In this day and age, knowing where to search for investment properties is daunting, whether you’re a seasoned investor or are new to the game!
With demand for rental properties on the rise, commercial real estate investors have a bounty of options on the table to choose from — to avoid the headache, we’ll tell you where to go and what exactly to look for in your pursuit for the right property.
Before you leap into the depths of your nearest Multiple Listing Service (MLS), take a careful look at your market. Take into consideration the demographics and surrounding job market as well as accessibility to schools, shopping and recreation in your area of interest. Ensure that you are looking for a property in a place that attracts people.
Acknowledge that your prospective tenants will likely have property preferences that don’t align with your own. No longer are the majority of young investors looking to build a family in a starter home — instead, they’re renting property in densely-populated metros.
Eventually you’ll want to lock down where you want to invest as well as the size, cap rate and preferred cash flow you want for your prospective property.
Once you’ve identified your ideal investment property, consider connecting with a broker if you can afford it. Brokers are skilled at scouring out properties and are known negotiate some of the best deals in town.
If you’re opting to take matters into your own hands, like many investors do, take a careful and expansive approach to searching for a property and above all, don’t settle.
There are plenty of fish in the sea when it comes to finding the right property search site online. Often, investors look to Multiple Listing Services (MLS) first on their hunt for the right property. In essence, these sites list a slew of properties for sale by a variety of brokers and include big names like Realtor.com and Redfin.com.
If you ask most commercial brokers where to look for investment properties, they’ll say LoopNet. The site is only open to its members, but it offers a comprehensive listing of all commercial properties and allows you to compare things like price, size and date of sale in your target area.
Other crowd-sourced sites include Craigslist or even your local newspaper’s classifieds section. Foreclosure lists and auction sites also serve as great resources for affordable properties on sale under the assessed value.
Knowing where to search for investment properties is just the beginning! Once you’ve found one that strikes your interest, reach out to a commercial broker who can help you in the next steps.
Stefanie Donahue is a freelance writer based in Bellingham, Washington. She’s a well-versed communicator with an extensive background in journalism and media production. Her writing draws from the insight of industry experts to uncover best practices for real estate investors.