How can I find the first deal to get started in investing?

Question

Hello biggerpockets members, I am a newbie at this whole real estate investing thing and I keep getting that awful feeling like I am wasting my time on Zillow/realtor/Trulia etc. I feel like finding that "Amazing deal" to get me started will never be found. So to make this short, my questions are...

"HOW OFTEN DO INVESTORS FIND DEALS ON THESE WEBSITES (IF EVER)?"

"WHAT OTHER FORMS OF HOUSE HUNTING CAN I DO TO ACTUALLY FIND THAT PERFECT DEAL?" (currently located in northern Los Angeles)

Im getting the feeling like what I am doing is either the lazy way or the stupid way of hunting. Maybe its both. HELP!

I am currently reading "rich dad poor dad" and "the ultimate beginners guide to real estate investing". (about 1/4 the way through both) Im hoping to find some answers in here to my concerns but i haven't quite hit them yet.

So I thought I would ask...

Brian Ellis · Answer

You may never find the "perfect" deal. But you can make a deal perfect. I found my first home on Zillow, it wasn't a good deal until I made it one. It was a borderline tear down, in a really nice neighborhood. I knew It was listed way too high, but I used this to my advantage given the shape it was in. It gave me time because no one else was interested @ the listed price.I made an offer 10k less then asking, it was accepted. THATS when I had to do all the work. I had the inspection, and contractor friends come over and give me estimates on ALL the work that was needed. I provided this information to the seller and was able to talk them down another 50k after a month of negotiating. So what seemed like a terrible deal, turned out to be a good one. So, my answer is, you have the ability to find and make a good deal. Just be creative and do your research.

David Michael · Answer

Scott Krogstad Welcome to BiggerPockets!!! To answer your questions there is several routes / strategies to get deals. I will give you both sides:as an agent and developer. First. Find an agent with investing experience mls is one of the best ways to find a deal Second. Foreclosure. This requires a lot of due diligence and understanding of all scenarios as well as a heavy heart. Third. To give you an idea of how Zillow works. It take information from the mls which as I mentioned is the first strategy to find a deal. Be patient. Understand your market. The best deal is the one that works for YOUR numbers. If you have any questions let me know !

Nathan Gesner · Answer

Join a local investors group and find a mentorFind a real estate agent that is also an investor, that can understand what you are looking for and help you find it. You need to find deals before they hit the publicDrive for dollars. Find a community you want to invest in and look for homes that are rentals and poorly maintained. Track down the Landlords and make them on offer.When you find something, ignore the list price or market price (sort of). Determine what price would make it work for you and then offer that. Stick to your numbers.Your question is pretty general and there are a thousand different answers. Do some research on the boards and you'll find plenty of ideas.

Anthony Dooley · Answer

@Scott Krogstad the asking price on a listing is not the price they will take. 95% of the sellers want to sell. You need to find the 5% that are desperate to sell. Post an ad on your local yard sale/ For Sale page that simply says, " I have cash and I want to buy a house As Is." Or something similar. You will get off market traffic.

Brian Ellis · Answer

@Scott Krogstad Exactly, put yourself in a position for the best opportunity. You cant sit back and wait for a deal to come to you (my opinion). I feel like that's how people end up settling for less. If you are really interested in investing in property, try to take your own advice. GET THAT AWESOME DEAL! Because that will slingshot you forward like you mentioned. But you need to work for it, and I think you are already doing just that.

Scott Krogstad · Answer

Brian, Super awesome advice! Negotiating is something that kind of scares me, but I feel like I’m gonna have to get used to it to “make” a deal once I find the opportunity. Im still kinda in a dreamland thinking that the deal will magically appear. Nathan, Those all are amazing ideas on how to get access to deals before they hit the public, definitely going to find a well seasoned realtor who is investor friendly and start being active in finding deals. David, Thank you for reminding me that investing is gonna take some patience and that I need to make the deal work for me. “Be patent. Understand your market. The best deal is the one that works for your numbers.” Definitely going to remember this. Thank you for keeping it simple and straight to the point. YOU GUYS ARE ALL AWESOME! THANK YOU FOR YOUR ADVICE! IT HAS ALREADY MOTIVATED ME TO TAKE THE NEXT STEP!