how are you finding deals

Frank Wong

Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes

7y

I agree with Lionel. There are deals on the MLS. I find 90% of my deals there. I don't invest in Indy but in the Dallas Ft Worth market which is very competitive. The really great deals are gone quick usually in a few hours. 44 mins is pretty crazy.

The deals like Jason mentioned which was gone within the hour off the MLS. If you are not able to pay All CASH close in 8 days and be non-contingent don't even waste your time. You will never get the house. You are competing with cash guys with those terms. At the min, you need to be prepared to go non-contingent if you want a 50/50 chance. You need to structure your offer so it has the highest probability of success.

This is just how the market is at the moment and you have to adapt to it to play the game. It won't be like this forever but just how it is now.

3 Reply

Jason MalabuteBusiness Member

OP

Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 901 votes

7y

Originally posted by @Mike D'Arrigo:

@Jason Malabute As you've seen, Indianapolis is a very competitive market. You're going to find it very deals on the MLS, especially that don't need work that don't sell fast. The best deals aren't found on the MS and for sure not on Craigslist. They are bought at auction and through wholesalers. Yes, a lot of properties that wholesalers will offer are in rough areas, but it's up to you to do your homework and know the neighborhoods. You visited in Indianapolis. That was the time to really drill down and get to know the neighborhoods that you like and the ones that you don't like so that when something comes up, you know exactly what the area is like and if it fits your criteria. When you know what areas you like, you don't have to rely on the wholesaler or real estate agent to tell about the area. I'm also not sure I would place more trust in an agent than a wholesaler to guide you to the right areas. There are some agents that just want to seel out of state investors a property and don't have their interest in mind. Since you already have a PM that only manages in decent areas ($800 rent is C class in Indy), why not use their expertise to help you vet an area? Obviously, they don't want to manage anything that would be in a bad area or a problem for them. They would be your best source on independent advice.

its just frustrating because I want to buy something

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Mike D'ArrigoPro Member

Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes

7y

@Jason Malabute I can understand that. Indianapolis is a very competitive market. Even turn key companies are having trouble getting as much inventory as they want. It's even harder for the individual investor. You may want to think about broadening your approach.

Jason MalabuteBusiness Member

OP

Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 901 votes

7y

Originally posted by @Mike D'Arrigo:

@Jason Malabute I can understand that. Indianapolis is a very competitive market. Even turn key companies are having trouble getting as much inventory as they want. It's even harder for the individual investor. You may want to think about broadening your approach.

what do you mean?

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Peter Davis

Member since 2018 · 14 posts · 4 votes

7y

Hey Jason, I live in LA too and I invest in Indy with one of my life long friends who knows the city very well. Maybe we can partner on a deal in the future. PM me if you want to connect and discuss further.

Arie Bitton

Specialist · Indianapolis, IN · Member since 2015 · 31 posts · 10 votes

7y

@Jason Malabute it seems to me that you have already done the hard part which is finding a good PM that will protect you and be a good representative of your in Indianapolis. Finding great deals on the MLS is hard. Try start working on off market properties where there is less competition but your PM would probably work harder.

Jason Tressler

Real Estate Agent · Indianapolis, IN · Member since 2019 · 72 posts · 16 votes

7y

ANy indy wholesalers on here ? As an agent I find deals often but they GO FAST! I try to tell my clients and they wait to long to act. THe deals are here (I live in indy NE side) and I can attest to that. BUT - you have to be prepared to pull the trigger right away. Happy to help

Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes

7y

I have found all my deals on the MLS. They all have been overlooked by investors, that's why Ive been able to capitalize on them. I also had to work harder to make the numbers work. A lot of that was through negotiation, and sweat equity.

Either im really lucky, or im really talented at presenting an offer that is both beneficial to me and the seller.

Go out there and search... then MAKE IT HAPPEN!

Good luck!

Frank Wong

Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes

7y

Originally posted by @Brian Ellis:

I have found all my deals on the MLS. They all have been overlooked by investors, that's why Ive been able to capitalize on them. I also had to work harder to make the numbers work. A lot of that was through negotiation, and sweat equity.

Either im really lucky, or im really talented at presenting an offer that is both beneficial to me and the seller.

Go out there and search... then MAKE IT HAPPEN!

Good luck!

Great point Brian! "Beneficial to me and the seller". I think a lot of new investors try to get the lowest price on a deal and the seller may feel ripped off. Remember the seller needs to agree to sell you the property. The key to making a good deal is to create a win for the seller or at least the perception. If you are not getting your offer accepted. Take a step back and go into the seller's shoes and then re-try.

Something to always remember in investing. Some money is better than no money. Not every deal has to be a home run. I hit singles, doubles, and triples.

2 Reply

Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes

7y

Originally posted by @Frank Wong:

Originally posted by @Brian Ellis:

I have found all my deals on the MLS. They all have been overlooked by investors, that's why Ive been able to capitalize on them. I also had to work harder to make the numbers work. A lot of that was through negotiation, and sweat equity.

Either im really lucky, or im really talented at presenting an offer that is both beneficial to me and the seller.

Go out there and search... then MAKE IT HAPPEN!

Good luck!

Great point Brian! "Beneficial to me and the seller". I think a lot of new investors try to get the lowest price on a deal and the seller may feel ripped off. Remember the seller needs to agree to sell you the property. The key to making a good deal is to create a win for the seller or at least the perception. If you are not getting your offer accepted. Take a step back and go into the seller's shoes and then re-try.

Something to always remember in investing. Some money is better than no money. Not every deal has to be a home run. I hit singles, doubles, and triples.

Compromise is huge! Everybody has some emotion involved, I don’t care what people say.

Make it easier for them, there are many other options other than cash and fast closings. I’ve never had that option, and I’ve been able to get a couple good deals by making the process simple.

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Dion McNeeleyPro Member

Rental Property Investor · Port Orchard, WA · Member since 2018 · 116 posts · 123 votes

7y

HI Jason,

I had similar issues in Tacoma WA. When I looked into any SFH, there would be several offers in minutes. One house I made an offer on had 27 offers in the first weekend. Three places went for well over asking price.

Then I started looking at duplexes, tri and quads. I made an offer on one where the numbers looked good and it was accepted. There were only three offers made total on the place. I got it for the asking price. Then I purchased two more duplexes and had the same amount of competition. One was 5% under asking and the other was for asking price. I am currently in saving mode working on the next down payment for another place and I see some properties that would work. Maybe where you are trying to invest there are different types of investors looking. There may be other options for deals than SFH. Just a thought. I only use the MLS to find properties.

Good luck.

Jason MalabuteBusiness Member

OP

Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 901 votes

7y

Thank you everyone. I appreciate you all.

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Avtandil G.

Rental Property Investor · san jose, CA · Member since 2009 · 74 posts · 42 votes

7y

@Jason Malabute - investing in Indy is not any different from investing in any 'non-local' market, where non-local means you would not want to drive there every day ;) the name of the game is 'kiss 100 frogs to find 1 prince' - you look at 100 deals, you ballpark numbers on 50, you analyze 25 in-depth, you make an 12 offers, you land 1 deal. MLS certainly works. if you want to improve the accuracy and avoid the 'spray and pray' method above, you should try to invest into building local relationships - i'd suggest you first find a PM in Indy - you will be surprised to discover that local PMs catering to out-of-state investors operate differently from ones in CA. A lot of PMs in Indy don't want to touch 'this area and that area' but want to charge top $$$ for management, often north of 15% when all fees are added up. it was a shocker for me personally, who is used to the cutthroat competitive PM market in CA. The second biggest investment is going to be a broker - particularly if you're doing 'spray and pray' rout and will be making a lot of offers, you need to find someone who is willing to do that. probably someone who just started themselves in the business. Those two connections, if they are good, should be able to feed you a steady stream of deals. All PMs also have RE licenses and sometimes represent their clients on the sell-side - you may be able to pick up units or even whole portfolios that way

I'd not discount wholesalers, but as mentioned earlier, you need to know what you're doing there. Having a trusted relationship / connection will make things easier - you can have your PM or broker visit the wholesaling property to give you an trustworthy assessment.

However, one thing you need to realize is that Indy was a super lucrative market maybe three years ago. It was overflowing with capital last year. Things may be slowing down this ear, but again, maybe not. Margins have certainly compressed - if you're looking to get decent returns, you need to be comfortable investing in C areas. And subsequently you should find a PM who will manage in C areas.

2 Reply

Ismael Mathurin

Investor · Fall River, MA · Member since 2019 · 53 posts · 26 votes

7y

@Brian Ellis How are you approaching those deals on MLS? I'm also in Ma, and haven't had any luck with listed properties.

Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes

7y

Originally posted by @Ismael Mathurin:

@Brian Ellis How are you approaching those deals on MLS? I'm also in Ma, and haven't had any luck with listed properties.

I’m usually persistent with getting a showing... contact the listing agent directly. No one is going to care more about the sale than a listing agent who will receive commission on both ends.

Where are you looking?

Ismael Mathurin

Investor · Fall River, MA · Member since 2019 · 53 posts · 26 votes

7y

@Brian Ellis

I've been looking in Bristol County. Do you always view a property with the intent to pay close to market value? Or have you ever made a wholesale offer?

Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes

7y

Originally posted by @Ismael Mathurin:

@Brian Ellis

I've been looking in Bristol County. Do you always view a property with the intent to pay close to market value? Or have you ever made a wholesale offer?

If I view a property with the intent to pay market value, I will make sure its a value add deal, otherwise im not interested in turnkey properties. I look for equity more so than cash flow, but chances are if its a value add deal the cash flow will be there after renovation. To be honest, I always go in with numbers in mind and try paying less than market. My top price depends on what im comfortable with for numbers.

2 Reply

James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes

7y

Originally posted by @Jason Malabute:

How are you guys finding deals in 2019 in Indianapolis?

Last week a property hit the market. It was a great deal in a great area. It was gonna cash flow like crazy. I was in the process of making offer. Within 44 minutes someone already bought it. 😡

The rest of the time it seems like the properties are either in areas where my PM doesn’t want to manage or the numbers are not good on cash flow or cash on cash return.

It’s been 3 weeks since I visited Indianapolis. I only made one offer and I still have no property.How long does it take you guys to find deals in Indianapolis in 2019.

How are you guys finding deals and which neighborhoods (my pm only likes high rents $800 and up)? I’m willing to try anything. What works best in Indianapolis as an out of state investor .... Craigslist ads , direct mail marketing, both???

I’m kind of scared do wholesaler as an out of state investor because they normally buy in bad neighborhoods and/or properties that need major repairs. Since wholesalers often don’t want to work with your real estate agent it’s scary to trust them without your agent checking out and vouching the property for you?

I dont want to make offers on properties that my PM doesn't like that I will have to back out of later. That happened before and I was scared I was gonna get hit with a breach of contract.

I really appreciate your guys’ help.

Best ways to find deals.

Direct Mail.
MLS.
Craigslist.
Evictions.
Foreclosures.

Ismael Mathurin

Investor · Fall River, MA · Member since 2019 · 53 posts · 26 votes

7y

@Brian Ellis

Thank you for the info.

Bill Spence

Member since 2019 · 8 posts · 1 vote

7y

For Indianapolis properties, we like to use a real estate search engine called DealEstates, finds real estate investment deals very quickly. Include a profit calculator as well. Very useful tool!

Andy Rumple

Wholesaler and Real Estate Broker · Indianapolis, IN · Member since 2009 · 438 posts · 293 votes

7y

I'm a wholesaler but won't be much help to you because my good deals go quickly also to established buyers. Also some agents will ruin your chances of getting a deal from people like me because they will whine about our simple contracts, etc. I am also a broker so not all agents will mess up deals but sometimes the ones who work with big box companies cannot get around even the smallest issues because of corporate policy or inexperience.

Daniel MendezPro Member

Investor · Dallas, TX · Member since 2018 · 254 posts · 47 votes

7y

Originally posted by @Brian Ellis:

I have found all my deals on the MLS. They all have been overlooked by investors, that's why Ive been able to capitalize on them. I also had to work harder to make the numbers work. A lot of that was through negotiation, and sweat equity.

Either im really lucky, or im really talented at presenting an offer that is both beneficial to me and the seller.

Go out there and search... then MAKE IT HAPPEN!

Good luck!

Hey Brian,

Are these properties that you are investing in are in Indy? If so, are they all MFR or SFR?

I have heard that Indy is better for SFR and not MFR.