Where Are The Deals!?

Member since 2023 · 50 posts · 16 votes

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

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John Clark

Member since 2018 · 1k+ posts · 1k+ votes

The proper translation of “I cannot find a good deal” is “I cannot find people stupid enough to leave money on the table.”

The proper response to that is: “Why should they?”

That leads you to the answer: What are you doing to find motivated sellers — people who are willing to leave some money on the table in order to resolve some personal problem or situation?

There are two parties to every sale, and the sale is a zero sum event — every dollar you keep the seller doesn’t get. What are you doing to find motivated sellers who have the houses you want to buy?

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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.

All the best

Hi there! I haven't investigated rentals in the midwest. Where in particular are you seeing good returns? Do you have any deals you would be willing to share? Are they rehabs? Multi-family? Are you holding for cash flow or are they short term equity flips?
I do all my biz in the Cleveland markets, rentals, 15-20% net caps based on cash purchases. SF MF,
Do you have any MF listings you would be willing to share? How is the state with respect to landlord/tenant law? Who handles common area maintenance (snow/lawn)?
OH is GREAT for landlords, and PM takes care of it all.
1 Reply
Selina Giarla
OP
Member since 2023 · 50 posts · 16 votes
2y
Quote from @V.G Jason:

Quote from @Selina Giarla:

Quote from @Patrick Parry:

Wow lot of people coming at you for this post and your struggles. I think this is a more than fair post. I also do not think you are trying to start a new career finding motivated sellers some other people are really trying to get you to work. All though knowing what you have to spend would be helpful. I would imagine you have at least 50k-100k to utilize. You mention rents not keeping with prices. Rents will catch up in nearly any place you buy. There is just not enough homes available. Some experts say as many as 5.5 million homes short. We can say 3 million to be conservative. You will see upward pressure on rents. People who cannot buy will continue to be forced to rent. Especially for the entry level homes. I think you just need to possibly look a little more east and maybe deal with some snow. Plenty of new homes that can cash flow with 20% down at a 7% interest rate. Instead of buying 2-4 units buy 2 units in a BTR community. I am in Orange County and nothing cash flows here without at least 50% down. So out of state is the only play for me. Happy to connect on what I have found out there. States I like Alabama, Tennessee, Georgia and Indiana. With some interest and more research to do in the Cleveland and Kansas City areas. I also like north Florida but it is getting a bit too expensive.

Thank you for your kind response. I work full time as a VP at an institutional asset management firm and work probably 50+ hours a week, commute 3 hours a day and travel 25-30% for my job. I have two young kids under 4 and manage 6 doors locally. I am doing my best to find deals but only have been looking on zillow/retail since I don't know how to find anything off market and as you can see... every moment of my day is accounted for and it's a little harsh for folks to berate me for this. My husband and I had no mentors, no houses handed to us, we worked hard and slowly created this portfolio of 8 doors and our own home and want to scale our investments but feel like we are in a choke hold. If anyone is considerate enough to help share some listings I can underwrite that they aren't willing or able to purchase, please help me out. I would love to connect on what you are finding in Alabama, Tennessee, Georgia and Indiana. I am particular on the state income tax rate, and if the state is a red state/landlord friendly. I haven't looked into those 4 much. Thoughts? DM might be easier. Thanks again!

That's a lot on your plate, and you need to start buying time. First off, you need to live closer to work kill that 3 hour commute. I know easier said than done, but sacrifice elsewhere for it. Secondly, quit managing doors & hire a PM get that nonsense off your plate. Cut that commute to 1 hour a day and take those doors to 0 for direct management.

Then, in regards to this, you need to connect with people off of facebook, real estate meet ups in a few localities you want to get into that fit your criteria. Landlord friendly seems to be yours, so red states should be the focus. Narrow down the states, then the cities based off the criteria you want to invest in. Then go take some time off work, visit those cities, go to a happy hour and shake some hands. Be prepared to visit this same area 2-3 times(maybe just on weekends) to get a real feel for the city, the areas, etc., and once you build a network of off-market folks, an understanding of the neighborhood you can take full advantage of the stuff they are showing you.

Right now, you're a casual shopper looking at the retail stores wanting the bargains. It doesn't work that way, the one's in the grind are finding the bargains and putting it for sale at the retail store for you. You're swapping time differently, it's all what you prefer to do as I would approach it very differently. And I'm not talking with no experience on this, I have 3 kids going onto 4 here in a week, have a dozen small businesses, and 40 + houses. Yet I still have time to post on this board, study the markets and see where I want to invest because I buy time. Teams, systems in place, and learning to let go are paramount to truly scaling.
Good advice. I cant/dont want to move. We got our home in a town exactly where we want to raise our family and love our home and neighborhood. I think if I can find out where to get listings off market as you suggested, my underwriting would be more fruitful for sure. Finding care overnight is tough to travel but I understand the importance.
0 Reply
Selina Giarla
OP
Member since 2023 · 50 posts · 16 votes
2y
Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

I live on the beach in FL and do all my biz for many years in the Cleveland markets, deals everywhere. All my personals have always been not less than 20% NET cap based on cash purchases. I will close this week on a duplex all in full reno 80k, rented for 19k a year. Sf all in 75k, rented for 1300. TODAY I will go to contract on a 2 br all in will be 45k, rented for 1k. Again best part I am on the beach in FL,

Good luck
BTW whoever is telling you to avoid props older then 10 years old, simple has no clue what they are doing. Every property I flipped (about 500 YES 500 ) or owned was built between 1910- 1930. They were built better back then,

Such great numbers! Do you hold long term ever? I struggle between investing all cash or debt because my strategy is more towards holding long term. How do you source a reliable contractor to do renovations out of state? And who is "watching" them?
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

I live on the beach in FL and do all my biz for many years in the Cleveland markets, deals everywhere. All my personals have always been not less than 20% NET cap based on cash purchases. I will close this week on a duplex all in full reno 80k, rented for 19k a year. Sf all in 75k, rented for 1300. TODAY I will go to contract on a 2 br all in will be 45k, rented for 1k. Again best part I am on the beach in FL,

Good luck
BTW whoever is telling you to avoid props older then 10 years old, simple has no clue what they are doing. Every property I flipped (about 500 YES 500 ) or owned was built between 1910- 1930. They were built better back then,

Such great numbers! Do you hold long term ever? I struggle between investing all cash or debt because my strategy is more towards holding long term. How do you source a reliable contractor to do renovations out of state? And who is "watching" them?

hold for a while and flip some. I have an entire team in place. I literally just got off the beach and have guys working on 4 renos and one walking that 2 br I mentioned.

Good luck
0 Reply
Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 714 votes
2y
Quote from @Selina Giarla:

Quote from @Jake Andronico:

@Selina Giarla
In Reno, NV w/ 50% down there are a ton of turnkey deals. We're seeing new builds as some of the best value right now because they're looking to offload their inventory before the end of the year.
Would be happy to send analysis.

Hi Jake - yes I would love to hear more about these. The nevada state/city tax is higher than the MA state tax I pay so I would also need to factor in the income tax to be paid there in my analysis.

Nevada has no state income tax and the 4th lowest property taxes in the United States. Property taxes do not assess on the sale of a property.
0 Reply
Selina Giarla
OP
Member since 2023 · 50 posts · 16 votes
2y
Quote from @Bob S.:

Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

I live on the beach in FL and do all my biz for many years in the Cleveland markets, deals everywhere. All my personals have always been not less than 20% NET cap based on cash purchases. I will close this week on a duplex all in full reno 80k, rented for 19k a year. Sf all in 75k, rented for 1300. TODAY I will go to contract on a 2 br all in will be 45k, rented for 1k. Again best part I am on the beach in FL,

Good luck
BTW whoever is telling you to avoid props older then 10 years old, simple has no clue what they are doing. Every property I flipped (about 500 YES 500 ) or owned was built between 1910- 1930. They were built better back then,

Such great numbers! Do you hold long term ever? I struggle between investing all cash or debt because my strategy is more towards holding long term. How do you source a reliable contractor to do renovations out of state? And who is "watching" them?

hold for a while and flip some. I have an entire team in place. I literally just got off the beach and have guys working on 4 renos and one walking that 2 br I mentioned.

Good luck
Can you tell me more about how you get this team in place out of state and do you need to employ them?
0 Reply
Account Closed
Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
2y
Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

I live on the beach in FL and do all my biz for many years in the Cleveland markets, deals everywhere. All my personals have always been not less than 20% NET cap based on cash purchases. I will close this week on a duplex all in full reno 80k, rented for 19k a year. Sf all in 75k, rented for 1300. TODAY I will go to contract on a 2 br all in will be 45k, rented for 1k. Again best part I am on the beach in FL,

Good luck
BTW whoever is telling you to avoid props older then 10 years old, simple has no clue what they are doing. Every property I flipped (about 500 YES 500 ) or owned was built between 1910- 1930. They were built better back then,

Such great numbers! Do you hold long term ever? I struggle between investing all cash or debt because my strategy is more towards holding long term. How do you source a reliable contractor to do renovations out of state? And who is "watching" them?

hold for a while and flip some. I have an entire team in place. I literally just got off the beach and have guys working on 4 renos and one walking that 2 br I mentioned.

Good luck
Can you tell me more about how you get this team in place out of state and do you need to employ them?

@Selina Giarla check out this thread, very useful!
https://www.biggerpockets.com/forums/48/topics/1170821-wtf-i...
0 Reply
Guy Gimenez
Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
2y
Quote from @Selina Giarla:

Quote from @Guy Gimenez:

Quote from @Selina Giarla:

Quote from @Guy Gimenez:

@Selina Giarla
Sounds like your sourcing your "deals" from the MLS (retail market), which means you're paying retail most of the time. It's always hard to cash flow retail deals which is why most investors market heavily to locate motivated sellers. Profitable deals are found primarily off market through dedicated marketing or through relationships.

I would love to understand how to get into the club of these off-market deals. Where do I start and what makes them "off-market"? You are correct, I am only involved in searches on zillow, crexi, and the like. Would love your guidance here.

Off market sellers need to find you, not vice versa.
1. SEO
2. Pay Per Click
3. Social media ads
4. Relationships with other investors and/or bird-dogs (ie deal finders)
5. Driving for dollars
How and on what platform do I let them know I am looking? LOL
You'll need a website / landing page; FaceBook and Instagram account. If you're not familiar with social media marketing or SEO, you'll need to hire a specialist who can get you off the ground and running. It's expensive though...always has been, always will be. But that's where the distressed sellers are found. You can also try direct mail to targeted households. The return will be lower but it is less expensive.
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
2y
Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

I live on the beach in FL and do all my biz for many years in the Cleveland markets, deals everywhere. All my personals have always been not less than 20% NET cap based on cash purchases. I will close this week on a duplex all in full reno 80k, rented for 19k a year. Sf all in 75k, rented for 1300. TODAY I will go to contract on a 2 br all in will be 45k, rented for 1k. Again best part I am on the beach in FL,

Good luck
BTW whoever is telling you to avoid props older then 10 years old, simple has no clue what they are doing. Every property I flipped (about 500 YES 500 ) or owned was built between 1910- 1930. They were built better back then,

Such great numbers! Do you hold long term ever? I struggle between investing all cash or debt because my strategy is more towards holding long term. How do you source a reliable contractor to do renovations out of state? And who is "watching" them?

hold for a while and flip some. I have an entire team in place. I literally just got off the beach and have guys working on 4 renos and one walking that 2 br I mentioned.

Good luck
Can you tell me more about how you get this team in place out of state and do you need to employ them?

You do what I mentioned before. You go visit them, let them know you're serious. 99.9% of the people in the other city just think you're a fugazi, huffing & puffing from across the internet.
Go there and physically see them. See them for maybe 5-7 days every 30-45 days, at first. Eventually, talking to them on a weekly basis if not more will get you the respect you need. You can't expect things to just fall in line, with some things your inputs will directly correlate to your outputs and this is one of them.
I have "teams" now in about 9-10 different cities-- they saw me before, they know I can always pull up on them. I built that initial trust with them, I can fly to hawaii trying to scout STRs and still have the team in Angel Fire tell me how my STR is doing, or my team in Dallas let me know how LTRs are doing.
You don't employ them, you use their services.
2 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
2y
I would stop for a second. With your current investments how many more do you need to hit your number? With the returns you currently receive? Both cash flow and expected appreciation.
Even if you could hit your number how do you scale? Financing, downpayment, plumber, property manager by towns, lawyer, real estate agent, personal time, etc.
I would recommend you change your REI investment approach.
Let us know how much you need to scale to hit your number If you can't do it, then let's discuss another REI model.
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

I live on the beach in FL and do all my biz for many years in the Cleveland markets, deals everywhere. All my personals have always been not less than 20% NET cap based on cash purchases. I will close this week on a duplex all in full reno 80k, rented for 19k a year. Sf all in 75k, rented for 1300. TODAY I will go to contract on a 2 br all in will be 45k, rented for 1k. Again best part I am on the beach in FL,

Good luck
BTW whoever is telling you to avoid props older then 10 years old, simple has no clue what they are doing. Every property I flipped (about 500 YES 500 ) or owned was built between 1910- 1930. They were built better back then,

Such great numbers! Do you hold long term ever? I struggle between investing all cash or debt because my strategy is more towards holding long term. How do you source a reliable contractor to do renovations out of state? And who is "watching" them?

hold for a while and flip some. I have an entire team in place. I literally just got off the beach and have guys working on 4 renos and one walking that 2 br I mentioned.

Good luck
Can you tell me more about how you get this team in place out of state and do you need to employ them?

Network and never employ them.
2 Reply
Selina Giarla
OP
Member since 2023 · 50 posts · 16 votes
2y
Quote from @Guy Gimenez:

Quote from @Selina Giarla:

Quote from @Guy Gimenez:

Quote from @Selina Giarla:

Quote from @Guy Gimenez:

@Selina Giarla
Sounds like your sourcing your "deals" from the MLS (retail market), which means you're paying retail most of the time. It's always hard to cash flow retail deals which is why most investors market heavily to locate motivated sellers. Profitable deals are found primarily off market through dedicated marketing or through relationships.

I would love to understand how to get into the club of these off-market deals. Where do I start and what makes them "off-market"? You are correct, I am only involved in searches on zillow, crexi, and the like. Would love your guidance here.

Off market sellers need to find you, not vice versa.
1. SEO
2. Pay Per Click
3. Social media ads
4. Relationships with other investors and/or bird-dogs (ie deal finders)
5. Driving for dollars
How and on what platform do I let them know I am looking? LOL
You'll need a website / landing page; FaceBook and Instagram account. If you're not familiar with social media marketing or SEO, you'll need to hire a specialist who can get you off the ground and running. It's expensive though...always has been, always will be. But that's where the distressed sellers are found. You can also try direct mail to targeted households. The return will be lower but it is less expensive.

So intersting!! I've never seen this other than the "we buy ugly houses" ads. Can you share an IG or FB handle that I can see what it looks like?
0 Reply
Selina Giarla
OP
Member since 2023 · 50 posts · 16 votes
2y
Quote from @Henry Clark:

I would stop for a second. With your current investments how many more do you need to hit your number? With the returns you currently receive? Both cash flow and expected appreciation.
Even if you could hit your number how do you scale? Financing, downpayment, plumber, property manager by towns, lawyer, real estate agent, personal time, etc.
I would recommend you change your REI investment approach.
Let us know how much you need to scale to hit your number If you can't do it, then let's discuss another REI model.

I would need to be able to completely replace and double both mine and my husbands career income and would like to net 50,000/mo would be pretty comfortable.

0 Reply
Selina Giarla
OP
Member since 2023 · 50 posts · 16 votes
2y
Quote from @Bradley Buxton:

Quote from @Selina Giarla:

Quote from @Jake Andronico:

@Selina Giarla
In Reno, NV w/ 50% down there are a ton of turnkey deals. We're seeing new builds as some of the best value right now because they're looking to offload their inventory before the end of the year.
Would be happy to send analysis.

Hi Jake - yes I would love to hear more about these. The nevada state/city tax is higher than the MA state tax I pay so I would also need to factor in the income tax to be paid there in my analysis.

Nevada has no state income tax and the 4th lowest property taxes in the United States. Property taxes do not assess on the sale of a property.

What kind of taxes would I be paying as an out of state investor aside from RE? Sales and use? Rental income tax? Is there a different re tax rate for out of state owners? I have seen this a few times. Also, when are the taxes increased to have the property assess closer to market if not the year after sale?
0 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
2y
Quote from @Selina Giarla:

Quote from @Henry Clark:

I would stop for a second. With your current investments how many more do you need to hit your number? With the returns you currently receive? Both cash flow and expected appreciation.
Even if you could hit your number how do you scale? Financing, downpayment, plumber, property manager by towns, lawyer, real estate agent, personal time, etc.
I would recommend you change your REI investment approach.
Let us know how much you need to scale to hit your number If you can't do it, then let's discuss another REI model.

I would need to be able to completely replace and double both mine and my husbands career income and would like to net 50,000/mo would be pretty comfortable.

How many properties is that performing the way your current investments are? You have to find a way to scale. I wouldn’t be worried about your next deal.
0 Reply
Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 714 votes
2y
Quote from @Selina Giarla:

Quote from @Bradley Buxton:

Quote from @Selina Giarla:

Quote from @Jake Andronico:

@Selina Giarla
In Reno, NV w/ 50% down there are a ton of turnkey deals. We're seeing new builds as some of the best value right now because they're looking to offload their inventory before the end of the year.
Would be happy to send analysis.

Hi Jake - yes I would love to hear more about these. The nevada state/city tax is higher than the MA state tax I pay so I would also need to factor in the income tax to be paid there in my analysis.

Nevada has no state income tax and the 4th lowest property taxes in the United States. Property taxes do not assess on the sale of a property.

What kind of taxes would I be paying as an out of state investor aside from RE? Sales and use? Rental income tax? Is there a different re tax rate for out of state owners? I have seen this a few times. Also, when are the taxes increased to have the property assess closer to market if not the year after sale?
Besides the RE transaction taxes we do have sales tax and transient occupancy taxes for short term rentals. There are state and local property taxes that use a replacement depreciation calculation, this calculation is not public. There are million dollar homes that have lower property taxes than new construction. If you own a hotel you might also have to pay a resort fee. Nevada has a robust gaming industry that pays a lot in taxes. For specific tax questions about Nevada it's best to talk to a local CPA that knows your exact situation. I'm happy to share few names.
0 Reply
Chelsae Roach
Member since 2024 · 4 posts · 11 votes
2y
Quote from @James Cordeiro:

@Selina Giarla
I am an investor's realtor and investor based in Gainesville, Fl.
North central Florida has many good investment opps. Especially with the entry level SFH. Whether it be a fix/flip, STR, MTR, or LTR.

DM me to discuss

Hi James,
I am new to the real estate investing world and currently live in Washington State. The market is flooded here but I was born in Pensacola and have been considering trying to enter the flip/ BRRR market option in north/ central Fl. Your comment made me want to reach out. Any info would be greatly appreciated. Thanks!

1 Reply
Matt Jones
Real Estate Agent · Pensacola, FL · Member since 2014 · 379 posts · 307 votes
2y
Quote from @Chelsae Roach:

Quote from @James Cordeiro:

@Selina Giarla
I am an investor's realtor and investor based in Gainesville, Fl.
North central Florida has many good investment opps. Especially with the entry level SFH. Whether it be a fix/flip, STR, MTR, or LTR.

DM me to discuss

Hi James,
I am new to the real estate investing world and currently live in Washington State. The market is flooded here but I was born in Pensacola and have been considering trying to enter the flip/ BRRR market option in north/ central Fl. Your comment made me want to reach out. Any info would be greatly appreciated. Thanks!

Pensacola is a great market for investors. Flips & BRRRR deals are still working here and I'm starting to see better deals from our wholesalers. It's still tough to find on market deals that will work but the off market investing options are solid here.
0 Reply
Brandon Becsi
Rental Property Investor · Richmond, VA · Member since 2017 · 102 posts · 28 votes
2y
I know you mentioned that your in TX and like that state but I have have alot of luck in NC outside the major cities in secondary cities like Wilson / Rocky Mount NC. Great area I have too many deals just need more private lenders. Check it out
0 Reply
Sridhar Yal
Member since 2018 · 3 posts · 1 vote
2y
@Journey Toole
Hi,
I am looking to invest in out of state rentals and would like to connect. Will send you a request, love to see what’s on your list.
Thanks!
0 Reply
Chelsae Roach
Member since 2024 · 4 posts · 11 votes
2y
Quote from @Matt Jones:

Quote from @Chelsae Roach:

Quote from @James Cordeiro:

@Selina Giarla
I am an investor's realtor and investor based in Gainesville, Fl.
North central Florida has many good investment opps. Especially with the entry level SFH. Whether it be a fix/flip, STR, MTR, or LTR.

DM me to discuss

Hi James,
I am new to the real estate investing world and currently live in Washington State. The market is flooded here but I was born in Pensacola and have been considering trying to enter the flip/ BRRR market option in north/ central Fl. Your comment made me want to reach out. Any info would be greatly appreciated. Thanks!

Pensacola is a great market for investors. Flips & BRRRR deals are still working here and I'm starting to see better deals from our wholesalers. It's still tough to find on market deals that will work but the off market investing options are solid here.

Thank you! I am hoping to plan a trip there next spring (about a year from now) with the intention to buy something. I really appreciate the feedback!
1 Reply
Tim Oppelt
Wholesaler · Newark, DE · Member since 2014 · 83 posts · 54 votes
2y
PPC marketing is the lowest time burden when it comes to managing leads. The leads are expensive, but they are higher quality and can be managed while working a job, unlike maybe cold calling for hours a day. If you work so much, you should have some disposal income to use for marketing, no other choice. You can call back leads during your 3 hour commute.

Source: I've spent over $5mil on google ppc for motivated selelrs across the US for lots of investors.
0 Reply
Jahangir Hasanov
Member since 2024 · 12 posts · 7 votes
2y
Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.

All the best
Hi Bob. I’m looking to buy in Cleveland can you suggest any recommendation's, good realtors or wholesalers? Thank you in advance
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Jahangir Hasanov:

Quote from @Bob S.:

Quote from @Selina Giarla:

I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.

All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!

Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.

All the best
Hi Bob. I’m looking to buy in Cleveland can you suggest any recommendation's, good realtors or wholesalers? Thank you in advance

Of course,
0 Reply
Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
2y
You cant find a deal ? Why , because EVERYBODY is out there looking for the deals . You have regular home buyers who will pay more , you have investors that have different visions on what a deal is . You have sellers who know what their property is worth and have no reason to discount since they get offers over asking . There is a ton of owners sitting pretty on rates 3.5% and less that wont be selling for a long time .
That leaves very little inventory , which keeps prices high .
1 Reply

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