How and where to find deals for BRRRR and flipping

3 Replies

Hi all,

I'm a recent subscriber to this forum and would like to post a couple questions to the real estate investing community.

I own a handful of properties. I purchased them all from the MLS about 8-10 years ago. These rentals have been producing just a marginal positive cashflow. This is mainly because the purchase price from the MLS was mostly at market value a the time, so nothing that I could consider a "good deal" by today's standards, so the mortgage taxes and other expenses eat up most of the montly rent, with just a little bit left for me as a profit.

After a few years of inactivity I'm raising some capital so I can go into acquisition mode again, but this time I want to try BRRRR and/or flipping. I have been renovating my rentals lately, so I'm getting good at rehabing, and I think I could do a good job in the flipping area.

The question I have is, what do I need to do, or where do I go to find deals where I can buy at a discount, have enough room to fix the property, sell it and still have some profit.  I'm not after a big profit to start, I know it will take practice before I can get a decent profit.

If someone could share the strategies they are using in their market that would help me a lot.

From time to time I get in the mail letters from local investors asking if I want to sell my rentals, but I don't see how they would be able to get properties at a discount by just sending that kind of letters.  When I get those letters I just ignore them as I don't see anything in them that could get me motivated to sell, and if I do, I'm going to ask for a full market value.  I get the feeling that the other rental owners do the same.  So I don't think that kind of strategy works, at least not in my market.

Does anyone have any "secret strategy" that are willing to share?

Any info will be much appreciated.

Thank you.

Al Mac.

Those letters don't appeal to you because you aren't a motivated seller. There is a small percentage of owners (both occupant and non-occupant owners) who are motivated to sell, even at a discounted price. Buying at a discount means someone has to find these people. This could be you, a wholesaler, or some one else. You could start by seeking out a few wholesalers in your area and see what kind of properties they have. For the most part, those I've found in my area assign properties only slightly (maybe $10K) under market value. Because of this started doing my own direct mail and have a website. I've made 1 purchase so far, which I will BRRR. If I find a place that is more conducive to flipping I will do that. Good luck!

@Al Mac, I agree that a lot of the letters and post cards are "in your face" and don't have much appeal when I get them. No, as @eric James mentioned, I'm not a motivated seller, but there are some letters that seem to resonate.

I have one in particular that talks about the pain it takes to fix the house up and have strangers walking through vs going "as is" with one 15 minute walk through. It didn't mention anything about rescuing me or make me think they thought I am desperate.

When you get a list and tailor your message to that audience (without specifically saying anything personal) that you can get some resonance with the owner.

Here's an example if you got a list of Seniors with 15+ year Ownership and Low Financial Stability Scores (FSS)

This group are often ready to downsize or transition to assistance. It's also unlikely that they have done any updating and kept up on all the maintenance so a lower offer is more reasonable and you have a renovation opportunity.

Include some points on the expense and responsibility of ownership and come up with a list of services you can offer to make it easy for them.  They can sell as-is and you can help to move (clean-up service). Find some people who run yard sales and purchase estate items that you can bring in. Work with realtor that can help them find smaller property or a rental. Make sure they know that you will do most of the work.

If someone has been thinking about selling, but are overwhelmed at the prospect of fixing the house to put it on the market, your letter could just do the trick if you let them know what you will do for them.

Chrissy Arnold, you are awesome!!

That's the kind of information and detail I was hoping to get.  As I was reading your reply a lot of light bulbs started to pop up in my head, and I get the feeling that the examples you mentioned are just to scratch the surface.  I will get started on that and continue building my action plan.  Thank you and Eric James.  Every bit of information is helpful and appreciated.