Real estate investing can make you a bunch of money, as many millionaires can attest. And while it has more risk than, say, investing in stocks, there’s also the potential for a much greater return on your investment – if you know what you are doing. Right now, though, prices are going up in many areas, and deeply discounted properties are getting scarcer. So here are 7 tips for investment buyers in Spokane.
1. Think Outside the Traditional Real Estate Box
As an investor, you first have to find the properties you want at the price you need. The unconventional route is often the best here. By the time most properties make it to the MLS, they are priced too high and have too much competition to make the numbers pan out. As such, I advise looking beyond and outside of traditional listings.
Many landlords looking to sell don’t list their properties so as not to upset tenants, which means many properties move quietly off the market. You can mail letters or track down contact information for landlords and give them a call to see if they are interested in selling. These are things I do for my clients once I know which types of properties they are interested in.
Another avenue is wholesalers. These are individuals or companies who find off-market deals (largely through the methods listed above), get the property under contract, mark the property up so they are making a margin, and then sell that contract to an interested buyer.
2. Be Quick With Cash
Speed is often king in real estate investing. And so is cash. If you act fast with cash in your hand, you’ll have the advantage. I recommend making an offer within 24 hours of a property’s coming on the market, which often means you’ll be making an offer sight-unseen. But even if yours is not the first offer, a cash offer will do much to sweeten the deal for the seller if that’s a possibility for you.
3. Consider Tear-Downs
Be sure to consider tear-downs. If you find a run-down home in a fairly decent area, you may be able to sell it to a developer to be torn down. This way, you turn a quick profit with little effort.
4. Don’t Overlook “Undesirable” Properties
This tip for investment buyers in Spokane runs counter to what some advise. And that is . . . don’t avoid or overlook those seemingly undesirable properties or those that are heavy-duty fixer-uppers. They may turn out to be a diamond in the rough, and you likely won’t have as much competition from other investors. If the neighborhood is decent, there is potential. This is a great way to add value and forced appreciation, making a not-so-good deal into a great one.
5. Cast a Wider Net
Be sure to look beyond your immediate area for potential investment properties, especially if you live in an area where prices are high. In casting this wider net, you should focus on places that are growing, but still have a good amount of lower-priced inventory. So make sure your investment property search includes other cities and other states. You’ll just need to be sure you track down an investor-friendly agent who has connections to great property managers and contractors.
6. Make Connections
Connections and networking are as important in the real estate investing business as in any other. You can learn new strategies and methods from other investors in your area, and they can connect you with other important industry players – appraisers, banks, contractors, and agents. The more people you know, the better equipped you’ll be able to succeed in the investing game.
7. Consider a Property Management Company
The last tip for investment buyers in Spokane could be the most important for some investors involved with rental property. For some people just aren’t cut out to be landlords. So if you can’t or don’t want to deal the all the landlording hassles, consider using a property management company. They can take care of all those distasteful landlord tasks for you and even take care of evictions if it comes to that.
Hopefully these tips for investment buyers in Spokane will help you skirt some of the pitfalls and find the investing bargains you need. Also, keep in mind that a good agent can be an invaluable asset and necessary partner.
