It seems to me after reading through various different threads that a lot of deals are found off market. So I guess what I really want to know is can good deals be found on sites like Zillow, Realtor.com, or RedFin? Is it necessary to build a large network through various real estate outlets to find the best deals? Thanks in advance.
I've never seen a good deal on the MLS/zillow/other unless there is a recession.
Wholesalers are still finding deals. Anything is possible. The other alternative is looking a little further out. I have began looking an hour further north. In my search I have found some on the MLS that fit my requirements. Rent is a little lower, but they still cash flow pretty well.
Not everybody likes attending Real estate meetups, but I have been presented some good opportunities from the people I have met. I handed out business cards and ended up with 2 really solid wholesalers as well as a lender. It didn't happen over night. Each city will obviously have an entirely different set of people and turnout. For a few hours of my time I felt it was worth it.
If you get a good relationship going with a realtor or two you could be presented deals before they hit the market. My realtor does that all the time. That's how I bought my last house. It wasn't the deal of the century, but I have gained a tremendous amount of equity since I have owned it.
Great deals can absolutely still be found on market and through brokers/real estate agents. Some people have a specific competitive advantage in their market which may enable them to pay at or above market rate while still hitting their return criteria. Additionally if everyone is looking at using a piece of property one way, and you can creatively think of ways to use it in another way which enables you to create more value and pay a higher price, then that deal will work for you and not others.
For example, if there is a large single family home in your market that is zoned with the ability to divide the large single family home into multiple units, you can create far greater value with that asset as compared to someone who is simply evaluating and offering on that property as a large single family rental and nothing else.
I think a good deal is a deal that matches your goals and aligns with your specific strategy. Many people go into this without a goal or strategy so it is hard to define what is a good deal or bad deal. Could be cashflow, appreciation, debt pay-down, depreciation ,equity capture.. It really just depends what your goal is and if the deal matches that.
I would first suggest find your goal and work it backwards and you will find deals everywhere that match your specific goals
In that case do you find your deals through Real Estate Meetups, connections with brokers, or some other way? What is the best way to go about creating your network within the real estate community? I'm new to this process so any insight would be helpful. Thank you.
@Vinny Martin 2 of my 3 BRRRs were found on the MLS.
@Vinny Martin There's definitely deals on the MLS. How many depends on the area and what you're looking for, but to say the MLS has no deals eliminates possibilities. My only BRRRR was from the MLS and it was a steal. No one was looking at it because it was grossly overpriced. I ended up getting it for half of the MLS asking price. Other investors made assumptions about it and that's why they didn't get the deal.
@Vinny Martin I'll close on 2 properties/10 units in the next month, both of which were found on the MLS and after some work will cash flow at about 15% conservatively (after expenses, 20% reserves, etc.).
You can find anything anywhere, it just depends on how hard and how often you look. Found an absolutely smokin deal the other day that i was going to offer above list for 24 hours after listing, and when we contacted them it was already sold. They’re out there, just keep an eye on things
An important thing people forget is: What a house is listed for on MLS doesn't matter.
The offer they accept is what matters. If a house is listed for $150k and your numbers put your MAO at $89k then offer $89k. If they accept it then yes, there was a deal on the MLS.
All of our rental homes were purchased off the MLS usually found on Zillow. We have been trying to develop some wholesaler contacts but not many in our rather limited area of operation. (within 30 miles of where we live)
I'll add that there doesn't seem to be many deals like there "was" back a couple years ago. We're always looking for that one that slipped through the cracks.
That's a good point to think about. Glad to have insight from experienced individuals like you. Still shifting my mindset. Thank you.
I found a deal on the MLS, I offered a little over half of what the property was listed for and they accepted it. When they didn't counter the offer I felt like that was too easy, makes me think I could have offered even less than that. It was still a great deal though.
Just want to supplement my original post with the question of whether all good wholesale deals are found off market?