Market is drying up in Rhode Island

[Ricardo M.]

Hello to all, 

I've been flipping properties for about two years now in Rhode Island and it seems that the market has been very slow of late. Very few "flipable" properties, and the very few that do come on the MLS have 40 excessive offers on them by the time I get a call back from my realtor. I connected with a wholesaler recently for off market properties and all the properties he sends my way are in locations in D neighborhoods. Anyone else experiencing this? Am I doing something wrong? Any wholesalers with good properties that I can connect with? Pointing me in the right direction would be greatly appreciated.

- Ricardo

[Anthony Thompson]

@Ricardo M. I've wholesaled properties in RI for a number of years and unfortunately, it's much more common to find deals in "D" areas than good areas. The ones in good areas are relatively few and far between, and half of those I end up keeping for myself anyway.

I would recommend that you begin to learn to deal with owners/sellers directly, and research the various ways of marketing to them, for example "farming" an area, driving for dollars, calling For Rent signs, etc.

It's always been true that the best deals are the ones you make yourself, but it's especially true in this market.

Every phase of the market cycle has its pros and cons. We're now in the phase where it's relatively easy to sell a property (either wholesale or retail), but comparatively difficult to find one at an acquisition price that makes sense. 7 years ago it was the exact opposite - cheap properties were all over the place but it was very hard to find buyers, especially in tough areas.

You can also try networking with other investors here in RI such as ones you might meet at a local REIA. Apart from dealing with owners directly, networking is another excellent source of deals, though sometimes you'll have to be willing to partner with people.

I hope this helps!