Where you find your deal

Question

Curious.
I have had decent success on the MLS. Although not the ripper deals you often think of when talking about real estate investing, but 30-35% below market value and easy cash flows. The problem is I only find a home that meets my requirements about every 3-6 months. So its VERY slow, and the deal may easily fall through or I will be out bid (most often the case).

Being that I am a amateur, (own 3 properties)  I was curious what ya'll do to find your deals, and at what speed it allows you to accumulate your portfolio.

Thanks,
Bill

Aaron Mazzrillo · Answer

If you want more deals, you need to create multiple streams of deal flow. A few ideas;
Put out bandit signs
Mail to:
- Local Absentee owners (landlords)
- Out of state owners
- Expired Listings

Research abandoned properties
Track vacant houses
Contact For Sale By Owner properties
Inquire about For Rent properties

Things you can research at the court:
Divorce
BK discharges
Eviction filings
Probate

Contact Code Enforcement

There are lots of ways to increase deal flow. Good luck!

Ned Carey · Answer

Not exactly. I don't go driving specifically looking for deals. However as I regularly drive through Baltimore city, if I see boarded houses I make note of the address. The is a great example of the more I do the luckier I get. This is because the more active I am the more I run into the vacant gems.

Especially at tax sale time, I drive by upwards of a thousand properties before the Baltimore tax sale. Just that much driving around I find lots of vacant houses.   - Ned

Ned Carey · Answer

Some of my best deals were tacking down owners of vacant properties.

I would also point out often the best deals are not "found" they are negotiated.  We bought a rental on the mls that was listed for $59K for $33K.

Good lick - Ned

Aaron Mazzrillo · Answer

That and bird dogs.

Bill Bob · Answer

Wow.
Lots of outside the box thinking.

When any of you were starting out, was there any preferred method that you "from rags to riches"?

Reason I ask, is:
1) I am military, so a modest income is my resource.
2) I have VERY limited time (I am away from home 200+ days p/yr)
 so with the above, you may not I don't have as many options as a lot of folks.

When speaking of vacant property owners, I assume your speak about other landlords? 
This one strikes home as the house across the street has had a "for rent" sign in the front yard for 6+ months in a very desirable neighborhood.

Either way, great feedback.
Thanks folks.

Sharon Vornholt · Answer

Ned Carey Aaron Mazzrillo. Are you primarily finding your abandoned properties driving for dollars?

Jack Bobeck · Answer

I agree at looking at empty houses. Then the harder it is to find the owner, normally the better the deal. Human nature is to pick only low hanging fruit. Keep looking, great deals are out there, sometimes hidden from plain view.

George C. · Answer

I've found things on the mls, a few good deals.  "Realtor dot com" has listings that don't make the mls. I got my best deal (an reo in 2003) by just google-ing the name of the town and an add for house popped up, a house for $10K, I bought it for $3K. Yes, a house in pa that was in clean livable shape for $3K, it was amazing. That house rented for $425 a month.

Christopher T · Answer

Hi Bill,

I found that direct mail (specifically yellow letters) is a good way to find deals.  I use sources like foreclosure radar to find my deals.  I recently got a house under contract for about 30% under market value.  The owner didn't know how to sell a house and was just going to let the bank take it from him.  I sent him a letter and he called to ask me about it.  After a few days, I presented an offer and he accepted.  The owner is able to preserve their credit score and I got a good deal.

Most of the calls I get from my letters are from people who need to talk to a realtor about a short sale.  But every now and then someone with equity will call and that almost always turns into a sweat deal!

Where you find your deal

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