Driving for dollars, market research, and defined criteria.

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Driving for dollars, market research, and defined criteria.

Benjamin Shaw
Danbury, CT · Member since 2017 · 56 posts · 10 votes

We are working on developing our search criteria by matching market research results with our current financial status and network. Due to the lengthy process, steep learning curve, limited finances, and our desire to take action now, we are also driving for dollars.

We live near the border between two towns, ours (Danbury CT) has a population of 84,000, the other (New Fairfield CT) 14,000. Our town's median home cost is $250k, the other being $325k. 

While driving our town, so far we have seen very few distressed properties. The other day I took a drive into our neighboring town of New Fairfield CT and found 12 within an hour. We are trying to figure out why this is the case. The area I drove was very nice, right next to a school, a nice lake, although a bit further away from Danbury where we have stuff like Home Depot, Target, and a mall.

So the question is: How do we figure out why there are so many distressed properties in New Fairfield? Should we pursue finding the owners even if we have not even developed our criteria yet?

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Craig Bellot
Property Manager · CT · Member since 2014 · 687 posts · 329 votes
9y

Distressed properties could be a result of absentee owners, bad landlords or a sign of the market deteriorating. 

I congratulate you on taking action and driving for dollars. I would encourage you to talk to the owners and keep taking action until you have your criteria defined. 

Are you looking for buy and hold or fix and flip properties?

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  • Craig Bellot
    Property Manager · CT · Member since 2014 · 687 posts · 329 votes
    9y

    Distressed properties could be a result of absentee owners, bad landlords or a sign of the market deteriorating. 

    I congratulate you on taking action and driving for dollars. I would encourage you to talk to the owners and keep taking action until you have your criteria defined. 

    Are you looking for buy and hold or fix and flip properties?

    1Reply
  • Benjamin Shaw
    OP
    Danbury, CT · Member since 2017 · 56 posts · 10 votes
    9y
    Originally posted by @Craig Bellot:

    Distressed properties could be a result of absentee owners, bad landlords or a sign of the market deteriorating. 

    I congratulate you on taking action and driving for dollars. I would encourage you to talk to the owners and keep taking action until you have your criteria defined. 

    Are you looking for buy and hold or fix and flip properties?

     Hi Craig,  Thanks for the reply!  

    We are planning to fix and flip since buy and hold would tie up our limited resources. Then eventually buy and hold. Although I am very new to market research, I am not seeing anything indicating that New Fairfield is in decline.

    We do have a private lender ready to work with us. He has some cash for a down payment, as well as pre-approval on a loan to finance a deal. Although we are not sure yet where the rehab costs would come from. I have been looking into creative financings such as lease options, or different types of loans that could tie in the rehab costs.

    We spent a few hours again yesterday driving for dollars in the same area I originally found success. We found 3 more leads that had notices on the doors.

    So you advise to find the owners and contact them, even though we don't have our financing completely sorted out, no contractor picked, no contracts went over by a lawyer, etc?

    Do I just contact these people and see if there is any way I can help them right now?

    Thanks again,

    Ben

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  • Elizabeth Zieman
    Investor · Ridgefield, CT · Member since 2016 · 38 posts · 28 votes
    9y
    Benjamin Shaw I'm in Ridgefield and I'm always "driving" around northern Fairfield county. Although I don't own anything in New Fairfield, I consider it an opportunity market. Families who want good schools, but can't afford Ridgefield and further south, like the town. The schools have a DRG C (google it! You should/must know a town's DRG grouping!) so it's a good market. Good luck! And let me know if you want a team member on a project.
    1Reply
  • Benjamin Shaw
    OP
    Danbury, CT · Member since 2017 · 56 posts · 10 votes
    9y

    Hi @Elizabeth Zieman   I've actually seen you around the forums and had been thinking of introducing myself since you are right next door in Ridgefield! 

    Thanks so much for the heads up on New Fairfield. This is invaluable information. I will look into DRG groupings for sure. 

    I am extremely honored at your offer to team up on a project. Right now we are in an intensive learning stage, but eager to move forward to a deal.

    My Wife and I met for coffee with a couple we met from BP that is moving to Danbury this month. We had an amazing time with them.

    If you were interested in doing the same we would love the chance to buy you a coffee and talk RE sometime!

    Thanks again,

    Ben

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  • Elizabeth Zieman
    Investor · Ridgefield, CT · Member since 2016 · 38 posts · 28 votes
    9y
    Benjamin Shaw absolutely! Anytime! My husband is a civil engineer, so we'd all have a lot to talk about. My son is currently a freshman Mechanical and Aerospace eng major at RPI (he has zero interest in real estate lol)...wondered if you were from Albany area.
    1Reply
  • Elizabeth Zieman
    Investor · Ridgefield, CT · Member since 2016 · 38 posts · 28 votes
    9y
    Benjamin Shaw cuz I'm such a good neighbor! http://www.sde.ct.gov/sde/LIB/sde/PDF/dgm/report1/cpse2006/appndxa.pdf
    1Reply
  • Benjamin Shaw
    OP
    Danbury, CT · Member since 2017 · 56 posts · 10 votes
    9y

    @Elizabeth Zieman I was born an hour north of Albany, up near Lake George. 

    Yes, it does seem like we will have plenty to talk about! If you have a time in the near future that works for you, please PM me. 

    Now that's an interesting chart! I be looking into this in the morning. 

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