With inventory low and margins getting thinner, some of my operators are starting to question.
The inventory locally has been depleting fast for a couple years now, but there are still available deals. To be ahead of the 8ball so to speak, many of my clients and colleagues began utilizing other avenues to get leads. They have still been able to close on deals, though with tighter margins - about 12-15%. Here are a couple things I've noticed to be successful for them, and maybe it can work for you.
Off-Market Deals: Direct mail and cold calling homeowners of distressed properties. Explain to them how they can avoid the 5% cost of sale by selling directly to you, avoiding agents. 100 calls and 1,000 mailers might only get you one deal, but it will be a homerun.
Contacting agents directly: Start calling agents and going to club meetings to get your name out. There have been so many times the highest offer wasn't accepted because an agent had a relationship with a cash buyer and convinced the seller to chose them. Of course it takes a couple quick performing deals, but agents will begin to remember you.
Follow up: Look for properties that have been in and out of escrow a few times. The sellers are most likely motivated and very frustrated the process has had to start over so many times. often these deals are over priced, but meet with the agents anyways.
Unfortunately "easy" deals are long gone, but there are still flips to be had out there. Good luck and happy hunting!
Disclaimer: Assuming you have not been doing these methods of acquiring deals. If you have, don't get frustrated they will come.
I second what @Chase Maher Had to say. You need to go after the off-market deals via direct mail. You will want to start thinking about creating the list that you will be marketing to. You can go after probates, driving leads, tax delinquents, code violations, etc. A good list paired with good negotiation skills will bring you success if you stay consistent with it.
I'm in Southern Cal and there are still deals to profit from. Last week I presented an offer for my client that has the potential of 10 -15% net profit if not a little more. There are 7 offers total and I guess I'll find out soon if we'll get the deal. But I'm also farming and marketing the area. There are more opportunities like this one but will take consistent marketing. I've done flips in the past myself and can't wait to do it again.