How good is The Marketplace on these forums?

Question

One problem I'm having as a newbie, is obviously, finding the right deal to get started with.

Being in Los Angeles, I'm looking out of state for buy and hold properties. Not looking for fix and flips, but looking for small multi family properties to start with. My main priority is a solid deal that cash flows.

My question is: How good /reliable are the deals you generally find in The Marketplace on BP?

Is it more like Loopnet? (tends to be old and not-so-great deals that have been passed on) or are they generally legit and should be taken seriously?

Sorry if this is insulting to those in there posting up deals,  I mean no disrespect, just trying to learn where to focus my time on finding this first deal.

Thanks for your opinions and experiences,

-Chris

Jay Hinrichs · Answer

@Audrey Truesdale  well since no one answered your question.

I have sold two OREO on market place.. I would not personally look to buy anything on Market place simple reason is distressed sellers are not on the market place. hell they don't even know BP exists.

you have wholesalers that want to make middle man fee's and this is a cheap way for them to advertise once you respond to many you will find them to be all over the board in value proposition and experience.

one quick way to look at buy and hold with no sales pressure like you just got above.. is to go to Brie's turnkey reviews website and check out the stock that is available in other markets.  this will give you a great indication of whats out there In 30 minutes of your time..

good luck...

Account Closed · Answer

Adding to the comments above, if you're looking out of state for buy&hold properties, in my opinion the property manager is the most important part of the equation. If you find a great deal, but don't have a great property manager lined up, then what? I'm very happy with property manager I use out in NC. If I ever wanted to buy in a new market, one of the first things I'll do is decide who will be managing it.

Joseph Druther · Answer

@Jay Hinrichs and @Jerry W. got it right. I can tell you that from what I have seen locally, people are literally just going to zillow and marking them up 10-15 thousand. Using "ZESTIMATES" that were almost double what the real ARV was. Had no value to add anywhere. Didn't know how much rehab would cost, never went to the property or anything. The owner of the property had no idea about it or anything. People like that give real wholesalers a bad name. You might be able to find a deal on the MP, but just do your homework and assume that the deal is from somebody who has absolutely no idea what he/she is doing. Heck, just type in the address like I did and the first thing that will pop up is Zillow. Oh I should stop ranting now.

Vincent Guerrero · Answer

Hey Chris,

Where are you looking?  I'd look on BP for an agent in that area.  I've had some really good luck meeting contacts here.  Market place is a good place to look, but it's not the same as having eyes and feet on the ground in that market.  I'd also start looking for a Property Management company in that area.  It's good to have two sets of eyes on your properties that are unrelated.  We have a property in North Carolina where we had a property management company that didn't do a good job and then we switched to a  real estate agent that we had to walk though the process.  Do your homework.  This was before my life on BP.  The folks we found here are great.

Chris Collins · Answer

Has anyone besides @Jerry W.bought actual deals they've seen listed here? or have most people been using it as a networking tool?

Chris Collins · Answer

Such a wealth of info on this site. Thanks everyone for your feedback.  Looking forward to posting about my first deal soon enough.

Jerry W. · Answer

@Chris Collins, I have bought from folks who advertised here in Market place.  I believe I got lucky and got a pretty good deal.  On the other hand I looked seriously at a few other offers and was lucky enough to find out the deals stunk and were in horrible war zone areas.  On one there was a picture of a very nice duplex.  A person from that area wrote a blistering post about what a war zone those houses were in and warning buyers. (That took guts and I really admired them for that, @@Curt Davis is the man)   On another deal my due diligence revealed an area just as bad.  You must be very careful.  People do not magically become ethical and your friend just because they advertise here.  On the other hand there are deals sometimes.  You must find out by doing due diligence.  I believe in having boots on the ground even if you are not able to go there yourself.  The property I bought was after I had 2 unrelated folks I met from BP go and look at the house and tell about their views on the area.  Never take the word alone of someone who is involved with selling it to you.

Curtis Waters · Answer

Contact info in my signature line!  Thanks @Audrey Truesdale & @Tomas Chao

How good is The Marketplace on these forums?

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