Tough to find deals right now?

Wholesaling
10yFollow

Tough to find deals right now?

Philip Klinck
Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes

I have done more marketing than I have ever done recently and gotten no deals. Is it tough finding deals right now for anyone else? I know exactly who to whole-sell to and have about 140k to buy with myself. But, I am either coming across ridiculously high priced stuff and many less calls than usual per the amount of marketing done. 

0Reply
136 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y

@Philip Klinck  real estate cycles its never the same..

the melt down create unprecedented buying opportunities that many who were new to the industry took as normal... and now when markets correct and normalize they look at things as tough or too high priced etc.. when in fact this is what most investors who own property want to see.. Strengthening of values.. and assets that are well sought after.. No one invests in RE.. for the purpose of assets declining in  value or illiquid or very hard to sell.. ( expect those that play in the war zones)

So if you really think about it.. BP came on line at or about the crash... Real estate investing techniques became the fodder on Webinars  pitchmen , BP  postings and other on line communities ergo taking a very large swath of folks that in previous decades would have never considered RE as a way to make money.  So you have an inordinate amount of people try to get into the business based on these free online pump and dump sites and communities..

So the competition for deals gets crazy by all the first timers that will flame out and never do a deal but that does not make it better for those that do it for a living your constantly competing against someone with a 2k limit on their credit card and can hang on sites like this to get just enough knowledge to try to become a RE investor..

so in essence the market the interenet the desire to make a bunch of money because there is some illusion that RE is the way to rich's and lying on the beach.. has created the hordes all doing the same thing.

We see this is the courthouse steps buying activity on the West coast every Tom Dick and Harry that can scrap up 200 to 300k in cash ( and there are Many) decide they want to buy foreclosures.. they show up to auction run properties up to a value that makes 0 sense buy it.. and never come back because they lost money or what have you.. and right when you think you got rid of those folks 5 more replace them... same thing is happening when your in the wholesaling business or distressed asset business. BP is pumping out your competition at a rate that exceeds the deals.. LOL. 

at least that's the way I see it.

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
7Reply
See this reply in the discussion

31 Replies

Jump to latestLatest
  • Jake Thomas
    Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
    10y

    It comes in waves, for 4 months we didn't find anything, then all of a sudden we have come across 4 good deals in the last 30 days and I am trying to figure out how to buy all of them. It's odd how it works but it works. 

    Keep plugging away and they will come. 

    3Reply
  • David Tankersley
    Wholesaler · Anaheim, CA · Member since 2014 · 64 posts · 16 votes
    10y

    Where are you marketing to?

    How many sellers are you mailing to?

    Like Jake, I agree that these things come in waves, but I also believe that volume is a key factor. 

    If you have increased your marketing, I am curious by how much and how much time have you given this?

    0Reply
  • Chris Boyd
    Realtor · Fort Lauderdale, FL · Member since 2016 · 271 posts · 144 votes
    10y

    I have a buddy of mine in the Greenville area, and he just received over 200 calls on a 1800 mailing. Keep working and it will come.

    2Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y

    So I just dropped 2500 but I am not so sure they all hit yet as my house was seeded in the list and it has not come yet. I have put out 3X the road signs I have done in the past where I got a deal. And I did a fairly extensive facebook campaign getting many leads that may lead to something but nothing yet. This is the first month I have done all that. Before I just put 30 or so signs out and picked up some leads.

    0Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y
    Originally posted by @Chris Boyd:

    I have a buddy of mine in the Greenville area, and he just received over 200 calls on a 1800 mailing. Keep working and it will come.

     Also, I have gotten many calls. Just no deals. Prices are all too high or not a deal for other reasons. Seems like prices are up. Not sure if its just me or overall. But, 6 months ago deals seem to be harder to find. Everyone I make offers to and follow up on have sold for higher than my offer. I dont think I am offering too low...I think others are paying too much. Just had a Than Merrill conference go through town so maybe a lot of novice competition right now?

    2Reply
  • Chris Boyd
    Realtor · Fort Lauderdale, FL · Member since 2016 · 271 posts · 144 votes
    10y

    Your effort is definitely there. It's coming. Just be ready when it does! All the best!

    1Reply
  • David Tankersley
    Wholesaler · Anaheim, CA · Member since 2014 · 64 posts · 16 votes
    10y

    This is your first mailing campaign? 

    The best advice is always to keep marketing and be patient.

    0Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y

    I have done mail with my other businesses, restaurant and B2B sales, and the results differ greatly. 

    I was just trying to get a gauge of how everyone else was viewing the market right now.

    0Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y
    Originally posted by @David Tankersley:

    This is your first mailing campaign? 

    The best advice is always to keep marketing and be patient.

     No doubt. I am going to do 2500/month from here on out. Facebook seemed ok but lots of disappearing owners. Not sure if thats a coincidence or a facebook thing. But, the road signs seem to be bad now. County and city are on top of picking them up. Also, Id rather just market passively with mail/fb/whatever if I can do enough to stay busy. 

    0Reply
  • Corey Woodruff
    Saginaw, MI · Member since 2016 · 161 posts · 67 votes
    10y

    I wish i could remember the podcast I think it was with Serge but he says in a hot market that to find deals you need to do things that others arent doing. Like going on craigslist and calling ads that are for rent and asking them if they are interested in selling there homes. They may have it up for rent because they just evicted someone. listen to the podcast with serge and its named investing in real estate in a hot market i believe. hope this helped!

    good luck

    3Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y

    The question almost is...should you by in a hot market?

    1Reply
  • Manny Cirino
    Real Estate Agent · Winter haven, FL · Member since 2011 · 572 posts · 336 votes
    10y

    @Philip Klinck  @Corey Woodruff What is the method you are using to make your offers? The market is shifting faster than you can blink. I was discussing this with someone recently and like I said to them this is a sellers market we are at the crossroad were buyers market meets sellers market. Many lenders are loosening up a bit which is making it easier to purchase and days on market is being to shrink, prices are being bid up severely.

    Corey is right, I think it is time for all wholesalers to start getting comfortable with the higher prices then you are use to seeing and start looking for leads in new places. One thing you coaches and gurus never tell you is that sellers are not stupid they know when they are in a hot market and why should they give you the deal vs selling with a realtor? What do you have to offer?

    2Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y

    40-50X rent for cheap rentals in badish areas.  Flips are 70% of arv -repairs.

    0Reply
  • Edgar U.
    Real Estate Agent · VA · Member since 2008 · 420 posts · 175 votes
    10y

    @Philip Klinck yeah last month was kinda tough :( so far this month I have gone on a few seller appointments and some are going to start singing contracts to wholesale. We started being more creative anyone in our team with a car and a notepad that sees a house for sale sign and looks like a shack, we write numbers down, or any for rent signs (basic real estate alway's beats newer real estate, you GOTTA WANT IT)

    Also, keep in mind that South Florida market is hotter and we have bubble that will be popping soon.

    2Reply
  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y

    don't be a one trick pony

    Use sub2s, lease option assignment, JVs w sellers in minor remodels in addition to wholesaling 

    Make money every month

    April thru August is the time to crank it

    4Reply
  • Mike Waltman
    Investor · Juno Beach, FL · Member since 2015 · 66 posts · 21 votes
    10y

    @Philip Klinck What are you mailing? Yellow letters? Postcards?

    0Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y
    Originally posted by @Brian Gibbons:

    don't be a one trick pony

    Use sub2s, lease option assignment, JVs w sellers in minor remodels in addition to wholesaling 

    Make money every month

    April thru August is the time to crank it

     I am targeting sub2, cheap rentals, wholesale, 1031 exchanges, mortgages, anything I can get. Just getting less calls about selling and more about people trying to rent stuff, buy from me, other wholesalers, buyers, etc. 

    0Reply
  • Philip Klinck
    OP
    Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
    10y
    Originally posted by @Mike Waltman:

    @Philip Klinck What are you mailing? Yellow letters? Postcards?

    I did an eddm for an area I wanted to move to actually. Sub2 or purchase was my focus. I probably could have gotten better results going after a list of expired listings or whatever. I just wanted something in this area specifically. Ill do a list next time.

    0Reply
  • Martha Blumel
    West Palm Beach, FL · Member since 2015 · 85 posts · 4 votes
    10y
    Originally posted by @Brian Gibbons:

    don't be a one trick pony

    Use sub2s, lease option assignment, JVs w sellers in minor remodels in addition to wholesaling 

    Make money every month

    April thru August is the time to crank it

    Brian, would you mind telling me more about any experience you've had with JVs with sellers. I am interested in seeing if this is an option that may work on a property I am currently looking at. Thanks!

    0Reply
  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y

    PM me the details @Martha Blumel :)

    0Reply
  • Steve S.
    Lender · Los Angeles, CA · Member since 2015 · 800 posts · 229 votes
    10y

    I have tons of people looking in Southern California right now. The deals are very hard to find and the margins are low. It seems to be the ongoing trend right now. Not seeing a lot of appreciation in my opinion.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Philip Klinck  real estate cycles its never the same..

    the melt down create unprecedented buying opportunities that many who were new to the industry took as normal... and now when markets correct and normalize they look at things as tough or too high priced etc.. when in fact this is what most investors who own property want to see.. Strengthening of values.. and assets that are well sought after.. No one invests in RE.. for the purpose of assets declining in  value or illiquid or very hard to sell.. ( expect those that play in the war zones)

    So if you really think about it.. BP came on line at or about the crash... Real estate investing techniques became the fodder on Webinars  pitchmen , BP  postings and other on line communities ergo taking a very large swath of folks that in previous decades would have never considered RE as a way to make money.  So you have an inordinate amount of people try to get into the business based on these free online pump and dump sites and communities..

    So the competition for deals gets crazy by all the first timers that will flame out and never do a deal but that does not make it better for those that do it for a living your constantly competing against someone with a 2k limit on their credit card and can hang on sites like this to get just enough knowledge to try to become a RE investor..

    so in essence the market the interenet the desire to make a bunch of money because there is some illusion that RE is the way to rich's and lying on the beach.. has created the hordes all doing the same thing.

    We see this is the courthouse steps buying activity on the West coast every Tom Dick and Harry that can scrap up 200 to 300k in cash ( and there are Many) decide they want to buy foreclosures.. they show up to auction run properties up to a value that makes 0 sense buy it.. and never come back because they lost money or what have you.. and right when you think you got rid of those folks 5 more replace them... same thing is happening when your in the wholesaling business or distressed asset business. BP is pumping out your competition at a rate that exceeds the deals.. LOL. 

    at least that's the way I see it.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    7Reply
  • Ryan Dossey
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    10y

    I'm active in the Greenville market with a business partner. We dropped 4k pieces of mail over the last 6 weeks. We have one deal headed to closing, and 2 or 3 others we're working. I'm in several markets and Greenville has had some of the lower response rates that I've seen.

    0Reply
  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Philip Klinck  real estate cycles its never the same..

    the melt down create unprecedented buying opportunities that many who were new to the industry took as normal... and now when markets correct and normalize they look at things as tough or too high priced etc.. when in fact this is what most investors who own property want to see.. Strengthening of values.. and assets that are well sought after.. No one invests in RE.. for the purpose of assets declining in  value or illiquid or very hard to sell.. ( expect those that play in the war zones)

    So if you really think about it.. BP came on line at or about the crash... Real estate investing techniques became the fodder on Webinars  pitchmen , BP  postings and other on line communities ergo taking a very large swath of folks that in previous decades would have never considered RE as a way to make money.  So you have an inordinate amount of people try to get into the business based on these free online pump and dump sites and communities..

    So the competition for deals gets crazy by all the first timers that will flame out and never do a deal but that does not make it better for those that do it for a living your constantly competing against someone with a 2k limit on their credit card and can hang on sites like this to get just enough knowledge to try to become a RE investor..

    so in essence the market the interenet the desire to make a bunch of money because there is some illusion that RE is the way to rich's and lying on the beach.. has created the hordes all doing the same thing.

    We see this is the courthouse steps buying activity on the West coast every Tom Dick and Harry that can scrap up 200 to 300k in cash ( and there are Many) decide they want to buy foreclosures.. they show up to auction run properties up to a value that makes 0 sense buy it.. and never come back because they lost money or what have you.. and right when you think you got rid of those folks 5 more replace them... same thing is happening when your in the wholesaling business or distressed asset business. BP is pumping out your competition at a rate that exceeds the deals.. LOL. 

    at least that's the way I see it.

     LOL Jay well said.

    Hope all is well

    Alex

    0Reply
  • Chad U.
    Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    10y

    @Jay Hinrichs

    I second Alex's statement above, well said. 

    What ticks me off the most is all the guru programs out there teaching people "how to wholesale bank owned properties". Essentially what these guys are doing is creating an army of wannabe investors who have no clue what they are doing. The guru's teach their students to put ridiculous offers on properties, whether from MLS, auctions, etc with no intention of actually closing themselves. The student then turns around and gives the offer to the guru who then sends it out to his "cash buyer's list" and they split the profit. The guru generally puts up the transactional funding for the double close.

    Several times a week I get the emails from these guru wholesalers that have the same properties where I put an offer on, and usually MUCH higher than makes sense.  I don't know how these guys who are artificially inflating the markets are allowed to continue this practice - they should be shut down. 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free