Help me find my first investment property?

Question

Hey all, I'm a new investor looking for leads on potential flips/BRRRR properties.

I've joined a few Facebook groups and I'm on Zillow a little too often, but in my experience, the best opportunities often come from the right connections.

So here's my ask:

1. Where have you found opportunities to invest?

2. Can you recommend anyone I should connect with?

Jaron Walling · Answer

@Samuel Tupy When I started out I researched my market for 6 months, learned to run the numbers, and narrowed my search into neighborhoods where OTHER INVESTORS where doing BRRRR deals. This sounds like the step you're on; you're up to bat and need to swing.

Find a strategy that makes sense in your life. Completing a live-flip is absolutely worth it but it comes with sacrifices. My first two houses we're bought using that strategy. Today I'm married with two small children. My live-in flip days are over.

Network with the professionals in those neighborhoods. You can't blanket an entire market and make genuine connections that lead to walking properties, estimating a rehab, or making real offers on distressed properties.

Zillow is your friend but you won't find many deals. It's like a needle in a haystack and trust me you won't find it first. It's better to find/buy/create them for yourself.

An asking price is just that - an asking price. If you want to flip or BRRRR you have to buy 30% below market value (minimum) and operate like a business from day one. It's like buying a used car but with houses. Zero emotional connection to the property until you own it. It's relationships, numbers, offers, rehab quality/finishes, and PM if you start owning rentals. If you establish that mindset you will find success man. Cheers.

Adam Tafel · Answer

Reach out to all the none-real estate people in your life. Let them know you are looking to buy a real ugly house/building and make it nice again! Remember - if you want to BRRRR, the property is going to need to be ROUGH, otherwise the free market will not allow such a generous margin to allow a cash-out w/ cashflow. Network with agents and wholesalers. Keep in mind, you may have to purchase a base-hit deal before one of these professionals will send you a home run BRRRR. People know when they have a slam-dunk BRRRRable property on their hands, and they will never send it straight to a person they’ve never worked with before. Taming your expectations for deal #1 is sometimes needed, along with focusing on properties with a simple SOW.

Jaron Walling · Answer

@Samuel Tupy Minneapolis is a lot like my market with similar price points. Surely people are doing BRRRR deals and flips where you live. Look for job sites, talk to contractors, and connect with the investor who owns the property. I found our go to roofing contactor doing that. I've hired him twice and got him additional business (build relationships). The busiest investor and contractors don't advertise. It's word of mouth and networking at meetups and social events.

Alfath Ahmed · Answer

Good that you are getting started @Samuel Tupy. I've never invested in MN but have seen multiple oos investors investing in other cities in the midwest.

I would say find a good market in the midwest where your investments would make sense from both cashflow vs. appreciation.

You want a market that is tech driven, landlord friendly, and affordable. That will mean more jobs, more income, higher property prices, and better opportunity for your rental to perform better.

Any state in the midwest works. Find a major city and only invest there. Connect with a good investor-focused agent who is also an investor themselves. Have him connect you with his team of contractors, lenders, property managers. Go visit the market.

Your agent will send you good investment opportunities off-market and on-market. Ask for rent comps, sales comps, info on mechanicals, and have agent find out how far on the price you guys can go to make it make sense.

Get inspection/contractor walkthrough, speak to PM on rents, and that is all.

Kate Sanchez · Answer

@Samuel Tupy Networking beats Zillow. Look into off-market deals through local wholesalers, driving for dollars, and direct mail. Connect with hungry local investor-agents; they see the deals first. Goodluck!

Emanuele Mayer · Answer

Welcome! I’d recommend connecting with wholesalers, attending local investor meetups, and building relationships with investor-friendly realtors. Those have been some of the best sources for off-market opportunities. I work with investors nationwide, helping them with Fix & Flip and DSCR financing, so if you ever have questions about funding, feel free to reach out. Good luck on your investing journey!

Help me find my first investment property?

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