Good Day BP,
I am new to the website and have been learning all I can while I become more and more eager to begin my investing journey out of state. I am trying to be careful not to 'waste' anyone's time unnecessarily, so I am trying to take on the daunting task of researching for my own potential brrrr properties in areas I'm unfamiliar with. I am asking for guidance or tips to help expedite or find more efficient/accurate results. Here is what I've been doing...
I am trying to find my niche in the market and have several areas I'm looking into. So I choose an area, let's say Pensacola, FL, and open up realtordotcom to begin checking for 3bd/2ba fixer upper homes. Once I find a couple potentials, I open up zillowdotcom and plug in those addresses to see what the nearby homes are listed as. This is beginning to frustrate me because the listed homes nearby are very close in value to the potentially distressed property and I'm not able to follow a clear guide on the 70% rule.
A few questions to help me understand this better...Is this an okay strategy on performing my own research or is this pretty useless and going to end up frustrating me (as it seems to be doing)? Because these listed homes have been on the market for days and weeks, is that perhaps a reason why my numbers aren't jiving (because if they were, other investors would have already picked them up? In order to accomplish a good brrrr investment, will I be forced to seek out the core 4 and try to jump on properties as they hit the mls or before?
I am trying to do all my own research so I can potentially find my niche area to invest in before I go wasting agent's time on the phones. I thank you all in advance for your advice and/tips on how to improve my research.
List prices don't help you too much when you're trying to determine ARV. What matters is the price at which comparable properties actually sold for.
The asking price of the distressed property is irrelevant. You offer what works. You're going to get a lot of "nos".
Performing your own research is invaluable for the experience it provides. It may be time to bring in a good agent that can help guide you. Access to the MLS will be a big plus.
Building a team takes time. If you wait until "everything is in place," you'll never do a deal.
Off-market deals are always better. Use those research skills to tackle the municipality web sites and consider paying for a list to help you narrow your search.
@Jaysen Medhurst mentioned some great things: find a good agent that will be able to assist you, listen, and understand what you're trying to do. Make sure you vet an agent before picking one. Find one that is full time, not necessarily on a team, has done a good amount of deals (years do not matter in this industry), RESPONSIVE, has the patience to assist and mentor when it comes to properties. Of course look at those reviews! If you need help finding a good one, please let me know. Also, before shopping make sure you are ready to go on finances. You need to have it ready to go when you find the right deal!
Thank you Jaysen and James for your advice. I think I have narrowed down my geographical search to just a few areas now and plan to do as much research as I can on those areas while my heloc gets funded. Then I think I'll be ready to jump in on those markets.
May I ask you what websites you (or anyone else) is using to collect data on local markets? I am currently using neighborhoodscout and movato along with google maps :)
Jaysen, you mentioned using municipality websites and buying a list. (by buying a list, what exactly do you mean) who would I be buying the list from and what does the list contain exactly?
Thank You all.