Most investors try looking in the wrong place to find investment property for sale. Have a quick look on the internet for investment properties and you may be thinking that it’s not possible to find a good property on the market that’s not over priced. The main element when you are searching for investment real estate on the market is to recognize that the most effective deals are not usually advertised. If you’ve read my latest book, “Commercial Real Estate Investing” then you definitely probably already know just that the main element to finding good deals on real estate investments is in creating relationships with real estate brokers.
“Pocket Listings” of Investment Property For Sale
Some of the very best deals on investment real estate originate from something called a “Pocket Listing “.This really is when a broker knows about a house on the market, but they’ve not even officially announced it to the remaining buyers that are looking for a property. With single family homes mini-Flats for sale in Lekki Nigeria, this announcement is normally done with the addition of the property to the MLS or Multiple Listing Service. With a commercial property, the general public announcement may be adding the property to Loopnet.com, mailing a postcard out, or with the addition of the property to the company’s website.
Why All Investment Property For Sale Is NOT Equal
The real estate brokers job is to have as much as easy for the investment property with respect to the owner’s situation. If the owner of a house is in no hurry, and has no compelling reason to sell quickly, then your broker can price the property aggressively and watch for a retail offer to come in. On the other hand, if owner is motivated by a divorce or business partnership that’s coming undone, or perhaps the seller is dealing by having an urgent medical condition, then your broker’s job is to have the investment property on the market quickly, even if this means lowering the cost or offering some creative financing terms.
So ideally, you will work to produce a situation where in actuality the property must be sold quickly, owner is motivated, nevertheless the broker has not even released the listing to the public. This is actually the pocket listing situation that you’re looking for. The issue is that you can’t simply call up a broker that that you don’t know and ask them “Do you have any pocket listings for me personally?” The answer is going to be no.
The reason for that is that after a broker does have a wallet listing, generally the broker is going to call the investors which they know and trust to offer them the chance to have a great deal on an investment property before they release the property on the market to the general public.
Which means that your goal when calling or searching for commercial property on the market must certanly be twofold.
1) Get the information about the property including all the income and expenses
2) Create a reference to and get to learn the true estate broker
Your very best deals probably won’t function as advertised commercial properties that you initially call about. Instead, after you produce a connection and rapport with the broker, you’re in a position to get access to pocket listings which can be where some of the very best investment property on the market may be found.