Rehabbers, what sources are most of your deals coming from; Wholesalers, the MLS, or foreclosure auctions?
Finding a good wholesaler will be a huge asset to your team. MLS its possible but be prepared to make many offers as the competition is fierce. Auctions can be a great lead source but you will want to shadow someone with auction experience before you dive into this strategy yourself.
The best way to find off market deals in my opinion is by doing your own direct marketing. If you do not have the resources to do so then link up with a good wholesaler who already has these systems in place.
The best deals are the off market ones. That's where I would focus my attention.
@Andrew Michael Thanks Andrew, I work for a reputable wholesaling company in Baltimore and have met plenty of wholesale business owners since I've been working here so I've built a good sized sellers list so far and i'll be looking to add more (also from calling local wholesalers and asking them to add us to their buyers list). I've figured the MLS wouldn't be the best source, but my partner and I have a great agent who specializes in investment properties and he will be sending us deals as well.
If you have a good investor friendly agent on your team that's huge. Sounds like you are fishing in all the right places. Are you having trouble finding deals or were you just curious as to other rehabbers sources?
@Andrew Michael Thanks! No trouble, just curious :P
@Brendan Henry-Lambert in a competitive market like this, use any and all sources you can find. In addition to foreclosure auctions check out public auctions, there are a number of real estate auctioneers that operate in the Baltimore area. Google will find them.
Wholesalers can be a good source. However many wholesalers send out crappy deals. Also many just try to resell other wholesalers deals. You have got to find the good wholesalers and screen through a lot of deals.
@Brendan Henry-Lambert off market is the best place with the amount of people "investing" in real estate now. Good wholesalers are a huge asset, most wholesalers are a huge liability and waste of time. But I've bought about half of mine in the past 6 months from wholesalers with mostly good, one bad, experiences. I just dropped some money to send out a mailing campaign.
@Stephen Lee tell me about it, I deal with bad wholesalers almost everyday! Luckily there's a good amount of reputable wholesalers here in MD as well (you may know). How long have you been in the fix and flip game?
Just to piggy back off this, do you have similar experiences for Rentals?
@Brendan Henry-Lambert yeah there are some good ones too for sure. I've been doing rehabs for about 2 and a half years, rentals for about a year now. do you flip/rent in the Baltimore area?