How likely is it to find a good ROI in a sellers market?

[Anna Lowe]

Hi,

How likely is it in a sellers market to find a good ROI?

I am looking for my first investment property.

I have been looking for the past month and have done the calculations for over 100 properties. I think 1 home had a 7% return. The rest of the properties didn’t compute any returns, rather they were in the negative for atleast 5 years.

I’ve heard some of the webinars and I’ve heard a lot of calculations need to be ran on properties to find a good deal, but wondering if it’s even more difficult in this market.

[Joe Villeneuve]

Originally posted by @Jim K.:

Hi @Anna Lowe

Yes, it's a seller's market. But one of the odd things about real estate is that with surprising frequency, properties are bought and sold for prices and under conditions that are largely independent of the market. Of course, you have to go off the beaten path for them. The MLS or Zillow is of course most definitely NOT a wonderful place to find off-market deals. You need to meet the kind of agents who can bring you pocket deals, or investigate leads in the courts. Sometimes finding an off-market deal is as simple as driving around and asking people who are running yard sales if they're selling their house, or looking for a property that never quite seems to get the maintenance it needs, with long grass outside, a broken window, bad gutters, etc.

Very much correct!

Let me add that it isn't the economic market that has the biggest impact on deals, as much as it is the geographic market that does.

Also, you should be analyzing "geographic markets" instead of properties.  100 properties, scattered all over, isn't going to get you what you're looking for (unless you're lucky).  You're looking for a needle in a haystack.  Start looking for stacks of needles.  Analyze geographic markets...you'll find your properties within them once you establish the market profiles, and you find the ones that match your criteria for deals.