I am located in the Chicago area. I'm looking to find multi-unit properties or properties that have a "good deal". #1 how do I recognize a great deal and what are steps on finding deals. Any software, websites, local clubs that you guys suggest? I'm aware of driving for dollars and craigslist but still looking for another effective way.
@Naeem Barbour I have never invested in Chicago so I can't help with specifics there. But I would recommend finding good local wholesalers and ask to be put on their list for new deals. You may also have to call them constantly because good wholesalers will have their go-to investors typically.
It's a pretty loaded question, but a simple answer would be that a "good deal" is a property that meets your purchase criteria.
So as the first step, I would focus on figuring out:
- What are your goals with real estate? Cash flow? Appreciation? Some of both?
- What types of properties are you interested in buying and why? I'm assuming it's multi-families, but why exactly?
- What neighborhoods do you feel comfortable owning property in? Low-end areas? High-end areas? Middle of the market?
- What is the condition of each property that you're OK with? Do you want a new construction home? A home that needs a lot of rehab work? Somewhere in between?
- How much cash do you currently have to invest? What type of financing will you be using?
- What is you minimum COC return? ROI? IRR? Cash flow per unit?
Once you start answering these questions, you'll start putting together your property criteria. Then when looking at potential deals, you can compare them to your criteria and see how well they meet your goals.
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