I am a 21 year old soon to be REI, i have been looking at multiple properties in the Myrtle Beach, SC area.
My question is, i am having a hard time finding deals that are cash flow positive because not a lot of realtors want to work with REI in this area because so many people are moving here very willing to pay full price for a house.
I am looking for a duplex or triplex to house hack.
Would it benefit me to get my real estate license before i buy my first property? That way i myself can use the MLS to find deals.
Any advice is helpful thanks so much!
Hello, @Josie Hucks . Welcome to BP. It seems like a simple thing, but reaching out in BiggerPockets about getting started as a real estate investor is a great first step. Congratulations and I wish you a ton of success.
While it is true that Myrtle Beach is growing extremely fast, that's also true for much of the nation. As a Realtor and investor myself in Myrtle Beach, I can tell you some investors I love working with and others, I'd prefer they take their "business" elsewhere.
You need to ask yourself some hard questions. Do you expect your Realtor to find cash flowing deals for you? That doesn't really work, especially in a hot market. I've heard it said many times on the podcast - "you don't find deals in this market, you make deals." You better be ready as the investor to identify opportunities that others have missed and act on them. If you're looking for a Realtor to find you a cash flowing deal....well why wouldn't I just buy them myself if I find that diamond in the rough?
Are your practices aligning your interests with your Realtor's? Are you expecting to look at every property in town without placing a reasonable bid? Are you willing to bid sight-unseen? Do you provide your Realtor with updated financial info that you can, indeed, close when the time comes? Are you driving by the properties to see and understand the neighborhoods before talking with the Realtor?
Working with inexperienced investors is often a losing proposition for a Realtor. Lots of time, effort, and gas spent for no reason and if that investor does close, it's balanced out by the deals that didn't close so the Realtor earned less than minimum wage working for that investor. Conversely, if that Realtor had spent the time shopping for a deal for themselves, or working with traditional buyers, it would pay many times more than that.
Find a Realtor you like and trust and build a relationship and a SYSTEM with them. Remember that they don't get paid until you buy something so use as little of their time as possible until you've proven yourself and built that relationship. Once you have the relationship and you've done deals with that Realtor in the past, you'll find they're more willing to spend time on you.
@Jeffrey Long Thanks so much for all of that! Super helpful. I’ve been doing all the looking i can & trying to network at my full time to make connections that way also. Craigslist / auction.com / etc , any other suggestions for tracking down a deal?