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?
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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
- 3yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Quote from @Jace Perez:
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.
Yes there is risk involved but you need to have adequate information and knowledge to take the calculated risk.
Start working with an experienced agent or investor to learn more.
All the best!
NETWORTH BUILDERS5236 Reviews - 3yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
You need a solution for your specific situation
Live in New York.
Have little money.
Haven’t done a deal before.
.
a. Apartment hack rentalb. Apartment hack you buy.
c. Move. Trailer hack or brrrrr
d. Move. Do the above or buy a place and hack.
If you stay in NYC and buy a property outside. You will have a capex issue. You will have a renter loss income issue. - Long Island NY · Member since 2022 · 49 posts · 17 votes3y
Quote from @Henry Clark:
You need a solution for your specific situation
Live in New York.
Have little money.
Haven’t done a deal before.
.
a. Apartment hack rentalb. Apartment hack you buy.
c. Move. Trailer hack or brrrrr
d. Move. Do the above or buy a place and hack.
If you stay in NYC and buy a property outside. You will have a capex issue. You will have a renter loss income issue.What do you mean by a cap ex issue and renter income loss?
- 3yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
You’re not ready to invest if you’re asking that question. Learn all you can. Do 5 deal analysis and post on here and ask for input. Before you ever think about investing.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3yYea I know, I have a lot to learn.
Quote from @Henry Clark:
You’re not ready to invest if you’re asking that question. Learn all you can. Do 5 deal analysis and post on here and ask for input. Before you ever think about investing.
- 3yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
Go to the Getting Started forum. Follow along the Deal 1, Deal 2, and the next sessions.
Plus start reading books, podcasts, etc.
Get a larger apartment, you stay in the small room and rent out the bigger room. Get them to help pay for your portion.
- 3yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
Plus, don't look for a GOOD deal as your first deal.
Look for a Safe deal. Will make less, but you won't loose a lot more.
Safe deal examples:
a. Needs clean up and landscaping.
b. Needs new flooring or carpet replaced.
c. Needs new shingles.
d. Paint job on the outside.
Bad deal examples: as a first timer.
a. Foundation repair
b. Total kithchen/bathroom makeover.
c. Moving walls
d. Bad neighborhood
e. Window/Door replacement
f. Sewer not checked out.
If you do a Safe deal, even though it's not a great financial deal. You will have started. The majority of people who look at REI will never start.
All of us have to make our mistakes. You want to keep them low dollar, so that don't take you out of the game on your first deal.
Start small and Make Your Big Mistakes Early.
- 3yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
There are "deals" on all kinds of properties in all markets every single day. There are two things you need to understand in order to find those:
-What type of returns you can expect in your market and how long it will take to realize those returns.
-That what is or is not a "deal" varies wildly from person to person and depends greatly on what their resources and experiences are.
You can't make a property cash flow like crazy if you are in a desirable, growing market that has aggressive appreciation. You can't make a property appreciate like crazy if you are in a market with high cash flow and marginal or no growth.
If you know what you are looking for and you know what your market can do, you'll see the deals.
- Long Island NY · Member since 2022 · 49 posts · 17 votes3y
Quote from @Henry Clark:
Plus, don't look for a GOOD deal as your first deal.
Look for a Safe deal. Will make less, but you won't loose a lot more.
Safe deal examples:
a. Needs clean up and landscaping.
b. Needs new flooring or carpet replaced.
c. Needs new shingles.
d. Paint job on the outside.
Bad deal examples: as a first timer.
a. Foundation repair
b. Total kithchen/bathroom makeover.
c. Moving walls
d. Bad neighborhood
e. Window/Door replacement
f. Sewer not checked out.
If you do a Safe deal, even though it's not a great financial deal. You will have started. The majority of people who look at REI will never start.
All of us have to make our mistakes. You want to keep them low dollar, so that don't take you out of the game on your first deal.
Start small and Make Your Big Mistakes Early.
I appreciate that advise, I will definitely follow that, thank you
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