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Finding the Best Real Estate Deals

What constitutes a good deal is determining your exit strategy. This could mean something different every time your property scenario changes. For example, say I buy a property that is in very poor shape and I do not plan on being a landlord. A good deal would be getting this property under contract for about 70% of its as is value and wholesale it to another investor for a fast cash profit. Another example is say I find a 30 unit apartment building for a huge discount of 75%, if my exit strategy is to not be a landlord this is not a good deal because few wholesale buyers want this type of property due to rehab.

A major equation that determines what a good deal is to you is your financial resources. This includes cash and credit you have available. For example, a good deal for someone that has no cash and bad credit would be, finding an owner who will finance you with no money down if you pay one hundred percent of the value of the home. Now this is a good deal if and only if you can still rent this property resulting in a positive cash flow. However I don’t recommend you begin with deals like this one until you take a few landlord training classes.

Your personal goals and exit strategy should determine whether you want to hold properties long-term for tax advantages, avoid rehabs, buy rehabs as working projects, or only short sale. Knowing your exit strategy will keep you focused so no matter how cheap the property is or how good the financing you won’t look twice at a rehab property or no matter how easy and fast you can flip a house you realize that you don’t want the capital gain. There are many ways to find a good deal, here’s a few; door to door flyers, referrals from other investors, ads in the paper, ads on the internet, the mls, and of course direct mail.

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