Where do you guys find properties listings?

Question

Where do people on BP find properties to buy? Realtors with established connection, Realtor.com, Loopnet??

Michael Woodward · Answer

You touched a subject that makes some investors immediately clam up because they don't want to give away their best secrets. Finding leads is probably the most important (and difficult) part of an investment deal.  In my opinion, there are more than enough deals for us all so I don't mind to share what I know.

One precursor.....to get the best deals you really need to be prepared to offer cash for the property. If you aren't prepared for it another investor probably will be and will get it first.

Here's a list of where I look:

- www.realtor.com

This is my number one source.  You have to act quick but I've bought nearly all my deals this way.  Sometimes foreclosures are listed from out-of-town Realtors which means that they show up on realtor.com BEFORE the local Realtors know anything about it.  I put a house under contract a couple years ago from an out-of-town Realtor. Two days later, my local Realtor called me to tell me about this awesome deal they found. I had to laugh.  It was eye-opening to see how far ahead of the Realtors I was using this method.

- www.homepath.com

This is where you'll find (most of) the government foreclosure listings.  I always call the Realtor that has the listing and let them know that I want to make an offer the property the instant that the owner-buyer waiting period is over.  If you call the Realtor direct instead of getting another Realtor to call them, they'll work much harder for you to get the house so they can keep the whole commission.

- Your local MLS

Our local MLS has a "public" section that allows anyone to search all the current MLS listings. It doesn't have all the features that the Realtors system has but it's a complete list.

- Other investors

Call the people in your area that advertise "WE BUY HOUSES" and ask them if they have any deals they want to flip/wholesale to you.

- Area "farming"

Many local areas have their public records posted online.  You can literally look up everything you need to know about each property from your computer at home.  You just need to decide what criteria you're looking for and start mining for data.  Or you can use the shotgun approach and just send out mailers to everyone in the area you're "farming" and offer to buy their house. Most won't but some will!

Good Luck!

Kevin Kaczmarek · Answer

get your feet wet by looking at the properties that are for rent on your local craigslist. Give the owner a call and see if they would be interested in selling their property. You are calling them at the point in time where their property is not cash flowing and most likely open to selling, and potentially at a good price. Don't just jump at the first deal, as you will find there are potentially quite a few owners that will be interested in selling, and you want to learn your market just as badly as you want to buy a property. This is how you buy right!

Lisa Phillips · Answer

Since I buy low priced (but quality) investment properties in working class neighborhoods,  I had to get really creative: I look OFF the mainstream mls, and I go the local brokers and realtors. If you want a nice family home in a working class neighborhood, that isn't expensive, they don't go to Century 21 for that national MLS system, they go to the mom and pop brokerages. So, if you want, I go to Pittsburgh, PA, I usually do a google search for "city_name realty" and I usually get a list of the top mom and pop brokerages. They have listings that dont make it on the MLS, and for a lower priced.

Michael Woodward · Answer

Jack,  I always make sure that I really have the cash to close my all-cash offers.  I've heard of people that will scramble to find financing to cover a deal that they said they had cash for but really didn't.....but I don't sleep well doing that.  I have done some cash-out refinances in the past to get the next deal going but the conditions in banking now make it a lot less beneficial than it used to be.  Getting good comparable sales data was consistant and predictable but with the flood of foreclosures on the market, it's hard to know exactly what the bank will think the property is worth.  Dealing with banks can be frustrating so I try to avoid it whenever possible.  I'm just a lot happier and more comfortable using all-cash for purchase and rehab.

I've found that anything with a high reward comes with a high entry threshold of some kind.  In the case of real estate, the easiest, most efficient method is all-cash.  The hard part is finding the money!  There are lots of people teaching methods for "easy, no-money down" investing but I haven't found one that I feel would work for me.  I guess I'm not aggressive enough as a salesman to use those kind of techniques so I've spent a lot of my time looking for the money.

Brian Levredge · Answer

Karen M. We don't buy anything out here for the reasons you mention.  All our stuff is now in TN, and we will be pulling up stakes in about six months and moving there from CA.

Brian Levredge · Answer

@Jack Lee  By private party leads, I mean properties that are not for sale.  These could be out of state owners, probates, abandoned properties, etc.  I also have a bird dog and I've bought from a wholesaler a couple of times as well.

Andrew Hunt · Answer

Why don't these brokers/realtors advertise their properties on national sites like Zillow or Trulia to get more exposure?

Do you focus at all on HUD homes, foreclosures, etc?

Andrew Hunt · Answer

Hi guys --

Wanted to add to this thread. Has anyone solved this problem yet -- having the most comprehensive inventory available?

I'm trying to find residential property to invest in but checking multiple sites for property has been an absolute nightmare.

Is there anything out there, other than loopnet, for people trying to find residential property to invest in?

Ken Meyer · Answer

There are dozens of ways to enter the real estate investing world from relatively safe REITs to the always interesting method of direct investing. Each has its advantages and drawbacks and all promise the same thing, high returns with almost no risk. Investors recognize this hype for what it is and understand that traditional real estate investments only offer high returns with a significant degree of risk.

Jack Lee · Answer

Thank you guys so much for the replies. I'm gonna like put all of this in a word document lol.

Michael Woodward Haha well I am still learning and lack real teeth and claws. What happens after an all cash offer is accepted? Do you usually try to get the cash out through a refinance? I hear this sort of financing is difficult nowadays?

Michael  Borger I will definitely talk to some escrow officers.

Do you guys use bird dogs?

Where do you guys find properties listings?

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