How to Find Investment Properties for Sale
For newbies and seasoned investors alike, finding investment property for sale is the key to successful real estate investing. There are many ways to locate investment property for sale, from online listing websites, to “for sale by owner” listings.
Read on to learn how to find the best investment property for sale, how to set your targets, and how to locate the best deals.
Recommended: Giniel Financial Group works with LLC Owners to find the best mortgage rates.
What Is Your Initial Investing Strategy?
Finding investment property for sale requires a focused strategy. Before scouting and making contact with a real estate agent, know what strategies you’ll be working with.
A clear focus and strategy will help you stay in line with the research, due diligence, and conversations needed with the real estate agent.
First, decide which area of real estate investing you want to focus on:
Once you have your focus, start thinking about initial contact with a real estate agent.
The strategies discussed in this article are ways to find investment property for sale that are visible to the general public. Your skill will shine in connecting with the listing agent already representing the seller. The listing agent will become your primary contact. For this reason, you need a clear focus and a strategy to approach the real estate agent.
Make sure you’re working with a lender who understands your goals. Read our Best Mortgage Lenders for LLC Owners review to learn more.
Talking With the Listing Agent
Things to keep in mind when talking with a real estate agent include:
- A real estate agent does not necessarily know anything about real estate investing or your personal strategy. If possible, plan to educate them and share your specific focus.
- You must be upfront and honest with your intentions. Don’t pretend to be a private buyer when you are an investor.
- Consider whether you’re willing to have the listing agent become your buyer’s agent. This means considering whether you can have the same agent representing both you and the seller.
- Be ready to provide proof of funds.
- Assure them that you can provide a fast close.
You’ll want to prepare a script that can be used when talking to real estate agents. While you can use our free template and personalize it, we also recommend coming up with your own script to make it really stand out.
You’ll want to practice your script until it’s second nature. The idea is to make it feel so natural that any real estate agent will want to work with you.
Resources for Finding Investment Property for Sale
Zillow
One of the best and mostly commonly used resources to find investment property for sale is Zillow.com. You can also use Zillow to connect with investor-friendly real estate agents.
Here’s how it works: Zillow is one of the biggest platforms to locate investment property for sale. Most real estate agents post their listings on Zillow. It pulls records from public records and the multiple listing service (MLS). However, not all MLS participate with Zillow.
The basic service of Zillow is free.
Zillow will note the listing agent and provide a method to contact them. You can contact them directly through Zillow via message or phone service.
On Zillow, you’ll also find other information about the agent’s past sales, reviews, and their area of service. If they are open to you as an investor, agents you contact through Zillow may become future investor-friendly real estate agents for new areas of investment.
The initial communication is as simple as this: “Hi, I’m a real estate investor interested in the property. Please contact me at your earliest convenience.”
Note that not all listings will mention the listing agent. To find investment property for sale, make sure you select the listings that state the listing agent.
How to Use Zillow to Find Investment Property for Sale
First, you’ll want to sign up for Zillow. It’s free, and having a registered account will make it easier to keep properties you’re researching organized.
In your research, focus on properties in your target area that have been on the market for three to six months or more.
Zillow offers additional property details and information on the neighborhoods, schools, taxes, crime rate, sales history, and more for a fee, which can be useful when comparing comps.
With a free account, Zillow will alert you when there is a price change, status change, etc.
Zillow will help search for investment property for sale and vet properties. However, since it isn’t always up to date, we also encourage you to speak with a local real estate agent.
Trulia
Believe it or not, Zillow owns Trulia, another major website for locating investment property for sale.
Trulia pulls data from public records and the multiple listing service (MLS). Again, not all MLS participate with Trulia. Overall, the features of Trulia are the same as Zillow, but the user experience is different.
For this reason, some investors prefer either Trulia or Zillow over the other, even though both provide similar information to the user.
We recommend signing up for Trulia to try it out. It’s free and will help keep properties organized. Truila also provides free information on property listings, and if you have an account, Trulia will alert you when there is a price change, status change, new listings in a search area, etc.
However, Trulia is not always up to date. After initial research, it is always recommended to refer to the local real estate agent’s website for the most accurate, updated information on investment property you locate for sale on Trulia.
Real Estate Agents Website
Normally, real estate agents have their own real estate website within their brokerage where you can also find investment property for sale. Their website will feature all their listings and all listings from other agents within their brokerage.
These websites have the most accurate and up to date information regarding property status, price change, pictures, and other details related to the property.
Other useful information you can get from a real estate agent’s website include their:
- Bio
- Endorsements
- Specialty (if they have one)
- Team members
- Area of service
You’ll also get direct communication with the agent including email and phone number. When looking for investment property for sale, checking in regularly with a few local real estate agents’ websites can keep you informed on current listings and opportunities.
Pocket Listings
A pocket listing is just like it sounds: a real estate agent keeps a property “in their pocket” and only shows the property privately to selected buyers. A pocket listing is an off-market property.
In this case, the seller and a real estate agent have agreed to sell the property, but instead of publicly listing it in the MLS, the agent only quietly shows it to really interested buyers that the agent may have or curate.
As an investor looking to find investment properties for sale, this may be a viable option especially if you are ready to buy an investment property in all cash and can close quickly.
The best way to find pocket listings is to network with real estate agents and to let them know your intentions. You should be upfront with the listing agents and explain that you are an investor, you have proof of funds, and can close quickly.
Recommended: Learn more about locating off-market properties with our guides.
For Sale by Owner Properties
When locating investment property for sale by owner, you can use local information, networking, newspaper listings, and websites. For sale by owner properties are not represented by an agent. Therefore, the seller or owner will be your point of contact.
For sale by owner websites are a great way to find investment property for sale, as owners are often eager to avoid agent fees, willing to negotiate, and want a fast, hassle-free sale.
For sale by owner websites may link to other sites like Zillow and Trulia as part of their service. The main thing you’re looking for is property details to determine that it meets your investment criteria. The site should provide you with the contact details for the owner.
Prepare to contact the owner like you would a real estate agent. Prepare a script in which you state your intentions and interest in the property. The goal of the script should be centered on getting an appointment to look at the property. The goal is not to get an agreed offer contract from the first contact.
Again, you’ll want to role play and practise your script until you’re confident in your delivery.
Conclusion
You can find investment property for sale online in minutes on real estate agent websites, Zillow, Trulia, and “for sale by owner” websites.
Always plan to work with an investor-friendly real estate agent to confirm the most up-to-date information and finalize purchase of an investment property for sale, and don’t forget to also inquire about any pocket listings.
With a focused investment strategy and research plan, it is easier than ever to find investment property for sale.
Frequently Asked Questions
With the help of an investor-friendly real estate agent, you can locate properties on the Multiple Listing Service (MLS) by doing a targeted search. You can search for properties by location or area, square footage, or price. You can also search in the MLS for expired listings and foreclosure properties for investment. Check out our guide to investor friendly real estate agents to learn more.
You can locate investment properties near you through any of the websites mentioned above, as well as with an investor-friendly real estate agent. You can also use direct mailing, driving for dollars, or a bird dog to help you locate an investment property for sale. For more information, use our guide to learn how to work with a bird dog.
While we don’t typically recommend searching for investment properties on Reddit, there are many Reddit forums to discuss investing strategies and network with other real estate investors. If you need help locating investment property for sale, learn about generating leads here.