After getting acclimated to Real Estate Terminology like single family, mixed use, multi family, and commercial, you are ready to start looking at deals in the market.
Looking at deals and listings help you understand why an opportunity is an opportunity for you in the market. All deals are known to be advantages for some, and disadvantages for others.
A great example is the current market state right now in the Real Estate Industry.
Current 30-year fixed rate mortgages (most common mortgage) have just hit a 5.5% United States National average.
30-year fixed rate mortgages sat at 3.4% National average mid-February of this year
Analyzing the current market conditions you might say wow, it is a horrible time to buy a house. Although not ideal, there will still be deals within the market that still can cashflow positive during times like these.
First, find out what type of properties interest you. Also, what area you would be looking to buy in.
Second, after you have found the style and area, start refining your search even more. Now search by specific square footage, and neighborhoods.
Third, make sure these houses, condos, buildings are all in your price range. Begin to write down the asking price listed on the search engine you are using, whether it be Zillow, Redfin, Loopnet, or others.
Then take down the specific criteria of the property, the square footage, bedrooms and bathrooms, heating style, and lot size. These are the things you will need to start doing a bit of research.
You then are going to take this information you’ve developed and begin to compare them to houses in the same area with the similar criteria.
You should have small search filters on Zillow, Redfin, and loopnet to help you search with your specific criteria.
Pay attention to the buy prices of all the properties, or the asking prices if they have been listed. If you see that the property you have discovered is high in price compared to the other properties, it is probably a bit overpriced for its value.
If a property is under the price of the compared properties, it might be worth looking into, but for now, you know how to search and filter potential deals.
A good practice to keep up is consistently searching through the market for deals like this. It keeps your mind fresh for how to spot deals and develops a good template on how to search and discover deals.
Some deals may be deals to some, even at a premium. In this industry, it really depends on what your strengths are.
Some may have a lot of tenants on standby to rent from them
Some may have good contractors to fix up properties fast
Some may even just have the capital to buy up blocks and be able to make high scale developments.
Never become discouraged in this industry, everyone starts somewhere. Just make your start and begin building a better future.