Tough to find deals right now?

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.

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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.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Chad U. the craziness comes from all angles.. be it guru.. pump and dump guru's, semi guru';s with all their webinars and nothing behind them. .BP and all the talk that goes on here from those touting wholesaling etc.. its from all angles.....
Just look at all the BP post
" I have a deal what now" I have no money but I got a deal what now" and these are just the one's that have the balls to post just think of the thousands of BP ites that do this and won't post.
its wild these days frankly.. never seen anything like it.
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Nadine Lajoie
Investor · Long Beach, CA · Member since 2015 · 201 posts · 29 votes
10y
Yes it is harder and harder. Keep pushing, marketinf, searching, being creatI've with lease-option, sub2, etc... or look at another city or other State????
In South Carolina, I'm surprised??? Long time i didn't analize this market though.... In California, I can relate...when you find one that cash-flow as a buy and hold you are happy. I found one in 3 months!!! Looking for my next one already as soon as this one is sold to B&H buyer or end buyer. Hope it will not take another 3
@Philip Klink, do I understand you said 40-50 times the gross rents.. this is ridiculous... people are out of their mind???? 10-12x, maybe up to 16x in hot market like California, but never more than that...
Number numbers numbers! Need to make sense and give some ROI, even if not so much, with the depreciation, amortization, appreciation and cash-flow, you know that a break even ROI can get you 45.73% ROI... so be sure you analyze every aspects of a deal.
Please let me know if need some help.
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Steve S.
Lender · Los Angeles, CA · Member since 2015 · 800 posts · 229 votes
10y
@Jay Hinrichs Don't forget the onslaught of HGTV shows. Those came online right around 2007 or so and have been uber popular ever since. Everyone sees people making money and that too has fueled the fire. It's crazy out there.
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Melissa Nash
Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
10y
@Philip Klinck are you looking for flips or buy and holds? What states are you looking in?
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Philip Klinck
OP
Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
10y
Are you saying you are buying rentals that rent for $500/month for $7000?

For me a rental that is renting for $500 can be purchased for $20k in a bad area or $25-30 in a little better area.

Originally posted by s@Nadine Lajoie
Yes it is harder and harder. Keep pushing, marketinf, searching, being creatI've with lease-option, sub2, etc... or look at another city or other State????
In South Carolina, I'm surprised??? Long time i didn't analize this market though.... In California, I can relate...when you find one that cash-flow as a buy and hold you are happy. I found one in 3 months!!! Looking for my next one already as soon as this one is sold to B&H buyer or end buyer. Hope it will not take another 3
@Philip Klink, do I understand you said 40-50 times the gross rents.. this is ridiculous... people are out of their mind???? 10-12x, maybe up to 16x in hot market like California, but never more than that...
Number numbers numbers! Need to make sense and give some ROI, even if not so much, with the depreciation, amortization, appreciation and cash-flow, you know that a break even ROI can get you 45.73% ROI... so be sure you analyze every aspects of a deal.
Please let me know if need some help.
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Philip Klinck
OP
Specialist · Greenville, SC · Member since 2011 · 83 posts · 41 votes
10y
Originally posted by @Melissa Nash:

@Philip Klinck are you looking for flips or buy and holds? What states are you looking in?
All. I will buy anything in any area if its a good enough deal.
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