Finding the right deals through the MLS market data

8 Replies

Hello investors. I'm an agent, and I have been approached by my first investor client who is looking to buy any sort of good investment home, whether it's a flip, single family home or multi-unit building. They have the capital to buy one or more properties at the same time. Where do I begin to find him the best property, or properties? 

Thanks! 

Alan 

If you haven't dealt with investors before as an agent, I would ask on your team (assuming you don't work for yourself) who has some experience in that area and share some of the profit with them while you learn what works in your area. Outside of that, I would find it odd that an experienced investor would work with a novice agent (novice when it comes to investment properties). 

Originally posted by @JD Martin :

If you haven't dealt with investors before as an agent, I would ask on your team (assuming you don't work for yourself) who has some experience in that area and share some of the profit with them while you learn what works in your area. Outside of that, I would find it odd that an experienced investor would work with a novice agent (novice when it comes to investment properties). 

 Sure. So, anyway, what are some of the main things to analyze when looking up the different types of properties previously listed in my area?

Advice them not to buy more than one if they don't know what they are doing. They will lose. Whether its a flip or rental you have to know your numbers as to know what makes a good investment. For rentals, you don't invest in price you invest in location.

Originally posted by @Phillip Amaechi :

Advice them not to buy more than one if they don't know what they are doing. They will lose. Whether its a flip or rental you have to know your numbers as to know what makes a good investment. For rentals, you don't invest in price you invest in location.

I agree regarding the rental properties. I was able to run local reports to spot some zip codes on the rise, as well as the best months to buy when things are generally at their lowest. But, how can I see how certain types of multi-unit properties compare to others? I know that BiggerPockets has a lot of articles and videos on determining value, but is there something specific I should be looking for in the MLS other than # of units, area, and price?

Are you referring to properties  5 units(commercial) and up or 4 units(residential) and below?

Originally posted by @Phillip Amaechi :

Are you referring to properties  5 units(commercial) and up or 4 units(residential) and below?

 Both!

First find out their price range and what kind of returns they are looking for.

Matthew Teifke

    1.) Your client should determine his cash flow needs before purchasing.

    2.) Study the market. Know the rental rates in your target areas. Find out what is charged by owners who have tenants in properties that are for sale and also what is being charged for vacant units that are currently on the rental market. The owner may not have raised rents to keep up with the market or the owner may have charged previous rents for a vacant unit.

    3.) Study the local economy. Keep up with redevelopment plans and expansion of businesses.

    4.) Narrow down the target area to a specific type of property like a duplex. Calculate the return on investment each of the duplexes listed on MLS with the same down payment and mortgage figures.

    5.) Have financing in place( avoid adjustable rate mortgages if possible because that can affect cash flow)

    6.) Determine if you want a rent ready, cosmetic fixer upper, or major rehab rental.

    7.) When running your numbers include property management even if your client decides to manage himself.

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