Finding a suitable investment property

Once you have decided the type of property you are interested in and the goals of your syndicate You will need to find a suitable investment candidate. This problem is solved by getting the word out that you are looking.

Some of the best methods of locating properties are:

Work with a real estate agent specializing in your area of interest.

• Send out a general letter to all agents in your area.

• Search the Internet real estate web sites

• Send a letter out to REO departments of banks.

• Check the classified ads

• Place your own classified under “Properties wanted”

When I first started I drove around the areas I was interested in and looked for signs and for likely properties and I then contacted the owner or the owners agent. I obtained the owners names from the tax records. Keep in mind that not all available properties are listed for sale.

Real estate agents.

The more you are in this business the more you find that most real estate agents know little about real estate investing. Keep in mind that the agent no matter how nice, does not work for you, so it is caveat emptier. When you find the agent who likes to work with investors they can make you money.

I have one agent I use for Residential and one I use for Commercial properties. I use these agents even when I find the deal myself. When I call them I get attention because I give them business or send them business. A good agent can bring you deals that you won't find on your own.

Know your area.

Real estate is local so you must know the market. You learn the market by looking at properties and studying the details. The more you know about what is going on in the cities and towns where you are doing business the more money you can make. Where is the growth headed? Where are the problem areas? What has the city or state hwy department got planned this year and for the next five years? What zoning changes are in the works? Are there any urban renewal projects in the works? And so on. This information is readily and freely available from the various city, county and state offices.

Sample letter.

I keep my letter on my computer and personalize it to the receiver and or the situation. You never know where your opportunity will come form so cast a wide net. The letter says who we are, what we do, the cash available, what we seek, and what we expect in their response. The indication is that they will be working with knowledgeable professionals who are the principals. A mailing or E-mailing, or combination there-of numbering 100 plus is not unreasonable. You want to fling your arrows wide in hops of finding a property or an investor for a future project.

Gem Rentals LLC Date

3419 Northeast Parkway

San Antonio, Texas 78218

210-829-7531

Gentleman:

    Gem rentals is a real estate investment syndicator. We are seeking an investment property for one of our Limited Partnerships. We have $150,000 in cash available for investment in income producing real estate in the San Antonio and surrounding areas. We seek properties with cap rates in excess of 10% . We will consider properties from $150,000 to $500,000.

    We will consider properties in need of TLC or with other improvement opportunities.

Please furnish complete details of your listings, including photos, maps, zoning, financing opportunities, and analytical financials.

Yours Truly

Jim Glasgow GP

Jglasgowsr@yahoo.com

Search the Internet real estate web sites.

Real estate agents have web sites that will make your searching easy. Once you find an agent that has the type of properties that you are interested in check their web sites weekly. A busy agent might have the web site updated by employees and not aware of every listing or think to call you.

Send a letter out to REO departments of banks.

Send a version of your letter to local bank real estate owned departments. Call the bank and ask which officer handles property repos or REO's and add that name to your mail out lest.

Check the classified ads.

Read the classified ads of major city newspapers where you are interested in doing deals. Occasionally you will find a hidden gem. I know they are rare but every now and again someone tries to sell a property themselves and you only need one good deal to make a chunk of change. Besides it helps to keeps you in tune to the market place.

Place your own classified under “Properties wanted”.

People who own real estate often look at the classifieds to help them decide to sell or not. Of you have an ad running that says you buy properties you will find a deal or two a year and thats money in your pocket.