How do you find good deals?

[Roy Jeong]

I keep hearing people say "Find a good deal and the money will come, so focus on finding the deals." Let's say I'm looking for residential multi-family units that generates monthly cash flow. What should I do next? How do I find these "good" deals? What makes a deal good? Do I make a checklist of the criteria I'm looking for with the help of BP and other investors? How do you go about finding good deals with whatever you're looking for in real estate? Thanks

[Roy N.]

@Roy Jeong

Question:  When you say multifamily, are you referring to 2-4 unit residential properties or multi-unit properties (5+)?

As for finding deals, there is no secret sauce, you need to be always looking and focused while also maintaining the flexibility to spring when something wanders into your path.

Sometimes you find good deals though diligence and patience:

I have a database / archive of information on all properties in our target areas which would be of interest to us.  At least once per year, I update the information on each property and review the property to see if it still fits our criteria.  I also rank each property based upon "fit" (with our business plan) and "potential availability" (i.e. we know the owner is 75 with no interested heirs) during each review.

I also make it our business to track properties headed for mortgage sale / foreclosure or tax sale.

Sometimes good deals fine you:

Late last week a real estate agent with whom we work, brought us a property pre-listing, which just may become a deal.   Sometimes the owners, or their heirs / executors, find you - if you already have properties in the neighbourhood.