Braunton, United Kingdom (PressExposure) September 24, 2009 -- With thousands of houses available for sale in the market, one can with some effort find good investment properties. Details of quality real estate investment deals are not going to be spoon fed to you and it is unlikely they are going to easily fall into our lap. It is essential that you keep continuously researching the real estate market to identify good quality properties.
Good quality properityOne of the first sources to look into will be the Multiple Listing Service (MLS) of the local real estate agents. The multiple listing is expected to carry every property for sale in the local area. Some MLS books have more than one county listed. Agents who live or work close to a county line may cover portions of another county as well.
Another great place to find quality investment property at reasonable prices or prices below the market value is at property auctions. Property auctions usually feature many home owners, who, due to financial constraints turn to selling their investment property to the highest bidder in an auction. Lenders such as mortgage providers might have re-possessed a property or the property might be dilapidated to such an extent that the owner does not have the time, inclination or money to renovate it and for a variety of such reasons, good quality properties come for auction. The local real estate agents will be able to advise potential investors of the location of auctions in their area.
Another good source for finding quality investment properties is to view local tax lists. This allows you to know what properties are in distress. Quite often someone who fails to pay the taxes fails to pay the mortgage as well. If this is the case you know for a fact the property is headed for foreclosure. There are some areas where it is mandatory for a finance company to put foreclosure proceedings in the local paper. For someone who is interested in pre-foreclosures, this is a good way to find good investment properties.
Scout for builders or people who are in the business of selling their own real estate. Often you can find someone with a treasure trove of inventory waiting to sell off some of it. Here is another interesting resource. Local building codes sometimes change during the course of ownership and put a seller into a difficult spot. If any change in building code is sudden or serious and additional investment to do that work may be more than the owner can afford - the owner may choose to sell the property at a reduced price instead.
The government agencies like the Veteran's Administration (VA) and Housing and Urban Development (HUD) both list their repossessions on the Internet. The investor who is dealing with foreclosures can find many investment properties this way.
Regardless of which quality property you choose to buy, there are some basic rules to be borne in mind. Avoid buying properties at full market value. You must have at least 20% equity in the property for it to be a good investment. Know your market because if you do not know what is selling and what is not, there is no sense in even trying to invest in real estate. Better start working with a real estate agent, an inspector, an appraiser, and even a loan officer. The more people you know you know in the real estate industry, the more successful you are. For more information visit: http://www.propertyauctionzone.com