Your success as a real estate investor will depend on your ability to access the best deals in your market. Even if you look outside your local market, you’ll find that the competition is heavy everywhere. You can do a few things to help you find and buy the best properties in your area before competing investors beat you to it.
Get Your Financing in Order
Before you start browsing the market, look into the various lenders in your area. You might also be interested in exploring other financing options, such as crowdfunding or peer lending. Whatever route you decide to take, you should have your capital accessible in advance. If you’re borrowing, this means getting pre-approved for a loan. Immediate access to funds will help you take action when you do find the perfect real estate investing opportunity.
Work With an Agent
Even if you’re an experienced investor, there will always be benefits to working with an agent. A real estate agent will know the market and others who work within it, helping them provide you with unique insights into available properties. You may even find out about properties that will soon be entering the market so you can prepare to make an offer quickly. Your agent can do most of the work for you in searching for properties and organizing the closing. Those services will save you a great deal of time.
Include an Escalation Clause
In some states, an escalation clause is illegal. If it is legal in your state, you should instruct your agent to include one in every offer you make to sellers. Essentially, an escalation clause allows you to automatically increase your offer by a specific increment, such as $500, until your offer exceeds a competing buyer’s offer. The clause will also specify a cap on your offer’s total amount to ensure you won’t exceed your budget. This process helps ensure your offer won’t lose in a bidding war on a particular piece of property.
Using these tips will help you get better deals before other investors swoop in, but you will also have to be vigilant. Your ability to network within your target market can help you find properties sooner, which will give you a jump on your competitors. As with any business endeavor, an early start and preparedness will help you earn better successes.