You will have to familiarize yourself with real estate terms and language that investors use in conversation. Build relationships with Realtors in your market, learn what the average price is for the type of investment property that you may want to purchase. Reading the local and major newspapers real estate sections in your market will help you to get to know what the current asking price of properties are. Know what homes are in foreclosure, in pre-foreclosure and who is selling by for sale by owner.
Find out what rents are through the local classified section or knock on some doors in your perspective market and ask. Just explain that you are an investor and that you are looking to buy in this area. The worst that can happen is they tell you to get lost, and then ask someone else. You are going to half to get out of your comfort zone, failure comes before success.
Once you become familiar with your area you will be able to notice the good deals when they come up. This is something that can be done in your spare time or on a part time basis. When you’re just starting out don’t be afraid to call a vendor who is selling their property and ask questions. At first it doesn’t even have to be a property that you are interested in. If you call vendors just for practice you can work out the kinks in what you want to know and how you want to say it.
Nobody said that being a real estate investor was going to be easy, there are no short cuts. You will have to put some sweat equity into learning and understanding what takes place in your market. Having a good realtor on your team will help you find properties, but the more you understand the greater chance you will have in finding a good deal. Make sure you understand your market.
Hans
