why is loopnet so bad for finding deals

Question

i wanna start by thanking the whole bp family. i have learned so much from yall. special thanks to @Joshua Dorkin and @Brandon Turner for the  hard work yall putin behind the scenes to gove us all such a great tool.

as for  my question, here goes, im new to real estate investing and i have learned were to look for deals but why does loopnet have such a bad wrap when it comes to looking for deals? and cause its on loopnet are the chances that it could be a bad investment greater?

Mike Dymski · Answer

Commercial brokers have a network of investors they market properties to and, when that full network passes on the deal, it goes on loopnet.  So, many investors feel that loopnet is where bad, overpriced, and passed-over deals go to die and it is partially true.

That being said, when other investors tell you what you can and can't do, it's more of a reflection of what they can and can't do.  Investors find good deals on loopnet too in some markets.  It's just like any other lead generation tool...it just takes some work.  I toured my small apartment complex before it went on the market, made an offer, seller turned it down, broker put it on loopnet, and I purchased it a month or two later and it's a fantastic deal.

Ben Wilkins · Answer

@James Hong - besides my own few success stories about using Loopnet ($2mil town homes deal was the latest contract), I would also say that Loopnet has another valuable aspect: networking.

Start looking on Loopnet for properties that you would consider purchasing - whether those are commercial NNN deals, apartment complexes, etc. For each property that you might be interested in, write down the name of the Broker. Chances are, you'll find at least one broker who has multiple listings that you are interested in.

Once you have a name (or a few), start reaching out to the brokers so you can network with them. Once you've gotten your name to a few of them, you can work on getting yourself added to their buyer list and you might get a shot on a property before it's put on Loopnet

So continue looking on Loopnet for deals - they do exist. But also start keeping track of Brokers and start networking with a few.

Salvatore Lentini · Answer

Loopnet is not a magic bullet for commercial deals but it is certainly not a waste of time.  I bought a $400K cashflowing triple net commercial property on there cash.  I put an offer in the same day it was listed.  It  appraised for $650K upon refi after we closed on it.  Basically the real value is in the ground (which is why I bought it).  Bank wouldn't let me take out more than I put into it but, long story short I'm into the property for zero $ (well, legal fees and some environmental testing).  Working on architectural and engineering plans for a 12 unit multifamily in the future.  I like the Loopnet app.  When I have a couple minutes to kill (waiting in line at the store, waiting for a contractor to show up) I look for new properties in the areas I buy.  They have a map view with pins and it's always exciting when a new pin pops up.  It's better than killing time with a brainless activity like Candy Crush!

Account Closed · Answer

I agree with @Cody L.  .  There are some good deals on LoopNet.  There are also lots of bad deals there.  I am sure it completely depends on the market.

LoopNet does help meet the marketing requirements that some listing agreements have.

I do not think LoopNet is worse than the MLS run by a local Realtor Association is on residential properties.

Jonathan S. · Answer

I think you'll find that most people who are getting killer deals aren't finding them through web sources like loopnet, trulia, zillow, etc. Great deals are found through direct mail, networking and otherwise prospecting on your own. Remember, many, many investors skim and scan the web daily so if theres a deal thats been lingering a while that might be a sign. However there might be something you see that could make it work that other people don't or you're a great negotiator and that could work too. At the end of the day its all about doing your own research on a deal.

David Smith · Answer

I listed a NJ 4 unit multi family for sale on loopnet. No quality Leeds.

Loopnet made me sign a year contract  — bad company. No more loopnet

Zillow and Facebook and mls will work much  better.

James Hong · Answer

@Ben Wilkins, Account Closed

thank you all so much, all the different views and input helps a lot.... i really appreciate your responses guys... thanks a milllion.

why is loopnet so bad for finding deals

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