What is your go to method and/or tools for finding deals today?
Nate Slappey IIIPro Member
Realtor | Product Manager at BiggerPockets · Metro Detroit, MI · Member since 2022 · 119 posts · 127 votes
What is your go to method and/or tools for finding deals today?
Most Popular Reply
Member since 2022 · 20 posts · 39 votes
4yFind a property, any property that fits your strategy. This would be like distressed properties you want to use the BRRRR method on, or maybe you want a long term rental single family home. Run the numbers. For me, it comes down to 2 adjustable numbers: Down Payment and Purchase Price.
After factoring in taxes (from your local tax assessor property search), insurance quotes, available cash for down payment and closing costs, and what mortgage you would have from the purchase price, and variable expenses (vacancy, repairs, property management, capital expenditures), and fair market rent, you're left with your cash flow number. If it is acceptable to you for your effort, go with the deal. If it isn't, you have two numbers you can adjust: your down payment OR the purchase price. For me, I won't change my down payment. But I can change my purchase price and get a lower mortgage (with a over the mill interest rate, I use 7%) and drop the price until I get the desired cash flow. Even if that purchase price is way below listing, I'll still submit that offer. I'm going to get a lot of no's from everyone, and I'm sure they are going to get irritated with the lowballing. But like Brandon Turner says: "There is always a number that makes the deal work."
If I submit 100 offers and only get 1 yes, well then I have a cash flowing asset now. Rinse and repeat. Whether you're doing a BRRRR and calculating ARV and such, or looking for turn key LTR/STR, or multifamily properties, someone will sell to you for YOUR price.
Why would the sell to you? Well David Green says in his book, BRRRR, that there are many types of distress. Property distress is the most common reason for getting a deal, but there is also Personal Distress. I like to refer to them as the 4 D's: Debt, Disability, Divorce, Death. A seller may be selling to cover debt, for medical care costs or downsizing due to disability, house is sold following a divorce, or a family member passed away and the beneficiary/trustee needs to pay the estate debt, cover probate, or doesn't have the time/resources to handle the property. This is where I as an investor can come in and assume another person's liability and make a profit. If you knew that you would receive a yes after you've been told no 100 times, you would welcome the rejection because you are now closer to your deal. You would be excited to get through as many analyses to get to that solid deal.
63 Replies
- New to Real Estate · Rio Grande Valley · Member since 2022 · 30 posts · 9 votes4y
Hello Nate,
I feel as if I’m in a rut myself finding good deals.
I have to agree having the right realtor that specializes in investments and that’s hustling for those great deals and getting on the sellers can impact you in a positive way.
I currently am in a rut because I don’t think I’m talking to right people at all unfortunately. I’m a newbie so I’m still learning the ropes.
Wish you luck and success!
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes4y
@Nate Slappey III I believe your going to get the wrong answers to your question, or at least take them wrong, because there is a confusion around this topic; I will explain.
The average RE investor today works a FT job, at least a very large % does. I am in the minority by fact REI IS my F.T. day "J.O.B.".
When people ask question of how to find deals etc., it's asked in a manner of TACTICS, what tactics is a person doing that's getting deals and fact is that's NOT the difference between myself with a steady avalanche of deals and yourself with a trickle at best. Tactics are just a detail, and they change all the time, as market and life adjusts and evolves.
The actual difference is, I am Full Time 30-100hrs per week, 52 weeks a year, year after year, JUST doing REI. I have a 24-7 engine driving deal generation which some deals take months upon months even a year+ to convert into an actionable deal. I have tech systems up the ying-yang running 24-7, databases of thousands upon thousands of contacts. The difference is Full Time singular focus on REI, vs part-time sparse focus of time, resources and $.
This is why, to be brutally honest about it, really smart savvy investors don't try to do it themselves, they simply use me, or one like myself. They dedicate there energies to finding those few like myself and rest happy that all they need to do is empower our actions and directions and with that have a fire-hose of opportunity on-demand. Which is by far the cheapest way to go, paying per transaction only vs gaining your own monumental burn-rate of operations as I have.
That is all but never talked about, the burn-rate of $cash$ to run a proficient lead-machine, in generation, filtration, storage, development, conversion. It is far from cheap, measure din thousands not hundreds.
Do yourself the best favor, throw away notion of how do you build Rome with twigs, and go find the rock-stars and put them to work for you. Remember the word is INVESTOR, that's all about leverage, so use human leverage, like every great investor does.
- Investor · Las Vegas, NV · Member since 2020 · 153 posts · 136 votes4y
Hey Nate, there's no 1 single magic pill source for great deals that few other people know about.
Truthfully, your best source is yourself. You can find good deals on the MLS, wholesalers, wholesale companies, auction, driving for dollars, tax liens, a family friend, etc. Good investors are active and have knowledge in a variety of areas.
I don't think the question is necessarily where to find good deals, but the question we need to be clear on is: What does a good deal look like to me?
When you have clarity on that, you can move on one very quickly that meets your criteria. Speed when you find something that works is the biggest key to success.
Wish you the best, bro.
@Nate Slappey III
The cheapest way... Look up Zillow and Redfin, find distressed property, come up with a purchase price that would work for you, pick up the phone and call the seller's realtor to negotiate. Keep repeating until you find a deal.
- Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes4y
Networking, sheriff's auctions, wholesalers, and even MLS if you make cash contingency free offers.
- Contractor · California, CA · Member since 2020 · 32 posts · 27 votes4y
If looking local, then finding deals is about getting your name out to realtors. The best deals I get are from people who know I’m a serious buyer. Networking!!!
- Lender · Alpharetta, GA · Member since 2021 · 34 posts · 36 votes4y
Quote from @Amin Akhmadi:
@Vinnie Da silva what websites /apps are you using?
I don't use apps, I go use Auction.com, city news paper, and city new website. Pre-foreclose needs to be announced for 4 consecutive weeks before the auction. So it will be on the papers.
- Member since 2022 · 11 posts · 7 votes4y
Quote from @James Hamling:
@Nate Slappey III I believe your going to get the wrong answers to your question, or at least take them wrong, because there is a confusion around this topic; I will explain.
The average RE investor today works a FT job, at least a very large % does. I am in the minority by fact REI IS my F.T. day "J.O.B.".
When people ask question of how to find deals etc., it's asked in a manner of TACTICS, what tactics is a person doing that's getting deals and fact is that's NOT the difference between myself with a steady avalanche of deals and yourself with a trickle at best. Tactics are just a detail, and they change all the time, as market and life adjusts and evolves.
The actual difference is, I am Full Time 30-100hrs per week, 52 weeks a year, year after year, JUST doing REI. I have a 24-7 engine driving deal generation which some deals take months upon months even a year+ to convert into an actionable deal. I have tech systems up the ying-yang running 24-7, databases of thousands upon thousands of contacts. The difference is Full Time singular focus on REI, vs part-time sparse focus of time, resources and $.
This is why, to be brutally honest about it, really smart savvy investors don't try to do it themselves, they simply use me, or one like myself. They dedicate there energies to finding those few like myself and rest happy that all they need to do is empower our actions and directions and with that have a fire-hose of opportunity on-demand. Which is by far the cheapest way to go, paying per transaction only vs gaining your own monumental burn-rate of operations as I have.
That is all but never talked about, the burn-rate of $cash$ to run a proficient lead-machine, in generation, filtration, storage, development, conversion. It is far from cheap, measure din thousands not hundreds.
Do yourself the best favor, throw away notion of how do you build Rome with twigs, and go find the rock-stars and put them to work for you. Remember the word is INVESTOR, that's all about leverage, so use human leverage, like every great investor does.
This is incredible advice!
I'm just starting out as an investor and have only just realized how invaluable it is to have people on your team that are FULL TIME at these particular skills/jobs. I think a lot of us newbies don't grasp how you can't (and shouldn't!) do it all on your own. It's a waste of energy, time and money (which usually goes hand-in-hand).
Think like a business. Even if you own your own business, it's silly and counterproductive to do everything (and you'll be out of business in no time). That's why companies hire staff that excel in one part of the industry because it will make them more money and quicker! Invest in a team and everyone will reap the rewards!
- Real Estate Agent · Minot, ND · Member since 2021 · 131 posts · 223 votes4y
Last year we bought a half dozen houses off the MLS buy making fast cash offers within hours of listing. This year we acquired two four unit properties by responding to private landlord for rent ads on Facebook. My husband asked if they were interested in selling... and they were! Both deals are only base hits, but much better than what we would have paid on the MLS. Out next step is to find 12-24 unit apartment buildings. The plan here is to identify the addresses we like and call/mail the seller directly, consistently... hoping to locate private owners who are high equity and over the age of 65. The point is each asset may require a slightly different approach and they all take hustle!
- Realtor · Pocono Pines, PA · Member since 2019 · 183 posts · 108 votes4y
For finding properties I prefer the MLS or Zillow or trying to get on an agents list with some networking. As for running numbers, I use price labs specifically for Short term rentals, which I specialize in. Let me know if you'd like me to run some numbers for you and I'd be happy to!
- 4yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Quote from @Vinnie Da silva:
Pre-foreclosures, they are unlimited supply. There are tons of pre-foreclosures hitting the market every month, in most counties. The competition is a lot less than conventional real estate. You just have to figure out how to get to the homeowner.
What software or tool do you use to identify pre foreclosures?
- Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes4y
For my last 10 deals:
1. Wholesaler.
2. SEO.
3. Affiliate digital marketing.
4. Direct mail.
5. SEO.
6. Affiliate digital marketing.
7. Direct mail.
8. Direct mail.
9. Direct mail.
10. Direct mail.
I’ve tried cold calling. That didn’t work well for me. I think it may work better if you’re a realtor as most of the convertible leads would be more suitable to getting a listing contract.I’ve also done google ads and Facebook ads. I’ll probably be getting back to these in the near future.
What I haven’t done is billboards.
- Investor · CO · Member since 2020 · 59 posts · 42 votes4y
Quote from @Vinnie Da silva:
Pre-foreclosures, they are unlimited supply. There are tons of pre-foreclosures hitting the market every month, in most counties. The competition is a lot less than conventional real estate. You just have to figure out how to get to the homeowner.
I toally agree with this Vinnie, I bought a pre foreclosure house 2 years ago for $490K, put $60K in rehab and its market value today is $1.2M to $1.4M..I actually found it on zillow, but would you agree the best places to find them are contacting banks /lending institutions?
- New to Real Estate · Dallas, TX · Member since 2022 · 28 posts · 47 votes4y
Hi. I'm just starting my real estate journey. I am currently Driving for Dollars in surrounding cities of Dallas, Tx. I work 8a-5p for an insurance company and after work I drive around at least 2 hours or until I get 10 properties on my list for the day. I come home and look them up on the DCAD (Dallas Central Appraisal District) website or which ever site is in charge of the property records. I just started this process so I am also looking for the best way to reach out to the owners (postcard or cold calling), best format for a contract and other various things. If anyone else is doing something similar PLEASE give me some tips. I'll keep y'all updated. :)
- Lender · Alpharetta, GA · Member since 2021 · 34 posts · 36 votes4y
Quote from @Terry Ouimet:
Quote from @Vinnie Da silva:
Pre-foreclosures, they are unlimited supply. There are tons of pre-foreclosures hitting the market every month, in most counties. The competition is a lot less than conventional real estate. You just have to figure out how to get to the homeowner.
I toally agree with this Vinnie, I bought a pre foreclosure house 2 years ago for $490K, put $60K in rehab and its market value today is $1.2M to $1.4M..I actually found it on zillow, but would you agree the best places to find them are contacting banks /lending institutions?
This also an option, but that's not how I do it. Since the creditor/bank is required by law to notify potential buyers of the sale ( Foreclosure ) through advertisement. For a period of 4 consecutive weeks in a newspaper/online. So its public information, and there is no need to contact banks and financial institutions. Cut the middle man and go straight to the source.
- Lender · Alpharetta, GA · Member since 2021 · 34 posts · 36 votes4y
Quote from @Scott Trench:
Quote from @Vinnie Da silva:
Pre-foreclosures, they are unlimited supply. There are tons of pre-foreclosures hitting the market every month, in most counties. The competition is a lot less than conventional real estate. You just have to figure out how to get to the homeowner.
What software or tool do you use to identify pre foreclosures?
Its public information. You can find them at your local news paper and your states online public record. Each state is different, so I can only speak for GA. You can also try Auction.com its free and they have some pre-foreclosures
- 4yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
Everyone wants to chase strangers for deals and ignore... their own personal networks!
When is the last time any of you reached out to the 100+ people you personally know and asked if they knew anyone looking to sell?
Of course, you shouldn't ask EXACTLY that way. You should ask trigger questions that help them think of people in situations that may require a sale:
1) Someone that lost their job
2) A relative that recently died
3) Getting divorced
4) EtcHow much more effective do you think this method would be over chasing strangers?
Logical Property Management4.9469 Reviews - Rental Property Investor · Columbus, OH · Member since 2019 · 11 posts · 11 votes4y
Quote from @Andrew Vincent:
I don't have too much personal experience, but I think having a Realtor that is investor friendly would be a huge advantage! Even better if they have some skin in the game themselves. I think also having patience with how the market is because there are going to be some deals that you really want that just don't work out. Just my two cents from what I've learned from my readings and listening to podcasts.
Great point Andrew! I would also keep in mind that if you aren't very serious about closing on a deal, make that known to your agent! Once you are at the point where you are ready to close make sure you go through with it! That will tell the agent that you are serious and that’s when they will start sending you pocket listing.
- Real Estate Agent · Bethesda, MD · Member since 2018 · 1 post · 2 votes4y
@Andrew Vincent that os a solid advice! As a realtor, I see people missing a lot of good listings in MLS just thinking they always need togo direct to FSBO or strike deals w/wholesalers. Not only this could be risky but you investors can truly do well just talking to their realtor and having them put you on autofeed for potential deals. All one need to do after that just keep checking your emails daily to see anything that could suit you from already predefined criteria that you built your auto feed on to begin with. Sometimes you need to think out of the box for most profitable approach - def. keep that communication going with your investor-friendly Realtor! I found my amazing deal myself that way in March, in the midst of the hottest market in 40 years, just by watching and taking action where others neglected to. The price was way below what the market has had on similar properties. And I started cash flowing right away.
- 4yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Joining real estate clubs, email marketing, cold calling etc. are some of the best ways to find real estate deals.
Here is a great article on 27 Ways to Find Real Estate Deals https://www.biggerpockets.com/...
All the best!
NETWORTH BUILDERS5236 Reviews - Real Estate Agent · Nashville, TN · Member since 2022 · 20 posts · 9 votes4y
Quote from @Jared Hottle:
I think the key is multiple strategies in order to keep a big funnel, word of mouth and relationships is big, meeting new people, properties on the MLS is huge and calling areas that you have interest in. Y
I have observed and learned there is no magical "way" of finding deals! Networking is always the golden standard regardless of the industry. The saying "it's who you know, not what you know" will move mountains. With that said, decide what your search parameters are. Do you have your business plan in order.... investment strategy, all in price range, funding in order, etc? Having those parameters set in place will help you to build your source funnel, a deal may come across someone and they will think back to your conversation. Good luck with your endeavors!! - Investor · CO · Member since 2020 · 59 posts · 42 votes4y
Quote from @Vinnie Da silva:
Quote from @Terry Ouimet:
Quote from @Vinnie Da silva:
Pre-foreclosures, they are unlimited supply. There are tons of pre-foreclosures hitting the market every month, in most counties. The competition is a lot less than conventional real estate. You just have to figure out how to get to the homeowner.
I toally agree with this Vinnie, I bought a pre foreclosure house 2 years ago for $490K, put $60K in rehab and its market value today is $1.2M to $1.4M..I actually found it on zillow, but would you agree the best places to find them are contacting banks /lending institutions?
This also an option, but that's not how I do it. Since the creditor/bank is required by law to notify potential buyers of the sale ( Foreclosure ) through advertisement. For a period of 4 consecutive weeks in a newspaper/online. So its public information, and there is no need to contact banks and financial institutions. Cut the middle man and go straight to the source.
- Investor · CO · Member since 2020 · 59 posts · 42 votes4y
Copy that, thank you sir!
- Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes4y
I think network and off market is the only way right now to find good cash flowing properties. BUT the market is shifting, soon cash buyer will have huge advantage.
- Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes4y
Solid broker relationships! I've found that my time is best spent building broker relationships, instead of direct to owner campaigns.
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