14 Properties purchased in 10 years - how we found each one...
With deals getting harder and harder to find, I always like to hear how everyone is finding properties these days. My wife and I have made 14 purchases since July 2008. Here is the list, hopefully there is an idea in here that someone can use.
1. July 2008 - 5 Acres Vacant Land - MLS - Property was in pre-foreclosure, builder was about to go under. Listed for $115k, paid $110k.
2. July 2011 - Bank owned home - MLS - Easy to find, bank owned homes were on every street, listed for $65k, paid $66k.
3. Sep 2012 - Bank owned home - MLS - House was a tear down on a rough street, no one wanted it, listed for $50k, paid $35k.
4. Nov 2012 - Bank owned home - MLS - Tried to buy as a short sale, that didn't work. Kept an eye on it and put in an offer the first day it hit the market. Listed for $89k, paid $89k.
5. Sep 2013 - Single Family home - Short sale/MLS - Short sales with other buyers fell through multiple times, we came in with a cash offer and got the deal. Listed for $112k, paid $112k.
6. Sep 2015 - Single Family home - Off Market/Word of mouth - As we remodeled project #5, the neighbors tipped me off about a meth house in the neighborhood that was going to be for sale soon. I spoke with the listing agent before it hit the market; we talked with the out of state sellers and got the deal. Listed for $145k, paid $115k after they agreed to pay $10k toward meth cleanup.
7. Oct 2015 - Vacant Lot - Off market/Direct mail - Just down the street from #5 and #6 there was a lot where the home had burned down. I checked and it was in pre-foreclosure for unpaid property tax. I mailed a letter to the seller and they called me. Paid $50k.
8. July 2016 - Single family home - MLS - This was an estate sale, got our offer in on day 1. Listed for $149k, paid $138k cash.
9. Mar 2017 - Single family home - Wholesale - Our first exposure to a wholesale deal, made an offer on day 1, paid $105k cash.
10. May 2017 - Single family home - Wholesale - Same wholesaler, another deal that made sense. Paid $138k cash.
11. Nov 2017 - Single family home - MLS - Distressed seller, home in rough shape. We went direct to the selling agent and got a good price. Listed for $125k, paid $110k.
12. Dec 2017 - Single family home - Short sale/MLS - Fire damaged house, we put in an offer the day it hit the market. Listed for $100k, paid $123k.
13. Feb 2018 - Single Family home - Sheriff Sale Auction - Home was vacant for over 3 years, bought at auction for $129k.
14. July 2018 - Vacant lot - Off Market/Word of mouth - One of my clients split a lot off their rental house, we paid $55k.
Moving forward, we plan to utilize auctions, wholesalers, and direct mail to find our deals. We now have a reputation in our small town for closing quickly on homes in any condition. We still check the MLS daily, but most fixers are priced to the point that there is little profit to make on a flip.