Howdy Investors! Every serious investor is looking for a good deal to purchase and with the seller's market that we're in right now, deals are getting harder and harder to find. I am looking for a fourplex in Bryan/College Station to purchase within the next few months and have clients looking for small multifamily units to purchase as well. The MLS is a great place to find deals and in the current market we're in there are very few multifamily units on the MLS and even fewer worth pursuing. Because of this I am looking at pursuing more off market properties to increase the number of possible deals to pursue. For the past few months I've been doing direct mail marketing and have had a decent amount of success with this. This is how my business partner and I found our last deal and now I am looking into different ways to find deals worth purchasing. Not necessarily only off market deals, although that is the best place I can see to start looking. What ways are you or other investors looking for deals worth purchasing?
I got tired of looking for deals and decided to make my own with new construction.
@David Schmiediche the BRRRR strategy relies heavily on "off market" deals. Especially here in Texas where every investor in the country is looking at the MLS. I mean that Chip and Joanna thing has Waco as the most viewed city in America for properties. Everyone uses the MLS.
Now, for multi-family properties the strategy here is entirely backwards. Take places like Chicago, or San Francisco, or New York, or DC....places where land is so expensive that I have NO CHOICE but to build multiple units on my little sliver of land. Here in Texas though, it's like land is just being given away (comparatively). I can build a single family home on an acre and be totally fine. Try buying an Acre in Los Angeles...forget it. It's the complete opposite here. So the need for multi-family just isn't here. But there's still every single investor across the country that will bid against you when one hits the market. So most investors here get lucky from time to time with them but mainly focus on single family homes. There's so many SFH and we know how to make those work.
Anyways, I hope some of this is some help. Thanks!
One has to first define what a "deal" is. For most investors, locating a retail deal on the MLS is not a deal unless you can get creative financing along with the retail deal. Most deals are found off market through consistent marketing, networking, and boots on the ground. Marketing is the engine that drives most any business. With everyone jumping in to the investing arena due to market conditions, you'll have to make sure you don't waste a single lead and make sure you can differentiate yourself from the rest of the crowd as many sellers have many options available to them.