The first question that property investors enrolling on our property mentoring and coaching programmes have is about finding great deals.
With some tested and proven strategies, it is possible to strike gold with each property, and raise your credibility and confidence as a smart property investor.
Zero in on Repossessed Properties
Properties reach possession stage when the owner fails to clear the mortgage on the property. Banks offer attractive discounts on such properties as they usually want to clear the pending loan as soon as possible. In addition, delay in selling the property forces them to spend on its management.
Given these drawbacks, banks show willingness for negotiations that can greatly work in your favour. Local estate agents, neighbourhood residents, welfare associations, and public records, are your valuable sources of information on repossessions.
Gather Local Knowledge and Build Trust
Narrow down your focus to a target market. Gather local information on recent divorces, bankruptcies, probate and evictions. Most of such information is available through public records. This strategy will give you a clear direction to base your efforts on.
Follow up with the people concerned through post cards, email, and phone before meeting them in person. People usually have a sentimental attachment to their properties. It is therefore essential to build trust through initial meetings and then move towards making a deal.
It is equally important to listen to the people involved to understand what they really want. This insight will enable you to create a win-win situation.
Approach Vacant Property Owners before others Do
It is crucial to reach owners of vacant properties before they list their properties for sale or hire a real estate agent for the same. Again, gathering timely information is key to success here.
Look for properties that are unoccupied. The owner might be an individual who inherited the property but is not sure about the best way to handle it as he or she lives in another city or country. Such owners are more often willing to accept the first offer they receive simply because they want the property off their hands fast, gaining as much benefit as possible in the process.
There are also properties that are rented, but the owner is unhappy with the tenants. Such properties too are ripe deal-earning targets.
Patience, reason and perseverance are crucial to be a successful property investor