In today’s market, it might feel nearly impossible to snag a great deal on your next investment property.
Fortunately, it’s not — it just requires some industry tricks, persistence, and creativity to find a property that works with your budget and goals.
Whether it’s your first investment property or your 50th, here are five tips for finding investment property deals in today’s market.Get Started with Park Place Finance
1. Work with a real estate agent
Seasoned investors understand that it’s a lot easier to find the right properties when you have a relationship with a real estate agent.
Good agents have their finger on the pulse of their local market and will know how to find the best properties.
Real estate agents have access to the Multiple Listing Service (MLS), which is a platform agents and brokers use to find available properties.
Your agent can set up custom property alerts based on your search parameters, so you can find your next property as soon as it hits the market.
Agents also can negotiate with the seller on your behalf, help with due diligence, and provide expert insights into local market conditions.
Choose an agent with experience in your target market and investment properties.
2. Find your target market
Identifying your target market is key to unlocking the right types of investments that maximize your income and balance risk.
Use the following steps to help you find your target market:
- Identify your investment goals: Are you interested in generating income from single-family or multifamily properties, fixing and flipping homes, or a mix of these strategies?
- Research local real estate markets: Analyze factors like population growth, job opportunities, economic stability, housing demand, and the types of properties dominating the market
- Understand the target demographics: Consider factors such as age, income levels, and lifestyle preferences
- Analyze supply and demand: Monitor rent trends and occupancy levels to gauge the market’s health
- Keep up with marketing trends: Follow real estate publications, economic reports, and industry news to keep up with market conditions
If you’ve ever heard “location, location, location,” tossed around in real estate investing, that’s because it’s one of the most crucial features of your investments—and it can’t be mentioned enough!
Build a network of professional support for every property location so this group of experts can help you stay up-to-date on the local market.
3. Check future area development plans
Investigating future area development plans helps investors identify the most promising target markets for their next property.
Here’s what checking development plans can reveal to investors:
- Property appreciation potential: New roads, public transportation, and amenities can make an area more desirable for residents and businesses, which often leads to higher property values over time
- Rental demand: Areas with planned development projects may attract more residents, workers, and businesses, which can boost rental demand—and rental rates
- Economic growth: Future development equals economic growth—which will have a positive impact on real estate markets
Investors can check future development plans on local government websites, review public documents, or contact local planning departments or zoning offices.
Investors also can attend local town halls or city council meetings to gain insights into the community’s priorities and challenges.
Another key contact is your local real estate agent.Start investing with Park Place Finance
4. Look outside the MLS
While an agent with access to the MLS is essential for investors, it’s also beneficial to understand how to look beyond it.
Not all properties will appear on the MLS, including:
- For sale by owner (FSBO)
- Pocket listings/off-market listings
This is where having strong connections comes into play.
Investors must heavily rely on their network to help them find off-market properties, including other investors, real estate agents, brokers, wholesalers, or probate agents.
Investors also can try the following strategies to attract the right opportunities:
- Direct marketing
- Real estate conferences/events
- Online databases
Finding off-market properties requires greater effort and creativity, but often leads to unique and lucrative opportunities.
5. Compare recent comps
“Comps” means comparables in real estate. It refers to recent comparable sales, which gives investors insights into the current market conditions, property values, and investment potential.
Comps help investors determine the fair market value of a property, as well as estimate the potential ROI.
Here’s how to compare recent comps:
- Gather data on recent sales of similar properties in the target area, including similar sizes, conditions, and features
- Compare the sales prices of comps and the rental income they generate
- Make adjustments to account for differences between the subject property and the comps (additional bedrooms, features, etc.)
- Create a report to summarize your findings for reference during negotiations and decision-making
Some investors enlist the help of a real estate agent or other professional to compare recent comps, while others prefer to do it on their own.
Many seasoned investors have developed a deep understanding of their target market and property type through years of investing and market exposure, and leverage this expertise for future investments.
A partnership with an experienced hard money lender also helps investors unlock additional opportunities.
Park Place Finance can help investors compare potential properties to determine which might be the best fit for their investment goals.
Park Place Finance can fund your next deal
When you choose to work with Park Place Finance, you can rest assured that a team of real people will be dedicated to funding your deal.
Park Place Finance is a direct hard money lender with in-house capital. We have over $1 billion in loans funded nationwide, from 17+ years in business.
We pride ourselves on providing you with a personalized and efficient lending experience.
We offer the following loan options for real estate investors:
- Debt service coverage ratio (DSCR)
- Bridge loans
- Fix-and-flip loans
- Ground-up construction
Each of our investors is provided with a dedicated account executive to support you through the loan process — and even after your deal is funded.
Once submitted, we’ll reach out as soon as we can. You can also call us at 866-407-1599 to discuss your loan options.
We look forward to your partnership!