how hard is it find a good deal?
Long Island NY · Member since 2022 · 49 posts · 17 votes
how hard is it find a good deal?
Most Popular Reply
Real Estate Agent · Mohnton, PA · Member since 2018 · 47 posts · 58 votes
3yHi Jace,
That can be really subjective, some people find it really easy and have more deals than they can handle. Others can't seem to find a good deal anywhere. It all comes down to practice, consistency, and repetition. There may be better ways to find good deals but if you look at Redfin and Zillow every day and analyze properties, you will start to find good deals.
The other thing to consider is sometimes you have to MAKE a good deal. The house you saw listed for $150k... if the numbers don't work for you, figure out what purchase price would make this property a good deal. $130k? Make an offer, explain your reasoning for that number, and you will be surprised how many sellers want to have a conversation with you- especially in this transitioning market.
59 Replies
- Real Estate Agent · Mohnton, PA · Member since 2018 · 47 posts · 58 votes3y
Hi Jace,
That can be really subjective, some people find it really easy and have more deals than they can handle. Others can't seem to find a good deal anywhere. It all comes down to practice, consistency, and repetition. There may be better ways to find good deals but if you look at Redfin and Zillow every day and analyze properties, you will start to find good deals.
The other thing to consider is sometimes you have to MAKE a good deal. The house you saw listed for $150k... if the numbers don't work for you, figure out what purchase price would make this property a good deal. $130k? Make an offer, explain your reasoning for that number, and you will be surprised how many sellers want to have a conversation with you- especially in this transitioning market.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3yGot it that makes sense. Thank you
Quote from @Jesse L. Weaver:
Hi Jace,
That can be really subjective, some people find it really easy and have more deals than they can handle. Others can't seem to find a good deal anywhere. It all comes down to practice, consistency, and repetition. There may be better ways to find good deals but if you look at Redfin and Zillow every day and analyze properties, you will start to find good deals.
The other thing to consider is sometimes you have to MAKE a good deal. The house you saw listed for $150k... if the numbers don't work for you, figure out what purchase price would make this property a good deal. $130k? Make an offer, explain your reasoning for that number, and you will be surprised how many sellers want to have a conversation with you- especially in this transitioning market.
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
It's as hard as the effort you put in to find one. If you're looking 8 hours a day it's not hard. If you think a deal is going to magically appear it will seem hard.
- Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes3y
It is very hard to find deals that actually work. Raising money isn't hard. Managing contractors isn't hard. Team building isn't hard. Networking isn't hard. Finding deals is the hardest part of this business, regardless of the market cycle. Anybody who has been buying quality real estate for 30+ years will tell you that.
The key is to be persistent, not give up, and never deviate from your criteria just to "make the numbers work"
Regarding your second question, yes you can totally analyze deals from Redfin or Zillow. It's a great way to practice, and you very well may find deals this way. I've bought several deals that I found on Zillow.
- Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes3y
I think the answer to your question strongly depends on your definition of a "good deal". The higher return/criteria you set, the more difficult it will be to find or make.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3y
Quote from @Paul De Luca:
I think the answer to your question strongly depends on your definition of a "good deal". The higher return/criteria you set, the more difficult it will be to find or make.
By good deal I mean around 10% coc
- Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Jace Perez:
Quote from @Paul De Luca:
I think the answer to your question strongly depends on your definition of a "good deal". The higher return/criteria you set, the more difficult it will be to find or make.
By good deal I mean around 10% coc
With that target in mind, it will also depend on the prices of properties in your area, the taxes, rents, and your financing. So depending on your strategy, it could be easier or harder to get that return.
- Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes3y
Hey @Jace Perez,
It all depends on your approach to finding an investment property. At the end of the day, it's a numbers game. You have to determine what would be your end goal with the property you are looking to purchase, and when you know that you work backward to determine the steps that you have to make to accomplish it.
There are opportunities everywhere, you just have to be ready when one comes so you can recognize it and jump on it.
Good luck,
David - Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Jace Perez:
How hard is it to find a deal that actually works? and are you able to analyze properties on redfin or Zillow and find good deals?
yes, actually better to find one in redfin/zillow because it's all an open book system.
there's deal to flip all these year around especially if you want to keep for 2 years or more.
I guess from many that I shortlisted, 10% makes me interested to contact seller again and from there usually 0 or 1 or 2 that seems 'doable'.
it's really good time to buy house in california this time around - Member since 2019 · 7k+ posts · 4k+ votes3y
long term BRRRR is working in this economic environment, coupled with the luxury home price crash, it's a very good time to do BRRR for higher-end property with a holding time of min. 3 years, I see interest rate curve and how some market dropped , it's like best reward/risk time in term of holding property. My problem now is I need more capital to acquire a more expensive house LOL
not finding the deal, that's not my issue. I can see the future , but what's hard is all these money that I've to borrow. I'm targetting 900-1.2mil house. - Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes3y
It all comes down to your own specific criteria. Some investors are incredibly stingy when it comes to their numbers so when they are trying to find a deal it might take a little more time and effort because they are going for quality over quantity.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3y
Quote from @Nathan Harden:
It all comes down to your own specific criteria. Some investors are incredibly stingy when it comes to their numbers so when they are trying to find a deal it might take a little more time and effort because they are going for quality over quantity.
say someone is looking for a 10-15% coc, im not sure if this question really has a specific answer, but if you were to estimate how long do you think would it take to find a deal like that?
- Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes3y
Quote from @Jace Perez:
Quote from @Nathan Harden:
It all comes down to your own specific criteria. Some investors are incredibly stingy when it comes to their numbers so when they are trying to find a deal it might take a little more time and effort because they are going for quality over quantity.
say someone is looking for a 10-15% coc, im not sure if this question really has a specific answer, but if you were to estimate how long do you think would it take to find a deal like that?
It all depends on the market. If you're looking in San Diego California, you will be searching forever, may not ever find one with those numbers honestly. If you're searching in Cleveland Ohio, I could find a property in about 3 minutes with those returns.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3y
Quote from @Nathan Harden:
Quote from @Jace Perez:
Quote from @Nathan Harden:
It all comes down to your own specific criteria. Some investors are incredibly stingy when it comes to their numbers so when they are trying to find a deal it might take a little more time and effort because they are going for quality over quantity.
say someone is looking for a 10-15% coc, im not sure if this question really has a specific answer, but if you were to estimate how long do you think would it take to find a deal like that?
It all depends on the market. If you're looking in San Diego California, you will be searching forever, may not ever find one with those numbers honestly. If you're searching in Cleveland Ohio, I could find a property in about 3 minutes with those returns.
Oh wow really? So would it be a good idea for me to invest in Ohio even tho I am in New York?
- Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes3y
Quote from @Jace Perez:
Quote from @Nathan Harden:
Quote from @Jace Perez:
Quote from @Nathan Harden:
It all comes down to your own specific criteria. Some investors are incredibly stingy when it comes to their numbers so when they are trying to find a deal it might take a little more time and effort because they are going for quality over quantity.
say someone is looking for a 10-15% coc, im not sure if this question really has a specific answer, but if you were to estimate how long do you think would it take to find a deal like that?
It all depends on the market. If you're looking in San Diego California, you will be searching forever, may not ever find one with those numbers honestly. If you're searching in Cleveland Ohio, I could find a property in about 3 minutes with those returns.
Oh wow really? So would it be a good idea for me to invest in Ohio even tho I am in New York?
Upstate New York has some good markets, all comes down to what you are looking for. Everyone has their own opinions on this but I live in WA state and own properties in Ohio.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3yI have looked into upstate New York but I just don’t like the tenant friendly laws here especially since I’m just starting out I don’t have much money to lose if I were to get a squatter here.
Quote from @Nathan Harden:
Quote from @Jace Perez:
Quote from @Nathan Harden:
Quote from @Jace Perez:
Quote from @Nathan Harden:
It all comes down to your own specific criteria. Some investors are incredibly stingy when it comes to their numbers so when they are trying to find a deal it might take a little more time and effort because they are going for quality over quantity.
say someone is looking for a 10-15% coc, im not sure if this question really has a specific answer, but if you were to estimate how long do you think would it take to find a deal like that?
It all depends on the market. If you're looking in San Diego California, you will be searching forever, may not ever find one with those numbers honestly. If you're searching in Cleveland Ohio, I could find a property in about 3 minutes with those returns.
Oh wow really? So would it be a good idea for me to invest in Ohio even tho I am in New York?
Upstate New York has some good markets, all comes down to what you are looking for. Everyone has their own opinions on this but I live in WA state and own properties in Ohio.
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes3y
Quote from @Jace Perez:
How hard is it to find a deal that actually works? and are you able to analyze properties on redfin or Zillow and find good deals?
Hey Jace, nothing good comes out from easy things unless you're really lucky. There are still some great deals to be had on both platforms but it takes more time to find one since you're basically looking at the same thing that every investor is on. If you put a lot of effort into it, the reward is great. Best of luck on finding those deals!
- 3yScott AllenBusiness MemberReal Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
If you're consistent, you can find at least 1-3 good deals a week from just cold calling. Depends how much free time you have an how much effort you're willing to put in to put something together that can work for you. I'd recommend finding a mentor that's already doing what you're trying to do to help get you started.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3yFor the 1-3 deals a week would that be in most markets?
Quote from @Scott Allen:
If you're consistent, you can find at least 1-3 good deals a week from just cold calling. Depends how much free time you have an how much effort you're willing to put in to put something together that can work for you. I'd recommend finding a mentor that's already doing what you're trying to do to help get you started.
- 3yScott AllenBusiness MemberReal Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
Yes, in the Midwest. I'd recommend starting with Ohio but I would take the time to compare it with others as well.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3yI’m currently in New York and I haven’t done a deal yet, would it be alright to start out of state?
Quote from @Scott Allen:
Yes, in the Midwest. I'd recommend starting with Ohio but I would take the time to compare it with others as well.
- 3yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
1. Consider buying a bank-foreclosed property.
When someone fails to pay a mortgage payment for an extended period of time, the lender will ultimately repossess the home and remove the occupants. Once the home is empty, the lender generally lists the house for sale on the market, using a local real estate to list it.While the foreclosure, in itself, is of course sad (no one rejoices when someone loses a home), once the deed has been done, these properties can be some of the best deals you'll find in real estate. Banks want to be in the business of lending money, not managing property, so they are often quick to offer large discounts just to get the deal off their books. Translation: You can get a great deal on foreclosed properties, if you know how to buy foreclosures right.
Because the foreclosure process can take several years, these properties are often in need of some serious repair or updating. So, further discounts may be given to compensate -- for buyers willing to brave a rehab.
Talk to a local real estate agent about the foreclosures in your area, and start checking some out. You might be surprised at the deals you can get.
2. Be the first . . . or the last.
In real estate, often the old adage holds true: The early bird gets the worm.
Oftentimes, it's not the highest offer for a property that gets accepted, it's simply the first. Therefore, if you are looking for a great deal, be quick about it! Get a pre-approval from a bank so you can jump at any property right away, and have your real estate agent set you up with automatic email alerts notifying you of any new property that hits the market.
Then, don't delay -- check it out quickly, and make an offer the same day if possible.
Conversely, another way to find great deals is to look for properties that have been on the market for a long time. Those owners are often far more willing to sell for a discount, because they are tired of holding on to that property. Many times, they will have been making two mortgage payments for months (or years) and will entertain almost any offer.
Related: The 7 Tips Entrepreneurs Need to Know Before Investing in Real Estate
3. Approach absentee owners privately.
In a hot real estate market, like the one most of the United States is experiencing today, great deals can be hard to find because of the large number of people looking for a home. In some areas, a single house for sale might get a dozen or more offers in the first several days.
Therefore, one of the best tactics real estate investors use today is to look outside your multiple listing service and instead contact owners directly, asking them to consider selling. At any given time, a good percentage of the population will entertain that option, so why not reach out before they list the home with a real estate agent?
One of the best kinds of people to target is absentee owners, which simply means someone who owns a property but doesn't live there. They might be landlords (who hate their tenants) or owners who inherited their houses and are simply unsure what to do with them. You can find these deals in a number of ways, such as:
driving around, looking for houses that look vacant, and using online public records to track down the owner
buying a public record list using an aggregate-list site like ListSource.com
calling mom-and-pop landlords who are listing properties "for rent" on Craigslist. Let them know you aren't interested in renting, but you would like to talk to them about buying.4. Look at a lot of deals.
Finally, understand that finding good deals is largely a "numbers game." You often have to kiss a lot of frogs to find the prince!All the best!
NETWORTH BUILDERS5236 Reviews - Long Island NY · Member since 2022 · 49 posts · 17 votes3y
Quote from @Wale Lawal:
1. Consider buying a bank-foreclosed property.
When someone fails to pay a mortgage payment for an extended period of time, the lender will ultimately repossess the home and remove the occupants. Once the home is empty, the lender generally lists the house for sale on the market, using a local real estate to list it.While the foreclosure, in itself, is of course sad (no one rejoices when someone loses a home), once the deed has been done, these properties can be some of the best deals you'll find in real estate. Banks want to be in the business of lending money, not managing property, so they are often quick to offer large discounts just to get the deal off their books. Translation: You can get a great deal on foreclosed properties, if you know how to buy foreclosures right.
Because the foreclosure process can take several years, these properties are often in need of some serious repair or updating. So, further discounts may be given to compensate -- for buyers willing to brave a rehab.
Talk to a local real estate agent about the foreclosures in your area, and start checking some out. You might be surprised at the deals you can get.
2. Be the first . . . or the last.
In real estate, often the old adage holds true: The early bird gets the worm.
Oftentimes, it's not the highest offer for a property that gets accepted, it's simply the first. Therefore, if you are looking for a great deal, be quick about it! Get a pre-approval from a bank so you can jump at any property right away, and have your real estate agent set you up with automatic email alerts notifying you of any new property that hits the market.
Then, don't delay -- check it out quickly, and make an offer the same day if possible.
Conversely, another way to find great deals is to look for properties that have been on the market for a long time. Those owners are often far more willing to sell for a discount, because they are tired of holding on to that property. Many times, they will have been making two mortgage payments for months (or years) and will entertain almost any offer.
Related: The 7 Tips Entrepreneurs Need to Know Before Investing in Real Estate
3. Approach absentee owners privately.
In a hot real estate market, like the one most of the United States is experiencing today, great deals can be hard to find because of the large number of people looking for a home. In some areas, a single house for sale might get a dozen or more offers in the first several days.
Therefore, one of the best tactics real estate investors use today is to look outside your multiple listing service and instead contact owners directly, asking them to consider selling. At any given time, a good percentage of the population will entertain that option, so why not reach out before they list the home with a real estate agent?
One of the best kinds of people to target is absentee owners, which simply means someone who owns a property but doesn't live there. They might be landlords (who hate their tenants) or owners who inherited their houses and are simply unsure what to do with them. You can find these deals in a number of ways, such as:
driving around, looking for houses that look vacant, and using online public records to track down the owner
buying a public record list using an aggregate-list site like ListSource.com
calling mom-and-pop landlords who are listing properties "for rent" on Craigslist. Let them know you aren't interested in renting, but you would like to talk to them about buying.4. Look at a lot of deals.
Finally, understand that finding good deals is largely a "numbers game." You often have to kiss a lot of frogs to find the prince!All the best!
Aren’t foreclosure properties risky because if the liens they can have? I’m not too familiar with how they work but I’ve just heard they are risky, but I have thought about foreclosures.
- Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes3y
@Jace Perez- you will likely need to work hard to find a workable deal just using RF or Zillow ....you may ...but its likely you will need to do a lot more reserach than this
- Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes3y
In my opinion it depends on your definition of a good deal. Are you looking for MF, LTR, STR?? In general finding a home run is going to be difficult. By home run, I mean 15-20% COC on day one, turn key property. They are out there, but they're unicorns and are usually snatched up before they hit the public market.
However, there are definitely good deals to be had on the open market. Some of these are OK deals that have the potential of turning into a good deal in a few years. Or there are ones that require some time, money, and creativity to make them into a good deal.
It's not super straight forward and a lot of it has to do with how much time you have, how much money you have, what strategy you're trying to implement, and what your appetite for risk is.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.