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Habitat Hunting: 5 Habits for Real Estate Investors

By Mark Loika on July 21st, 2006 • Investing

So you want to jump on the right opportunity in real estate? First you have to be able to find it. Whether you are hunting for a quad, duplex, or house, make these 5 tips a habit. Start a routine even if you are not ready for a new place, and you will find a better piece of property much faster when you are ready to buy.

1. Work the web. Zillow.com, biggerpockets.com, trulia.com, zipreality.com, and flyinside.com all offer a variety of tools and services to help you locate and research real estate. Use more than one online resource and take note of the sites with the most properties listed in your location.

2. Use a pro. Take advantage of services from licensed real estate professionals. Keep in mind they might be limited to showing you properties their company is trying to sell. Brokers or agents only cost you money if you end up buying a house through them. Up until that point, their expertise is free, so use it.

3. Become a regular. Drive, walk, or bike around the neighborhood where you would like to own. Notice "For Sale" signs. Ask people in the neighborhood if they know of any houses for sale or any that may come up. You will also start to notice other relevant factors that could influence a buying decision in the area such as traffic, drainage, or a house that has been stuck on the market for a long time.

4. Read real estate rags. Scope out the classified section of your local newspaper, and grab copies of local real estate publications. Stay up to date with property values and trends.

5. Find foreclosures. Check public government and private foreclosures. Search foreclosures by state or zip at foreclosurefreesearch.com, realtytrac.com, and foreclosureworld.net. Look for deals at firstgov.gov/shopping/realestate/realestate.shtml. If the offer seems too good to be true, find out why.
 

The Bottom Line

If you haven't seen many places, you won't know a good deal when you find one. A poorly researched purchase can mean thousands in repairs, lousy appreciation, and hours of gloating from your friend who found a sweet deal across town. Don't get discouraged if you don't like a particular deal, just move on--the key is to keep looking.

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