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Purchasing An Investment Property: Tips For Finding The Right Deal

By News Creatives Authors , in Small Business , at November 19, 2021

Canadian Entrepreneur with Global Invest, on a mission to help people invest in real estate to create generational wealth.

It is always possible to find the right deal in real estate. Purchasers want affordable properties, while sellers are concerned about selling at the highest possible price. Everyone wants to find a good deal. Property investment can be a profitable venture, but you have to find the ideal property. This is perfectly feasible with the right techniques. Let me show you how it works.

What is a ‘good deal?’

I define a “good deal” as simply a property that meets your expectations. A property is generally considered a good deal when it meets three criteria:

• It’s listed at well below the market price;

• It’s in a good geographical location;

• The property is in good condition (i.e., no major work needs to be undertaken, there are no extreme sanitation problems, etc.). 

These factors can help you determine whether the property is suitable for maximizing rental yields.

What steps are required to find the right deal?

To find the right deal, you have to follow a number of rules. Of course, you might get lucky and find the right deal all at once, but I believe it is always better to have a plan in place. 

1. Define your needs. Once you’ve decided to buy a property, you need to establish your search criteria. These include the neighborhood or area the property is in; the number of square feet you need; the number of bedrooms you want; the condition of the property (i.e., whether it needs to be renovated); and, of course, the budget. All of these criteria will enable you to better target your search. Thus, you will not waste your time on properties that do not interest you. 

2. Establish a search strategy. Developing a plan of action will make it easier to find the right deal. For example, I printed out 1,000 flyers indicating that I was looking for a property, and I distributed them to every house in my neighborhood. Guess what? My strategy paid off. Two years later, a woman contacted me saying that she had kept my contact information and wished to sell her property. To find the right property, you have to be ingenious and creative.

3. Remember that patience is a virtue. In your quest to find the right deal, you need to be patient. Once you sow the seeds, you have to wait for them to sprout. In the meantime, you can search for other goods on the internet. The digitization of the internet has made the real estate business much more accessible than it used to be.

What questions should you be asking?

Once you find the right property, you must ask yourself the right questions in order to seal the deal, including:

1. How long has the property been on the market? This should be the very first question on the mind of every good property investor. In my experience, if a property has been on the market for several months or years, this can be a sign that something is wrong. Perhaps the property is too expensive or renovation work would be costly, for example. In any case, identify the reason (or reasons) the property has still not been sold to ensure you know what you’d be signing up for.

2. What are the seller’s reasons for selling the property? Always remember to also ask the sellers this question. Their reason for the sale could help inform your offer.

3. When did the seller buy the property? Asking this question can really help you in your quest to find the right deal. Knowing when the property was last put up for sale, as well as the age of the property, can help you assess its value and get an idea of whether it is likely to need any work.

To find the right deal, you need to be proactive.

It is absolutely possible to find the right property deal, but remember that good deals often sell like hot cakes on the market. Real estate investors are always on the lookout for the ideal property that will increase profitability. Thus, it is very important to be proactive when it comes to finding and assessing the right deal. Otherwise, it might slip through your fingers.

Keep in mind that the property market is a competitive sector, so be swift and efficient in your decisions. The primary purpose of property investment is to make a profit, and, as the American saying goes, “Time is money.” As such, patience, promptness and efficiency are key to finding investment properties.


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