Where Are You Finding Your Investment Deals?

Question

One of the most challenging things in our business is to find properties we can buy in a consistent bases.  I was wondering how are you guys finding the majority of your deals?

Chris Clothier · Answer

MLS & HUD are two really good sources for us, but we are also buying a lot of shelf loans from local banks.  Bill Gulley made a great point about local and regional banks and if you can help them find a solution without taking a major haircut, you could certainly move to the front of the buyer pool for them.  We also do a lot of deals with agents around town by offering to let them represent us on their REO listings so they get 100% of the commission.  That is a great tool to inspire confidence.

Lastly - ALWAYS CLOSE!  If you put it under contract - close it.  That will go further than any other action you can take.  If you consistently make things easy for your property sources, they will come back to you over and over again.

Bill Gulley · Answer

Tell some small banks (even regionals) that you will buy all of their ORE/REOs at 90% of PAR (outstanding loan balance) and see what happens. Now that depends on your market and I don't suggest fooling with an agricultrual banks, but saying the SFRs.

Also, A bank can SUGGEST that the borrower contact you, do the deal with the borrower. They simply say, Mrs. Jones we won't have much choice in this matter in another month. We do know someone who you might contact that might be able to help you but that would be between you and them, but they have solved similar problems like yours in the past...would you like his/her number? Just get the bank on your side, it can be a win-win-win....not a short sale.

Monica Breckenridge · Answer

My deals come from direct marketing of the foreclosure list since our focus is short sales.  We also get deals through our website from people googling.  We pay for leads through z buyer and cashhomebuyers.com.  We get regular leads through them.  Since i've been doing this for 5 years we also get deals from referrals.  I do rent to owns and have rentals, the renters calling are a good lead source.  They are usually themselves or their landlord is in foreclosure.  I also mail postcards to every house in my target neighborhood once a month.  I get subject to's and short sale leads through these.

Ed L. · Answer

I'm a total MLS Junkie.... I check it every few hours for New Listings/Price Reductions/Pending/Closed/Expired....  It's a great way to learn a market and keep tabs on which direction things are moving.

It's a pretty easy way to do things...  Just snagged a 2br. 1.5ba home in golf/lake community for $19,900...  Also get back $750 in RE commission because it came off the MLS!

Joel Owens · Answer

There are some small to local banks who will let qualified investors just take over mortgages on properties.You purchase price a little higher but you get in for very little cost.

As long as it cash flows you leverage cash and still do good on the up cycle.If the bank wants big down then you have to really hammer them on a reduction to justify injecting precious capital.

John M. · Answer

Does anyone find good deals with HUD homes? 
I'm new, but so far it seems like they never stay on market long enough for an investor to be allowed to bid on them.

Jim Ingersoll · Answer

Many of mine are from the MLS.  I make about an offer a day and am always searching for the best 1% of the listings.  I still do find some from my own marketing with bandit signs and direct mail as well.

Jim

Jackeline Petrucci · Answer

Jordan, I am wondering how do you do that successfully because in my area most mortgage auction are a wait of time because the banks most of the time buys the properties back.  They know they will get more money if they listed on mls.  Do you have any suggestion of how I can have better results with this technique.  My goal is to minimize time and get the most results and I find auctions been very time consuming a little or no results.

Jordan Bateman · Answer

Many good suggestions here.  I'll just throw out auctions as well (mortgage and tax foreclosures).  I'm not sure about the process in your area, but once we figured out the process here, it paid off very well.  Allowed us to just about double our buying velocity.

Jon Holdman · Answer

No dealmaking in this thread, please.

Where Are You Finding Your Investment Deals?

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