I've been diligently looking for properties for both flip and buy & hold purposes over the last several months. I'd be curious to hear people's thoughts on my following conclusions:
Sites like Zillow, RedFin, Realtor are terrible resources for finding great deals. These sites are the equivalent to the picked-over Black Friday sale items. The only opportunity for finding good deals is by the off-chance you find a 'unicorn' property where you are able to buy significantly below list price (eg a $100k property that the seller is willing to actually sell for $50k or less) - a property that a buyer would have no indication at this price except through communication. Otherwise, all of the good / favorable listed properties have already been snatched up by investors who have relationships with wholesalers or agents.
The real opportunities, as mentioned above, are acquired through wholesale, private seller, direct marketing, or agent relationships. The MLS is too slow and efficient that finding deals are nearly impossible, unless you are in a market with no competition.
From everything I've read and listened to on BP, most of your assessment seems true. Finding a deal takes work, otherwise everyone and their grandma would be in the real estate game. It takes patience, persistence, and a little luck. But as was said in a podcast I listened to last week: "luck is when preparation meets opportunity". Meaning if you are prepared and put in the work, you WILL find a deal because it's a numbers game.
Brandon says that in this game, even if you fail 90% of the time you will win, because that means you've actually succeeded 10% of the time. Make "lowball" offers, you never know what might get accepted! I'm a newbie and will purchase my first property in 2018. Best of luck to you and hang in there!
Appreciate the response.
My OP wasn't meant to come off as dejected as it sounded, but moreso to try and get others thoughts on my conclusions. The MLS seems like it is a pretty poor resource for finding deals outside of finding those rare gems. I know there are variations from market-to-market, but I wanted to see if others echo the similar opinion to ensure that I'm not doing something wrong as I continue to look for opportunities.
It’s a lot harder to find a deal on the mls but remember it’s not always about finding a deal. Sometimes you can create a deal. What if there are two houses on one parcel of land and you can subdivide the properties and sell them separately for a huge profit and no one else bothered to look into that while skimming the mls? Stuff like that happens and you can capitalize by being creative.
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
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing