What method to find my first deal?

Question

I have been scanning zillow/realtor every day but the delay has already bitten me. The agent I called seemed enthusiastic but he hasn't called me with any leads and I am not getting a reply from him via text now. I am considering getting in touch with a wholesaler or possibly just another agent who can keep me posted on new houses that fit my criteria. Am I doing this right? Should I be doing anything else to make this first deal happen faster?

For those that have tried a lot of different strategies to find good deals, what is your preferred method? I am looking for cheap homes that need full rehabs that I can flip or BRRR, or below market and outdated homes that I can rehab cosmetically and flip.

Jorge Duarte · Answer

On top of Zillow and working with your realtor, driving around your desire purchase area would be a great way to find a distressed property. I tend to drive around using Driving for dollars, pin down the property, and when I get home I look it up on the county assessor's office and find out it's current situation.

Matthew Irish-Jones · Answer

@Joshua Farren find another agent.  A investor friendly buyers agent is out looking at property every day and will find something.  There is a push and pull and investors also have to look but, a good buyers agent is looking at property every day.

Jonathan Greene · Answer

As a first-time investor, wholesalers aren't going to help you. It will be more spinning wheels unless you have cash and can outbid the other experience investors in your area. If you are using an FHA mortgage or conventional mortgage or VA or PBA to get your first property, house hack or not, you are going to find it on the MLS. It's safer for you and the process is more expected, you can do inspections, ask for credits, etc. It's not working now because it is hard for realtors to trust that a first-time investor is going to worth the showings and offers and education, that's just the truth. Find an agent who also invests who can put you on a daily MLS drip so you see all new (and back on market - gold mine) properties in your range and areas the same morning they appear and then when you see one you like, you just reply to the agent and it alerts them to get more information. First-timers who try to look at wholesale opportunities are taking a big risk in a big pool when they just got their floaties.

Mark Sewell · Answer

Working the MLS is only one channel - and it is the first one everybody tries.  You might want to get to know some local wholesalers.  I have one guy in my network over there, named Josh Tizol.  He is not a big wholesaler but he gets some deals.  Of course, work your own numbers - wholesalers tend to cherry-pick the highest comps for ARV and not all of them are skilled at estimating renovations.  If you like, I can run some comps with you, and work up some loan parameters.  But deal flow is the hardest part - finding the money is easy.

Bridgette Delva · Answer

Hi @Joshua Farren we have found that as we are starting out, it takes time to build relationships with Realtors, PMs and Wholesalers to a point where they'll come to you first with the hot deals.  If you are buying local to where you live, driving for dollars is an effective way to find off-market deals for under market price - this takes time and results aren't guaranteed but it's where you can find your next gem and build your experience with analyzing deals.  Look for the boarded up, un kept, vacant or run down properties then start writing your offer letters or knocking on doors.

If that is not your preferred method or you are not local, you could look for the aged listings, build your analysis and make offers.  Bottom line is that you have to make offers and you can't rely on a "team" that doesn't exist yet to bring your next deal.

Joshua Farren · Answer

Andrew, I'm in Texas. The issue I had with Zillow was due to a delay in a particular houses status. It showed active but was pulled from MLS a week before. My agent found this out after I brought this house to him but he couldn't find it outside of Zillow. I wasted a lot of time researching and driving by, which was my fault, but stung nonetheless.

Andrew Cichon · Answer

Zillow listings come right out of the MLS's unless it's FSBO. You can find deals with a Realtor. What state are you in?

What method to find my first deal?

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