First Time Investor Having Hard Time Finding First Deal!

8 Replies

As the Title says, I am having a hard time finding my first potential flip. I have been advised by my mentor to stay in the South Minneapolis area but I believe it may be to hot for me just starting out. I have been scouring the MLS program my realtor setup along with other online sites like Zillow for almost 2 months now. I've placed offers on a few properties but they were flooded with all-cash offers that I simply couldn't compete with.

Does anyone have any tips for me? Maybe I should be looking somewhere in the west suburbs? 

be patient you will find the deals.  I use redfin.com a lot so it sends me notices.  i have found redfin is much better than Zillow because they typically include the rent and expense numbers and sometimes the cap rate.  though, i always calc the cap rate myself because some listing agents have no idea what they are doing. 

word of advice, don't stretch to find a deal that doesn't fit your objectives.  better to have the cash and no deals, than find deals that cost you all your cash and then some.   

Hey Jordan,

There's a lot of people in the same boat. I'm an agent and keep an eye on the MLS quite a bit, but deals are harder to come buy, especially if you're in the lower bracket in terms of price.

Trying to find off market deals would probably be your best option.  A simple place to start would be driving for dollars.  I've been getting a list together the past week doing this (but I actually like to bike versus drive - I also get exercise in addition to doing something else productive).  Just one of many ideas, but it helps you get a more targeted list and gain a better familiarity of neighborhoods.

@Dylan Swanson could you explain "driving for dollars" a bit? Heard about it and read about it but still not 100% sure what that means. 

I am looking too and it's a tough market right now.  I think you are fine to venture outside of South MPLS as long as the numbers work and you stay away from the "war zones" so to speak.  There is definitely a shortage of housing in the area hence all the new condo/apartment developments.

Thanks @Dylan Swanson , Dylan's advice on 'Driving for Dollars' has lead me to this article on BP: Driving For Dollars. Really terrific read, hope it enlightens you as much as it has for me.  

@Jordan Webster meet more people in your area. I fund deals in the Twin Cities are our clients are finding a lot of great deals - financing 10 or more a month. 

Network with more people - rather than relying on your agent

Get off the MLS and Zillow - have an agent bring you deals that meet your criteria from MLS and meet wholesalers with deals that are ready to close.

There are not as many deals as there was a just a year ago but there are still solid deals.

Network, Network, Network. I have found 90% of my deals meeting people rather than staring at websites. 

Driving for dollars is a great way to find deals if you also have the ability to negotiate and close them. As you are getting started it is far easier to work with a wholesaler or good agent until you get more experience.

Good Luck!

@Daniel Okon , that post that Jordan linked to above is a pretty good description of what driving for dollars is.

Wholesalers can be a good way to go too.  Just make sure you do your own numbers to make sure the deal makes sense for you.  Don't just rely on the numbers they give.  

 

Originally posted by @Daniel Okon :

@Dylan Swanson could you explain "driving for dollars" a bit? Heard about it and read about it but still not 100% sure what that means. 

 Hey Daniel!

Fundamentally, "driving for dollars" just means driving around your target/farm neighborhood, looking for properties that appear vacant or neglected, with overgrown lawns, broken windows, etc., with the intent of contacting the owners of those houses (sending a letter) asking if they're looking to sell.

Hope that helps!

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