Where is the Best Place to Find Investment Real Estate?
Where is the best place to find investment real estate? The short answer may surprise you. Going against conventional wisdom, most of the good investments are NOT found where you look for a home to purchase for your family. When you are looking to move your primary residence, you look on the real estate websites through all the different real estate brokerages, the big Realtor .com, Trulia, etc, etc.
These are all great places to find retail real estate. The key word being retail. Think about it. When you look to sell your home you typically want top dollar for you home. Right? Most homes sold through the MLS (Multiple Listing Service) are homes that are being sold retail. A listing broker will place the listing on the MLS and it will be syndicated to dozens or even hundreds of websites and will find its way to your computer when searching for property. (for more on this check out our post Why Are Turnkey Properties Not Found on the MLS?)
Now to be honest, you can get some good deals if you know how to watch for them. There are a number of homes that are sold as REOs (Real Estate Owned by Banks) which are distressed properties and often are homes that need some work to bring the luster and optimum use back to the home. Additionally there are homes that are sold as Short Sales. Often you can buy these homes at a discount. It is important to consider, however, that you must factor into the cost of the home the cost to renovate it back to move in condition.
The best investment homes are NOT listed on the MLS. Investment properties are purchased by people who are purchasing from a logical perspective (based on the returns the property can generate). These buyers have a more sophisticated approach to the purchase and the forums to find these properties are different as well.
People who market investment real estate must be investors themselves. When investors are buying investment property, they want help identifying many attributes that make a great investment. They want a person who has a thorough understanding of investment property. These people are different than the typical real estate professional who sells homes.
They need to understand things like:
- What makes the best real estate market
- Understand population growth
- Job growth
- Government roles in city growth
- Where is the path of progress going within the market place
- How to analyze a great investment for cash flow and or capital growth
- How to assess sustainability of cash flow and growth
I could go on all day here but I believe you get the picture. Investment real estate is different than buying a home so you want to look in different areas. You can start by googling things like:
- "Cash flow real estate"
- "Turnkey real estate"
- Search cities that you have interest in to see if there are turnkey properties that appear there
- Search "best locations for investment real estate"
- Search www.howtobuyusarealestate.com
Indeed there are far fewer websites that promote investment real estate. That is because there are far fewer people who actually understand true turnkey investing. Thinking with your end result in mind, you will simply want to do searches.
Most important piece of advice: Most of the good investment properties and turnkey real estate are never listed on the MLS or within the typical real estate websites. To get the best of the best you want to find those properties that are not listed anywhere, so you have to search them out. Investments properties are promoted by those who truly understand investment properties.