing their retirement through investing in real estate. Which is one of the oldest and most simple ways to create wealth for yourself. But with how fast property moves in this day, it becomes extremely difficult for those doing real estate part-time to lock down a deal. The majority of the time you are left empty handed when competing with other investors, wholesalers, realtors, and acquisitions firms.
“Let’s face it, the majority of real estate investors out there are building their portfolios part-time”
Weigh your options. When it comes to real estate investing the hardest part is not the time and effort placed into a solid rehab, nor is it successfully handling the headache of a closing. No, the hardest part is the pain staking task of actually finding a good deal to invest in. You can go about finding deals in several ways. First, you can go out into the fray alone. This is the old school way of doing things, but is still very effective if you know what you are doing. The next option is to hire a realtor so that he/she can dive into the market in search of deals. With this option your success is almost 100% dependent on how well connected and skilled your realtor is. Obviously, this can either be a very good or a very bad thing. Another option is to have a connection with a local wholesaler. These are individuals that contract property and then sell them for a fee. This can be great way to find deals in your area if the wholesaler is experienced in the market. Lastly, you can visit the acquisition firms in your area and join their buyer’s list’s. They are comprised of a team of licensed agents whose sole job is finding deals. These are the big players in the market, and securing a connection with them can lead to an abundance of deals to review.
“No, the hardest part is the pain staking task of actually finding a good deal to invest in.”
The bad and the good. Now, whichever way you choose to find your next deal, you should always be doing your own due diligence. This is where receiving a deal from a realtor, wholesaler, or acquisitions firm gets backlash. If you find that you are receiving deals from these sources and their after repair values are inflated and the rehab numbers are skewed, then this is the time to assess if they are a reliable source for deals. It’s sad to say that not everyone in the industry upholds trust and honesty over profits. Simply locate a good reliable source for property and your job just got 100% easier. At the end of the day, being on a buyer’s list is about keeping your pipeline full. It’s an efficient way to keep your ear to the ground in your market when you are not a full-time investor.