How do you Find Real Estate Investment Opportunities?
3 min readMar 14, 2022
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- The MLS, which is short for Multiple Listing Services. This is only available to agents, so you’ll have to find a good one. If you’re in Ontario, look no further than yours truly.
- Set up Automatic Alerts
- (you can join my e-mail newsletter for Automatic Alerts to properties here)
- Have a process to screen out the duds
- Use the 2 percent test and the 50 percent rule and approach the deals faster than the rest!
- Look for value-adding opportunities
- E.G: look for a house that has an extra den or attic space that can be converted into another room! Adding another room can increase the property price by the 10s of thousands, which can be acquired through a refinance or a sell
- Make lots of Offers and Fail often
- If more than 1 in 10 offers are getting accepted, then what this tells you is that you are offering too much… your offers should be getting rejected because this indicates that you are analyzing the right deals with the right amount of competition
- Look for old listings
- The longer a property sits on the market, the more stressed out the owner becomes, and the more likely he is to take a reasonably low-balled offer… take advantage of this
- Analyze the property as you always would, just because it’s old doesn’t necessarily mean it’s bad, it could’ve been out of unluckiness or bad marketing
- Focus on distressed because no one wants to buy the “as is” car, and it’s the same thing for real estate. And this is actually a good thing for you because it means less competition; look into the distressed property, and understand what about it is distressed exactly, get the numbers on the thing, and see if the deal makes sense
- Make a clean offer — as much as possible
- Conditions are there to protect the buyer for the most part, but it’s important to realize that the more conditions you have the harder you’re making it for the seller to accept your offer
- Pick and choose carefully the conditions that you really need to protect yourself, so as to as offer as cleanly as you can
