I have been flipping houses and picking up rentals full time for the last three years. I am now having trouble finding profitable deals. I usually purchase from wholesalers and occasionally from the MLS. Is my next step to jump into wholesaling myself or just keep working the wholesalers for the best deals?
I think this is just the market right now due to it being a sellers market they can make their own price, most investors I work with have been overpaying for properties. Smh
Everyone is having trouble finding deals now in hot markets because even off-market sellers are comparing their value of their hoarders house to their Zestimate. You could do your own off-market mailings, but why get into wholesaling? If you are just looking for yourself, choose a target neighborhood and write personal letters after skip-tracing the data so you know who you are writing to.
Good advice Thanks!!
@Jim Thorpe Since you are having trouble finding 1 great deal I wouldn't go into wholesaling - which is basically making a living by finding lots of great deals.. You'll only increase your problem rather then solve it.
Sounds to me like you need to improve your marketing - open more channels (direct mail, etc.) in order to find great deals.
@Jim Thorpe I kind of get the feeling that you don't want to necessarily be a wholesaler, but you want to start sourcing your own deals using techniques that some wholesalers use, is that correct?
@Braden C That is correct, I have targeted the neghborhoods and started driving to see what Is out there. I ordered bandit signs and will put those at the rental properties I have. I will gladly take any suggestions you might have.
Whether you wholesale or not, it's definitely time to jump to direct mail. By the time a deal reaches the MLS, it's too late.
I'm direct mail acquisition machine. I pull assessor data (with a direct link) of the type of properties in the areas I want and send ALL the property owners an offer. I scrub the list to remove things like properties with a mortgage, duplicates, etc. and spend a tremendous amount of time on pricing, because although these offers may be a lot less than retail, they are not out of the question. I explain in my offer letter to sellers that I am a serious investor, not and agent/broker, I pay cash, and are prepared to close as soon as x days.
Then I sit back and wait for the motivated sellers to call us. You can of course edit this model to fit how exactly you plan on purchasing and what specific property type you are looking for. Believe me - it works like a charm. That is how I GET THERE FIRST. By the time a deal reaches the MLS or a lead source, someone else has already beat you to it. Also, knocking on doors (aka "driving for dollars") is an outdated way of doing this and honestly isn't worth your time. It's no longer about possible subject to leads - we now have DATA and computers and direct mail to get there first. Please feel free to reach out to me if you have any additional questions - I would love to help!
I'm new to re, but have you tried finding wholesale groups on social media and putting out you're a buyer and what you want? Also you could maybe reach out to the wholesalers you've worked with and ask them to try to negotiate down a little more with the sellers because profit margins are getting slim. Maybe they're having trouble selling contracts because other flippers feel like you do.
Just my young 2 cent... you pros correct me if necessary lol