For newbies looking to break into the real estate game, it can often feel overwhelming. Many don’t know where to begin or how to start. The truth is there’s no manual when it comes to real estate investing. As a result, many first-time real estate investors feel frustrated and confused. Luckily for you, Hanson Capital Group, a private lender in Phoenix, AZ specializing in hard and soft money, is here to help.
We’ve made a list of the top 5 sources of investment property. After all, you can’t become an investor without first finding a property to invest in. That would be like wanting to be a drummer without owning a pair of drums. Doesn’t make sense, right?
Without further ado, here are the top 5 sources of investment property.
Where To Find Investment Property
- MLS: MLS, otherwise known as multiple listing services, is a system where brokers list properties for sale. More technically speaking, it is a “private offer of cooperation and compensation by listing brokers to other real estate brokers,” as defined by the National Association of Realtors. It is the most commonly used source to find investment property. The main advantage of using a MLS is its search option which lets users search millions of properties by certain criteria specific to their needs and wants. Also as of late there have been some great deals on the MLS, better even than most of the trustee sales which have historically been our favorite source of investment property.
- Trustee Sales/Auctions: Trustee sales are another great place to find investment property. A trustee sale is a public auction where property is sold. Most often, when homes are in foreclosure, you can find them listed onAuction.com, RealtyTrac and Foreclosure.com which are sites that list foreclosure properties in all states along with the date and location of the live auction as well as the estimated opening bid. You can also do your own research by looking through the County Clerk’s office or the County Recorder’s office in your city to find foreclosure notices. Properties that have a Notice of Default (NOD) or a Notice of Sale will likely be sold soon at auction. The other way to participate is REACH OUT TO HANSON CAPITAL and we’ll make a referral to one of our auction partners to assist with the process.
- REO: Real estate owned properties (REO) are a type of property owned by a lender, such as a bank. In most cases, the lender has taken possession of the property because the homeowner failed to pay. To find a REO or bank owned property, simply go to a bank’s website, such as Wells Fargo or Bank of America and search their listings.
- Short Sale: Short Sales are an alternative to foreclosure. Thus, a short sale is a type of real estate where a home is listed for sale at a price lower than the amount owed on the property. A short sale occurs once the lender agrees to a payoff for less the the balance of the loan. Borrowers who are in default on their loan most often choose this option. To find short sale properties to invest in, speak to your local real estate agent who can search the MLS for short sales. HANSON CAPITAL recommends looking for pre-approved short sales, this way the bank has already approved the price.
- Wholesale: Wholesale is a special category of house flipping. It refers to properties bought quickly usually at a steep discount where the owner or property is under distress. Hence, wholesale properties are usually sold at a discount. The wholesaler either puts the property under contract or purchases it directly with the intention of selling it quickly to an investor.
The Next Step…
No matter what type of investment property you choose or how you find it, Hanson Capital Group will help you turn your investment dreams into a reality. As a private lender in Phoenix, AZ, we have the flexibility of working with borrowers on all different kinds of real estate investment opportunities. Once you find your investment property, we’ll guide you through the loan process and be there every step of the way to make sure you receive the money you need when you need it most.
Browse our list of loan programs or give us a call at (480) 685-4923 to get started today.