I'm still finding deals on the MLS above the 1% rule in Minneapolis and am just curious who else in other areas is also still meeting this standard?
It seems like a lot of the discussion on here is that there aren't any deals to be had. While it's not easy I still believe that there are plenty of deals out there to be found, especially if you are patient!
Are you still finding good deals on market and what's the best one you've gotten recently?
@Jordan Moorhead What is the best one of you have gotten lately? If you are going to ask, I think you should share.
I don't think plenty and patience jive. If there were plenty then you wouldn't need to be patient. There are deals that come up from time to time depending on where you want to invest, and what your return criteria are. I don't see much on the MLS that is 1% in the areas that I target or think my clients should target. The two I bought so far this year were both off market.
What deals do you think are currently good deals on the MLS? Some deal analysis might be fun.
@Jordan Moorhead good question. I always use Redfin (MLS style site) and MLS through agents to get leads. I am not into raising to offer new deals, so what I've done is look for homes that have been on the market for over 2-3 months and try to get a deal.
However, we are in negotiations now on a home I found that is only 22 days on the market and may go into contract soon.
Keep good filters and keep searching....one will pop every now and then.
We just helped a guy close on one in Robbinsdale that has a gross of $2900 with a purchase price of $265k.
He was able to renovate one of the units and turn it into a 5 bedroom which helped push it from under the 1% rule to above it. His 3 bedroom unit is pulling $1300 and the 5 bedroom is $1600.
All he really had to do with the renovation was paint, flooring and add the 5th bedroom in the basement. There was already an egress window.
I closed on one late last year with a purchase price of $177k for a duplex in Northeast.
I put $15k total including down payment into it and it pulls $2400 a month gross.
Plenty may have been the wrong word but if you’re patient there are still deals out there.
Yep, still finding deals on the MLS here in Connecticut. Seems like we are still in the 1.3-1.7ish % range for properties ranging in the C+ to b/b+ neighborhoods. 1.1% and 1.2% deals are pretty frequent, but typically not what buyers are looking for out here. This is why I enjoy working with out of state folks as the deals here are a bit sweeter than say, Seattle WA or San Francisco CA.
Is that one in Robbinsdale section 8 rented?
I think Filipe hits it on the head. Turn Key in good areas are few and far between. If you invest outside of A/B neighborhoods, or if you can fix something or add value in another way there are still deals out there.
@Shawn Ward tip is good. With how hot are market is anything that sits on the MLS for any length of time is overpriced and maybe after a couple months there is wiggle room.
@Kevin Powell it is not. He thought about going that route and could have gotten slightly higher rents but chose not to.
Every week I get calls urging me to identify pocket listings that is #$% below market. Google is opening another campus in an old district of town. I have inventory there. Investors from this site do not even bother making an appointment showing their credentials but want free leads. MLS leads is the only source where sellers seriously want to sell. The pocket listing sellers are often testing the water and are often not even serious. You make an offer they use the value as leverage. Agents have other more serious investors and often realtors get into house hacking together.
@Jordan Moorhead It is possible in DFW if you have an agent that calls you as soon as one hits the MLS. You need to be able to make an offer the same day it is listed.
@Jordan Moorhead Pittsburgh still has deals above the 1% rule. In C+/B- areas.
@Jordan Moorhead Yes the West Penn Multi-List in Pittsburgh PA has deals above the 1% rule in the C+ or B- areas. And I like what @Michael Biggs said about having the agent call as soon as it hits the MLS. And I would add to making an offer same day (quickly} to seeing it right away as they do go quick.
The deals are there, but there are often times better ones off market. Are you willing to market to homeowners yourself? It's competitive, there's a learning curve, and it costs a bit of money upfront... but having a good acquisitions machine is going to literally supercharge your investing business in many different ways. I recommend it to any ACTIVE investors that are in it to make money today. For people that are just looking for a good retirement portfolio that aren't all in, I would recommend paying more.
I get every single deal I acquire off market... and amidst those efforts I get good flips and wholesale deals too!
@Elliott Elkhoury Hey Elliott, what are some of your off market deal sourcing tactics? Thanks!
Yes, what @Elliott Elkhoury said...
@Rob Beardsley asking for the secret sauce right on the forums huh? haha here are a few DO's and DON'T's
-don't use templates. Craft a message. Be a human talking to a human.
-only send postcards.
-pick good leads and mail them relentlessly. More frequently than your competitors, without hesitation, and until they call you. never stop. Be present. I got a 5 unit today with a BIG BOY assignment fee. Talking yearly salary.The seller said "I wasn't really interested in selling Elliott but I got 4 of your cards in two months, so lets make a deal."
-FOLLOW UP. THEN DO IT AGAIN. I got 3 under contract this week from my OLD pipeline. 1 small assignment, one substantial one, and one monster.
-find ways to generate leads that can't be bought online and have a VA start doing them. Tax delinquent, code violation, eviction, death (probate,inheritance). Have your VA keep up on these. DON'T do them yourself. My VA does all of these in 1 hour every day, if not much less.
-[Intelligently] have a much more ambitious marketing campaign. Go bigger. Spend more. Yes, it's scary.
-Call FSBOs and high days on market.
-Make soft offers on MLS deals.
There are many ways. Do your research. listen to other podcasts. A strong acquisitions business is the holy grail, and it cascades into every other type of investing. For this reason... the best acquirers only tell you a little bit. So there was just a little bit :)
Where do you invest?? In the bay?
Anything to throw in @Mike Pastor ? Don't go telling the BEST stuff, but give us something good.
There are 3 parts to consistent deal flow: 1. You going after prospects - I typically stick with people that have had an "event" occur to change their situation. I direct mail these prospects. Depending on the "event" that's occurred, I like both postcards and letters. 2. The prospects seeking you out - How do they find you? Bandit signs, flyers, newspaper ads, etc. Have an online presence - facebook, website, etc. What makes you better than any other "we buy houses" company? The story that you put out there about yourself or your company should be one that gets potential sellers to recognize that you can relate to their situation and that you can provide the solution they need. and 3. FOLLOW UP!!!!!
There's my little bit :)
@Elliott Elkhoury Thanks for the great advice! We are no longer looking at deals in the Bay as caps are too low for our investor's return requirements.
@Rob Beardsley no problem! I mention those because they're easy to do, and I noticed a lot of other acquisitions businesses I've spoken to recently aren't doing a lot of those things.
Where are you investing now? Your website says you're multifamily investors, are you raising funds and syndicating?
@Elliott Elkhoury Yes we syndicate funds from my dad's clients from his brokerage firm. We are currently looking at Pittsburgh and DFW.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.