What Are Your 2016 Real Estate Acquisition Strategies?

Question

Hello,

The inventory of investment grade SFRs has completely dried up in my target markets on MLS (foreclosures and short sales). In order for me to successfully carry out my acquisition goals this year, it almost seems like I am going to have to take the "guerrilla" approach to finding deals.

To date I have yet to meet a wholesaler in my area that has been successful and the auction block has been yielding a little more than prune juice.

We are a little hesitant to spend money on marketing but from my research, here is what I found that may work:

• EDDM
• Bandit Signs
• Targeted Mailers
• Local Newspaper Ads

I was just curious, what has been working for you this year?

I am currently seeking SFRs in the Northwest Suburbs of Chicago mainly Kane County: St. Charles, Elgin, South Elgin.

Thanks in advance!

Nate Shields · Answer

You're right Greg, it's really getting hard to find a deal. Kane County is fairly competitive. I'm still seeing some foreclosures that are good deals, but there is stiff competition for them. Smart marketing dollars will bring you a good return. Targeted direct mail will probably net you your greatest return.

There seems to be a migration from these towns westward so try to find some properties in Campton Hills, Wasco, Burlington, Hampshire, Pingree Grove, and Sycamore. There's some good value there and far less competition.

Nick Patterson · Answer

great question!

We specialize in buy and hold multiple family. Prices are crazy and sellers are getting them. cap rates are way too low. So far for 2016 we have been working on getting more income from current properties and sitting on the sideline in terms of acquisitions.

Jennifer Kinzle · Answer

@Greg RutkowskiHow about checking out more short sales? Sounds like you'd be spending the time/money on signs or driving around anyway (even if gas is cheap!). They are perfect for buy n holds, low competition on bids, and they're coming out of the woodwork in droves. We do all in-house negotiations, and our team has done 8 closings so far in 2016. Or check out Tanis Group-REO sales, and partner up to buy in bulk. Joe Mueller closes them by the boatload.

Russell Brazil · Answer

My strategy is pretty simple.....acquire as much debt as I can, and stretch out the amortizations as long as I can while rates are still this insanely low.

Greg Rutkowski · Answer

Thank you and that is exactly what I found as well.

What Are Your 2016 Real Estate Acquisition Strategies?

What Are Your 2016 Real Estate Acquisition Strategies?

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