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Updated over 5 years ago, 04/03/2019
Is Craigslist a Legit Option?
So I have a few methods I'm trying for finding investment properties. My HELOC was just approved and processed last week but I've been actively looking the past few months.
Method 1
I look online at Realtor.com, Zillow, FSBO, foreclosures websites, etc. Obviously not the best method but better than nothing.
Method 2
I had a realtor set me up on their MLS auto mailer. So whenever a property that meets my criteria is posted on the MLS I get an email.
Method 3
I downloaded an app that links Craigslist to a GMAIL account. Much like method 2... I set my criteria and whenever something is posted that meets that criteria I get an email with a link to the post.
Anyone ever have any luck with Craigslist? I am finding two things. One is that there are wholesalers listing properties they don’t even have under contract. Second it seems like some people are placing fake listings to obtain contact information for potential buyers. Things move fast in this business so I don’t want to waste time chasing deals that might not even exist. Is Craigslist worth effort?
@Cameron Maxey
Very true. I’m noticing patterns in what’s legit and what’s not. All part of the process I assume.
I’d recommend setting up a separate email specifically for that. Like any free apps you give permissions to the developer. This one in particular gets access to whatever email account you use.
In my town craigslist leads have dried up. I bought a couple on CL back in the day but it's mostly a waste now. However, if you can be quick and efficient in evaluating deals, it never hurts to have one more lead source.
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@Chris Taylor everything on CL isn't a scam. In some areas its one of the best places to advertise properties. Use due diligence, verify everything, and see what happens.
- Karen Margrave
Check out the recent podcast that @Trevor Mauch did with an investor in VA. Trevor does the OnCarrot podcasts and he interviewed a lady name Laura Patterson -- and it was heavily laden with nuggets of wisdom and best-practices, one of which was her method of using CL.
Also, one time I posted my own house on CL, as an owner finance offer, just to see what would happen. I got a call within 30 minutes. And first thing, this guy asked me if I also buy houses.
My problem, with CL and all forms of marketing, is being consistent. I'll get that ironed out in 2019, but I also know that I won't see any real results until I do.
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#5 Managing Your Property Contributor
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Originally posted by @James Wise:
Originally posted by @Chris Taylor:
So I have a few methods I'm trying for finding investment properties. My HELOC was just approved and processed last week but I've been actively looking the past few months.
Method 1
I look online at Realtor.com, Zillow, FSBO, foreclosures websites, etc. Obviously not the best method but better than nothing.
Method 2
I had a realtor set me up on their MLS auto mailer. So whenever a property that meets my criteria is posted on the MLS I get an email.
Method 3
I downloaded an app that links Craigslist to a GMAIL account. Much like method 2... I set my criteria and whenever something is posted that meets that criteria I get an email with a link to the post.
Anyone ever have any luck with Craigslist? I am finding two things. One is that there are wholesalers listing properties they don’t even have under contract. Second it seems like some people are placing fake listings to obtain contact information for potential buyers. Things move fast in this business so I don’t want to waste time chasing deals that might not even exist. Is Craigslist worth effort?
You can get lucky on Craigslist every now & again but it ain't without work. For the most part Craigslist is riffled with scum bags, wanna be wholesalers with no idea what is going on and just overall insanity. It's like the wild west of low quality people. If you want to truly search for the deals you need to reach motivated sellers before anyone else & that is going to cost a lot of money. Me for instance I spend over $1M per year finding these people. It's hard to compete with a machine like that, ya know.
Lol get over yourself
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@Matthew Irish-Jones
I have found two or three decent FSBO's on Craigslist but they were what you would call retail price with no forced equity to be had. Considering I've responded to maybe 50 ads that isn't too bad. I just haven't seen any great below market deals. I'm getting the impression that most Craigslist posters have already found these below market deals and are trying to retail them without a real estate agent. In my area there is a lot of over priced garbage on there... mostly East Cleveland stuff people are picking up for a few thousand dollars then trying to sell for $10k to $20k. I think a lot are preying on out of state investors. I saw one post advertising a brick ranch and they listed "Westlake" in the header. It was actually an East Cleveland property in a D class neighborhood. If you know the area Westlake is an A class neighborhood about 30 minutes west of East Cleveland. Craigslist is definitely an avenue to keep open but very time consuming because in most cases there's not enough info posted to evaluate the property.
Sometimes it can be a good avenue to find seller financed deals as well.
- Matthew Irish-Jones
@Ron H.
I agree. I just have to allocate my time differently and put more effort into other avenues and use Craigslist as a supplement. Definitely a good platform to post as a seller or landlord.
@Allan Smith
I’m definitely going to keep the option open. I really don’t put any effort into searching Craigslist since I have the auto email set up with specific criteria. I just need to spend less time responding to ads that don’t include pictures or an address. Without that information it’s pretty difficult to analyze the deal.
@Karen Margrave
Yes I think moving forward my criteria will be not to respond if the ad doesn’t have pictures or an address. I think that will eliminate a lot of the wannabe wholesalers.
@Mark Sewell
I will definitely check out that podcast if I can find it. Thanks for sharing your experience.
@Peter T.
I don’t think @James Wise was trying brag. He’s right with what he’s saying. Very hard for the small guy to compete with the bigger businesses. Fortunately there’s enough deals for everyone it’s just the small guy has to put in more effort for just one deal whereas the big dogs have a consistent steady stream. Aside from marketing, even a guy who has just 10 properties can take more of a risk than someone with a couple properties because you have 10 properties still bringing in income. And if you are a flipper the big guys can afford to make less of a profit margin because they are doing volume and highly systemized. It’s really the same with any business I suppose.
I have found Craigslist to be great. I found a 20 year old house that was listed there by a flipper/wholesaler that decided that it was too far away for him to flip himself. I met him there and he sold it at a good price and It was an easy flip for us, and easy to sell too.
I also put ads on there under 2 different accounts looking to buy houses. And, I ask landlords if they want to sell their properties. I also click on the main "for sale" box. I ask sellers of many other things such as jewelry, yard sales, or estate sales, if they know of any properties for sale. Sometimes they do. I offer to tell them if I run across jewelry, etc. for sale.
I list my rentals on Craigslist too. That works very well.
You could do a LOT of things on Craigslist. This just scratched the surface. Yes, you know there are some BS'ers out there, but just ignore that stuff.
Originally posted by @May Emery:
@Chris Taylor You have listed 3 good options for finding property. However you don't have any plan in place to get Off-Market Leads. The people you are learning about have already taken all the steps to put their house on the market - re-decorating, fixing problems and all the cleaning up needed to be ready for showing.
You can do a mail campaign to get in touch with people who share characteristics with homeowners ready to sell.
Lists to consider are Absentee Owner with Equity, Seniors with Long-time Ownership and Owners with Low Financial Stability Scores (FSS)
Sending letters or post cards will be more expensive than your current avenues, but you can talk to them about how easy you will make it for them to sell their house to you.
May, how does one go about getting such a list of property owners? (absentee w/ equity, long-time ownership seniors, and low FSS)
@Robert Matelski
ListSource allows you to filter this criteria. It’s free to make a list so you can filter your specific criteria and it will tell you how many meet it. so before you even pay it will tell you how many are on the list you created and how much. It’s fairly inexpensive.
@Chris Taylor I purchased a 2- family off of a Buyer from CL. I’m in negotiations now with a wholesaler to purchase another home from CL. Don’t be afraid to use it. There are real deals in it.
@James Barnhart
Those are great tips. I will be trying some of your methods.
@Julie N.
Good to know. I was curious how many people have closed successfully on Craigslist deals. Sounds like I need to just keep looking with an open mind.
@Chris Taylor
Hey Chris.
I’m a wholesaler in Pittsburgh, Pa CL is good for buyer leads but that’s about it, a lot of the sellers just want retail and already talked to everyone and their mothers about what they think property is worth which is usually just a Zillow search & the consideration of how much they want to profit.
There are a lot of newbie wholesalers who don’t know how to run numbers so it may look like a deal then.. BOOM they’re 15-20K off in repairs or value.
Buyers, that’s it. May be different in other areas though.
Also watch for scammers that act as buyers but they send pretty obvious texts that makes it pretty clear they’re full of bs.
But Goodluck man!
Originally posted by @Chris Taylor:
@Robert Matelski
ListSource allows you to filter this criteria. It’s free to make a list so you can filter your specific criteria and it will tell you how many meet it. so before you even pay it will tell you how many are on the list you created and how much. It’s fairly inexpensive.
Awesome, thanks Chris!
@DaJour Washington
Funny you say that because I feel like most (not all) people I’ve contacted are looking to add me to a potential buyers list. Also one of the most recent ads I looked at had a duplex posted for $25k and a rehab cost of $20k. From the pictures it appeared the property needed over $20k in cosmetics. I could also see that someone started opening up the walls to replace the old knob and tube electric and apparently gave up. I know electric updates can get expensive in a hurry. I mean just replacing a panel can cost $1k or more. So to replace all the wiring and outlets on top of that you’re talking big money. Without looking I’d imagine the plumbing is equally outdated. I wonder where some of these people come up with rehab costs. I guess one advantage to being in the construction industry is that I have a general idea of what things cost. At least in my area.
@Robert Matelski
You’re welcome and good luck. I recommend using a PC. The site is not mobile or tablet friendly.
@Chris Taylor I use Craigslist a lot to find contractors but have never had any luck actually finding a real estate deal on there. Better off using bandit signs on the side of the road using “I buy ugly homes” with your number.