Locating Investment Properties For Sale

The task of locating good investment properties for sale is the official starting point on your road to becoming financially independent. But before taking this step, it's important to do all your prep work. This includes developing an investment plan, getting pre-approved for financing, and doing some market research to get an idea of the local rental property market.

The following list highlights some of the methods that can be used to locate rental properties that are for sale…

Primary Property Search Methods

• Newspaper Classified Ads - The larger newspapers generally contain classified sections that contain descriptions of investment properties that are for sale. Many of these properties are "for sale by owner" or FSBO for short. When contacting the owner or agent of the property in the ad, it's imperative to get all the information that's needed to evaluate the property to see if it meets your criteria before moving forward.

• The Internet - Statistics show that over 70% of real estate buyers use the internet to conduct their property search. There are several prominent internet sites that feature investment properties for sale. In addition, your local board of realtors may have their own web site that features various rental properties for sale.

• Multiple Listing Service - The Multiple Listing Service (MLS) is a series of directories that contain listings of all types of properties that are for sale. Each directory covers a specific geographic area and is maintained by the local board of realtors for that area. For any property listed in the MLS that interests you, you'll have to contact the agent who is the listing agent for that property.

• Neighborhood Drive through - Pick out neighborhoods where you'd consider owning rental property and survey the streets for properties that are for sale. This method may be very effective because you'll have the benefit of knowing both the property's location and appearance before contacting the seller (or seller's agent).

• Direct Contact Approach - If you come across a property which appears that it could meet your investment criteria if it were for sale, you could contact the owner directly and make an offer to purchase it. The owner's circumstances just might persuade them to sell the property without involving a commissioned broker to share in their sales proceeds.

Any one of these methods for locating rental properties could lead to a property that meets your investment criteria. The important part is to do your research first, and don't be too anxious or in a rush to buy the first property that comes along. Remember the story of the tortoise and the hare - slow and steady wins the race!

For more information about locating rental properties, please visit The Landlord's Library book collection. It's a terrific, one-stop source for practical, comprehensive information on the entire subject of residential landlording.

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Buying Investment Property