How to find a good deal

[Curtis Borns]

Hi,

I am new to the forum and figured I would just get started. I am interested in starting out in real estate investing. So forgive me if my questions below seem insanely amateur. 

I was wondering if anyone with any experience knows the best way to "find a deal" when investing in Real Estate.

I keep seeing you make your money when you buy. But how exactly do you get at a good price?

I have been listening to podcasts and reading some books, but not much is mentioned in detail. Maybe I am reading the wrong books or overcomplicating it, but it seems like this area gets skimmed over.

From the research I have been doing, going through an agent in any market likely means you are getting a Market/Retail price. AKA not a good deal. I am sure you could run the numbers and the property might cash-flow, but why go this route when you can do better?

How do you get a below Market price property?

I have only been able to identify a few methods for this based on my research.

1. Literally spamming neighborhoods with "I will buy your house" type marketing. But no one ever seems to talk about how that works once you get an interested party. Sure I can learn to work the numbers out with them and settle on a price or any contingencies. But how would I buy someone's house directly when I do not know much about the real estate documents required. Sidestep an agent by getting a lawyer involved? Is this easier to do once you've obtained a license and the respective knowledge?
2. Buying a distressed property that is under market because most buyers want move-in ready. Fix it up and add equity and then you got yourself a "deal." Although this seems to come with risk since it requires making repairs on a property. Which probably means having a good relationship with a contractor, having some basic repair knowledge yourself, and hoping it doesn't go over budget to blow your "good deal."
3. Possibly obtaining your Real Estate license to search the MLS. However, I don't understand how this will give you deals because this means the property already has a selling agent. Then you are back at buying at retail prices. Am I missing something?

Are there other ways? Are these methods themselves valid? Any insights appreciated. 

[Brenden Mitchum]

Hey @Curtis Borns, welcome to the BP community!

You're correct, that question does seem amateur but not because the answer is simple. In fact, the answer to that question is insanely complex. It will depend on your market, your goals, your network, your available capital & probably a bunch of other stuff I'm not thinking of. 

Bottom line is, it depends on your situation. There isn't any one answer, but typically the best way to find great deals is off-market, or at least that's what BP has taught us. Truth is, even going direct to seller these days can be tough and lead to months of frustration before you find your first inkling of a deal. My suggestion would be to, instead of beating your head against that "below market" wall in hot markets, find a creative strategy that boosts effective income generation. Then, despite having a property at "market value" you're still able to cash flow and see a solid ROI. Make sure this strategy will not crumble in a down market though because you will not have much of an equity cushion if this happens in the near future. Buying at market is only risky if your strategy is not solid.

If this answer was too complicated, just focus on education and networking for now. Surround yourself with the right people & information and opportunity will come. Get yourself in an investor, abundance mindset too - make sure you understand where you want to be one day and how hard you need to work to get there. I promise, deals are out there but it takes time & persistence to learn how to find them. There is no hack or easy answer here. 

Hope this helps a bit - please, feel free to reach out anytime if you have other questions or just want to chat!