Every GOOD Property i find it sells for WAY OVER ASKING

[Chris Toedter]

So I am ready to invest in real estate SUPER EXCITED, looking for a 3 family Plus. By the way I am from Northern New Jersey. SO I find a property I am interested the numbers work as listed using the tools I Bigger Pockets have provided and all the books I have ready and podcasts listened to. BUTTTTTTTT THENNNNNN for example the property is listed 350,000 for a 3 family its sells for 400,000 Plus..... THE NUMBERS DONT WORK I don't understand what people are doing this is happening weekly. My only option is find a home BEFORE it gets listed. THese people are idiots I see at the open house as well.

[Jason Timmerman]

@Chris Toedter Chris, it sounds like you are running into the same problems that a lot of us ran into when first breaking into the industry.  Certain things "don't make sense" to you so you immediately assume that things are not viable.  First, I would warrant a suggestion that you are looking into areas that are far too desirable.  If a home is listed for $350k and is selling for 130% or more of that listing price, than that property was either incredibly undervalued at listing or that property is part of a long term strategy.  By looking at market trends, some high level investors predict what the market will look like in five to ten years and make purchases on that basis.  If they spent $420k on that house they are expecting it to be worth around $600k in ten years based on appreciation alone.

Second, if you are new to the industry what are you doing looking at listed properties? There are numerous wholesalers and direct marketing strategies available to you. You should not waste your time on the MLS unless you really know what you are doing.

Third, distressed houses are king.  You don't want to look at a house without major issues.  A retail buyer who is planning on living in the property or house hacking the property will outbid you every single time on homes without much work needed.  It's worth far more to them than it is to you.