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Where Are The Deals!?
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
Quote from @Michael Smythe:
Quote from @John Clark:
Quote from @Michael Smythe:
Every investor should be looking for an under-market property!A useless bromide, like saying "War is bad and peace is good." I notice you skip right over the heart of the matter, which is HOW is one looking for an under-market property. The original poster never said how she was doing that, but complained that she couldn't find any.
Since you asked so "nicely":
Why does everyone want to chase strangers – and ignore their own personal network?
Which do you think will be more competitive, buying from wholesalers or your own referrals?
Per this NY Times article, the average American knows around 600 people.
https://www.nytimes.com/2013/02/19/science/the-average-american-knows-how-many-people.html#:~:text=The%20average%20American%20knows%20about,do%20you%20know%20named%20Kevin%3FPer the US Census Bureau, the average American moves 11.7 time in their life, which based upon an approximate lifespan of 84 years, works out to be about every 7 years.
https://www.census.gov/topics/population/migration/guidance/calculating-migration-expectancy.html#:~:text=Using%202007%20ACS%20data%2C%20it,one%20move%20per%20single%20yearSo, if the average American knows 600 people and they each move about every 7 years, that means that the average American knows around 85 people that move in any given year.
How many of those moves do you want to be involved in?
To maximize the number of transactions you’re involved in you will need to:
- Be Top of Mind when they think about moving - which requires consistent reminders.
- Be seen as an Expert – which requires a consistent message and Evidence of Success stories
- Gain their Trust – which requires communicating integrity
So, start out by listing everyone you know in an Excel spreadsheet.
Why Excel? Because later, you can easily use it as your mailing list! Create columns for Name, Street Address, City, State, Zip and then contact info: Last Contact, Relationship, Status, Email & Phone.
IMPORTANT: do NOT ask people for THEIR business, ask for referrals! Why? Because they will get defensive if they feel you are pressuring them. Remember, they can always refer themselves😊
Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:
- Just inherited a home
- Had a loved one pass away
- Is behind on their mortgage or tax payments
- Has a relative that can’t take care of their house anymore
- Has a house they’re having trouble selling
- Is facing bankruptcy
- Knows a probate attorney
- Knows a bankruptcy attorney
- etc
Why only three off the list per contact? Because on average, we can only remember three things at a time. If you try to go over the whole list, you’ll lose the attention of an average person and they won’t remember anything!
It should only take you about a month or two to contact everyone on your list and then the tough part – you start all over again.
Why the repetition? Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!
Have you ever been to McDonalds? Of course you have! So, why is McDonalds still spending billions on advertising?
One more tip – people remember stories that trigger their emotions. So, tell a story of how you (or a fellow wholesaler) helped a seller out with their challenge(s). Change your story each month as different stories will resonate with different people AND use each story to emphasize one of your “who do you know…” questions.
As you start closing deals, you will need to reinvest your profits into mailing lists and other scalable activities to grow your business.
One last thing – we recommended you create a Status column on your spreadsheet, now we’ll explain why. If you find someone that seems to know a lot of people needing your services, wouldn’t it make sense to focus more resources on them? Conversely, you will run into people on your list that just seem to be a waste of time, so you’ll want to avoid them. So, create status codes for both of these and a few in-between codes to help you work smarter, not harder.
You make some really good points about how many people you know, how often we move etc.
#5 House Hacking Contributor
- Realtor
- Reno, NV
In Reno, NV w/ 50% down there are a ton of turnkey deals. We're seeing new builds as some of the best value right now because they're looking to offload their inventory before the end of the year.
Would be happy to send analysis.
-
Real Estate Agent Nevada (#S.0200197)
- 415-233-1796
- http://addressincome.com
Quote from @Bud Gaffney:
Are you open to out of state investing? How about Detroit, Baltimore, NEW BEDFORD?
I'm new and can't wait to get my first investment property. I have always been scared of investing out-of-state. But it seems that's the way forward! Here in New Jersey, the price of MFH in Newark, East Orange, Irvington, etc, has tripled over the years, and its scary! $600-900k
Usually people saying there are no deals are just browsing Zillow instead of networking, bidding on auctions, working with wholesalers, etc.
Quote from @Michael P.:
Usually people saying there are no deals are just browsing Zillow instead of networking, bidding on auctions, working with wholesalers, etc.
What auctions do you recommend? How does networking work or where do we meet wholesalers? All I got is Zillow 😩
Hey Selina, Fix/Flip and BRRRR deals are harder to find for sure.
The shortage of housing and higher prices have put more pressure on new construction to fill the gap. I am an investor's realtor and investor in the North Central Florida market. We are working with our investor's on new builds. With our lender partners, the out of pocket costs are similar to fix/flips and the upside is much better.
What's more appealing to a buyer for the same price? New construction or rehabbed fixer?
@Selina Giarla
Hey Selina, Fix/Flip and BRRRR deals are harder to find for sure.
The shortage of housing and higher prices have put more pressure on new construction to fill the gap. I am an investor's realtor and investor in the North Central Florida market. We are working with our investor's on new builds. With our lender partners, the out of pocket costs are similar to fix/flips and the upside is much better.
What's more appealing to a buyer for the same price? New construction or rehabbed fixer?
#3 Managing Your Property Contributor
- Real Estate Broker
- Cape Coral, FL
- 831
- Votes |
- 1,502
- Posts
#3 Managing Your Property Contributor
- Real Estate Broker
- Cape Coral, FL
There are ALWAYS deals to be had... you just have to look for them. If you want to find gold or diamonds you cannot walk around and go "I don't see any, so, there isn't any. You have to go to the right spot and dig, dig, dig... The MLS is NOT the right spot!
Quote from @Bob Stevens:
Quote from @Selina Giarla:
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.
All the best
Hi there! I haven't investigated rentals in the midwest. Where in particular are you seeing good returns? Do you have any deals you would be willing to share? Are they rehabs? Multi-family? Are you holding for cash flow or are they short term equity flips?
Quote from @Alecia Loveless:
@Selina Giarla My sister has been investing in Denton, Texas for the past 15 years. She has 17 SFH but has not bought anything new in Denton in the past 3-4 years because the property taxes keep going up by at least 30-40% each year which has turned her meager cash flow into almost nothing. She is an attorney so is able to easily fight the property taxes herself through the system without having to hire anyone else to help her but only has marginal success. She was also able to refinance the loans that made sense to near rock bottom rates when rates were low.
To her it no longer makes sense to invest in Texas for just the same reasons you have mentioned. Costs have increased too much and she’s only been able to increase her rents by about $100/month over the past 4 years.
She and I have recently partnered to purchase a multi family property elsewhere that has solid cash flow and more stable property taxes and bills.
Hi! Interesting. How are things going now and where have you landed in the US for your new ventures?
Quote from @Guy Gimenez:
Sounds like your sourcing your "deals" from the MLS (retail market), which means you're paying retail most of the time. It's always hard to cash flow retail deals which is why most investors market heavily to locate motivated sellers. Profitable deals are found primarily off market through dedicated marketing or through relationships.
I would love to understand how to get into the club of these off-market deals. Where do I start and what makes them "off-market"? You are correct, I am only involved in searches on zillow, crexi, and the like. Would love your guidance here.
Quote from @Adam Bartomeo:
There are ALWAYS deals to be had... you just have to look for them. If you want to find gold or diamonds you cannot walk around and go "I don't see any, so, there isn't any. You have to go to the right spot and dig, dig, dig... The MLS is NOT the right spot!
Ugh I hear you. Where do I start? I have never understood where to find off-market deals.
Quote from @James Cordeiro:
Hey Selina, Fix/Flip and BRRRR deals are harder to find for sure.
The shortage of housing and higher prices have put more pressure on new construction to fill the gap. I am an investor's realtor and investor in the North Central Florida market. We are working with our investor's on new builds. With our lender partners, the out of pocket costs are similar to fix/flips and the upside is much better.
What's more appealing to a buyer for the same price? New construction or rehabbed fixer?
@Selina Giarla
Hey Selina, Fix/Flip and BRRRR deals are harder to find for sure.
The shortage of housing and higher prices have put more pressure on new construction to fill the gap. I am an investor's realtor and investor in the North Central Florida market. We are working with our investor's on new builds. With our lender partners, the out of pocket costs are similar to fix/flips and the upside is much better.
What's more appealing to a buyer for the same price? New construction or rehabbed fixer?
I would be interested to hear more. Can you share anything you are working on that is open to investors?
Quote from @Jake Andronico:
In Reno, NV w/ 50% down there are a ton of turnkey deals. We're seeing new builds as some of the best value right now because they're looking to offload their inventory before the end of the year.
Would be happy to send analysis.
Hi Jake - yes I would love to hear more about these. The nevada state/city tax is higher than the MA state tax I pay so I would also need to factor in the income tax to be paid there in my analysis.
Quote from @Bud Gaffney:
Are you open to out of state investing? How about Detroit, Baltimore, NEW BEDFORD?
I am open to out of state, preference for TX. I am also from Boston (northshore) and have 6 doors here in Lynn. I am totally done with rentals in MA. I noticed your comment on a few hundred dollars a month, I would say that yes I agree it's still profit however, the return of only a few hundred isn't worth the risk of tax, insurance vacancy or some repair pushing me over the edge there, I would rather find something a little more appealing if I am tying my money up. I usually also focus on the % return rather than the $ amount because to your point, in a way you are correct... if $200/mo profit was based on a 20% return, I would go for it, but if only for a 4% return, I would rather my money in a HY savings account making 5% with no risk.
Quote from @Patrick Parry:
Wow lot of people coming at you for this post and your struggles. I think this is a more than fair post. I also do not think you are trying to start a new career finding motivated sellers some other people are really trying to get you to work. All though knowing what you have to spend would be helpful. I would imagine you have at least 50k-100k to utilize. You mention rents not keeping with prices. Rents will catch up in nearly any place you buy. There is just not enough homes available. Some experts say as many as 5.5 million homes short. We can say 3 million to be conservative. You will see upward pressure on rents. People who cannot buy will continue to be forced to rent. Especially for the entry level homes. I think you just need to possibly look a little more east and maybe deal with some snow. Plenty of new homes that can cash flow with 20% down at a 7% interest rate. Instead of buying 2-4 units buy 2 units in a BTR community. I am in Orange County and nothing cash flows here without at least 50% down. So out of state is the only play for me. Happy to connect on what I have found out there. States I like Alabama, Tennessee, Georgia and Indiana. With some interest and more research to do in the Cleveland and Kansas City areas. I also like north Florida but it is getting a bit too expensive.
Thank you for your kind response. I work full time as a VP at an institutional asset management firm and work probably 50+ hours a week, commute 3 hours a day and travel 25-30% for my job. I have two young kids under 4 and manage 6 doors locally. I am doing my best to find deals but only have been looking on zillow/retail since I don't know how to find anything off market and as you can see... every moment of my day is accounted for and it's a little harsh for folks to berate me for this. My husband and I had no mentors, no houses handed to us, we worked hard and slowly created this portfolio of 8 doors and our own home and want to scale our investments but feel like we are in a choke hold. If anyone is considerate enough to help share some listings I can underwrite that they aren't willing or able to purchase, please help me out. I would love to connect on what you are finding in Alabama, Tennessee, Georgia and Indiana. I am particular on the state income tax rate, and if the state is a red state/landlord friendly. I haven't looked into those 4 much. Thoughts? DM might be easier. Thanks again!
Quote from @Danny Randazzo:
@Selina Giarla you should find a local group of investors to meet with on a monthly or biweekly basis to discuss new ideas for sourcing more deals. There are deals out there you just need to look at more volume.
I love the idea, but I am not investing in MA anymore and that's the local part for me. I am looking out of state. Do you know any groups I can join for Texas?
#1 Classifieds Contributor
- Real Estate Consultant
- Cleveland
- 3,616
- Votes |
- 6,318
- Posts
#1 Classifieds Contributor
- Real Estate Consultant
- Cleveland
Quote from @Selina Giarla:I do all my biz in the Cleveland markets, rentals, 15-20% net caps based on cash purchases. SF MF,
Quote from @Bob Stevens:
Quote from @Selina Giarla:
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.
All the best
Hi there! I haven't investigated rentals in the midwest. Where in particular are you seeing good returns? Do you have any deals you would be willing to share? Are they rehabs? Multi-family? Are you holding for cash flow or are they short term equity flips?
#1 Classifieds Contributor
- Real Estate Consultant
- Cleveland
- 3,616
- Votes |
- 6,318
- Posts
#1 Classifieds Contributor
- Real Estate Consultant
- Cleveland
Quote from @Selina Giarla:
Quote from @Bob Stevens:
Quote from @Selina Giarla:
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.
All the best
Hi there! I haven't investigated rentals in the midwest. Where in particular are you seeing good returns? Do you have any deals you would be willing to share? Are they rehabs? Multi-family? Are you holding for cash flow or are they short term equity flips?
There is NO soliciting in this forum.
Quote from @Selina Giarla:
Quote from @Guy Gimenez:
Sounds like your sourcing your "deals" from the MLS (retail market), which means you're paying retail most of the time. It's always hard to cash flow retail deals which is why most investors market heavily to locate motivated sellers. Profitable deals are found primarily off market through dedicated marketing or through relationships.
I would love to understand how to get into the club of these off-market deals. Where do I start and what makes them "off-market"? You are correct, I am only involved in searches on zillow, crexi, and the like. Would love your guidance here.
Off market sellers need to find you, not vice versa.
1. SEO
2. Pay Per Click
3. Social media ads
4. Relationships with other investors and/or bird-dogs (ie deal finders)
5. Driving for dollars
#2 Market Trends & Data Contributor
- Investor
Quote from @Selina Giarla:
Quote from @Patrick Parry:
Wow lot of people coming at you for this post and your struggles. I think this is a more than fair post. I also do not think you are trying to start a new career finding motivated sellers some other people are really trying to get you to work. All though knowing what you have to spend would be helpful. I would imagine you have at least 50k-100k to utilize. You mention rents not keeping with prices. Rents will catch up in nearly any place you buy. There is just not enough homes available. Some experts say as many as 5.5 million homes short. We can say 3 million to be conservative. You will see upward pressure on rents. People who cannot buy will continue to be forced to rent. Especially for the entry level homes. I think you just need to possibly look a little more east and maybe deal with some snow. Plenty of new homes that can cash flow with 20% down at a 7% interest rate. Instead of buying 2-4 units buy 2 units in a BTR community. I am in Orange County and nothing cash flows here without at least 50% down. So out of state is the only play for me. Happy to connect on what I have found out there. States I like Alabama, Tennessee, Georgia and Indiana. With some interest and more research to do in the Cleveland and Kansas City areas. I also like north Florida but it is getting a bit too expensive.
Thank you for your kind response. I work full time as a VP at an institutional asset management firm and work probably 50+ hours a week, commute 3 hours a day and travel 25-30% for my job. I have two young kids under 4 and manage 6 doors locally. I am doing my best to find deals but only have been looking on zillow/retail since I don't know how to find anything off market and as you can see... every moment of my day is accounted for and it's a little harsh for folks to berate me for this. My husband and I had no mentors, no houses handed to us, we worked hard and slowly created this portfolio of 8 doors and our own home and want to scale our investments but feel like we are in a choke hold. If anyone is considerate enough to help share some listings I can underwrite that they aren't willing or able to purchase, please help me out. I would love to connect on what you are finding in Alabama, Tennessee, Georgia and Indiana. I am particular on the state income tax rate, and if the state is a red state/landlord friendly. I haven't looked into those 4 much. Thoughts? DM might be easier. Thanks again!
That's a lot on your plate, and you need to start buying time. First off, you need to live closer to work kill that 3 hour commute. I know easier said than done, but sacrifice elsewhere for it. Secondly, quit managing doors & hire a PM get that nonsense off your plate. Cut that commute to 1 hour a day and take those doors to 0 for direct management.
Then, in regards to this, you need to connect with people off of facebook, real estate meet ups in a few localities you want to get into that fit your criteria. Landlord friendly seems to be yours, so red states should be the focus. Narrow down the states, then the cities based off the criteria you want to invest in. Then go take some time off work, visit those cities, go to a happy hour and shake some hands. Be prepared to visit this same area 2-3 times(maybe just on weekends) to get a real feel for the city, the areas, etc., and once you build a network of off-market folks, an understanding of the neighborhood you can take full advantage of the stuff they are showing you.
Right now, you're a casual shopper looking at the retail stores wanting the bargains. It doesn't work that way, the one's in the grind are finding the bargains and putting it for sale at the retail store for you. You're swapping time differently, it's all what you prefer to do as I would approach it very differently. And I'm not talking with no experience on this, I have 3 kids going onto 4 here in a week, have a dozen small businesses, and 40 + houses. Yet I still have time to post on this board, study the markets and see where I want to invest because I buy time. Teams, systems in place, and learning to let go are paramount to truly scaling.
Quote from @Bob Stevens:Do you have any MF listings you would be willing to share? How is the state with respect to landlord/tenant law? Who handles common area maintenance (snow/lawn)?
Quote from @Selina Giarla:I do all my biz in the Cleveland markets, rentals, 15-20% net caps based on cash purchases. SF MF,
Quote from @Bob Stevens:
Quote from @Selina Giarla:
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.
All the best
Hi there! I haven't investigated rentals in the midwest. Where in particular are you seeing good returns? Do you have any deals you would be willing to share? Are they rehabs? Multi-family? Are you holding for cash flow or are they short term equity flips?
#1 Classifieds Contributor
- Real Estate Consultant
- Cleveland
- 3,616
- Votes |
- 6,318
- Posts
#1 Classifieds Contributor
- Real Estate Consultant
- Cleveland
Quote from @Selina Giarla:
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
I live on the beach in FL and do all my biz for many years in the Cleveland markets, deals everywhere. All my personals have always been not less than 20% NET cap based on cash purchases. I will close this week on a duplex all in full reno 80k, rented for 19k a year. Sf all in 75k, rented for 1300. TODAY I will go to contract on a 2 br all in will be 45k, rented for 1k. Again best part I am on the beach in FL,
Good luck
BTW whoever is telling you to avoid props older then 10 years old, simple has no clue what they are doing. Every property I flipped (about 500 YES 500 ) or owned was built between 1910- 1930. They were built better back then,
Quote from @Bob Stevens:
Quote from @Selina Giarla:
Quote from @Bob Stevens:
Quote from @Selina Giarla:
I'll start here... I have 8 doors. I have been involved in many facets of real estate. I am not a newbie but my portfolio is small and I am eager to grow it fast. I like to stick with 2-4 unit properties so I don't need a commercial loan, and I don't have a ton of cash in the event of a massive vacancy or capital investment, so more expensive isn't necessarily in my wheelhouse. I recently started out of state investing in Texas. Since I am out of state, I like to avoid the uncertainty of older home and prefer new builds or houses that are within 10 years old, max. I prefer Texas because it's a landlord friendly state, there is no state income tax so I don't need to file taxes in TX and MA (where I am from), the tenant's pay for a lot of the repairs, maintenance, etc. and there are no snow removal costs. Construction/Labor is cheap and its a growing state with respect to population, and lack of available housing.
All this being said...I CANNOT find a good deal. The houses are expensive, the rents haven't caught up, the int rates are through the roof, and the rent alone cannot even cover the operating expenses and debt service, nevermind turn a profit. Even if I go up to 50% equity, and zero out my vacancy factor, cost to lease, R&M and CapEx underwriting, I barely turn a profit (a few hundred a month). I want find a deal and put in an offer within the next 2 months. How are you all finding anything that makes sense?!
Go out of state. I know dozens that live overseas and all across America, including me and do all their business in the Midwest Double digit net caps are the norm. I get deals sent to me daily. I just locked up 7 more SF all will have about 15% or better net caps.
All the best
Hi there! I haven't investigated rentals in the midwest. Where in particular are you seeing good returns? Do you have any deals you would be willing to share? Are they rehabs? Multi-family? Are you holding for cash flow or are they short term equity flips?
There is NO soliciting in this forum.
What am I soliciting? I am curious about strategy?
Quote from @Guy Gimenez:How and on what platform do I let them know I am looking? LOL
Quote from @Selina Giarla:
Quote from @Guy Gimenez:
Sounds like your sourcing your "deals" from the MLS (retail market), which means you're paying retail most of the time. It's always hard to cash flow retail deals which is why most investors market heavily to locate motivated sellers. Profitable deals are found primarily off market through dedicated marketing or through relationships.
I would love to understand how to get into the club of these off-market deals. Where do I start and what makes them "off-market"? You are correct, I am only involved in searches on zillow, crexi, and the like. Would love your guidance here.
Off market sellers need to find you, not vice versa.
1. SEO
2. Pay Per Click
3. Social media ads
4. Relationships with other investors and/or bird-dogs (ie deal finders)
5. Driving for dollars