What is the best way to find undervalued homes in South Florida? I have a real estate agent but it seems like they just send every home in my budget without really narrowing out turnkey properties that are missing that rehab element really needed to make substantial equity on a deal. I have been contacting wholesalers too get on their lists but its taking a long time to reach them, get on the list, and now wait to get the inventory list whenever they send it out. Is there another more active way I can go about finding these diamonds in the rough we always hear about?
I have not done it myself, but many people have had success "driving for dollars." They drive around in areas they are looking to invest, look for distressed, possibly vacant properties, look up the owner and see if they are interested in selling.
I have not done it myself, but many people have had success "driving for dollars." They drive around in areas they are looking to invest, look for distressed, possibly vacant properties, look up the owner and see if they are interested in selling.
Lender · Delray Beach, FL · Member since 2017 · 22 posts · 8 votes
5y
Hey Ben,
I second what Joe said about driving for dollars. That is how one of my partners found our first deal! Brandon had a webinar a few weeks ago where he shared his letter that he uses for his direct mail campaign. I can send it to you if you'd like. Wholesaling lists are a good way to cast a wide net at the cost of competing for properties. My advice is to go for the big one; drive past hundreds or thousands of houses for those dollars.
Specialist · Member since 2019 · 494 posts · 220 votes
5y
@Benjamin Krasne A lot of investors find that it can be better to look for "off market” deals. These are homeowners who haven’t taken the time and made the investment to fix up their homes before putting it on the market.
Mailing is probably the best way to find your own off-market deals. These are people who share motivational characteristics of people ready to sell, but haven't yet done all the work they think they need to list property. The best way to find them is to send out mailers.
Some good lists to target are Absentee Owners with Equity, Seniors with Long-time Ownership and Homeowners with Low Financial Stability Scores.
You can work with a list broker to optimize your list for your area. From there, there are a lot of companies that can help with the printing and mailing. Be sure that you highlight that "selling your house can be easier than you think" with the advantages of working directly with you instead of the more traditional route.