how to find great deal

Question

Hello, newbie developer trying to find my first deal and right now all i am doing is simply looking at listings. Is there an avenue i should be looking into to find that "Steal" that everyone talks about? id love to find that deal to make sure i leave myself some room for all the mistakes i hear newbies make and learn from. Thanks in advance for all your help.

Rob Carr · Answer

Thank you guys so much for your advice. I wasn't very specific but your advice was still very useful. I have all the contacts and relationships needed to start building Modular Homes. I have a great manufacturer as well as a great contracting company with the capacity to handle all the business i bring their way. My dad built his home and had 150k equity in his home upon completion and i am currently building mine. the projected appraisal is showing 80k equity. I negotiated 5k off the asking price for the land and my dad actually won a bidding war for his land for 12k over the asking price.

The profit margins seem too good to be true but I've seen it done. We just haven't sold them because they were our dream homes. This is what got me looking into real estate investment. This seems too good to be true so i am trying to do as much research as possible. So any advice is really appreciated!! I hear about these great deals where people are getting small rehab houses for 20-50k. If i can find that, demo and build adding to the profit margins I'm projecting already, this could be unreal for me. So again, any advice is soon much appreciated!!!

Rob Harris · Answer

@Rob Carr - OH!! And you gotta learn first how to properly evaluate a deal (property) so you can truly evaluate if its truly a DEAL!

Rob Harris · Answer

@Rob Carr - if you have no back ground at all when it comes to the basics of real estate investing, I HIGHLY suggest you look at the reading list to familiarize yourself with the VAST array of opportunities or here.

Got first know why you want to invest. Then your risk tolerance. Then what can can afford with your current capital situation. Then what TIME you have to dedicate to becoming a successful investor. Then what are your true strengths and weaknesses are. Then you def need to find a mentor (or coach) and start building relationships within local REI groups.. Then,,, then. Then. Then. Then. Then.....

Before you even jump on the game you gotta figure out what part of the game you are best suited for at this time and build an understanding of how to get to where you aspire to go.

I know in not finding you any definitive answers, but your question(s) are extremely broad. Really need to nature you focus and grab resources to help you do that and then write/ develop a plan of action to get to where you wanna go.

Not doing much of the above caused me to PAY a lot of DUMB TAX over the years! I unintentionally paid for a lot of lessons (MISTAKES) by shooting before assuming and doing enough EDUCATED homework first!

Good luck to you sir!! :-)

I've never been to Maryland or that party of the country. My wife actually did some Post Doctorate work there at Johns Hopkins Hospital for a few years and loved the area.  Hope to check it out one day!

Assaf Furman · Answer

@Rob Carr If you're looking to do new construction, look at what's not on the market - vacant lots, small old homes on large lots, gather a list of those leads and mail/contact their owners. There's no such a thing as finding deals - you need to create them per your criteria.