Find Your Gap, Not Your Crowd

Find Your Gap, Not Your Crowd

Kip AdkinsBusiness Member
Lender · Huntington Beach, CA · Member since 2018 · 17 posts · 6 votes

Most of us joined BiggerPockets for the same reason. We're high achievers, or we're working to become one. We read the forums, join mastermind groups, and surround ourselves with people who are further down the road, because that's how you get better.

Somewhere along the way, though, a lot of investors start using community differently. Instead of looking for the person who solved their problem, they look for people who share their problem. It feels good to read a thread full of people saying the same thing you've been saying. It doesn't move you forward one inch.

I see this every week from the lending side of the table. The investors who grow aren't the ones with perfect markets or perfect timing. They're the ones who can name exactly where their process breaks, and then go fix it.

Start with one honest question: Where am I right now?

Not where you want to be in five years. Not where the investor with 40 doors is. Where are you today, and what is the one thing that would make your next deal better than your last one?

For most investors, the answer falls into one of three places.

1. Your team. If you're newer, this is usually the gap. A deal needs a realtor who understands investors, a contractor who can bid accurately and finish on schedule, a lender who can close on your timeline, and an escrow or title company that doesn't let things stall. If one seat is empty or filled by the wrong person, every deal will feel harder than it should. Look at your last deal or the one that fell apart. Which seat was the weak link?

2. Finding the deal. You have the team, but your pipeline is thin. That's not a market problem; it's a sourcing problem. Are you relying on one channel? Are you following up consistently? Are you making offers, or just analyzing? Volume of activity usually fixes this faster than anything else.

3. Underwriting the deal. You're finding deals, but they aren't performing the way your spreadsheet said they would. Rehab runs over, the ARV comes in light, holding costs eat the margin. This is the most expensive gap to leave open. Tighten your comps, get real contractor bids before you commit, and stress-test your numbers with a longer timeline and a lower exit price than you expect.

Don't trade the question for a story

It's easy to fill in the blank with something outside your control: "rates are too high," "there's no inventory," "contractors are impossible right now." Every one of those may be true. None of them tells you what to do Monday morning.

Other investors are closing deals in the same market, with the same rates and the same contractor shortage. The difference isn't the conditions. It's that they found the specific part of their process that needed work and worked on it.

Use your network the right way

Your mastermind, your local meetup, and this forum are incredibly valuable, if you use them to close gaps. When you post, don't ask "is anyone else struggling with this?" Ask "who has solved this, and what did you change?" Seek out the investor who used to have your problem and doesn't anymore. That's the person worth learning from.

Your action step for this week

Write down the one gap that cost you the most on your last deal, or kept you from getting a deal at all. Then write down one specific step you'll take this week to close it. Interview a second contractor. Add a new lead source. Rebuild your rehab budget template. Call a lender before you need one.

Small, honest improvements, repeated deal after deal, are what separate the investors who grow from the ones who stay stuck in the same thread.

Find your gap. Fix your gap. Then find the next one.

What's the one gap you're working on right now? Drop it below; let's talk about what's worked.

— Kip Adkins, Diversified Financing Solutions

Diversified Financing Solutions54 Reviews
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Lender · Boynton Beach, FL · Member since 2026 · 182 posts · 73 votes
3d

This hit me. I'm in Boynton Beach / Delray — Monarch Lakes 33446 mostly. Lender but also buying.

My first gap was #1 — team. I had a deal $242k + $60k rehab, ARV $420k, rent $2100, DSCR 70% pulling $126k out — and my contractor bid was $45k then mid job said $68k. Almost killed my margin. I had to fire him and find a guy who actually bids with line items. Same with escrow — lost 11 days because title didn't pull the HOA estoppel early. That was my gap last quarter.

Fixed that, then gap became #2 — finding the deal. I was relying on MLS and wholesalers sending junk. Nothing. So I started tracking 200 out-of-state owners in one zip — Michigan/Ohio/NY owners 20+ years, Monarch Lakes townhouses. Mailed 40, texted 60. Got 1 under contract, 3 said maybe 6-12 months, rest said never selling. That list is now my pipeline. Before that I had no pipeline, now I have something to follow up on. Volume fixed it like you said.

Now my gap is #3 — underwriting. My spreadsheet said $420k ARV but low end comp is $395k. If I underwrite at $420k and appraiser gives $395k, my refi pull goes from $126k to $94k and my ROE gets crushed. Rehab runs over, holding costs eat margin — exactly what you wrote. So this week I'm tightening comps — pulling only 0.3 mile, 90 days, same floor plan, and getting contractor bid BEFORE I lock price, not after. And stress testing at $395k exit, not $420k.

What worked for me was writing down where I actually get stuck Monday morning, not just "rates are high." For me it was — I didn't have a follow up system for those 200 owners. Now I do — spreadsheet, last contact, next touch.

Thanks for this Kip — needed it today. My gap this week is underwriting that $242k deal at $395k not $420k to see if it still makes sense.

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  • Lender · Boynton Beach, FL · Member since 2026 · 182 posts · 73 votes
    3d

    This hit me. I'm in Boynton Beach / Delray — Monarch Lakes 33446 mostly. Lender but also buying.

    My first gap was #1 — team. I had a deal $242k + $60k rehab, ARV $420k, rent $2100, DSCR 70% pulling $126k out — and my contractor bid was $45k then mid job said $68k. Almost killed my margin. I had to fire him and find a guy who actually bids with line items. Same with escrow — lost 11 days because title didn't pull the HOA estoppel early. That was my gap last quarter.

    Fixed that, then gap became #2 — finding the deal. I was relying on MLS and wholesalers sending junk. Nothing. So I started tracking 200 out-of-state owners in one zip — Michigan/Ohio/NY owners 20+ years, Monarch Lakes townhouses. Mailed 40, texted 60. Got 1 under contract, 3 said maybe 6-12 months, rest said never selling. That list is now my pipeline. Before that I had no pipeline, now I have something to follow up on. Volume fixed it like you said.

    Now my gap is #3 — underwriting. My spreadsheet said $420k ARV but low end comp is $395k. If I underwrite at $420k and appraiser gives $395k, my refi pull goes from $126k to $94k and my ROE gets crushed. Rehab runs over, holding costs eat margin — exactly what you wrote. So this week I'm tightening comps — pulling only 0.3 mile, 90 days, same floor plan, and getting contractor bid BEFORE I lock price, not after. And stress testing at $395k exit, not $420k.

    What worked for me was writing down where I actually get stuck Monday morning, not just "rates are high." For me it was — I didn't have a follow up system for those 200 owners. Now I do — spreadsheet, last contact, next touch.

    Thanks for this Kip — needed it today. My gap this week is underwriting that $242k deal at $395k not $420k to see if it still makes sense.

    • Kip AdkinsBusiness Member
      OP
      Lender · Huntington Beach, CA · Member since 2018 · 17 posts · 6 votes
      3d

      @Muyees Ayilara While we always shoot for the full BRRRR, sometimes we end up with a little cash left in the deal, that's ok too if you are getting a decent cash on cash return on the rental. I recently added some of my rental portfolio to my Bigger Pockets profile, I struggled with the "cash in the deal question" because the upload would not accept "$0" in the deal, most of my rentals are full BRRRR's thanks to repositioning with Debt and imputed equity.

      what resource do you use to find the out of state owners? I personally like Property Radar and building automation with lists, although the data isn't always reliable

      Diversified Financing Solutions54 Reviews
    • Lender · Boynton Beach, FL · Member since 2026 · 182 posts · 73 votes
      2d

      Kip, appreciate that. You are right on the cash on cash piece. I was chasing full BRRRR on the Monarch Lakes deal, $242k plus $60k rehab, ARV $420k, rent $2,100, DSCR 70% pulling $126k out. On paper it was a full BRRRR. In real life, contractor bid $45k then $68k mid job, and title lost 11 days because the HOA estoppel was late. So I ended up leaving some cash in, and I am okay with that now if the cash on cash still works.

      On your question about out of state owners — I use PropStream for the list, then I verify in county records. PropStream alone is not reliable, you are right. It misses LLCs and the mailing addresses are old.

      My filter is: Palm Beach County, 20+ year ownership, absentee owner, mailing address in Michigan, Ohio, or New York, one zip at a time. That gave me 200 owners. Then I skip trace with PropStream and BatchLeads, and I cross check the top 40 by hand in the county property appraiser site to make sure the owner and mailing address are real before I mail or text.

      The list is only half of it. The follow up is the other half. I mail 40, text 60, then follow up on day 3, day 7, and day 14. Most of the replies came on the second or third touch, not the first. First touch I got 3 under contract out of 200. That list is now my pipeline.

      What are you using for your lists in Huntington Beach? I am curious if California data is cleaner than Florida, because Florida LLC data is messy.

    • Kip AdkinsBusiness Member
      OP
      Lender · Huntington Beach, CA · Member since 2018 · 17 posts · 6 votes
      2d

      I use Property Radar, I have about 77 search lists and it does update daily and send an email out to the contacts on record. I could probably get after it a little better but a steady flow of loans to originate, running the fund and other business lines take priority over the property searches for me. I think of it as a line that I leave in the stream, if I get a bite then i can reel it in. I need to tune this item up, but sadly I need more time the one precious resource I cannot produce more of.

      Diversified Financing Solutions54 Reviews
  • Real Estate Agent · Detroit, MI · Member since 2016 · 107 posts · 55 votes
    1d

    The gap that cost me most was the contractor-bid one, and it wasn't really about the contractor — it was about my scope. A bid is only as accurate as what it's bidding on. When my scope was a walkthrough and a rough list, the bids came back all over the map and the 'cheap' one just grew change orders until it wasn't cheap anymore.

    What closed that gap for me was doing the unglamorous work up front: a written, room-by-room scope before anyone prices anything, the same scope handed to every bidder so the numbers are comparable, and payment tied to phases with a sign-off before the next phase starts. The bids got tighter, the surprises mostly disappeared, and when a contractor's number is way under the others I can now see exactly which line he missed.

    Your point about naming the gap is the real one. 'Contractors are unreliable' isn't a gap you can fix. 'My scope isn't specific enough to bid against' is.

    • Kip AdkinsBusiness Member
      OP
      Lender · Huntington Beach, CA · Member since 2018 · 17 posts · 6 votes
      22h

      Did you get leverage? Reason I ask is most RTL lenders do a feasibility to make sure the bid is all encompassing and market cost for renovations, its a good back stop to this issue. Its another cost on the loan but often worth it and its how the draws are set up on the fix and flip loan as well. We work with Sitewire for our draws, easy self service for our borrowers.

      Diversified Financing Solutions54 Reviews
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