Buying real estate can start with a look in the newspaper, a visit to a broker, or a search online. These are all good ways to find your next investment property. Of course, you are looking at the same properties as every other investor so it is not always easy to beat the competition to a great buy.

There is a better way to find good real estate investments and that is to look for properties that aren’t yet for sale, and make an offer. This is how some people have bought their first home.

If you want to buy investment real estate, then it would start with a three step search process. Deciding what you are looking for is the first step. Single family rentals or apartment buildings? You can then start looking for properties that would fit your criteria. Contacting the owners is what you need to do next.

Tips When Buying Real Estate from Non-Sellers

Don’t limit yourself to “fixer-uppers” or other “problem” properties that seem more likely to have owners willing to sell. There are plenty of owners of investment real estate who have thought of selling so what you can do is start with almost any building you like. Knowing beforehand if or why a landlord is ready to call it quits is not really possible. The only way to find out is to ask.

You could say that tact is necessary here. Call the owner and tell him you’re an investor, not a broker. Let him know that you like what you see. Don’t forget to tell him that you can have an offer ready in a week if he is interested. If he is not interested, then send him your card or a letter but thank him politely and hang up. There are a lot of investors who have bought from owners that changed their minds.

Explain that you are an investor if there is some interest so that your offer will have to be based on your return on investment. This means you’ll need to see the books. Specifically, you’ll need to see the rent roll, listing the units and what they rent for, plus current occupancy, and operating expenses for the last year.

Have a confidentiality agreement ready before you call. Before you see the books, let the owner know that you’ll sign it and deliver it to him. Inspecting the units may have to wait until you make an offer since he may not want to let the tenants know that he is thinking of selling. Making an acceptable inspection a contingency in the offer is what you can do.

Why should you buy investment properties this way? It is possible for you to get a better price if there is no competition and no sales commission. Also, instead of waiting for that perfect property to be listed for sale, you just find it now. Do you really need to wait until it’s for sale before buying real estate?

Take the stress out of the very cheap car insurance process.

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