All Forum Posts by: Jay Scott

Thanks for the feedback.  I wasn't referring to Vegas specifically.  There is a deal I am looking at in Miami.  But after doing some research, I see that Short Sales haven't really made a comeback yet.  

Hey all, quick question.....what is the latest on Short Sales?  Meaning are they a viable option right now?  I began investing in 2003, and did a ton of short sales in Vegas during the "depression", but have not done any in years.  I ask, because I might have a strong candidate for one in Miami.  Feedback is appreciated!

Hey Qusai, congrats on entering the business! To answer your question, there are several ways to find deals. The whole focus should be to find off market deals. I only spend about 10% of my time checking out MLS deals. Once in a while, you'll find a decent deal on the MLS, but it is rare. With that said, a lot of people gave some good ideas on how to find those off market deals. For me, the most effective method has been good ol' fashion networking. Both in person and online. For example, one of my contacts is a bankruptcy attorney who comes across interesting deals all the time in the course of his work. I have established myself with him as a serious investor, so guess who gets the leads on the deals? That is just one example. The other keys is using multiple methods to find properties. Always better to fish with a net instead of one line. Good luck!

Hey Nir,

I would cut my losses, and fight another day.  First, I never invest in Real Estate for appreciation.  I buy it for what I can make now, and if it appreciates over time, that is a bonus.  Second, it is likely going to take a while to recover your $30K if you stayed with the property.  To be blunt, there are better deals out there with better cash flow numbers.  And as one of my mentors used to say, don't keep throwing good money after bad.  

I agree, wholesalers are another good source. I do a little wholesaling myself. The main thing I would say about wholesalers is this; make sure you verify all information given about the property. Do not assume their information is accurate! More times than not, I have found that the wholesaler's ARV is higher, and their rehab estimate is lower than the real numbers. Not saying they're lying (although many have), I am just saying ALWAYS do your own diligence!

 Hey Pedro, great question, and you're right down the street from me.  I live in Fort Lauderdale, and my office is in Hollywood.  To answer your question....I am a bit "old school".  I network, network, network.  Always looking for referral partners.  I attend networking events, and not just real estate events.  Any kind of business events.  I also join various real estate and business groups on social media.  And the obvious one, I network here on bigger pockets.  

Oh sure, like I said, I do spend about 10% of my time using the MLS searching for those "diamonds in the rough". Also, there is a way to take an average deal on the MLS, and make it a great deal. I just don't spend too much time on that.

Got going on an off market deal in Arizona.  How did we get it?  Through our Real Estate Attorney.  One of his clients needs to "get rid" of his house.  Spoke to the owner yesterday.  He's flexible and open to just about anything.  

Purchase and "all in"....$1.9 MM

ARV....$2.7 - $3 MM

Already have the capital lined up. 100% will be covered. And the private lender will get a VERY nice ROI.

"Why hasn't he sold himself?"  Great question.  Long story.  Short answer is he has to sell by next Friday.  Other "buyers" tried, but failed.  So it is up to us now.  

The best deals have been, and always will be off market deals. Yes, once in a while, you can find a "diamond in the rough" on the MLS, which is why I spend maybe 10% of my time finding deals on that. The other 90% is on other methods to find them off market. Giddyup!

One of my favorite parts of the business is the ability to be creative.  Just finalized a raise of about $3MM in capital through a Private Lender, who also happens to be one of the partners at the Lending Firm I work at,  and the terms that we negotiated are an absolute win - win.   The basics are:  

1.  Lender gets 10% annualized as a base

2. Lender gets 1% of purchase when I sell the property on wholesale deals. In other words, on the back end. About once per quarter, I will cherry pick a nice fix and flip, and will pay the lender 25% of the net profit when I sell. At the end of the day, the Private Lender is making nice ROI on his money, and I am making profits with ZERO out of pocket. Win win!

What's my point?  The point is when dealing with Private Lenders, you can be as creative as you and the other party agree to!  

 I agree Philip.  Thanks!