Agents have “pocket listings” all the time. A “pocket listing” is a house that they have just put under contract that has not yet been entered into the MLS. There usually will be a specified time during which the house must be entered into the MLS; this may be within 24 hours after the listing is received or possibly a different time period depending on where you are located. Whatever this requirement is, there will usually be a short time period where the agent can simply call his or her “list” and try to get it sold. You want to find a way to be “first” on that agents list of people to call. Why would the agent want to do this? Because it saves them lot of headaches not to mention that they will get the entire commission. When you are buying investment property, having an agent on your team that will let you know about “pocket listings” will help you feed your “buying machine”. Once again, it is a win-win for everyone.
Working with Landlords
When buying investment property, another thing I like to do is to call landlords in the area. You can just drive around your farm area and call the numbers on the for rent signs. This helps you to get a general idea of the rents in that particular area. Knowing what a house will rent for in a particular area is invaluable to a real estate investor.
For example, if you are looking to purchase a rental house and your estimated house payment will be $700.00 dollars per month, knowing that the typical house in that area only rents for $600.00 per month is huge. Having this information just saved you from making what could be a costly mistake. You will most likely want to pass on this house if your intention is to add it to your rental portfolio. Wise investors use all the tools available to them. These tools help them make a sound decisions when buying investment property whether they intend to flip the house or hold onto it for a rental unit.
Being skilled at “networking” often makes the difference between being successful and dooming yourself to the “struggling investor” category for what seems like an eternity. Here are a couple of tips for successful networking.
-Don’t camp out in a corner of the room or spend the entire time talking with friends or people you already know.
-Introduce yourself to folks in the room you don’t know and ask them what their business is. Show a genuine interest in what they have to say. Ask questions about their business.
-Resist the temptation to talk about yourself. This is not the time to try to sell yourself or you product or service.
-When they do ask you what you do, be prepared with a short 60 second “blurb” that clearly states what business you are in and the benefits of your product or service. Just let it go at that unless they ask for further information.
-Finally, exchange business cards and let the person know that you will be happy to assist them in any way possible in the future.
When buying investment property, you want to be able to benefit from other peoples experiences both good and bad. Networking with those folks that have already been where you want to go can shave years off your leaning curve. If you are lucky, you will make a lot of great friends and pick up a couple of mentors along the way.
Check back for more tips on buying investment property.