• by The VRET Team

How To Find a Great Real Estate Deal in Oklahoma City

The majority of Americans cite real estate investment as the #1 way to increase wealth. Because of this, about 12% of people made a real estate investment to diversify their portfolio. It takes money to make this investment, but it ultimately can and will pay off.

Here, we’re going to talk about the Oklahoma City (OKC) housing market and how to find a real estate deal that works for your portfolio. Read on for some information on buying, renting out, and selling properties in the greater OKC area.

Is Oklahoma City a Good Place to Invest in Real Estate?

The short answer to this question is “yes.” Oklahoma City is an extremely competitive location to own real estate and expand your property portfolio.

The population of Oklahoma City is steadily growing by about 1% annually. While this may not sound like a lot, its current population is around 1.02 million. About 29,000 people have come to OKC since 2020.

Supply and demand for real estate will always depend on the population of a given area. Since Oklahoma City’s population is growing very predictably, the housing market will continue to grow just as reliably. Demand for housing is currently high while supply can’t keep up with the number of people moving here.

This is good news for real estate investors. As demand increases, the value of OKC property does, too.

The Real Estate Market in Oklahoma City

As of late 2022, the median home sale price for Oklahoma City properties was $260,000. This is an 8% increase from the price in late 2021.

Sellers currently have an advantage over buyers, which may sound like a bad thing for you. However, it’s a blessing in disguise.

Those looking to purchase a property to live in can still expect the market to increase along with the population. You can purchase property now, fix it up, rent it out, and flip it later for a higher price.

However, for investors looking to diversify their portfolio and rent out the property, this is even better news. The competitive real estate market- and the seller advantage it provides- means that you can charge higher rent to those looking to live in your properties. You’ll be able to increase your monthly passive income so that you can raise property value, expand your portfolio, and live a better lifestyle.

You also can expect OKC home sales to increase in the future. Prices are projected to increase by 2.6% annually, so you can steadily raise rent over time.

Home sales are also likely to increase by about 4.2% this year. Along with them, rent prices will also increase. There has been about a 6.3% year-over-year increase in rent, which means that you can either:

• Ask for higher rent payments for properties, or
• Be an extremely competitive landlord with lower-than-average costs

These shifts mean that real estate investors and their properties will have an advantage over buyers for the time being.

When Is a Good Time to Invest in Real Estate?

You can find listed properties year-round, but seasonal changes do impact the value of an investment. However, they do so in different ways.

Springtime buyers will benefit from a lot of new home listings. This wide supply means that you’ll have a broader range of high-quality real estate to choose from. However, it also means that high demand will increase the price of most properties, so you’ll need to pay more upfront.

On the other hand, winter buyers usually won’t have much of a choice when it comes to inventory. Moving in will also be harder, as will working on improving the property. You’ll be hard-pressed to find people to rent out to immediately.

However, this lower demand also means lower up-front costs. If you’re looking for a real estate deal, winter might be a good time to buy. Slow purchase periods also mean that people will be more likely to negotiate with you about pricing so you can get the best possible bargain.

Beyond Seasonal Changes

It’s important that you monitor the Oklahoma City real estate market carefully when deciding when to buy. You’ll want to make sure that broader market conditions look good for sellers and monitor facts and figures. Market research analysis and constant monitoring are key.

However, there are also personal considerations to think about. You should invest when:

• You are already financially stable
• You have a good credit score
• The real estate agent you’re buying from is proven to be reliable
• You have enough money to afford a well-kept-up property
• You’re able to take out a real estate loan to help you invest
• You understand how much you’ll need to invest to maintain the property
• You have assessed your objectives and understand what property type will help you meet those goals
• There are projects in the Oklahoma City investment area like attractions that will draw more people to live there
• You’ve seen the house/condo/unit you’re looking to invest in and know that it’s high-quality

What Is Turnkey Real Estate Investing?

Turnkey real estate investing is a popular mode of real estate investment. It’s especially great in areas like OKC where people are immediately looking to move into new units.

A “turnkey property” is one that comes fully functioning. This means that they don’t require investors to pay for repairs and renovations right off the bat. They’re 100% ready for tenants to immediately move in.

Turnkey properties are often houses. However, they’re not limited to just one type of real estate. Many turnkey investors diversify their portfolios with apartment complexes, condos, and duplexes as well.

One major benefit of turnkey real estate investing is that you don’t need to put in any upfront effort. You won’t need to worry about shelling out extra money to make it liveable. Your only real cost will be that of the property itself, so you can budget easily.

You also will be able to get a steady income stream more quickly than if you were to invest in traditional properties. It’s immediately ready for rent, so you can theoretically have someone sign a lease within a month of closing on the property. It’s ideal for those looking to get cash in a time-sensitive way so that they can immediately pay off loans or buy lifestyle-enhancing goods.

The Turnkey Market

Those buying turnkey properties need to go through investors that specialize in the turnkey market. These sellers do the work of renovation before selling to you. This is precisely why turnkey investing exists.

It’s important to note that you’re going to be paying a higher price for turnkey properties than other types of buildings. The cost of renovations is reflected in the purchase price.

Those you’re buying from are essentially house flippers, which is great for many investors. No additional effort is required, and the upfront cost pays for itself. It’s just something to make note of so you understand that turnkey properties will almost never list below market value.

How to Start Investing in Real Estate

After doing market research and considering your own situation, you may decide that investing in real estate is right for you. But how can you get started once you make this big decision?

You first will want to decide if you want to:

• Flip the property
• Rent out the entire building
• Rent out a room/floor of the building

Using an online real estate platform is the best way to find top-notch investments. These platforms will help pair you with Oklahoma City properties from any location. You can talk with experts, take virtual tours, see images, assess property value, and determine whether maintenance is necessary.

This will help you make a more informed and confident decision.

Do some research and compare the benefits and downsides of each property. Contact realtors and sellers to make sure you don’t fall victim to a scam. Only sign paperwork when you can actually physically shake someone’s hand and close on the deal.

Financing

At this point, it’s important that you look into available financing options. You can use the equity in your personal home to do so. You also can use gifted funds assuming that the cash gifts are appropriately documented and recorded.

Loans also exist for those looking to invest in real estate. Hard money loans are great short-term financing through third parties and credit periods. They tend to have a shorter payment period than mortgages do, though, so you’ll need to understand the loan terms before signing anything.

Note that banks themselves do not offer these hard money loans. You’d need to get a traditional mortgage through them.

A financial advisor with experience in the real estate industry can help you determine your options. Fiduciary financial advisors specialize in certain markets, so you can find someone who knows the ins and outs of Oklahoma City real estate. Look online, find someone reputable, and schedule a consultation with them.

Negotiate and Purchase

Once you talk with a financial advisor and decide on a property to invest in, you’ll need to talk to a realtor and close on the deal. This means negotiating how much you want to pay for the property. It also means discussing payback periods for mortgages and how much you’ll need to make as a monthly payment.

If you’re investing in the property to rent it out, this figure is likely going to impact how much you charge in rent. Compare all of your options and make a careful decision. You want to be competitive with renters, but you also can’t lose money.

How to Find a Good Real Estate Deal

There are several people you can talk to for good deals on Oklahoma City real estate, including:

• Other investors who already understand the market
• Real estate agents and mortgage brokers
• Contractors who work on renovations and similar projects
• Attorneys who understand OKC real estate and investing

These people will try to help you negotiate a good deal and get the most for your money.

Comparing prices and keeping an open mind will also help you find a good real estate deal. You don’t want to set your sights on a single property and reject better deals later. Make sure that you jot down notes, compare your options objectively, and decide on the best investment.

Checking the Multiple Listing Service (MLS) is a great way to find potential deals as well. The MLS is an online platform where real estate agents make note of for-sale properties.

Lots of people monitor the MLS because of its comprehensive nature and deals, so you’ll need to be speedy and monitor it in real time. Make sure that you set up automated email alerts for OKC properties. This will help you find deals ASAP so you don’t lose out in a competitive marketplace.

Beyond that, marketplace sites like Craigslist and Zillow can also help you find properties. You can set up email and SMS alerts for the Oklahoma City areas you want to invest in. This will give you constant access to information that you can use to find a great deal.

Build a Property Portfolio Today

While there are many ways to diversify your investment portfolio, real estate is a top way to minimize risk. It’s a tangible asset, exists in a growing market, and allows you to earn passive income as you increase its value.

Now that you know why it’s important to find a real estate deal in Oklahoma City, it’s time to begin your journey toward a great investment. Virtual Real Estate Team is committed to providing you with investment resources, market research, and property management tips. Contact us for more information about making an OKC real estate investment today!