Why is LoopNet known as "where deals go to die"?

Question

Aloha e BiggerPockets Community,

I've heard on the BiggerPockets podcast and also read on other BP forum threads that LoopNet is considered to be the place where deals go to die. Can anyone explain to me how and/or why it has this nickname? I've tried inputting the numbers from some LoopNet properties on the BP Rental Calculator and have come across quite a few that seem like a good deal, but after hearing it's reputation I'm wondering if there's anything I should be aware of before reaching out to the seller.

Other forum posts mentioned that LoopNet is where sellers post listings that have already been on the MLS and did not sell. Wouldn't that make it a good source for finding deals since you know that they had difficulties selling the property, so you can offer below asking price?

Mahalo nui for your time!

Chris Seveney · Answer

Because if it was a good deal, it would have sold already and most assets on loopnet are extremely overpriced.

Ryan Ino · Answer

@Chris Seveney @Bernard Joseph S. @Eliott Elias

Thank you for the insight! I will definitely keep all of that in mind.

@John McKee

Thanks for your response! In terms of commercial properties I've mainly been looking at small multifamily (5-10 units), but also been analyzing a lot of fourplexes since they are a lot more common.

Eliott Elias · Answer

If you are surfing loopnet, you are looking at overpriced property. The good deals are sold off market.

John M. · Answer

loopnet is a great source. The thing with commercial is that you have to turn over every stone. what asset class are you looking for?

Bernard Joseph S. · Answer

I feel Crexi is in the same sinking boat.

Why is LoopNet known as "where deals go to die"?

Why is LoopNet known as "where deals go to die"?

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