Do You Think Funding or Finding Deals is Harder Right Now?

Question

In today’s market, some say finding deals is the biggest struggle. Others say funding is the real bottleneck.
As investors, where do you think the real challenge lies today—and how are you solving it?

Drew Sygit · Answer

Finding deals isn't really that hard, it's more an issue of so many newbies, even those with 5-10 years of experience, NOT knowing how to find them in today's market.

Many investors were used to be able to find deals on the MLS and haven't adapted.

We can find deals fairly easy...

Riley DeQuasie · Answer

Honestly, I’d say finding deals is tougher right now. There are plenty of private lenders and hard money options willing to fund if the numbers make sense, but the challenge is getting properties that actually hit those numbers.

Joey Banasihan · Answer

Hey @Brandon Lee, I would say neither - it is how people are defining what investing in real estate is and taking action. Most newer folks in the investment space I have encountered what immediate results so they can quit their jobs as soon as possible - they think real estate is like a money vending machine, rather than a physical asset to invest in and let your money grow over the next 15+ years. The more folks can see the long term play with real estate and defining their goals around that, than finding/negotiating deals is not that difficult.

David Krulac · Answer

@Brandon Lee I say neither! I bought 7 properties this year.  3 came from a new home builder, who had old unused financing arranged when the subdivision was started.  Those fixed rate mortgages were 4.25% and 4.75%, both of which I'm very satisfied with.  2 others were bank foreclosures, which numbers are rising year over year; therefore more selection and a seller who MUST sell. 1 was bought at Sheriff Sale and the last one came from a property management company who had managed property, where the owner needed to cash out to pay for their child's college tuition.  We also found some other deals that we referred to other buyers. I recently read an article that quoted the amount of money in retirement funds such as IRAs and 401Ks that is not deployed and available for lending.  It said that at most custodians most of there assets are not deployed in active lending; sitting in those accounts either getting low interest or no interest returns.

Do You Think Funding or Finding Deals is Harder Right Now?

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