If everyone is looking for deals, how do you ever find one?

Rental Property Investor · Bremerton, WA · Member since 2014 · 3 posts · 1 vote

Hi, new to BP and I‘m wonderIng how I’ll ever be able to find a deal? If a deal makes sense, then I can‘t be the only person runnIng numbers and thinking it’s a good deal. Is it wrong to assume the “market is smart”, generally has access to all the same info I do (maybe more), and snatching all the good deals up? I’m all about being positive, but I think reality is a good perspective as well. Any thoughts would be appreciated!

0 Reply

23 views

3 Replies

Jump to latestLatest

Sort by

Simon W.Business Member
Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 668 votes
7y
when investors say deal, it can mean a variety of things.
Not all investors invest with the same mindset.
Some would be happy with a cap rate of 4%, some would only do 8%-10%, some do not care about cap rate and want to focus on appreciation after holding x amount of years.
Some are focused on buy & flip, some are looking for holding on to a lot until a miracle happens in the area.
The question is, what deals are YOU looking for?
Accounting Properties LLC
View Page
CFO LLC
View Page
2 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Originally posted by @Simon W.:

when investors say deal, it can mean a variety of things.
Not all investors invest with the same mindset.
Some would be happy with a cap rate of 4%, some would only do 8%-10%, some do not care about cap rate and want to focus on appreciation after holding x amount of years.
Some are focused on buy & flip, some are looking for holding on to a lot until a miracle happens in the area.
The question is, what deals are YOU looking for?
A very important piece here by Simon. I think for a new investor they must be able to first identify what type of investor they are and know exactly what type of property they are looking for. After they have done that then they can begin the search for a "deal". How do you know what a deal is? I think to generalize a deal. If it's a rehab property I would be looking to add 15-25% of equity for the ARV. Now, this is my interpretation of a deal for a single-family house.
1 Reply
Colleen Mitchell
OP
Rental Property Investor · Bremerton, WA · Member since 2014 · 3 posts · 1 vote
7y
@Frank Wong @Simon W. Thanks for the questioning of what a “deal” means to me. Clearly I was short sighted in thinking we were all looking for the same thing. As a newbie, are there certain types of “deals” that I should focus on to get started? I’m more interested in cash flowing rentals vs flips...
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.