Need Advice: How Is Everyone Finding Good Flip Deals These Days?

Question

Hi everyone!

I've been flipping houses and investing in multi-family properties for several years now, but I've hit a bit of a snag recently. My primary source of deals has been wholesalers, but the numbers just haven’t been aligning lately. I focus on the Columbus and Cincinnati markets. I’d love to hear how other successful flippers are finding great deals in today’s market. Any tips or strategies that are working well for you right now? Thanks in advance!

Joshua Janus · Answer

I have bought over 15 million and sold over 50 million of real estate in the Cleveland and Columbus, OH markets in the last 3 years and the vast majority comes from

1 - cold calling targeted areas consistently with good data

2 - networking with agents, wholesalers and those who are consistently doing deals.

Bob Stevens · Answer

Realtors for great deals? NO disrespect, 99.99% do not have deals. I see many here on BP paying or about to way overpay, just because their realtor told them it was a great deal and looked great on paper. I have been doing biz in the Cleveland markets for 10 years, let's just say one or two deals, NEVER using a realtor. Last month I was chatting with someone on BP that was about to pay 130k for a duplex in N Collinwood, that needed 30 40k in reno, TERRRIBLE that is about 30 - 40k overpriced. However, on paper it looked good. He did not buy it and thanked me. Another paid 170K for a 3 br in GH, that needed about 25k in reno, and only rented for 1300, again beyond terrible. Realtors are not the way to go, Sure some have a clue so please do not get all twisted. My last 3 closings, 3 BR Lee Harvard all in 75k, rent will be 1600, Duplex all in 90k rent will be 1800- 2k, Duplex all in 90k, again rents will be 1800- 2k. Closing next week on a 4 br 2 full bath all in 80k, rented for 1400.  Now those are deals :)

All the best

Nadeem Alamgir · Answer

Try interviewing some investor-friendly agents who specialize in sourcing off-market deals. They have deals you can look at with better margins and less competition compared to wholesale deals.

You can do some sourcing yourself through Facebook groups, and online RE communities , and even pick up the phone and cold call some homeowners that may be tired landlords, don't owe anything, and have built up some equity.

With enough volume, you should come across some solid deals.

John Ma · Answer

You're 100% right.  In order to fix that, the answer is more. More leads, more deals.  People just need to know how to effectively craft a strategy to get realtors to bring deals often enough to find one. Its the same as seller lead gen.  Realtors bring me leads through IG all the time.  Just need to offer what makes sense.  Make enough offers and often times you'll suprise yourself what some ppl will accept some times.  Majority of deals I've done from wholesalers/realtors are deals I offered $30k to $40k under what they wanted.  Often times they'll go under contract, fall out and you might be the first person they reach out to with a "hey, are you still interested? So heres what happened..."

Michael Quarles · Answer

Out of COI deals requires marketing dollars.

The two simple methods are

1- Direct Mail

2- MLS

From there

3- warm call all of the homes for rent. Trulia.com4- call all of the FSBOers. multiple sites

I then would reach out to the top closing companies and start phone networking. Title managers are a great resource for market players.

Everytime you talk to an agent ask who their home inspector is.  That person has addresses.  Network.

Joshua Janus · Answer

I buy and sell 100+ properties per year in Cleveland, Ohio and fundamentally the deals are found through cold calling.

Sam Shikiar · Answer

100% agree. Closed on and began a flip 3 months ago. Great neighborhood, great school district, big house, rehab done very nicely (may be biased) working with a very reputable well known agent and it’s been sitting on market now for 40 days even with a price drop. It’s priced what would seem like very fair relative to comps in that same neighborhood. Rate fluctuation, election, and general cooling of the Ohio market I think all collectively leading to this. Data said one thing, reality another

Gregory Wilson · Answer

The market is all messed up. The hype continues while the marketplace has cooled. Hence, the spectators think prices are going up when the flippers know they are going down.

Information disconnect.

With Cincinnati being the 15th highest foreclosure city in the US, perhaps the court system is the place to look. By the time a seller gets to a foreclosure sale he has had his realty check.

Account Closed · Answer

Hi, Cleveland, Ohio and the surrounding cities and suburbs is definitely a good place to start investing in Real estate my clients from all over the world definitely agree. If you have any questions, please reach out! Best Wishes!

Evan Polaski · Answer

@Sam Shikiar, I (really my wife) am currently putting finishing touches on a flip here in Cincinnati.  It was bought off MLS.

While I won't have final numbers until we list in the next couple weeks, and actually sell, I will say for us, it is hard to find deals.  We are not full time flippers, so we can be patient for a good house in a neighborhood we know.  Also, our renovations are effectively full guts.  The lipstick renovations simply don't pencil.

So, not knowing your investment thesis, but for us, our strategy is patience and going after deals that need far more than any typical homeowner will want to take on.  But, we are unwilling to take the risks of investing in markets we don't know or wouldn't live in ourselves.

Need Advice: How Is Everyone Finding Good Flip Deals These Days?

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