Getting the Best Deal on Residential Real Estate

Getting the Best Deal on Residential Real Estate

One of the most important things you need to know as a residential real estate investor is how to obtain inventory at the best possible pricing. If you overpay for a property, you won’t be able to discover an appropriate exit plan that will allow you to benefit from the transaction, in which case you won’t have a deal!

Here’s a system I’d like to share with you: the process of buying a home at a bargain and then selling it at the perfect moment using the proper exit strategy.

I have numerous agents, which I refer to as “bird dogs,” and this is one of the ways I obtain inventory at the proper pricing. I have a large professional network and am always networking.

I network with several real estate specialists and have them seek and hunt for houses that meet our specifications. I tell them exactly what I’m looking for, and they go out and start putting offers on my behalf.

As a result, people always look to me as the one who will be able to buy the inventory, and I become an escape plan for those bird dogs out there.

I have a mechanism in place to encourage those agents, those bird dogs, to bring me inventory. People are out there every day, driven, hunting for merchandise to come back and sell to me. I’ve set up the necessary infrastructure to access and depart the properties.

Residential Real Estate

I also obtain properties from banks, which are referred to as REOs. The market has recently moved a little, and banks are holding back inventories to some extent. But, as soon as those properties are reintroduced to the market, I already have the tools in place to allow the banks to contact me and say, “Hey, I’ve got this stock. Here it is, go ahead and buy it.” The banks are aware that I have the resources necessary to acquire those properties fast and efficiently.

Another way to get a good deal on a home is to buy a short sale. Nobody understood what a short sale was a few years ago, and while many real estate professionals still don’t fully get the process, they may be profitable investments. I work on short sales for a number of brokers that have the capacity to scout houses and, as a result, I am able to submit offers at a reduced price.

Buying nonperforming notes is another way to develop your residential real estate portfolio at a reasonable cost. I enjoy buying nonperforming notes because I have the processes in place to assist us in acquiring real estate, which is crucial.

Again, the criteria I employ to buy are fairly narrow. And none of this would be possible without first putting in place the proper procedures to manage the inventory. But all of the above have shown to be effective for me, and with the right training, they may be effective for you as well!