One of the best ways to buy investment property is by networking. Become a member of every relevant association you can and attend every conference you can. That’s where you’ll meet people and develop relationships. Those relationships will eventually lead you to the right properties.
Find a real estate agent who understands investment properties. It’s important to feel confident that your Realtor will help you find a good property and be able to make strategic offers on your behalf. You’re looking for a property that will rent well. It has to be functional for the rental market, which means good size bedrooms, bathrooms, updated kitchens and some kind of outdoor space such as a yard or a porch.
Through your networking, you’ll get to know real estate agents, wholesalers and people who auction entire estates. Get involved with probates and you’ll find good places to buy. In many cases, banks give their properties to auctions and you can find excellent deals on investment property.
In addition to networking, it’s important to have the money to buy. If you want a good deal, you need to have your money ready. Be prepared to negotiate, as well. For example, you want to be willing to buy with no inspections. If you’ve got money but you’re going to require inspections, that bank is going to have 10 other offers with no inspections, so they won’t even look at yours. You’ll lose the opportunity. Don’t try to leverage your position when buying a property because there are too many cash buyers today.
Many people wonder where to buy, and anywhere that the numbers work for you is fine. Some investors stay away from the inner city, but you will find higher returns in those neighborhoods. If the house works functionally, it doesn’t matter where it’s located. You’ll have no problem finding tenants.
If you have any questions about how or where to buy investment property in Grand Rapids, please contact us at United Properties for more information.