Finding Deals for First Flip

[Joseph Matta]

Hi everyone,

I am currently searching for properties for my first flip. My partners and I have been looking in Connecticut within the Fairfield county area.

What are some good ways to find leads/ deals? We have been mainly using the MLS to search for leads but have not had much luck so far. Most properties we have looked at do not offer a great enough spread in cost to make a profit after the rehab costs etc.

Please let me know if anyone has any suggestions or advice! All the help is much appreciated!

Thank you

[Scott Hollister]

@Joseph Matta

Welcome to the site! 

Is there a reason that you are looking in Fairfield county? I'm just curious, Fairfield is a great market, financially, proximity to NY, etc. However the competition is stiff, unless you have a competitive advantage in Fairfield? I would say for your first flip try something local in your market? Just as long as the fundamentals are strong, check average days on market, what REO sales are going for, look at the quality of the houses and finishes, then back into your rehab costs to see if there is enough profit margin. (J Scott's book is amazing for that)

I remember one of my teachers saying when he runs his trending data in CT, Fairfield county is left out because it's a whole different world down there. Which is good if you can find the deals. 

In terms of finding deals/leads, Anson Youngs book is great, he does an amazing job of marketing as well. So you would come up with certain lists in the market you choose, say list source, then you would mail to say, 3 bed 2 bath minimum, has owned house for certain number of years (equity in it), and maybe its probate only, etc. What you're looking for is a motivation to sell, where you provide the solution, as-is quick sale. 

Marketing is definitely an art. It is "easier" on the MLS, but you can find deals. My best advice is look for something that no one else sees. The easy stuff will have more eyes on it (lipstick rehab), and typically emotional buyers that will overpay. Look at things that have been on market for a long time that other people may have overlooked as well.

Best of luck!