Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
There has been a number of posts regarding whether you find deals on the MLS. Let me give a perspective on this strategy. I have purchased the last 8 properties on the MLS with the BRRRR strategy. I can out bid the Fix N Flippers, because I am holding the properties and by adding value I can build equity into the projects. I use private funding, rehab the property, place a tenant in the property, refi with commercial loans and repeat the process. The key is knowing your market (expert) so you can run your numbers. Knowledge is the key.
Investor · Portsmouth, VA · Member since 2016 · 289 posts · 107 votes
9y
I am doing this also. I am almost done with the "rehab" phase of my first rental. Hoping to refinance soon. I found my property on the MLS. It had been listed for about 6 months last year, was taken off the market, then relisted this year. @Kenneth Garrett How long did you have to hold you properties until the re-finance? Most banks are telling me 12 months. I found a guy that says they'll do 6 months. Have you refinanced any sooner than 6 months? What kind of "commercial loans" are you using? Do you have to have the titled vested as an LLC to use a commercial loan?
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Kenneth Garrett I just found a property for sale around the corner for my house has a travel trailer on it and they are asking 60k. I figured offer half cash and sell that trailer and build a house or little 2 unit apartment?
Real Estate Agent · Summerville, SC · Member since 2016 · 16 posts · 2 votes
9y
with the commercial loan, are the terms a 10 year balloon payment or 30 year fixed? and also you said you have a criteria for Zillow that alerts you, what's your criteria?
Rental Property Investor · Miami, FL · Member since 2016 · 72 posts · 26 votes
9y
Thanks @Kenneth Garrett, great advice! My current struggle is defining which market. Being abroad puts all the markets on the same level in terms of accessibility. I guess with that being said, I should start figuring out which markets work for my strategy and which don't. Then, hopefully, find some boots on the ground I can trust in this market.
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9y
Deciding on a market is difficult sometimes especially when your out of the country. Keep your ears open. There is a lot of conversation on BP about markets. Analyze a few and decide. It does depend on your strategy. We all have a different twist on our strategy, that's what makes this industry so exciting. Your risk tolerance will be different then the next person. You have to find your niche.
The question for newer investor is always "is this a good deal?" Fearing a mistake is coming. Educate yourself, find a mentor and make offers.
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Kenneth Garrett I just returned home from looking at a set of properties and man they were best! The last one was the worst the house was completely falling apart everything was wasted boarded up windows. It's on 2 acres good size lot but the listing price is 200k. Even if the house was gone witch it is LOL that's 100k a acre. Are these people crazy??? Lol
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9y
The market has gone a little nuts. You have to really be careful when buying so you are not overpaying for property. I tend to look for properties that have been on the market for awhile or have been reactivated. Sellers seem to be more negotiable.
First rule of thumb: It does not matter what some one is asking for to sell there property. List price is meaningless. The only important factor is what you can buy it for. Run your analysis and then determine what the price you are willing to pay. Do not overpay for property. If the numbers work based on your criteria then it's a go. If it means that you are on hold till winter time when prices start to fall then wait it out. Don't get into a bad deal. When fall hits sellers start to get nervous about holding property through the winter that is when the bargains can be presented.
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9y
So the market has gone a little crazy. The MLS deals are definitely harder to find. What I have found is that the triplexes and four-plexes are easier to find. Really crunch your numbers and make sure its a good deal for you. Just bought a four-plex; will cash flow about $250 a door.
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Kenneth Garrett I been looking at more properties and you are correct the market is a little crazy Southern California especially they think the land is gold haha. But you said it's what works for us. I am seeing auction.com opening bid 150k on 300k property or so. So I might go that route to!
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
9y
It used to be easy for us where we are (Kansas City), but it's gotten a lot harder as the market has heated up. There are still BRRRR-quality deals out there on the MLS, but they are fewer and further between.
In the last market I was in (Eugene, OR) there was basically nothing on the MLS that would qualify. So, as usual in real estate, in a lot of ways, it depends on the location.
Irvine, CA · Member since 2016 · 545 posts · 614 votes
9y
@Robin Boyer I used the same strategy as @Kenneth Garrett There are deals to be found depending on the MLS, take a look at my post on appraisal valuations from today regarding a Freddie Mac property I acquired, I also look for the Freddie Mac, Fannie Mae, and HUD Homestore properties. I get them as owner occupant properties before they get bided up by the investor pool, I live in the underpriced properties for the required one year period then I have a market value property with equity and rent it out, then go onto the next one.
I don't do flips so this is the best strategy for me as a buy and hold investor.
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9y
MLS deal - 2 unit northwest of Chicago - close next week. Cash flow about $400. Its not a homeroom but it is solid. Keep looking especially at this time of year. If you watch the listings they are starting to have a lot of price reductions. In my area as winter nears prices start to drop as sellers recognize the holding costs of hanging on to properties over the winter is costly.
Keep looking and when the price reduction meets your criteria you need to jump on it.