For people investing in San Diego County. Are you finding your deals from wholesalers, the MLS, or sourcing your own off market deals?
I would use any source that would bring me a deal (the ones listed plus bird dog, FSBO, etc.). So far I have actually used MLS, FSBO, and sourced my own.
I get off market listing and wholesale listings sent to me regularly. Neither are typically that good of a deal. I had an off market 6 plex recently sent to me with cash projections that did not take into account rent control or increased vacancy/turn over costs associated with raising the rent to market. The projections were BS. From wholesalers, I see top of market comps and unrealistic rehab costs. I know my primary market. I know the value of rehabbed RE as well as the value depicted in a refinance (it is lower than the actual value). I do not like BS projections. I would rather see realistic projections that depict lower return than BS projections. The BS projections lower my trust because either the person I am dealing with is inept or deceitful.
My point is a deal is a deal but verify everything.
Thanks for that insight, Dan. I've heard of those kinds of challenges with wholesalers since most are inexperienced and don't understand rehab. I'll be sure to keep that in mind if I consider those deals.