I am trying to start out in my investment journey in Phoenix, AZ. Does anyone have any good advice how to get started finding deals? I was wondering about when using real estate agents and finding potential deals off of the MLS, how are you able to make multiple offers on multiple different properties to see if one lands? Or is there a different strategy when working with agents?
Thanks so much!
Multiple offers are made when low balling.
Exit strategy: inspection, within 3 days after inspection you can exit the contract and get your EM back.
ps that doesn't work with HUD Properties though
The most direct way to find deals is via the MLS, or Zillow/Redfin/Realtor.com/Trulia etc. if you do not have such access. Finding deals this way has become very difficult as the competition is quite intense out here these days.
Another way is to work with wholesalers who spend all of their time sourcing deals for investors. Some are on-market and some are not. Some are deals, but most are not once your vet the numbers.
To answer your question about offers, you can make as many offers on as many properties you want, but realistically speaking, no agent wants to write a dozen lowball offers to see what sticks. Time is money and no one wants their time wasted. The advice I would give is to find some wholesalers to source deals for you, source your own deals via direct mail or phone calls, and also work with your agent on identifying deals and crunching the numbers to make sure they really work before writing any offers or contacting the seller to see if an offer can be made at whatever price you are thinking of offering.
You and your agent should be a team and should be working together on doing what's best for both of you. You don't want to waste your time following up bad leads, and realtors don't want to waste time writing offers that will never land.
Hope that helps a bit.
I am not a fan of the "seeing what sticks" method. For one, I don't know many long term, experienced investors who use this method. To me, it shows a lack of experience and understanding of your market. Secondly, many agents will get tired of this pretty quickly. It takes time and effort to write offers and follow up with agents and sellers. Lots of deals fall through, but I were working with a newbie and doing this constantly, where my client was obviously not sure what they want or how to get it, I'd probably break up with them fairly quickly.
Learn your market, prepare yourself to act and make serious, competitive offers quickly when a great deal presents itself. You don't need a thousand units in year. Pick a couple up and learn the business while you begin your career.
Thank you for the advice. It makes sense how agents would tire of this and I would want to respect their time as I am new to the investing world and I would like to make low ball offers to ensure my first deal is a successful one. Thanks again for the assistance!