Is it hard to find good deals?

Question

Is the game of getting good deals in Real Estate just a "good old boys club" as they say? Is it hard for the avg joe to get the good deals? Any comments on this topic would be great.

Teresa F. · Answer

Hi Corey!  Why be the average Joe when you can be the Amazing Corey?  I'm a gal, and I'm fortunate enough to practically trip over great deals in my market.  Unlike many of the people who have responded, I don't wholesale.  If I run across something that doesn't work for me but would work for one of my rehab buddies, I will give it to them.   Building good relationships with other investors, Realtors, Title Companies, attorneys, accountants, contractors, etc., will not only make your life easier but will ultimately bring you deals.

Shanequa mentioned that she has seen properties on the MLS only to learn that they are already gone when she calls.  The Realtors I know bring me "pocket listings" that I go see and have under contract before they are listed on the MLS.  The Realtors that do this for me know (1) that I will CLOSE the deal, (2) will refer other investors, and (3) will give them the information they need when they need it.  I have also given advice to some who became investors.

Just be patient and help others when you can.  I promise, it comes back ten fold.

Teresa

J Scott · Answer

There are a couple ways of getting good deals:

1.  Hard work.  This includes sending lots of direct marketing pieces, social media/technology marketing, bandit signs, etc.  Acquiring real estate this way is a numbers game, but if you can get thousands (or even tens of thousands) of marketing pieces to potentially motivated sellers, you'll get some great leads that turn into big bucks;

2.  Building relationships.  In the world of institutional sales (REOs are the best example), having great relationships with the listing agents, asset managers and other people key to the transactional side of things, will allow you to get a nice advantage over the competition.  You can certainly call it a "boys club," but the members aren't all boys -- they are just those investors who take the time and effort to build relationships.

So, yes, it can be tough for the average Joe to find great deals...but with a little work, there's no reason you need to be an average Joe...

Mark Updegraff · Answer

It is not hard if you are prepared.  The low hanging fruit do not hang for long.  Many times an agent will get a listing in an area they are not an expert in.  They will convince the seller to list for a particular price.  I've seen houses priced WELL below market value.  20k, 30k... These will have multiple offers the first day on the market.  Be ready to act, be ready to pay full price or above.  Make sure your savvy enough to offer without contingencies.  If you find something with equity, your offer must be as strong as you can possibly make it.  No contingencies are the best.  That means an all cash offer, quick close, and no inspections.

If you have the cash, you can also get amazing deals at foreclosure.  This limits the buyers.  If an area has a lot of investors bidding up the foreclosures, find another area.  I've been the only bidder multiple times, and I like that the best.

James Martin · Answer

My advice is stop searching for a deal. Deals are to be made through negotiation. Example, I am about to buy three headache properties from an out of state investor. Two I will be able to sale for a quick profit except one. This lead came from a local wholesaler that knows the areas I work. He will make 1k per house for the lead.
My point is to start targeting niche markets (destress home owners, Tired landlords, Probate, Divorce) You can be the one getting the referral fee or the one doing the wholesaling.

Also being a women does not matter when your making other people money.

Corey Dutton · Answer

Thanks for the great comments. I love the thoughts. You do wonder if its all rigged somehow.
Corey

Nathan Emmert · Answer

Ack!  Salt Lake??!!  Shoo!  SHOOOO!!!!!!

McKellar Newsom · Answer

In this market, great deals can be had by the persistent investor.

By the way, I am seeing more and more female investors out there.

Luigi Ontiveros · Answer

Well said....

Rusty Thompson · Answer

As Joel Owens said a "good deal is in the eye of the beholder"

I can pick up a rental property with decent cash flow almost any day of the week. Great deals are a little harder to come across, but they are out there.
 Now if you are a wholesaler or a flipper the market is much more sparse. It will take a lot more effort & dedication to find something were the numbers work.

Will Barnard · Answer

Many people state the same thing, that property went pending first day. Shopping the mls is also an settlements. U need to be creative to find deals and u also need to have the ability to negotiate good deals. If an mls deal goes out at a good price, chances are it will have multiple offers. That is not how to play the mls game.

Is it hard to find good deals?

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