There’s simply no denying that the real estate market has been less than ideal for buyers over the last two years. To say it’s a “seller’s market” would likely be the understatement of the century.
My name is Shyam Ganesh, and after immigrating to Canada with my parents in my youth, I saw firsthand the overwhelming complexity and difficulty of the Canadian financial system. I’ve made it my personal mission over the years to ensure that no Canadian family misses out on life’s chances due to a lack of financial literacy or awareness.
The above could not be truer given today’s real estate market. While the climate can feel intimidating and difficult to understand, investing in real estate for a long-term source of profit can prove to be incredibly fruitful for you and your family if you do it correctly.
Below, I’ve outlined my top tips on making the most of the real estate market and finding the best property deals. At Grow Your Wealth, we want to see you succeed, and we have the tools to help you get there.
Talk About It
Yell it from the rooftops. One of the quickest ways to capitalize on competitive real estate deals is by telling your network. While you may keep conversation to a minimum with your coworkers, or focus more on small talk with your distant relatives, telling those in your social circles is an incredibly valuable way to find important leads that you may not have otherwise found.
Networking with people in the real estate world is one of the best methods to locate off-market real estate deals. This may sound paradoxical given the tendency for buyers to regard other real estate investors as rivals. However, if you make an informed decision, your real estate counterparts will likely be your best resources. You never know when another investor might be able to assist you in locating and working through a venture that seems out of your league. Furthermore, if you’re requested to join a venture, you may be able to participate in larger investments than you could not have found or done on your own.
Prepare Yourself with Pre-Foreclosures
When a borrower defers a mortgage payment for an extended period of time, the lender will likely take possession of the property and evict the residents. When the house is vacant, the lender usually advertises it for sale on the market through a local real estate agent, and usually at a much lower price than comparative homes on the market.
Because banks typically want to be in the business of lending money rather than managing property, they are more willing to list a property at a substantial discount just to get the sale off their hands.
It is not uncommon for foreclosure properties to require significant repairs and renovations, often resulting in additional discounts to compensate for the work buyers will undoubtedly have to put into the property.
Contact Sellers Directly
Because of the enormous number of people looking for a property in the current real estate market that Canadians are experiencing right now, amazing deals are often difficult to come by. A single home for sale in any given location may receive a dozen or more offers within the first few days of it hitting the market. Typically, sellers are receiving offers tens of thousands of dollars above asking.
As such, one of the most effective strategies you can apply as an investor in the real estate market is to personally contact property owners, urging them to consider selling to you. If a seller resonates with your story and puts a face to the price tag, they likely will be more inclined to want to see the home go to you.
Like so much of the financial world, real estate can often feel disconnected. By intentionally creating a connection with a prospective seller, you vastly increase your chances of closing a deal.
Take Advantage Of Probate Properties
Because they are sold through a court-appointed representative as part of a will or to satisfy debts, probate properties are typically far less expensive than conventional properties.
Going to your local probate court and asking to meet with the person in charge of probate affairs is one of the simplest ways to locate probate properties. I would recommend requesting records from the previous six months. From there, you’ll be able to see all open probate cases and directly contact the executor or attorney in charge of any given property. This puts you at an extreme advantage to the extent that you become the first person a potential seller contacts.
A motivated executor may agree to sell a property to you directly, without the hassle of real estate agents and third parties in order to minimize fees or prevent losing money while the property stays on the market. I also recommend keeping a close eye on the latest obituaries and researching the probate listings in your local newspaper to determine when probate properties become available.
A Final Thought
There’s no denying that today’s real estate market tends to feel uncertain. But with proper coaching, research, and a team of experts to back you up, you can make property purchases that will ignite you on a path to success.
Although my tips might give you a solid foundation to build upon, I, and the team at Grow Your Wealth can help you reach your fullest financial potential.
If you’re interested in making an investment in real estate and aren’t sure how to get ahead of the game, make sure you talk about it to your friends, family, loved ones, coworkers and business colleagues.
Be sure to investigate properties that have been pre-foreclosed, or that have been taken over by probate court, as these will likely be the best deals on the market.
Finally, never underestimate the power of contacting sellers directly. Making it personal oftentimes means making it profitable.