Finding Investment Properties

Finding investment properties to create wealth will take some time, but it can be well worth the effort. And it is not as hard as it may seem. There are many avenues to choose from when trying to locate a good investment property. With thousands of houses on the market, finding investment properties is actually quite easy.

One of the first sources for you to check is the Multiple Listing Service (MLS) listings from your local real estate agent. The multiple listing book has every property for sale in the local area. This usually means the entire county. Some MLS books have more than one county listed. Agents who live or work close to a county line may cover portions of another county. This happens because the agent is licensed to work in the state, not just the county.

When you search through the MLS book, you can also generate some other interesting facts about an area. You can tell what the market is doing. This is one reason every good investor has a real estate agent he or she works with. The wealth of information gained from a knowledgeable agent is worth more than you can imagine.

Another good source for finding investment properties is to view local tax lists. This allows you to know what properties are in distress. Many times someone who can not pay their taxes can not pay the mortgage either. In some cases the taxes are included in the mortgage. If this is the case you know for a fact the property is headed for foreclosure. When the mortgage is not being paid there is no money for the taxes to be paid.

There are some areas where it is mandatory for a finance company to put foreclosure proceedings in the local paper. For someone who is interested in pre-foreclosures, this is a good way for finding investment properties. The listings lately have been very long. It is estimated that over one million homes will face foreclosure in the next year.

The government agencies like the Veteran's Administration (VA) and Housing and Urban Development (HUD) both list their repossessions on the Internet. The investor who is dealing with foreclosures can find many investment properties this way.

There are some financial institutions which list the Real Estate Owned (REO') properties on their web sites as well. These are properties which the mortgage has been foreclosed on. That makes this a good place for finding investment properties for the savvy investor to check.

No matter where you look for an investment property there are some basic rules to remember. Never buy at full market value. You want to have at least 20% equity in the property for it to be a good investment. Know your market. If you do not know what is selling and what is not, there is no sense in even trying to invest in real estate. Have a marketing plan of action. You need to know what you are going to do with the properties you want to buy. Make sure there is a backup plan in case the first one does not pan out. Set up a real estate team to help you with any of your real estate needs. This means working with a real estate agent, an inspector, an appraiser, and even a loan officer. The more people you know who know real estate, the better off you are.


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For more articles on Real Estate click these links:

  • Common mistakes Real Estate investors make
  • Buyers beware ideas on what to look for
  • How to select a real estate agent
  • No money down... fact or fiction

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