You might hear about people finding amazing deals on investment properties. Do you ever wonder how they do it? In our latest post, we will discuss 4 ways to buy property at a discount in Long Island and the surrounding areas!
Buy Directly From The Owner
It’s no secret that some of the best deals are found off the MLS. You can aim to work with private sellers, reaching out to them directly. You should always respect the homeowner’s privacy, engaging them via letter or other similar means. Don’t ever show up at their house! When you purchase a home directly, you are helping the seller (and yourself) save money on things such as commissions, listing fees, marketing costs and more. If you are not comfortable with a direct approach, work with a company such as LI Off Market Deals, who has access to the best off-market deals. By purchasing without an agent, everyone can save money!
Buy Bank Owned Properties
Bank owned, foreclosure properties are an excellent way to buy property for pennies on the dollar. You will need to be knowledgeable of the local market to successfully negotiate with the bank. You will also want to thoroughly inspect the property, bringing in professionals as necessary. You should have a good understanding of construction timelines and costs so you can actually determine the value of the property. When purchasing bank owned properties for the first time, it is highly recommended that you seek the advice of a professional. LI Off Market Deals can help you find the best bank owned properties and work on your behalf to ensure you get a great deal.
Buy HUD Owned Homes
A HUD home is when a homeowner who is using an FHA, government insured loan, is foreclosed on. The Department of Housing and Urban Development will pay off the loan, then resell the property. There can be a good amount of competition for these properties as they are typically sold at a great value. As with any home purchase, make sure to do your due diligence and thoroughly inspect the property before making a purchase. These properties are sold “as-is” so you need to know what you are getting into. HUD homes go through a bidding process, where the highest bid will typically walk away with the home. It is imperative to understand home valuation and market conditions before bidding on a HUD property. You don’t want to get caught up, bid too high and find yourself losing money!
Be The Early Bird
No matter how you find a discounted property, you can be assured that the good ones won’t stay on the market for long. Have funds available to purchase the property immediately. If you are using bank financing, get pre-approved well in advance. Don’t assume that pre-qualification is the same as pre-approval. Pre-approval takes a much deeper look at your finances, typically requiring the same information that is required upon the closing of the loan. By being ready to buy, and getting your offer in first, the odds of you successfully purchasing the property go up sharply. If you see a property of tremendous value, do your homework… quickly, and make your offer right away!
No matter how you choose to buy a discounted property in Long Island, working with a team of professionals such as LI Off Market Deals can be a great place to start! Our experience and area connections can help you find an excellent property today!