3 Great Ways to Find Undervalued Investment Homes

July 18, 2012 - PRLog -- Finding distressed and undervalued properties are a great way to buy an income producing property below market value and have built in equity right from the start. There are many way to go about locating these properties, but below are 3 of the best for the local Boston investor.

1.   Foreclosures & Short Sale Properties: Foreclosures and short sales can typically be purchased below market value because they are often neglected by the current or previous homeowner. The banks are often looking to unload these properties and get this unwanted inventory off their books, which is an advantage to the investor. Depending on the market you can sometimes purchase investment homes at a 25-30% discount from market value.

One of the downsides to short sale and foreclosures is that they are typically listed with a broker on MLS. Once a property is listed with the MLS service anyone with an internet connection will have access to the listing. This high level of exposure will create competition which will drive the price up which in turn eliminates the consistency of great discounts. The trick to success with this method of buying is to a have a great broker on your side and to place offers to purchase very often. You may not get a great discount on every property, but you’ll eventually hit a home run.

2.   Locating Distressed Owners: When a cash flow property is referred to as a “distressed property," this typically means the property owner is “distressed,” or in other words, unusually motivated to sell the property. Many times they are willing to take a below-market price. Divorce, foreclosure, and bankruptcy are a few common events that can lead to the need to sell real estate quickly.

Finding the names and contact information of property owners from these records is one way to prospect for distressed properties. Often times, courthouse records are available electronically on the internet, potentially eliminating the need to travel to the location to find leads. You can mail these individuals and offer to purchase their homes from them at a price that’s fair for both parties involved. Though you are attempting to purchase the property at a discount, you should never attempt to take advantage of the seller and their situation. Try to work out a deal that’s best for all involved.

The upside to this method of prospecting is that you will have an opportunity to speak with the home seller directly and find out what their true motivations are. You can often barter a portion of the purchase price or maybe even work out some sort of creative financing. The downside is the cost of mailing each potential prospect and the small amount of competition from other investors.  

3.   The Boston Landlord: The third and most affective way to find discounted investment homes is to sign up for the Boston Landlord’s buyers list. When you sign up with TBL you will have access to properties only a very limited group of buyers will ever see. All of our properties are well below market value and are never listed on the MLS service. You can view photos of the properties, see comps for the area, and we even provide you with a full cash flow analysis. The Boston Landlord has already done the hard work for you. All you have to do is sign up and we will send you properties that meet the search parameter you’ve given us!

The benefits of working with TBL include:

•   You Find Deals Your Realtor Won't Know About!  
•   You Avoid Retail Buyers Driving Up Prices
•   Deals are Sent Directly To Your Email or Phone  
•   Sellers Are Motivated & Waiting For Offers
•   Property Report & Analysis Done For You
•   2-4 Family Homes & Larger Investments
•   Greater Boston & Surrounding Cities/ Towns  

To learn more about how you can start receiving excellent investment property deals, call us directly at 617-453-8571 or watch our free video at www.TheBostonLandlord.com/buy