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Updated almost 6 years ago on . Most recent reply
Frustrated Newbie Conflicting Advice
New investor trying to get my feet wet but keep getting conflicting advice. Father is a real estate investor who has his own trusted team. In any case,I have been looking for deals in Texas and Florida since I live or travel between the two. However I am being told that if you see something on the MLS it's likely not a good deal, if a realtor tells you the place is a great market for rentals but there are over 200 rentals available they lied, market is over saturated. Also, I have a rental property that my father bought for me using cash and trying to figure out how to have money ready immediately for whatever deal I magically find or finds me (with above advice). Get a line of credit on it and use for a down payment? Or get a hard money loan? The "deals" I find the realtors tell me it's cash only. The more I read and talk to people the more frustrated and confused I get.
Most Popular Reply
#4 All Forums Contributor
- Plymouth, MI
That's because they all lied...or are operating under limited knowledge, based only on their own experience. If that squirrel someone ran over could still talk, based on what it's experience, it would tell all its squirrel friends, not to cross the street in front of the cars. Unfortunately....
On the other hand, there are many more squirrels that made it to safety...easily. Maybe the take away here for the squirrels isn't "not to cross the street", but to learn "how to cross the street correctly".
I'm thinking that applies to you and your knowledge (sources).
The MLS can be a great source for "deals"...if you know how to analyze the Markets they are in, and understand how money works where you can form "deals" for you, where others only see problems.
200 rentals, doesn't mean saturation. All it means is you have a very large sampling of rentals/history and this should help you get a more accurate analysis of the rental market in that area. This should help you find the specific location (micro-market) where buying rentals in a supposed "saturated area" can be highly profitable.