The best real estate deals may not be found online, as many options are not readily available to the public. Finding a great investment property involves viewing multiple properties for comparison, which can help avoid overpaying or missing important details. It is important to establish a pipeline tracker to store information about properties and quickly analyze whether they are within your range. Publicly available options, such as Co-Star and LoopNet, may not show the best deals, so it is also important to search broker websites and identify the most active investment sales brokers in your area. It is a numbers game, and investors should be prepared to look at dozens or even hundreds of opportunities before buying one.
As mentioned in a news article on Forbes contributor James Nelson, finding the best real estate investment deals is a numbers game. In his experience as an investor, he has looked at dozens, even hundreds, of opportunities before buying one. To succeed in real estate investing, it’s crucial to have a great pipeline in place. In this article, we’ll break down the five steps to the best real estate investment deals.
Step 1: Establish a pipeline tracker
The first step is to establish a pipeline tracker where you can store information about properties. You can start with Excel or another database system. For each possibility, include the address, a link to the property, contact information for the listing broker or owner, and the deal metrics. Add in details that allow you to quickly analyze and decide if a property is within your range.
Step 2: Check publicly available options
Look for online listing sites such as Co-Star, LoopNet, and others that typically post what brokers send them. However, keep in mind that what you view are the opportunities brokers decide to publicly share with the masses. The best deals might not be readily available to wide audiences, and you won’t be able to catch a glimpse of the opportunities that are off-market on these sites. You can also search broker websites and identify who the most active investment sales brokers are in your area.
Step 3: Network with other investors and brokers
Networking with other investors and brokers can help you find off-market opportunities. Attend local real estate events and conferences, join real estate investment groups, and reach out to other investors and brokers in your network. Building relationships with these individuals can lead to valuable insights and opportunities.
Step 4: Look for distressed properties
Distressed properties can offer excellent investment opportunities. These properties may be in disrepair, have liens or judgments against them, or have owners who are motivated to sell quickly. Look for properties that have been on the market for an extended period, have multiple price reductions, or have a high vacancy rate.
Step 5: Hire a commercial real estate broker
Working with a commercial real estate broker can help you access off-market opportunities and provide valuable insights into the local market. Brokers have access to databases and networks that the general public doesn’t, and they can help you navigate the complex world of real estate investing. Look for brokers who specialize in the type of property you’re interested in and who have a track record of success.
So, sourcing the best real estate investment deals requires a systematic approach. By establishing a pipeline tracker, checking publicly available options, networking with other investors and brokers, looking for distressed properties, and hiring a commercial real estate broker, you can increase your chances of finding the perfect investment opportunity. Remember, real estate investing is a long-term game, and success requires patience, persistence, and a willingness to do the work.
