There are a lot of different ways to find good investment deals. In this blog post, we will discuss three of the most popular methods: MLS listings, wholesalers, and FSBOs. Each method has its own advantages and disadvantages, so it is important to understand them all before you make your decision. Let’s get started!
The MLS, or Multiple Listing Service, is a database of all the homes that are for sale in an area. You can search for properties by price, location, and other criteria. The MLS is a great place to find investment deals because you can see all of the available properties in one place. However, this accessibility means you have more competition for the property.
With MLS deals you will be working with a real estate agent who represents you, your interests, and helps navigate you through the process. MLS deals typically carry the least amount of risk as there are many contingencies placed on your contract, inspections are performed, and appraisals ensure you aren’t overpaying.
Wholesalers are people who buy properties from sellers and then sell them to investors. Wholesalers often have access to discounted prices on properties, which means that they can pass those savings on to you. However, it can be hard to find a reputable wholesaler. There are also some risks involved with buying property from a wholesaler.
The biggest risk is that with most wholesales there are no contingencies, inspections, or appraisals. This is why it is important to do your own research on the property before you buy it. You will also have to look at alternative financing, typically wholesalers will only accept cash or hard money.
FSBO, or For Sale By Owner, properties are homes that are being sold by the owner without the help of a real estate agent. FSBOs can be a great way to find investment deals because you can negotiate directly with the seller. However, there are some risks involved with buying FSBOs.
The risk here is unless you pay your own real estate agent you will have no representation. The contracts are different and you will need to read carefully or consult an attorney to make sure you are protected. Some owners are less willing to negotiate even after a bad inspection. After all they weren’t willing to pay commission to be represented and make sure everything goes smoothly. They probably don’t want to pay for roof repairs or fix that leak under the house.
As you can see, there are a lot of different ways to find good investment deals. It is important to understand the risks and rewards of each method before you make your decision. What works best for you will likely come down to your strategy, risk tolerance, and experience. In the end, it is up to you to decide which method is best for you.
What is your favorite way to find deals? Tell us in the comments below.