If you are interested in rental income properties, you are always on the lookout for bargain deals. But you know that such properties are far and few in between. Also, there are big investors with loads of money to gobble up whatever property comes on to the market. In fact, it has become a norm that sellers are getting multiple offers from buyers. Most small investors find that they are thrown out of the competition because of high bids made by cash rich investors. However, there is no need to feel despondent as it is not always the highest bid that wins in real estate. As a small investor, you have some ways to make sure that you can win the property.
Money is important but it is not everything
It is not always a question of money when you are in search of good properties. Many people believe that stockpiles of money are enough and enough to catch hold of profitable investment properties. But it is time and not money that proves to be more important in buying great properties. You must be prepared to move ahead and close the deal at lightning speed to beat the competition. If you can achieve this speed, you can easily beat the competition even if includes investors making higher bids than you.
Things you need to close quickly
Many investors think they cannot close the deal in 48, or even 72 hours. But if you think you can do it, anything is possible for you. After all, what it is that you need to close a deal? One is of course your financing that needs to be ready to allow you to close the deal. Secondly, you need to have an accurate knowledge of the estimates for the rehabilitation exercise. Thirdly, you must have good knowledge about title search.
Remember, if you are planning to close a deal in 2-3 days’ time, you will not get enough time to complete all the paperwork and the appraisal exercise. You cannot expect traditional lenders like banks to help you with financing in such little time. You must arrange financing through private lenders, hard money lenders, and even line of credit available at a lightning speed from lenders. Also, you cannot hope to initiate talks with these sources when you are trying to close a deal. You must start early before searching for profitable properties. This will allow you to move with the required speed once your finances are in place. It is like pulling the trigger of a gun at the right time to kill the game.
Do not waste your time on inspections in the hope of lowering the asking price. Time is of great essence and your knowledge of estimating the rehab cost will come handy in such situations.
Finally, you will need expertise to conduct title search quickly. Develop strong relationship with a reputed title search company to do the required title search for you in quick time.
Draw a contract putting all contingencies in 1-2 pages. Keep everything simple and clear so that the seller does not become confused. It is possible to please a seller with a great purchase contract and the speed to close the deal quickly. Imagine his face when he finds that there are no appraisals, no inspections, and no boring contingencies in place. However, you need to be careful by including a clause to give you a chance to back out of the deal.
Chances of winning become strong if you show the owner that you are a local. Owners always love to sell their properties to someone who is a local.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
Property Management Service Areas
Palm Coast Property Management
Flagler Beach Property Management
Ormond Beach Property Management
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
