There are a number of things to keep in mind when looking for deals, here are a few tips to follow:
* The key to locating investment opportunities is to be in touch with the various deal sources. You should get to know various real estate brokers and dealers. It also helps to have a network of other real estate owners, so you can keep up with an ever-changing market. You can find deals in unexpected places, such as your banker, lawyer, mortgage broker or through foreclosure records.
* Over time, your reputation becomes very important in maintaining a reliable flow of investment opportunities. If you are a person that people want to deal with, opportunities will come to you easier.
* Take your time to find the investment that meets your desired characteristics. You'll be better off waiting for the right investment than rushing into a questionable one.
* Look for positive fundamentals in all of your investments. Always ask yourself what drives tenants to want to be in the building you're considering, and what could happen in the future to affect the desirability of the property. Consider things such as quality of tenants, building configuration, location, condition and ability to finance.
When you find the right deal, always complete a financial analysis to make sure the returns meet your investment criteria. If you need financing, speak to a lender or a mortgage broker to determine what type of mortgage is available, and then include the financing in your financial model.
Source: Ian Woychuk, Investopedia.com
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