Retail Deal for First Property?

Question

Looking at purchasing 1 property to get started. Considering a retail deal off Zillow working with my realtor.

What I've been reading, listening and learning about is that it's not always the best way to find your first deal. However, I'm in good standing with my bank/lender, have a good pre approval for a starter home to get my feet wet and looking at properties that are already rented or have been in the past. Many for sale for longer than 30-40 days.

Feel that this way, I could put a good amount down, do some small upgrades and get started in this business.

I'd eventually plan to move purchase to an LLC but that's down the road.

Any thoughts?

I'd eventually plan to move purchase to an LLC but that's down the road.

Any thoughts?

Jaron Walling · Answer

@Mark Morosky MLS, off market, whole sale, neighbor friend - where you buy the deal doesn't matter. What matters are the numbers, strategy, and long term goals for the property. If the numbers don't align with your strategy make it work or move on.

If a property is tenant occupied that comes with risk and should be priced accordingly. You didn't screen the tenants or understand there background/rental history.

Jaron Walling · Answer

I don't have a real estate license or access to the MLS.

We work with a local agent who does, set notifications for Zillow, and get wholesaler emails constantly. It's a habit weeding through listings. It takes <10 mins of my day. If something catches my eye I dive into the numbers, drive by it, or walk the property with an agent.

Everyone has a system (ours is basic) but it's what works for us right now.

Mark Morosky · Answer

@Caleb Brown@Evan Polaski@Jaron Walling

I haven't signed up for the MLS but is it that easy to just make an offer on there?  Realizing this is something I need to do if that is the case.

Caleb Brown · Answer

As others said source doesn't matter. A deal isa deal regardless where it is found. Just make sure you are running #'s, doing inspections and any other due diligence. In this market you can negotiate with sellers on the MLS so don't be afraid to do so.

Evan Polaski · Answer

@Mark Morosky, can you define what you mean by "retail deal"?  Do you mean retail use?  Or just a "typical" turn key, listed property?

If the latter, I agree Jaron that where you source a deal is irrelevant.  What are the risks of the deal?  Is the potential financial reward worth those risks and worth your time?

Particularly, for my flips, a lot of them have come from the MLS.  I flip houses very part time.  I am not skiptracing owners and having VAs call and direct mailers, etc.  I have historically found deals on the MLS, much like you note, that are 30+ days old and not pending.  I will submit my offer at a price that it is worth to me, and that is that.  If it is accepted, I have a new property.  If it isn't, I just keep my eyes out for another one.

Retail Deal for First Property?

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