Windsor, CA (windsor) · Member since 2018 · 21 posts · 6 votes
What do you do if the market is hot in you're area. For example. If a house is listed for $100,000 and it gets offer for $125,000 or greater. How am I supposed to buy a property 80% of what its worth?
Rental Property Investor · Harker Heights, TX · Member since 2018 · 212 posts · 182 votes
8y
@Steven Coppola - While you can find deals on the MLS that you can buy under market value you'll also have to look elsewhere.
Last night’s webinar discussed this so I recommend listening to those in the future. If you get a pro membership you can listen to past webinars at any time. For other members I think it’s available for a week?
Looking in local classifieds, Craigslist, FSBOs, REO websites, and direct mail are ways to find properties that you might be able to get under market value. On the MLS look for cheap properties, those with price reductions, and those that have been listed for sale for a long time.
The one way we do it under our wholesaling business and the way all our clients find deals is by marketing to off-market deals. You could start by putting together a list of potential sellers in the area you want to target. There are several ways you could build the list of addresses. Then you come up with a letter where you basically tell that person your interest in purchasing their property. Once you mail the letters, you will start getting calls from these people. Most will be pissed off because you are sending them "stuff" (it's part of the business to get these angry people), but you will also get some people that need help getting rid of their property. Those are the ones that will get you the properties at 80, 70, 50 or even 30% discount from ARV.
There are of course numerous other ways to market to off-market deals like FaceBook, Cold Calling, Google Adwords, Driving for Dollars, Networking with other investors/Realtors, Bandit Signs, etc... All these methods have been discussed extensively here in BP. We like yellow letters because they work for us.
Killeen, TX · Member since 2017 · 120 posts · 51 votes
8y
@Steven Coppola if your working on a budget one of my favorite things to do is find where all the inveators are buying property then go driving for dollars in that area. You could also do some research see where the path of progression is and start driving for dollars in that area.