When searching for investment properties it is obviously beneficial to be able to buy a property at under market value. This may be easier said than done if the right strategies are not put into place.
Many experienced property investors have refined their property search strategies to such a level that they will only look in certain areas for their sellers.
You may wonder why I mean by this and it is this. Investors who make the decision that they will only buy ‘undervalued properties’ have certain criteria which also dictates where they will look for properties and in most of these instances they do not buy off a real estate agent.
An active investor most likely will have set a up a particular area that they like and have done the research on and in that area they look for undervalued properties. It may take months to find what they are looking for but they are prepared to wait and financially the wait is worthwhile.
They will continually evaluate their area and see what is selling, what is not selling, what is being rented and how much for, and what is vacant. During this research they will be looking for a property that is being neglected. It could be vacant, it could be overgrown or it may be damaged. Quite possibly it could even already be a rental property that has been allowed to fall into disrepair.
Or it may be a property that has become part of an estate.
Either way an active investor will contact the owner and start communications as to purchasing the property. It is important at this point to consider the legal implications.
Firstly a communication channel needs to be opened, then a discussion as to what is happening to the property. In many cases a buyer can pick up a property like this at a very cheap price and it is a relief to the owner for it to be taken off their hands.
Big dollars are made in the investment market with this strategy.