I can't find deals anywhere!

[Samuel Dykstra]

Hi all,

I recently dropped out of graduate school to work as a broker's assistant due to my passion for real estate. I am young and helping my mom find an investment property (specifically in the Reno, NV and rural outlining areas). I have been scouring the MLS every day, multiple times a day for months now and can't seem to find anything that has a CoC ROI higher than 4%. I spoke to a broker in my office (who is an investor himself) regarding finding off-market deals, and he said they are very difficult to find. He says this is mostly because, even if a homeowner is in a dire financial state, they likely still have a ton of equity in their home due to recent massive appreciation rates.

Just to clarify: Our main concern is cash flow.

I'm trying my best to not give up, but conditions are looking bleak.

What are you all doing to find deals (whether on- or off-market)? I just simply cannot seem to find a single one.

[Patricia Steiner]

A couple of things to consider:

Inventory in my market is practically non-existent - but I do find solid properties on the MLS and elsewhere. What you won't find are "steals..." that ship sailed/sunk a long time ago. In contrast, "deals" are what you create from buying at no more than valuation and then transforming the current scenario.  It sounds like you're looking for a home run when you haven't ran the bases.  Find a property at fair value and create a plan on how to capitalize it's return. You don't buy wealth - it's created.

I have a lot of clients who reside in Nevada; your inventory and prices are crazy like ours. But our rent prices are significantly higher as well as the year-over-year increases.  You may be searching in too small an area.

And, please know this:  real estate investing is not about a transaction or even "real estate."  It's about running a business.  If you want to be a passive investor, buy a CD.  This is about actively running a business.  

Start over. Gain market knowledge. Consider why a low return property is that and what it would take to change that.  Every owner takes a property to the next level.  Be that owner.