Strategy to finding deals!

[Jordan Fiore]

Hey Everyone,

Quick reminder on looking to obtain properties here in Cincinnati. Off-market is not what it used to be with finding some deals, sellers have the leverage because they don't necessarily need to sell to you and can always threaten with "going to market". I have noticed they are more reluctant to address inspection items because they don't have to dreadfully put it marked "active" again on the MLS because its off market to begin with. It is more of a "take it, or leave it".

Finding properties that have been sitting at no fault of their own and just because of a slow market is the way to go. You can really stretch the sellers because once they hit 60+ days on-market, they start getting antsy. 10-20%+ off of list and clearly below recently sold comps to find deals WITH them completing/addressing inspection items is possible. You will still run into sellers that have not faced reality and believe their property should be selling much higher. Don't waste time with them. Finding a good seller is almost as good as the property themselves, with the ability to really get them below market and find value. Good luck to all, there are deals to be had!

Jordan

[Marco Fiore]

Couldn't agree more with this post. It is interesting to see properties sit on market just because of investors not jumping at it. There have been several times I was able to lock my client into a property lower than market value because of the DOM and working with a competent/realistic seller. 

People say the market determines the properties value. But sometimes with Multi-family properties, this is not the case due to a property having "bad luck" with it falling through and back to market. This could be due to inspections, dealing with a difficult appraiser, or working with an inexperienced buyer. Sellers will make the mistake of going with the highest offer but most inexperience buyer. Then they will release from contract due to something minor. Once that property goes back to market, it becomes extremely off-putting to investors. Then it will sit, adding more days on market and becoming less and less attractive to potential buyers. 

Always good to refresh your market search to make sure you are not missing out on quality properties for your buyers! Great point Jordan