How are you finding deals in this market

Question

Hey everyone, I'm a realtor in Philadelphia, I'm finally in a financial position to start flipping my own houses. The MLS has nothing but inflated prices, wholesalers are also inflating prices leaving only buy and hold as an exit strategy. My question is, What tactics are you using to reach sellers directly?

Russell Brazil · Answer

21 years Ive been buying real estate. 21 years Ive heard people complaining about inflated prices and there isnt anything they can buy. All those properties people bought 21 years ago, theyre worth 3-4 times that value now.

Steven Goldman · Answer

Hi Abdullah, I also buy I flip in the Delaware and Lehigh Valleys. The way I find my properties is to determine what neighborhood I want to work. Than I will drive the neighborhood and find physically distressed properties. I door hang them and look up the owners of record and use skip trace to get phone numbers emails or other contact information. Many of the numbers are old or incorrect.  Still, I call those numbers and leave message and try to reach the owner. I also review the foreclosure filings in the target zip code by searching the courthouse records on line. You can find good deals on the foreclosure list or tax list.

You can also check with L & I website for violations for the property that may direct you to contact information. It is a time consuming process but if you hit on one it is worth it. Good luck.

Stuart Udis · Answer

I beleive there's plenty of opportunties on the MLS, but they are usually categorized incorrectly i.e. a property possessing favorable zoning listed under the single family category, public records incorrectly listed the square footage, or instances where  BRIGHT MLS doesn't track zoning changes real time with recently introduced zoning bills. I've even seen distressed multi-families in some of the better neighborhoods sell to investors who convert them back to single families.  These are just a few examples I've observed.  The price point also plays a critical role. If you are looking to buy the sub $300K all-in cost single family flips or the $200,000 duplexes, you are going to be competing with a lot of market participants. If you are buying the $1.5M+ mix-use buildings the buyer pool is much smaller and there's far greater negotiation power on the part of the buyer. Based on what you shared, if you are competing with wholesalers you are likely in the most competitive price point space on the MLS. There's still opportunities within this space, but you will have to focus on properties that possess the characteristics I noted above, not the clearly marketed opportunities.

Shayne Mitsuuchi · Answer

I second what Nadeem said above, the quickest way to connect with a group of wholesalers would be to meet them through facebook groups online. I also think Craigslist is a good place to find some investment properties depending on your market.

Greg Kasmer · Answer

Abdullah - I think you need to have multiple "sticks in the fire" to really get the deal flow you need. Overall, I would keep in mind that you'll likely need to look at/review 100 deals to find that "1" that works and your close on... so volume is key. I still struggle with that myself. I would keep on reviewing the MLS, but also develop your own direct to owner strategy (mailers, cold calls, etc..) that you can do on a consistent basis. (Every day, every week, every month, etc..) I personally reach out to owners via email and target small multifamily properties. Happy to share more if you want to discuss!

Wale Lawal · Answer

@Abdullah Hamididdin

As a realtor looking to flip houses in Philadelphia, reaching sellers directly can be a powerful strategy to find off-market deals and potentially secure properties at better prices. Here are some tactics you can consider:Direct Mail Campaigns: If you're interested in flipping properties, create direct mail campaigns that are specifically aimed at the homeowners in certain communities. Prospective sellers may be drawn in by sending them personalized letters or postcards.Door Knocking: Go ahead and knock on doors in the communities where you hope to discover flipping houses. Introduce yourself, strike up a conversation with the homeowners, and let them know you're interested in buying houses nearby.Networking: Create connections with other real estate experts, such as contractors, investors, wholesalers, and property managers. Through networking, one may find off-market deals and get recommendations from others who find motivated sellers or distressed homes.Internet marketing: To establish contact with possible sellers, make use of internet resources including social media, real estate websites, and forums. Make articles or targeted advertisements emphasizing your desire to buy houses to flip.Driving for Dollars: Search for foreclosed or distressed properties as you drive through areas. Make a note of the addresses, then follow up with door-knocking or direct mail campaigns to speak with the owners personally.Lists of Probate and Foreclosures: Keep an eye out for leads on these lists. Opportunities to haggle with motivated sellers may arise from properties that are going through foreclosure or probate.Put strategically placed bandit signs with your contact details and a succinct statement expressing your interest in purchasing homes. Make sure you abide by any signage-related municipal laws.Cold Calling: You could want to give homeowners a call to see if they would be interested in selling their homes. Create a courteous, professional script and approach.Real Estate Wholesalers: Establish connections with local real estate wholesalers. Even though you said that some wholesalers are raising their rates, there could be others who can provide good off-market discounts.It's important to approach direct marketing with professionalism and integrity, respecting homeowners' privacy and circumstances. Building rapport and trust with potential sellers can lead to mutually beneficial transactions. Additionally, ensure that you're well-versed in local market conditions, property values, and renovation costs to accurately assess potential deals.

Good luck with your house flipping endeavors in Philadelphia!

Bob Stevens · Answer

HOW, all off market, NEVER (well maybe one here and there) on MLS.  I have done about 500, yes 500 in my market, I can get as many as I want with a press of a button. Its ALL about your network .

Shawn Parsh · Answer

Abdullah,

You have been given some solid advice already, but I thought I would add my input. What has worked for me is getting the word out that I buy houses and what type of house I'm looking for. Not only do I tell the people I interact with that I am looking for distressed properties (my focus) but I also tell them that I pay a 1,000 referral fee for any unlisted property that they tell me about that I buy. After you pay out a few thousand dollars for deals you will have a network of people that are always looking for potential deals for you. Good luck.

Gustavo Munoz Castro · Answer

If MLS and wholesalers aren't meeting your need then you need to market directly to sellers. What I've seen work best is having VA caller prospect target lists of motivated sellers (high equity, older properties, driving for dollars, etc). You can start very targeted and move up from there. They need to qualify both the property and the seller before handing off to you. Native English is a must and they need supervision and feedback. Not easy to start but very scalable once you're up and running.

Christie Hewitt · Answer

You have less competition in the $1.5m space, but isn’t that less buyers as well? The 300k-500k sfh is the sweet spot isn’t it? For new investors like myself, it appears you are recommending multi use, but what if we don’t want long term? Maybe I’m misreading and would be thrilled to hav le more guidance. - Frustrated newby

How are you finding deals in this market

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