{"id":117526,"date":"2019-10-13T14:30:14","date_gmt":"2019-10-13T20:30:14","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=117526"},"modified":"2021-03-16T14:56:26","modified_gmt":"2021-03-16T20:56:26","slug":"real-estate-deals-exist-where-to-find-them","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/real-estate-deals-exist-where-to-find-them","title":{"rendered":"There Are Still Deals Out There (for Now)\u2014Here’s Where to Find Them"},"content":{"rendered":"

I talk to dozens of real estate investors every month. One of the common themes is their inability to get deals these days. They\u2019re spending an enormous amount of time chasing deals of all shapes and sizes… and usually coming up empty.<\/p>\n

And when they do get an opportunity, it\u2019s usually overpriced. Or they\u2019re outbid.<\/p>\n

You see this is not a game that can be played part time. In this market, you won\u2019t succeed by looking for deals on lunch breaks, evenings, and weekends. Many large operators have more cash than deals, and some of them don\u2019t know how to fix this problem. Except through overpaying. (Please don\u2019t invest in a deal like this!)<\/p>\n

I feel like I\u2019m beating a dead horse, but I\u2019ve warned investors in post<\/a> after post<\/a> (after post<\/a>) not to overpay.<\/p>\n

The best operators and investors don\u2019t overpay. Some others do. Many will pay a stiff price for their actions. It\u2019s a seller\u2019s market out there, and it\u2019s tough for all of us.<\/p>\n

Warren Buffett says,<\/p>\n

\u201cThe best investors say no<\/em> a lot. The very best investors say no<\/em> almost all the time.\u201d<\/p><\/blockquote>\n

Well, almost<\/em> all of us.<\/p>\n

The Importance of Deal Pipelines<\/h2>\n

There are a handful of professional operators who have refined the art of the acquisition pipeline. And they\u2019re getting an unfair advantage over the rest of us.\u00a0 <\/strong><\/em><\/p>\n

Are you a weekend warrior? Are you spending your evenings and weekends and holidays and vacations spinning your wheels looking for a house to flip<\/a>? Or a duplex? Or a mobile home park or self-storage facility?<\/p>\n

I spoke to a West Coast investor this morning. He told me he recently spent 300 to 400 hours looking for an investment property. He ended up acquiring a triplex. And it\u2019s apparently not that profitable.<\/p>\n

How much free time do you have per day? Five hours tops? This investor just chewed up about 70 days<\/strong> of free time\u2014to get what sounds like a marginal investment.<\/p>\n

It\u2019s hard to go up against professionals\u2014not to mention the masses of amateurs who are driving up prices.<\/p>\n

Going up against the pros is like options trading in your spare time. It can be a zero-sum game, and you\u2019re playing against corporations with billions of dollars in Ivy League grads and machines. You will not win (or not very often, at least).<\/p>\n

Some operators are just getting the upper hand over the rest.<\/p>\n

My friend and operating partner, Matt, is one of those guys. Matt has a team of four guys working the phones full-time. Eight hours a day, five days a week, their sole purpose is to find deals.<\/p>\n

They dial the numbers of thousands of mom-and-pop self-storage and mobile home park operators every week. They take notes. They follow up.<\/p>\n

Week in and week out.<\/p>\n

Month in and month out.<\/p>\n

Year in and year out.<\/p>\n

By being there, being consistent, being empathetic, and being skilled, they are able to find multiple deals every month\u2014opportunities that other operators and brokers won\u2019t get a shot at.<\/p>\n

Related: <\/em><\/strong>27 Ways to Find Real Estate Deals<\/a><\/em><\/p>\n

Case in Point<\/h3>\n

Matt contacted the 88-year-old owner\/operator of a Michigan mobile home community over seven years ago<\/em><\/strong>.<\/em> He wasn\u2019t interested in selling. But Matt stayed in touch every few months for the last seven years.<\/p>\n

Matt\u2019s phone rang two days ago. It was the niece of the now 95-year-old park owner. She said that he was done. He could no longer operate the park. She went on…<\/p>\n

Niece:<\/em> \u201cIs your offer from 2017 still on the table?\u201d<\/p>\n

Matt:<\/em> \u201cUh, yes. Is that price workable for you?\u201d (Prices have climbed a lot since 2017.)<\/p>\n

Niece:<\/em> \u201cYes. Let\u2019s get a contract signed.\u201d<\/p>\n

When I spoke to Matt yesterday, he was already on the ground in Michigan.<\/p>\n

\"mobile-home-investing-cons\"<\/p>\n

My friends, deals like these are not for casual seekers. <\/strong>Deals like these are the spoils rewarding those with a plan. Those with a well-established team. Those who follow up consistently. Those who speak to mom-and-pop sellers with empathy and skill.<\/p>\n

(Contact me to get my free special report on acquiring mobile home parks from mom-and-pop operators and more.)<\/p>\n

You and I don\u2019t have to have a team like Matt\u2019s to benefit from their diligent efforts. We can get access to the fruits of their labors from the comfort of our own homes. And we can enjoy the tax benefits of direct ownership in recession-resistant commercial real estate assets<\/a> like these.<\/p>\n

The Decision to Invest Passively<\/h2>\n

In the past, I wrote a post<\/a> explaining how many smart real estate investors are getting access to these deals by going passive.<\/p>\n

Yes, I agree that passive investors don\u2019t get the thrill of the chase. But passive real estate investors also don\u2019t get…<\/p>\n