Investor · Redmond, WA · Member since 2016 · 267 posts · 110 votes
Hi, I am looking to buy rental property in Seattle Tacoma area withBRRR strategy. I got my first one in place, looking to buy another in near future.
I hear that buying off market properties from wholesalers might be a good way to get good deals. What will be a good way to get in touch with wholesalers in the area?
Well, here's the truth of the deal: off market deals are hard to come by. And the wholesalers who do nab one, aren't going to screw around with investors who they don't know. So until you get known by the community as someone who can close you are going to be presented with a lot of crappy deals.
Also you don't mention what numbers you are using to determine a good deal. 1% deals are going to be moonshots around here and you are going to have to work very hard for it. But there are other markets closer than Tacoma that you can look at if you aren't looking for that 1%.
I think the best way to get in touch with wholesalers (other than BP of course) is to go to your local REIA group and start networking. You'll usually find a bunch there.
I'm a full time investor and agent in the Seattle area. Buyers that work with us get priority access to a list of pre-market REO and Short Sales, if this is something you're interested in feel free to reach out. As far as wholesalers, it's tough to find a good one. Best approach to finding them is through bigger pockets or local meet ups!
@Rudy Manna If you can get an off market property then great! trouble is, despite hundreds, if not thousands of wholesalers working Seattle, there really aren't very many readily available deals. Some relatively successful wholesalers offer properties to their previous buyers and don't need to market the deal here or at their local REIA.
But not to worry, listed properties can very often turn out to be quality deals. Don't get me wrong, 90% of the stuff on the MLS isn't a deal and the remaining 10% is only worth a second look. But considering the number of properties on the MLS, it's hard NOT to find a deal when looking properly and consistently. I'd recommend reaching out to a few Realtors and sift through the garbage until you find a great one.
Networking with your local REIA is the best way, IMHO, to meet wholesalers and other investors.
The market in Seattle- Bellevue - redmond is super hot and it's almost impossible to find a deal. Though it looks like the likelihood of deals in Tacoma is much more. I am going to give it a shot.
Another option is the auction. The numbers are tight for flippers there, but still decent for long-term investors. Buy with cash (or hard money) and refinance into a loan within a couple of months. You might need to do more rehab than something listed on the MLS, and may have to deal with kicking out someone.
We systematically make hundreds of offers on the MLS in Thurston, Kitsap, Pierce, King, and Snohomish counties and if you are looking for BRRR homes you are not likely to find it on the MLS. The deals on the MLS right now are land development opportunities.
Your better off looking for off-market wholesalers than agents and the auction.
Well, here's the truth of the deal: off market deals are hard to come by. And the wholesalers who do nab one, aren't going to screw around with investors who they don't know. So until you get known by the community as someone who can close you are going to be presented with a lot of crappy deals.
Also you don't mention what numbers you are using to determine a good deal. 1% deals are going to be moonshots around here and you are going to have to work very hard for it. But there are other markets closer than Tacoma that you can look at if you aren't looking for that 1%.
Perhaps driving for dollars and making a bunch of offers on properties close to your home (those that appear to be distressed) would be your best option? If not, I do not know how much effort and resources it would take to buy a list of properties with delinquencies to send yellow letters to but I gather a lot of patience & persistence is crucial with this approach. From what I have seen (as a newbie investor) it can be quite difficult to get onto a wholesaler's buyer list and even if you do their high volume clients likely get first dibs on their best deals.
I am looking for 10%-12% cap rates. Felt that Tacoma would be best bet for SFR in low 100s range. Any other areas around Seattle- Redmond I should also consider?
The only people I know getting Cap Rates like that are doing some really creative real estate. Are you thinking perhaps of a 10-12% ROI? In those price ranges there are some interesting opportunities in the mobile home space, but not a lot in SFR.
Go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.
You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.