Where are the properties?

Question

So where are all the properties?  I know the good deals are going to be hard to find, and I am ready and willing to do the work.  What are some ideas for efficient and effective ways to locate potential rental properties.  Is there a good book/website/previous post with good info?

Garrick Solberg · Answer

It's funny because I have been posting an ad on Craig's list looking for a realtor that specializes in investment property.  I have yet to get one response, lol.

Joshua Dorkin · Answer

Tom - 
There have been dozens of posts on the site that answer your question.  I suggest you use the site's search function to better help you find what you are looking for.  In addition, read through the various forum categories.  You can dig through posts for quite a few years on the subject.

I'm sorry that I'm not directly answering your question, but if you put a few minutes in, you'll find the answer yourself.

Good luck and welcome to the site!

Jeffrey Johnson · Answer

I am from the Minneapolis area and am interested in getting started in REI.  I am still in the learning stage (I doubt that stage will ever end) and don't know much about the market except for maybe my direct area, which is out of the city a bit.  But I would be interested at some point in talking with you about this.

Scott Ficek · Answer

That sounds great.  Even after 5 years and almost 30 units, I am learning new things all the time!  I will drop you a PM with my cell number and email (if I post it here, the spammers will find it!).

N/A N/A · Answer

Thank you all for your replies.  I tried to the search function with no success, perhaps I will keep plugging away with more creative search terms.  MikeOH - I am a big fan of your thoughts and agree with your convictions.  I am hoping to eventually move into REI full time, so it is especially critical that I find good deals, secure appropriate financing, and manage my units efficiently to ensure long-term success.  I am not looking for a hobby that might make me some money.  Thanks again everyone!

Scott Ficek · Answer

It is somewhat strange.  On the one hand, we had this big disaster and we have just about every news organization in the country here.  On the other, most people are just going about their regular business like nothing is going on.

I live about 2 miles from that bridge and go across it about 4-5 times per week to get to my properties on the other side of the river.  It is the main artery though Minnneapolis.  It is scary to think that it could have been me or anyone I know/loved that could have been on it.

Give me a shout when you get to Minneapolis and let's get a cup of coffee.  I would enjoy hearing about what you are looking to do.

Garrick Solberg · Answer

Well, I might be moving back to Minneapolis in the coming year, so I'll be sure to look you up if I do.  How are things in the city right now post-bridge collapse?

Michael Rossi · Answer

Tom,

There are many sources of great deals.  As the others said, realtors can be a good source of deals if you explain your purchase criteria to them.  Personally, I look for DESPERATE sellers, because you MUST buy rentals at a big discount to market value if you want them to cash flow.  You will find a lot of good deals at your local REIA (Real Estate Investors Association).  Talk to other investors.  There is always a continuous turnover of new landlords who  didn't understand the business and are desperate to sell.  Most importantly, get out of the house and meet people.   Tell everyone you know that you are looking for properties to buy at a big discount.

Finally, be sure that you understand this business before you buy anything.  It is absolutely critical that you understand operating expenses, cash flow, and tenant issues before you buy anything.

Good Luck,

Mike

Scott Ficek · Answer

As the realtor, I have looked on Craigs list several times for anyone looking for a realtor and never seen anything.

Have you asked your mortgage broker who s/he would recommend?  I would even go onto Realtor.com and search for multi-family properties for sale in your area and see who the listing broker seems to be on many of them.  I also agree that your REIA is a good source to find a realtor or at least ask the other participants who they have use (or would not use!).

Scott Ficek · Answer

I have left a similar message tonight for a couple posts so I feel like a ad for professional realtors!  Even before I was a realtor, I started buying investment property.  That would have never happened if I did not have a realtor that I could trust.  Find one that specializes in investment properties.

Remember also, that in most states/situations, the realtors are paid by the sellers.  You are getting this person for free as the buyer.  Use them to teach you the ropes.