Finding Undervalued and Off-Market Properties

real estate

real estateInvesting in real estate is one of the best ways to build wealth. While the market may fluctuate, people will always need a place to live. Finding undervalued and off-market properties to resell at a profit is key to ensuring you make a sound financial investment. However, some properties such as FSBO and pocket listings may not be listed on your local MLS and will sometimes require a little more digging if you want to find them.

Undervalued properties – Properties may be undervalued for various reasons: a distressed seller in need of quick cash; a property that needs major repairs and renovations; or an underperforming cash flow from a rental property, to name a few. There are many undervalued homes on the market, the trick is knowing how to find them. Use tools at your disposal such as Mashvisor’s Property Finder and Point2 to gain insight on potential investment properties.

Off-market properties – Real estate brokers will often try to create interest in a property by word of mouth or social media before listing it publicly. The best way to find off-market investment properties is to network with real estate agents and local wholesalers. Another avenue for finding off-market properties is through direct marketing. Direct marketing includes cold calls, mail campaigns, and social media. Spreading the word is key. 

Have you been thinking about expanding your portfolio of investment properties or purchasing your first? Ridge Lending Group would love to help you! RLG prides itself on providing the education you need use real estate investment to build wealth. Call us today!

Growing Your Real Estate Investment Portfolio

Purchasing real estate is key to earning passive income and financial freedom. As markets and access to capital ebb and flow, adaptability is a critical trait for real estate investors. While there are no hard-and-fast rules to real estate investing, there are a number of tried-and-true ways to grow your portfolio. Let’s take a look at some of these strategies!

  1. Start Wholesaling

If you are new to real estate investing, know that it’s never too late to get your foot in the door. For your first purchase, consider starting with less expensive wholesale properties. Wholesaling is the process through which the wholesaler contracts a home—usually one that is distressed—with a seller, shops that home around to potential buyers, and then assigns the contract to one of them. It is a less risky method for new investors, as it does not require a significant amount of capital to get started. Having a solid list of potential buyers prior to making an initial offer to the seller is a good idea to help mitigate risks.

  1. Leverage Equity

Once you purchase and rehab your first property, the next step is to leverage your equity by either selling the property and reinvesting the cash profit or borrowing money against the equity. There are other financing options for investors looking to fix and flip homes. Some of them include bridge loans, fix-and-flip cash-out refinance, and investment property line of credit. Speak with your mortgage professional to find out what is best for your endeavors.

  1. Get the Word Out

If you are looking to quickly grow your portfolio, you will have to put in the work and reach out to brokers and sellers in your quest for the best deals. By networking with real estate agents and attending real estate auctions, investors will often find undervalued off-market properties that will produce incredible returns. Cold calling potential sellers can be hit-or-miss, but it may be worth a try. If you choose to go down that route, make sure you have a solid call script.

  1. Invest in Rentals

While flipping houses may provide quicker returns on your investment, renting an investment property will generate passive income over a long period of time. You can then use the additional passive income stream to reinvest into your real estate purchases. In addition, your property’s value should appreciate over time as real estate benefits from inflation and the state of the economy.

  1. Hire a Property Manager

As your real estate portfolio continues to grow, so does the amount of time you will need to dedicate to managing the properties. As they begin to scale, many real estate investors will hire a property management team to handle daily operations. This frees up their time to focus on researching, networking, and closing more deals.

Are you ready to plunge into investing in real estate? RLG has the tools and resources at its disposal to get you on your way and not waste a moment of your time. Call us today to learn more and experience firsthand the dedicated, personalized customer service and undivided attention that RLG has to offer!