Finding Deals in a Rising Market
Hello from Utah.
The Utah market has been steadily rising for the last five or so years. I am just starting out in real estate investing, so I feel some what intimidated because many deals are being snatched up fast. There is a lot of new development happening and existing real estate is going up in price. What are some great tips on finding deals in a rising market? Thanks!
Most Popular Reply
@Aaron Merrill The best way of finding good deals is going direct to sellers. This is what most wholesalers do. They develop ad campaigns, send out mailers, drive for dollars, call landlords who want to get out of the business, or buy pre-forclosure lists, etc.
With the amount of competition going on right now it is harder to come by deals. Now you need to go hunt for them. I would suggest that you connect with an investor in your area who is already doing what you want to do and see if you can partner up with him or her on a deal. That is what we do in Arizona. When someone who is new wants to get their feet wet while minimizing risk, we partner up with them where we find the deal and they come in with the rehab money and we show them how to either flip a property or create a profitable buy and hold portfolio. They get interest on their money while it is invested and we are able to do more deals because we are using other people's money. So it becomes a win-win.
In my opinion the fact that the market is rising isn't as much of a factor in finding deals. What becomes a factor is the level of competition.