Best Ways to Find Real Estate Deals – A Note

Experts believe that in order to find the best deals in real estate, there are a number of factors that need to be taken into consideration.

Some of these factors include an exit strategy, financial resources,  skills and goals and the risk with a particular property.

First, one must determine their exit strategy before signing on the dotted line. For example, if you come across a 1-3 unit building for 60% of its “as is” value, it shouldn’t be a bad idea to buy it and sell it to another investor for a quick cash profit. If this isn’t possible, then another way to sell it is by the lease/ option for a year or two.

Second, your financial resources must be taken into consideration too, keeping in mind that any deal you do sign should give you some equity while also generating positive cash flow if possible.

Be clear about your goals and skills. If your goals involve holding properties for the long-term while avoiding rehabs at all costs, flipping it for a quick profit doesn’t meet those goals. Neither does it make sense to buy a junker which will require a lot of work to rehabilitate and for which you don’t have the experience or the expertise.

As for skills, looking to buy properties that require repair or even looking to buy large multi-family properties won’t help especially if you have no idea how to rehab a property or even understand the responsibilities of a landlord.

Finally, in a number of cases, properties that have been rehabilitated, people who buy are willing to pay 70% of the after repair value of the home but minus the repair costs as well. Also, the cost of repair shouldn’t exceed more than $15000 either. Anything else and you’d be taking on major rehab (and an increased risk) that you should clearly avoid.