How to get a good property under market value?
Most of my clients are looking for a deal, what they mostly mean is that they are looking for a bargain. Currently when the market is so hot and demand is skyrocketing it is a real challenge to get such a deal. Nevertheless, there’s a way to achieve that!
One of the ways to do that is by constantly visiting properties and make an offer lower than market value. At the end of the day this is a numbers game and the more offers you make the luckier you get to fall on a seller desperate enough to take your offer.
You also want to be in touch with as many wholesalers as possible and be on their mailing list. I get between 20-40 deals a day from wholesalers alone. In order to increase your chances to get a deal, it’s almost crucial to have cash in hand, this is a very tempting tactic for some sellers that are not willing to wait for a buyer that has to wait for a loan to be approved and to take the risk that it won’t close on time or not close at all. But what can you do if you don’t have enough cash on hand and you still want to be able to pull the trigger fast enough? A great way to consider is using private money or hard money loans, these types of loans are usually carrying high interest rates but they are much faster to get funded. It’s highly recommended to establish relationships with people or companies that deal with these types of transactions so whenever you are ready to make an offer on a property you’re already approved for the loan and you have a much higher chances to close fast and below market value.