@Chris Fernandez Agreed! Fill your deal funnel with off-market properties. Go to your local meetup and network with reputable wholesalers. Also, talk to PMs who know investors wanting to sell. Scour Craigslist for self-managed rental listings and call them to see if they want to sell. If they say no, ask them if they have another deal they want to sell OR if they know of someone who does want to sell. If you aren't getting the results you want, you have to do something different :)
You need to talk to wholesalers or try to find off market properties. retail properties in my neck of the woods are very difficult to fully BRRRRR. Need off market/auction properties to get a true BRRRR done
@Chris Fernandez Agreed! Fill your deal funnel with off-market properties. Go to your local meetup and network with reputable wholesalers. Also, talk to PMs who know investors wanting to sell. Scour Craigslist for self-managed rental listings and call them to see if they want to sell. If they say no, ask them if they have another deal they want to sell OR if they know of someone who does want to sell. If you aren't getting the results you want, you have to do something different :)
@Chris Fernandez you might need to check out towns and cities within 30 minutes of your subject zone. Think Franklin, Greenwood, Southport, Shelbyville, Greenfield...
From what I hear, everyone has the same problem right now. Even the wholesale deals rarely are good enough for BRRRR-ing. Everyone want to buy right now...
Don't underestimate the use of social media to find deals - Facebook is a great way to get connected to groups that are Indianapolis-focused where you can find off-market properties. You can even be added to buyers lists - I always recommend that you create a separate e-mail that you utilize for this purpose because the advertising can be a bit much at times. Be cautious, of course, and make sure you're fully vetting these properties - getting your scopes BEFORE you place an offer is your best protection, and running the numbers to ensure the ARV works with the kind of ROI you need to fund your next project.
Hey! You're out there putting feet to pavement and searching for the right deal! It takes patience, negotiation, and a bit of luck. Indianapolis is competitive like most other growing cities. Don't be discouraged. I agree with the other comments. Personally, I've had zero luck with wholesalers but could care less.
"Great flip opportunity, Fountain Square, investor special!" - Doesn't mention the active railroad tracks and section 8 neighbors.
@Chris Fernandez The Indianapolis market is very competitive and inventory is very tight. You're going to need to look further upstream for a distressed property. You're generally not going to find this through an agent on the MLS.
Have you bought a property in Indianapolis yet? I own one of the bigger wholesale shops here and I usually encourage first time buyers in Indy to find something on the MLS. Primarily, I am a sports guy, so I compare it to just getting on base. Find a way to just get in the game and get your feet wet. There are a lot of reasons that BRRRRR deals might not go according to plan--no need in overcomplicating your first one.
Further, when you are ready, you need to get hooked into INVENTORY. It is rare (very rare) for a broker to have access to loads of off-market inventory. You need to spend some time on Facebook and other social networking sites seeing who the inventory professionals (fancy word for wholesalers) are in the city. If their inventory sucks, move on to the next guy. There is nothing special about what a wholesaler does, and if they don't find you good deals, they don't deserve to be in business.
Best of luck, and happy investing! Welcome to Indianapolis!
@Chris Fernandez Indy is pretty crawling with investors but there are plenty of opportunities out there. You're very unlikely to see them on the MLS, however. Get on wholesaler's lists and better yet, talk to some and convince them that you are a serious buyer and ready to pounce on a good deal and close fast.
A true BRRRR is going to be difficult to pull off especially for your first deal. You can certainly force equity into a property but hitting that 70% mark that will allow you to borrow every dime that you put in is pretty tough. If you have some reserves, refinancing even part of what you put into the deal should give you some capital to do it again a few times. And at that point, you'll have started building a small network and may see some deals start to appear.
The deals with enough meat on the bone to BRRRR are going to cash buyers, off market. You can still find positive cashflow on the MLS, but not a lot of opportunities for value add.
Through a wholesaler my agent has connections with. The wholesaler knew my agent, and my agent told him I was serious. So, he let us analyze it before he sent it out to his buyers email list.
My agent went over to look at the property, and see what kind of work it needed. It looked good so I pulled the trigger. It’s all about networking.
You have to have someone on the ground that has connections and knows how to estimate repairs and ARV's. In my case it's an agent that only works with investors, primarily out of state investors.
@Jonathan Hulen Thanks sir. I'm new to real estate investing but I've been running an IT company for the past decade so I "get" networking. (No pun intended)
I'm planning to go to my first REIA meeting in a couple weeks. Hopefully I'll meet some investor-friendly agents there! I'm already working on the other pieces of my team - lenders, attorney, CPA, etc.
@Jonathan Hulen Thanks sir. I'm new to real estate investing but I've been running an IT company for the past decade so I "get" networking. (No pun intended)
I'm planning to go to my first REIA meeting in a couple weeks. Hopefully I'll meet some investor-friendly agents there! I'm already working on the other pieces of my team - lenders, attorney, CPA, etc.
Are you investing locally, or out of state? If you’re local it will be much easier.
@Clay Manship I would tend to agree with Clay on this. I currently have 3 active flips going in Bates Hendricks. 2 of them came from MLS leads. While wholesalers are a great resource, there are still gems on the MLS. It's about surrounding yourself with a great team to help you source those leads. How do you get a great team? You build a network, develop, foster and nurture relationships. You fall down, you get back up and you learn from your mistakes. You understand that the real estate game is not an overnight success story. It takes time. Like the rings on the inside of an old oak tree. You're gonna have scars and notches. But over time you will also develop some perfectly round years.
I would say just don’t be discouraged. Be aware of your mindset. There are definitely deals out there. Just keep pushing forward.
@Jonathan Hulen Probably locally. I'm not opposed to long distance but I think Cincinnati is big enough (and cheap enough) that I should be able to get started here.
@Chris Fernandez I totally get it. However, I have helped my clients achieve exactly what you are looking for. How? Because I have been a wholesaler for a few years and know most of the players in this area. You just have to dig. You have to be at the right place at the right time and the only way that can happen is by constantly looking. There are deals on the market showing on zillow, realtor, etc. I am trying to get one of my clients to make another offer on his second deal this week. He is also doing the BRRR strategy. It can be done!