In the world of investment real estate, it pays to have an inside scoop for new properties coming to market. This will allow you to secure a deal on the commercial real estate before others get a chance to see it, and it may allow you to negotiate a better price due to low competition. Work on your hunting skills a little bit, and you’re sure to catch the high profit yields you’re looking for. Here are three ways to get early leads on investment real estate.
Watch The Foreclosure Listings
There should be information in your local paper about properties that are potentially under foreclosure. These properties have not officially been foreclosed on yet, but they are on the verge of it. If you are interested in the property, you can contact the bank and negotiate a deal on it, assuming the foreclosure follows through. The bank will be relieved to save auction fees, and you may secure a high dollar piece of real estate for much less than it’s worth.
Make Friends With Commercial Realtors
It’s always a good idea to get in good with commercial realtors in your area. They will give you leads before they even hit the market, and you can make decisions from there. All they care about is making a sale, which means they will feed information to the right people if they know there is interest out there. They may also act as liaisons for you, encouraging their sales client to make a sale when they might otherwise be hesitant. This will work in your favor.
Look For Struggling Businesses In Prime Locations
Sometimes you can find a good deal just by being observant. If you notice a business in a prime location that seems to be struggling, you might propose to buy their property so they can move somewhere else (perhaps another one of your properties?). This works especially well if you already know of other businesses that would be able to make good use out of the space. For instance, if there is a thrift store in the middle of a luxury shopping center, chances are it’s not getting any business. You may know someone who owns a high end boutique that would love to lease the space. Strike up a deal with the struggling business and then move your client in. That’s instant money in your pocket.