What is your go to method and/or tools for finding deals today?

[Nate Slappey III]

What is your best method, tool, resource for finding deals in todays climate? One of the biggest challenges I hear today from investors is finding deals (the right deals), what are you doing to overcome this hurdle?

[Andrew Kennedy]

Find a property, any property that fits your strategy. This would be like distressed properties you want to use the BRRRR method on, or maybe you want a long term rental single family home. Run the numbers. For me, it comes down to 2 adjustable numbers: Down Payment and Purchase Price.

After factoring in taxes (from your local tax assessor property search), insurance quotes, available cash for down payment and closing costs, and what mortgage you would have from the purchase price, and variable expenses (vacancy, repairs, property management, capital expenditures), and fair market rent, you're left with your cash flow number. If it is acceptable to you for your effort, go with the deal. If it isn't, you have two numbers you can adjust: your down payment OR the purchase price. For me, I won't change my down payment. But  I can change my purchase price and get a lower mortgage (with a over the mill interest rate, I use 7%) and drop the price until I get the desired cash flow. Even if that purchase price is way below listing, I'll still submit that offer. I'm going to get a lot of no's from everyone, and I'm sure they are going to get irritated with the lowballing. But like Brandon Turner says: "There is always a number that makes the deal work." 

If I submit 100 offers and only get 1 yes, well then I have a cash flowing asset now. Rinse and repeat. Whether you're doing a BRRRR and calculating ARV and such, or looking for turn key LTR/STR, or multifamily properties, someone will sell to you for YOUR price.

Why would the sell to you? Well David Green says in his book, BRRRR, that there are many types of distress. Property distress is the most common reason for getting a deal, but there is also Personal Distress. I like to refer to them as the 4 D's: Debt, Disability, Divorce, Death. A seller may be selling to cover debt, for medical care costs or downsizing due to disability, house is sold following a divorce, or a family member passed away and the beneficiary/trustee needs to pay the estate debt, cover probate, or doesn't have the time/resources to handle the property. This is where I as an investor can come in and assume another person's liability and make a profit. If you knew that you would receive a yes after you've been told no 100 times, you would welcome the rejection because you are now closer to your deal. You would be excited to get through as many analyses to get to that solid deal.