Is Craigslist a Legit Option?

[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?

[Andrew Booker]

@Chris Taylor what's the name of the app you use to link craigslist to your email like that?

[Darren Looker]

@Andrew Booker

The app is called IFTT. It stands for if this then that.

[Michael Kiley]

@Chris Taylor I use Craigslist all the time. I find great deals on all kinds of stuff and can get rid of just about anything too. Once you get more familiar with the scams, they all look the same and they're easy to spot. They mostly involve a buyer or seller whom you will never meet and they will be forwarding you a certified check in the mail. 

Regarding your real estate search, I have never bought a house from Craigslist, but wouldn't eliminate that source either. I have bought from the sheriff's auction held on Monday's at 10am but mostly my deals have been bank owned right off the MLS. It doesn't sound like you intend to buy a dozen houses per year so, like me, you can afford to be patient. Getting that first one right is the most important thing because if you don't, there might not be a 2nd.

Zillow, Trulia, Hotpads and Realtor.com are good sources for information but their listings are not up to the minute. If a great deal comes on the market, by the time you see it in one of these places, it will be under contract.

My first deal came to me from an estate attorney before I had my real estate license. The deal was so good it was a no brainer and the best part is that nobody else even knew about it. You might consider contacting local estate attorneys and explain your buying criteria and that you can close quickly.

A good real estate agent can be an invaluable source of deals but finding one who will work hard for you on a 50k sale might be difficult. If you can do most of the leg work, this may work best for you.

[Chris Taylor]

@Andrew Booker

IFTTT.com

Sift through the available apps and there’s one for Craigslist.

[Chris Taylor]

@Michael Kiley

No I’m just looking for one to get the ball rolling. So you’re right about being patient and making the first one count. A bad first deal could set you back 5 years or more. It’s good to hear that I’m thinking correctly. Great idea about the real estate attorney. I would’ve never thought about that. Thanks for the reply!

[Ross Yeager]

@Chris Taylor I actually found my best deal on craigslist... it was initially disguised though due to the listing price, but I reached out and made an offer much lower than the listing and the seller agreed on it (after I had it inspected and appraised separately).

[Chris Taylor]

@Ross Yeager

Maybe that’s an angle that would increase leads. I’m filtering a specific price range that’s perhaps too low. I’d guess the majority of real estate on Craigslist isn’t posted by licensed agents. And since they are probably not working for a client they could take their time and set the price high expecting to negotiate.

[Bob Floss II]

Depends upon your area. Craigslist for selling real estate is pretty dead in Chicago. One of my best deals was a lady that put her parents townhouse in Glenview on craigslist, no pictures, just a brief description. Put in new floors, kitchen, and updated baths and made a very nice profit. That was about 7 years ago. I check it maybe twice a month just to see if there's action, but it's mostly wholesalers and fake ads to get buyer data. Finding a legit fsbo seller with a property you can rehab is pretty hard.

[Trevor Mauch]

@Mark Sewell thanks for the props man! Ya that CarrotCast episode was fun! 

Man, consistency is the key w/ anything working successfully... and consistency is hard. But it takes time to build up momentum and outlast the others who will quit early. Keep at it man!!!