Just getting started
I'm a new member looking for advice and guidance to get started investing in either SFR or multi-family. I'm having a hard time finding any opportunities where the numbers work and would appreciate any advice. Also, I'd be interested to hear what others have to say about buying gutted houses in the BR/Denham Springs area as investments.
Thanks!
Hi Sandy, and welcome. I'm in the NOLA/North Shore area, but have been wondering about BR as well. I'm not sure how things are affected by the recent flooding.
Hello @Sandy Fiser,
The good deals are hard time find in my opinion when you are just starting out. That's because you usually have to go through so many deals before you get an idea what a good deal is suppose to look like. With that said, having relationships and being diligent is key. I remember purchasing my first investment property and paying too much for it and doing an extensive renovation on it at that. This was a very stressful process for me considering it was my first property. For someone starting out on their first deal, I don't recommend doing a complete renovation unless you have reliable contractors or have some sort of prior experience.
I would of chose a small multi-family property that need very minor repairs (which this type of property ended up being my second purchase). From the lessons learned on my first property, it took me forever to purchase the second property because I had a very specific criteria while relying on only 1 source for deals (MLS). I had some deals fall through due to not moving fast enough while others didn't get past initial negotiations. After looking through many deals and making tons of offers, I finally was able to close on a second property.
So while looking for my third property I knew I had to try something different in terms of marketing so I ended up discovering direct-mail. This allowed me to negotiate directly with the seller and avoid middle men. This was a great experience as I was prepared to negotiate and didn't let any emotions affect my final offer.
Hopefully this helps.
Also, I have active contracts out on flooded property; 1 in particular is located in good area in Denham. I was able to get a good deal on this property considering the events that have taken place. There's a lot of risk associated with this deal but those were considered in my offer. I have a team in place ready for a project like this so it would be a great investment to build my portfolio. As I mentioned in other posts, these will be the last single family properties I pursue as I'd like to keep my focus on multi-family.
Joseph
@Joseph Lane, you mentioned that you used MLS for your second purchase (and possibly your first? I'm not sure if I read that right.) Have you continued to use it alongside direct mail, or have you abandoned it altogether?
I ask because although I've read that you can have success here and there with the MLS, it just seems to me it would be really hard considering the market exposure and then having to include, at minimum, the listing agent commission (assuming you could negotiate down the portion that would have normally gone to a buyer's agent).
Hey @Jason Duet,
I used MLS for my second deal only as of now. All other deals have mostly been direct mail or driving for dollars. I honestly like these methods better considering the amount of flexibility you have with negotiating.
Joseph
@Sandy Fiser...Welcome to BP...Patience pays..Find your local meetup or RE group. Network, network, network....GL
Hi @Sandy Fiser !
It's simple! Just continue what you're already doing: put yourself out there, and meet as MANY people as you can involved in this industry. You're already on BP. Now get on FB, Linked-In, Insta, etc. Go to all your local meet-ups. Talk with investors, lenders, buyers, sellers, wholesalers, contractors, etc. Literally, you CANNOT meet enough people.
Eventually, you CONTACTS will turn into CONTRACTS.
Aside from that, continue to educate yourself!
Hope this helps!