Buying Real Estate Thats Not For Sale

Buying Real Estate Thats Not For Sale



Buying Real Estate That's Not for​ Sale
Buying real estate can start with a​ look in​ the​ newspaper, a​ visit to​ a​ broker, or​ a​ search online .​
These are all good ways to​ find your next investment property .​
You're looking at​ the​ same properties as​ every other investor, of​ course, so it's not always easy to​ beat the​ competition to​ a​ great buy.
A better way to​ find good real estate investments is​ to​ look for​ properties that aren't yet for​ sale, and​ make an​ offer .​
I​ bought my first home this way .​
I​ put an​ ad in​ the​ paper stating what I​ was looking for, and​ soon had a​ call from an​ old couple that had been thinking about selling .​
I​ bought their place at​ a​ good price, and​ they saved a​ broker's commission.
Buying investment real estate that isn't for​ sale starts with a​ three step search process .​
First decide what you are looking for​ .​
Single family rentals or​ apartment buildings? Then start looking for​ properties that fit your criteria .​
Then contact the​ owners.
Buying Real Estate From Non-Sellers
Don't limit yourself to​ fixer-uppers or​ other problem properties that seem more likely to​ have owners willing to​ sell .​
Many owners of​ investment real estate have thought of​ selling, so you can start with almost any building you like .​
You never know beforehand if​ or​ why a​ landlord is​ ready to​ call it​ quits .​
You find out by asking.
Tact is​ necessary here .​
Call the​ owner and​ tell him you're an​ investor, not a​ broker .​
Let him know that you like what you see .​
Tell him you can have an​ offer ready in​ a​ week if​ he's interested .​
If he's not interested, thank him politely and​ hang up, but send him your card or​ a​ letter .​
Many investors have bought from owners that changed their minds.
If there is​ some interest, explain that you are an​ investor, so your offer will have to​ be based on your return on investment .​
This means you'll need to​ see the​ books .​
Specifically, you'll need to​ see the​ rent roll, listing the​ units and​ what they rent for, plus current occupancy, and​ operating expenses for​ the​ last year.
Have a​ confidentiality agreement ready before you call .​
Let the​ owner know that you'll sign it​ and​ deliver it​ to​ him before you see the​ books .​
He may not want to​ let the​ tenants know he's thinking of​ selling, so inspecting the​ units may have to​ wait until you make an​ offer .​
Just make an​ acceptable inspection a​ contingency in​ the​ offer.
Why buy investment properties this way? No competition and​ no sales commission means you may get a​ better price .​
Also, instead of​ waiting for​ that perfect property to​ be listed for​ sale, you just find it​ now .​
Why wait until it's for​ sale before buying real estate?




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