Where/How did you find your first property?

Question

Getting back into investing after getting a foul taste 10 years ago. I bought a 2 unit in poor condition that an "investor" friend told me about. Investor is in quotes because he wasn't really, just knew or acted like he knew more than me. Long story short, I lost money trying to get out of that deal the following year. After that experience I was done. Recently I realized I just didn't know what I was doing and I needed to read, study and get "mentoring". Now I'm back and hungrier than ever to make this my career.

My question is, when you decided to take the leap, where did you find your first deal? And how did it go? I'm just looking to get confirmation I'm doing the right things.

My question is, when you decided to take the leap, where did you find your first deal?  And how did it go?  I'm just looking to get confirmation I'm doing the right things.

Johann Jells · Answer

Short answer is through a rare intelligent broker. We were looking for a multi with a unit for us newlyweds, a non-apartment basement for my workshop, and multiple rentals.  Most brokers basically didn't listen to us, and showed us all sorts of nonsense. One broker listened, and after I kept showing up to look at the new MLS listings realized we were serious. He then talked the owner of the perfect building for us into selling.

Really. It was never actually on the market, we offered asking.  The owner/occupant had raised his very large family in the various units of this 7U, and was now getting too old to maintain it as rentals.  That was 97, the absolute bottom of the market here. Luckiest thing that has ever happened to me, besides the wife that is. Even after the crash it's still worth at least 3-4x what we paid.

Ziv Magen · Answer

The trick is in what you mentioned at the end of your post - making it your career.

The difference between you and someone who's out to buy something as a sidejob/hobby/potential investment is the hunger and focus.

I got my first deal (3 unit "package" in the same block, all from a single seller/realtor so hugely reduced purchase costs on top of the unusually high yield) after "sitting" on several realtors for several weeks, badgering them with daily calls and requests for account numbers to deposit into immediately, as soon as an attractive deal comes up. Believe it or not, they all want to not have to advertise on the MLS if they can - they'd love to sell every single property to a list of hungry, serious investors like you, without having to do more than make a few calls - make them realize this is you, and you won't have to sit on the MLS all day just to pounce first - although that works too (most "normal" buyers check these websites once or twice a day, normally before and after work or on a lunchbreak).

Best of luck! :)

Account Closed · Answer

Arthur  it depends on what type of deals you are looking for with regard to the MLS. I specialize in lease options and wholesaling ugly houses. I generally do not look for ugly houses in the MLS but get the vast majority of my lease option deals from the MLS mailing postcards to the sellers. I got my first one back in 1994 and it took 31 days to close from beginning to end. There is no luck involved with the MLS if you know how to work it and for my purposes it is far and away the best lead source out there.
Good luck,
Joe

Andrea M. · Answer

My first deal I found it on craigslist, 2 bedroom 1 bath, 820 sq ft ranch style house for $11K, spoke with the owner who was an investor as well. He started the work, but didn't finish, electrical was done and some plumbing and everything was done on permits. We got in there finished the work and it currently rents for $775 per month, current tenant has been there 2 years.

Carolina E. · Answer

Welcome Arthur Banks.  I found mine off the mls.  Now I am doing direct mailings.  Haven't gotten one this way that fits my criteria, but still going to keep sending.

Marco Santarelli · Answer

Hi Arthur,

Welcome to BiggerPockets!

The MLS is only one source for properties.  Those properties are considered "listed" and the MLS is almost always the only tool real estate agents can offer you a property from.  Of course there are other sources such as builders, rehabbers, turnkey providers, wholesalers, and bird-dogs.  Of course you could always attempt to market directly to owners of property you're interested in.

Also, there is no such thing as luck!  That would be the equivalent of 'speculating' or 'gambling' with your investing.  Regardless of where the property comes from, you must do your due diligence to make sure you're getting a solid good deal.  It's not difficult, you just need to go through the steps of the process.

Feel free to post any other questions you have.  There is lot of talent in these forums, and we're happy to help out.

Continued success!

Chris Cho · Answer

When I first got started I picked a niche and wrote down all the abandoned properties and did whatever it took to reach the owner.

I would skiptrace them, call them, mail them, ask the neighbors and did everything i possibly can think of.

I honestly think sometimes courses will limit your creativity. I was way more creative when i didnt have any course around.

just my two cents

Arthur Banks · Answer

Jon Klaus
Yes, that's exactly how I see it.  I (well my parents) paid for my degree and I don't even use it in my profession. :)  Education costs and I finally realized that.

For those who found deals on the MLS, were you just lucky? I imagined deals wouldn't stay there very long. So MLS is a good starting point I take it.

Jon Klaus · Answer

I got 14 deals from Bidselect in 2009 and 2010.

Charles Morgan · Answer

Found my first one in the MLS, the second also, my third was the First Preston/Bidselect search site (my best one by far).

Where/How did you find your first property?

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