If you’re investing in your first or fifth income property, there are probably a few things left to learn. Often, you’re going to need to act fast (good deals don’t last forever) because demand is high and supply is low. In these instances, we’re here to provide some inside information on making real estate purchases in fast moving markets.
Jason Hartman always says that real estate is a local market, so things are going to move at different paces depending on your location. Areas with high foreclosure rates will probably move more quickly, as will areas with sudden increases in renter populations. You might have to act fast!
Working with a real estate agent can be helpful if time is crucial. Many properties are not listed in the Multiple Listing Service or elsewhere immediately. Real estate agents often have early access to the best listings, which can be extremely helpful to you. Many real estate agents also have access to listings that have expired. Often, homeowners have taken houses off the market because they aren’t selling—which doesn’t mean they don’t wish to sell. While it isn’t a guarantee, simply asking can get you access to homes others might not have.
If you’re trying to buy in a trickier market, remember that you have less leverage with price. You won’t get very far if you low-ball an offer, so be fair to the seller. If the home seems appropriately and fairly priced, it makes sense to offer the full price, lest you are immediately outbid by someone offering more.
Next, remember that an ugly house can still make you money. Cosmetic flaws or bad pictures are simple to fix with a little work, so don’t immediately write off a house you find aesthetically unappealing. New lighting, a quick paint job, and a little lawn care are often enough to make a house more marketable, so feel free to take on a fixer upper if you’ve got the time.
While it might be more difficult or stressful to purchase income properties in areas where they’re moving fast, it might also be a great chance to make a little extra money. If homes are being purchased quickly, it can indicate a market that is saturated with renters, which equals a lot of easily made income for you. By educating yourself about the market where you’re looking to buy, investing in the help of professionals, and effectively managing your finances, you’ll enter the real estate market with ease—and start making money! (photo credit: szeke via photopin cc)