Finding Deals in Hot Markets

[Christopher Lombardi]

A friend just asked me if he should start investing out of state because of how hot the market is by him.   Let me tell you.  I only buy in Class A neighborhoods and I consistently get 25%+ returns per year on my money.  You have to understand that you don't find deals, you create them. 

For Instance, I just closed on a 22 unit, fully occupied apartment building in a Class A neighborhood in NJ. I purchased this for 60 cents on the dollar because the seller already purchased his retirement home in Florida and wanted to close quickly. I called him because I liked the building. Thats it. I didnt wait for something to be sent from a broker, overpriced, or to see it on loopnet. You dont find deals, you have to create them. Find out who owns properties you like and contact them. There are great deals in every market. Most people are too lazy to find them. In 2011 you could buy anything you wanted off the MLS and it was a great deal, but today you have to create the deal. Start sending post cards, cold calling, yellow letters, put signs up in yards. You'll find great returns in any market.

Chris