What is your go to method and/or tools for finding deals today?

Realtor | Product Manager at BiggerPockets · Metro Detroit, MI · Member since 2022 · 119 posts · 127 votes

What is your best method, tool, resource for finding deals in todays climate? One of the biggest challenges I hear today from investors is finding deals (the right deals), what are you doing to overcome this hurdle?

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Andrew Kennedy

Member since 2022 · 20 posts · 39 votes

Find 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.

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Tasha Barnes
Rental Property Investor · Charlotte, NC · Member since 2016 · 47 posts · 16 votes
4y
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.

I agree Andrew! Agents that have done some real estate investing deals would be the ideal agent to work with in my opinion.
Tasha
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Rachel Tripp
Real Estate Agent · New Braunfels, TX · Member since 2022 · 12 posts · 5 votes
4y
Old fashioned foot work. I know it sounds tedious, but sometimes we rely too heavily on the internet. I drive my neighborhoods and door knock properties that look neglected or are under rehab already. It's amazing how far an in person smile and a "hello" goes.
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Kimberly Arington
Rental Property Investor · Dallas, TX · Member since 2022 · 10 posts · 5 votes
4y
@Vinnie Da silva door knocking. If you don't like door knocking, hire someone to do it. Pre Foreclosures usually don't answer calls, or texts. Reason why they probably have numerous of debt people calling and texting and they will just turn their phone off. I've had great success door knocking. Around that after work/school hours.
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Aaryan Patel
Member since 2022 · 36 posts · 18 votes
4y
Having a good agent/broker is always a high priority and great tool for finding and negotiating deals. Having strict criteria can help you and your broker find deals for you much easier. On market deals today will mostly not be very good, so off market may be the way to go.
One way to find off market deals are through a direct mail campaign. Try your best to find motivated sellers, and follow up with them unless strictly told otherwise. Owners who have evicted multiple tenants may be motivated to sell their property.
Another way was basically what I already said with the broker finding you deals. Other members of your team can also be a great source such as your property manager and mentor. This is why it is very important to build solid relationships, so they will actually give you leads.
I have also heard of trying to purchase another property in a surrounding area for every on market deal you come across. You would be purchasing two properties instead of one, and the off market property will give you more cushion to offer more on the on market one.
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Chris I.
Gilbert, AZ · Member since 2018 · 93 posts · 42 votes
4y
Well, it seems in my area, all the wholesalers just spam text every owner with 50%+ equity NON STOP.

It's really lame. Think I've probably blocked over 200+ phone numbers for my properties alone.

Don't be that person
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Matthew MorrowBusiness Member
Investor · PA - NY - NJ · Member since 2019 · 904 posts · 318 votes
4y
Off market, direct to seller marketing. Use public records to filter property types and reach out to them via Skiptracing phone numbers or hard mail. Doorknocking is also highly effective but can take a lot of time.
programs like Propstream and deal machine make this process extremely user-friendly, and if done correctly he will easily make your money back exponentially.
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
4y
@Nate Slappey III
In order to find the best real estate deal, you need to go the extra mile and market in ways your competition isn’t. This means honing in on what works in your area (and what doesn’t) in order to identify the best leads. A good place to start is by researching different marketing strategies and then testing them in your area. Through careful planning and implementation you can find options that are both cost effective and efficient.

The list below reveals several marketing ideas that will help you generate reliable real estate deals:
- Direct Mail
- Facebook
- Other Real Estate Professionals
- Driving For Dollars
- Craigslist
- Town Hall
- Bandit Signs
- Real Estate Websites
- Newspaper Ads
- Check The MLS
- Use The Radio
Read this article for detailed information https://www.fortunebuilders.co...
All the best!
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Paul MoorePro Member
Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
4y
Hello @Nate Slappey III, great question (I used to live in Royal Oak! before it was cool).

I am going to answer this one differently. I do not like competing with sharks if I am not a shark myself. What I mean is this; as long as there are experts, truly obsessed professionals, competing against me... i don't really want to compete. They will outgun me almost every time, unless I have some sort of inside track.

Based on that thinking, I look to partner with those experts. I recommend looking for syndications or funds that that have teams of acquisition people who are already doing a great job in this arena. The good "sharks".

By investing passively with these folks, you should get the benefit of tapping into their cash flow, appreciation, tax benefits... without lifting a finger on your own.

Well actually thats not true. You have to do significant due diligence up front to find the right investment partner. This is my two cents, happy investing!
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Nate Slappey IIIPro Member
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Realtor | Product Manager at BiggerPockets · Metro Detroit, MI · Member since 2022 · 119 posts · 127 votes
4y
@Paul Moore i like this, its something i haven't really heard but difinitely a valuable perspective to look into for an approach.
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Stephen KeigheryBusiness Member
Rental Property Investor · New Orleans, LA · Member since 2018 · 717 posts · 555 votes
4y
@Nate Slappey III I don't think you "find deals" I think you find leads and "create deals". For me I create a brand around my house buying, posting photos of closings, video of projects etc and amplify that through social media and my website to get inbound leads (that already know about me). This brings the lead and we negotiate to create a deal.
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Jeffrey Albaum
Investor · Austin TX · Member since 2018 · 151 posts · 165 votes
4y
Hi @Nate Slappey III!
I still find deals primarily through the MLS. I know it's boring, and returns aren't as great when running numbers at 6 or 7% interest when compared with 3-4% 6 months ago! But deals still cash flow (albeit less!).

Cheers!
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Nate Slappey IIIPro Member
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Realtor | Product Manager at BiggerPockets · Metro Detroit, MI · Member since 2022 · 119 posts · 127 votes
4y
@Jeffrey Albaum nice to hear the MLS is still working for people even if returns aren't as high.
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