How to Find the Best Investment Property

The real estate market of 2009 is vastly different from the real estate market of 2004. Just five years ago, homes moved fast and at good prices. Interest rates were low. Lenders were eager to lend money. In the fall of 2008, everything changed. The economy soured and millions of people lost their jobs. Banks found themselves with a huge inventory of property due to foreclosures. Investing in this property can bring huge profits. Knowing where to look is the challenge.

1. Choose what type of property you want to invest in and focus only on that type of property. You have more choices than you think---condos, commercial property, single family homes and land. Establish a niche but always keep the door open to other types of properties.
2. Research the listings.
   • The newspaper is a great resource. Be sure to read the “Real Estate” section for local trends, too.
   • Don’t forget the smaller publications. Many investors and sellers list their properties in these because of the reduced cost. You can also run some ads in these to make connections.
   • Almost every town has a glossy publication with real estate listings. You will learn the current asking prices for all types of properties. If there is a property you are interested in, can make a lowball offer and hope that the seller gets desperate enough to take it at some point.
3. Network! Get to know a banker who specialized in REOs. He or she will let you know when properties that match your interest are available. A good real estate agent is another important connection. These professionals watch the MLS listings every day.
4. Keep your eyes open. Sometimes the best deals are found while driving around the neighborhood. Keep an eye on the property and plan when you will approach the seller.

Another note about networking—tell everyone you know that you want to invest. You never know when someone you know has the perfect property or knows someone who has something to sell. Invest a few dollars in some business cards so everyone will know how to get in touch with you. These connections can lead to your most profitable investment.