So tomorrow we’re going through our first walk through in the city we’re looking to invest and it’s one of the few multi family properties that actually make financial sense in our market. I’m wondering as a first time investor, and home buyer, is there any advice to finding a good deal besides searching the mls using a realtor or Redfin? Seems to be a good amount of properties in our market, Kenosha Wisconsin, but nothing that will make the return we’re hoping to make. I know our first one is mostly about getting experience but if we could make maybe 100/door that’d be great. Just wonder what I could do to find that deal or create that deal beyond searching listings as they become available.
Specialist · Member since 2019 · 494 posts · 220 votes
7y
@Tim McKinnon I agree with @Scott Schultz and @Brock Mogensen. It is better to find off-market deals where people haven't done all the work needed to put the home on the market - ready for strangers to come looking.
You might try mailing to a list of motivated sellers. A list broker can help find people who are likely ready to sell but think it will be too much work. One good target is Seniors with Long-time Ownership. Another is Owners with Low Financial Stability Scores (FSS).
Consider focusing your letter or post card on the recipients and mention benefits of working with you rather then the traditional realtor.
Selling your home can be easier than you think.
No need to fix it up or re-decorate. We'll buy as-is.
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
7y
Suggest working with deals near where you live. IMO 100 is a fantasy than reality anywhere in the US. Every now and then some one will brag he got one for 200....
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
7y
Finding a deal on MLS with $100 positive is tough, but there are tons of way better deals than that if you look for distress and dont mind doing a rehab. @Sam Shueh I wont get out of bed for $100/door not worth putting pants on for, my minimum is $200/door with 100% debt (for calculation purpose only) of purchase and rehab at currently 6% on a 15 year amortization, many of mine are far better, I also require a minimum 40% value increase after rehab so I can pull out the cost of rehab and purchase and only borrow 60% LTV I buy 5-6 of those deals per year, I currently have 23 location all meet those parameters and most are better than my minimum. You need to look were others dont and buy where others cant, be prepared to pay cash and close quick, most of my buying in the past few years has been online auctions and Sheriff Sales. Im getting picky this year though, either 3+ bedroom SFR ranches or multi family (2 or more units) im currently waiting to close an auction property (duplex) I won for $13,699, I will spend $20-25K in rehab, it will generate $1100-$1200/mo gross and should get an appraisal at $80-85K. they are out there you just need to be in the deal flow and act when the deal arises.
Rental Property Investor · Olympia, WA · Member since 2018 · 29 posts · 20 votes
7y
Drive the neighborhood and look for the vacant/Abandoned properties. We drive and we look at both sides of the street and as we see one they call out the address. Whomever is riding in the passenger seat writes it down and we continue on. We get home and look up the owners and direct mail or.. FACEBOOK Message them! You would be surprised how many times that has worked!
Specialist · Member since 2019 · 494 posts · 220 votes
7y
@Tim McKinnon I agree with @Scott Schultz and @Brock Mogensen. It is better to find off-market deals where people haven't done all the work needed to put the home on the market - ready for strangers to come looking.
You might try mailing to a list of motivated sellers. A list broker can help find people who are likely ready to sell but think it will be too much work. One good target is Seniors with Long-time Ownership. Another is Owners with Low Financial Stability Scores (FSS).
Consider focusing your letter or post card on the recipients and mention benefits of working with you rather then the traditional realtor.
Selling your home can be easier than you think.
No need to fix it up or re-decorate. We'll buy as-is.