Where do YOUR best deals come from?

Question

Where do the majority of your deals come from?

About me briefly.  I'm a long distance investor.  I've done 5 deals, 4 off of the MLS.  The other deal, the only off market, certainly hasn't been my best.  I, like many, are limited by deal flow.

I'm a big believer that one's net worth is measured (in part) by their net work.  I'm really considering doing mailers, but I really don't want to.  I've listened to over 200 BP podcasts, read "Finding and Funding Great Deals" and a slew of other books.  I'd rather add others to my net work than sending mailers.

So who are the best members of your net work?  I follow any/all wholesalers, but to date don't have any luck.  I diligently watch the paper, craigslist, and the auction platforms.

So who are the best members of your net work?  I'm considering reaching out to probate and divorce attorneys, explaining what I'm looking for and showing them examples of previous projects.  Beyond that, I'm back to mailers.

Thoughts?

Ehsan Rishat · Answer

@Todd Primmer we use a mix of wholesale and fix and flips to exit.

Todd Primmer · Answer

@Ehsan Rishat What exit strategy are you using with the above list?

Ehsan Rishat · Answer

@Pat Jackson I get my deals mainly from ListSource and some from driving for dollars.

These are the metrics I stick to with ListSource:

Owner Equity - 30% or more

Age of Occupant - 45+

Years Owned - 5+ years

Property Type - 1-4 units

Exclude Corporate Owned

Exclude Trust Owned

Ownership Type - Absentee. If not enough records in Absentee add, Homeowners

I usually target my leads with a strategically structured direct mail campaign. I'll stick to the same list for almost 6 months to a year until a majority of the listings have responded or had asked me to stop reaching out to them. Networking is definitely super important, especially for wholesalers. I have made a lot of acquaintances at my local REIA meetings who came back to me with deals.

Hope I was helpful.

Good Luck!

Ryan Mullin · Answer

My best deals lately (Last quarter of 2018 and 2019) have all come from foreclosure auction.  The problem with wholesalers and mailers is how competitive its become.  The model that a lot of the bigger wholesalers are using is spending 10k or more on mailers...   once they actually get a lead willing to sell they are already in a multiple offer situation because the seller has 10 other mailers that they are calling.  So once a wholesaler gets a deal they need a 10 - 15k mark up (on a 30 - 60k property) to cover marketing costs and eat...    my other gripe with wholesalers, in general, is they have absolutely no loyalty to there buyer "clients".   Someone on there list is always willing to pay more than me...   even though that person might not be around in 5 years.

Unfortunately MLS is slim pickens right now.  I was surviving off of MLS deals for all of 2017 and most of 2018.  Not anymore...   but hopefully that will change in 6 - 9 months.  I think there is inventory coming.  We will see.

Brian Mcmenamin · Answer

@Pat Jackson I have had great success reaching out to listing agents. They have let me know of properties that are going to be coming to market and if i'd like to get a pre-market offer in. I haven't had great success with wholesalers. Best of Luck