How do good, savvy investors find good deals in any market?

Question

I'm being told all the deals are drying up.  However, I'm also reading from some here that good, savvy investors can always find deals.  How exactly do I do this?

Bill Gulley · Answer

I really do think you guys need to get off the computer and use some shoe leater, meet people, go to civic organizations, civic events, walk and talk, hand out your cards. As I said above, it's about people, not listings on the MLS, those are public, everyone knows that's there.

My mom was a very out going person, she and dad (and I) would go someplace and a waitress would wait on us and she'd say " you know anyone who wants to buy a house?" heck, she'd be in line to get movie tickets and ask. Got news for you, it works, you all play the numbers sending out yellow letters, why not do it in person? Chances are, you ask ten people, one will know someone that is interested, ask 20 to 25, that person will have an interest. They sold miilions just by asking.

Hey, don't discount asking the waitress, her husband works too, she has family, you have no idea unless you ask!

I'm tell'n you, it's about people!

Ned Carey · Answer

Become savvy yourself.

Learn many ways to find deals and then find which is working in your market now.  Search this site and you will find lots of way to find deals.  There is probably an easy dozen ways to find deals just on the MLS

However if the MLS is not working look for off market deals.  The are an easy one hundred+ way to find non listed deals.

The real estate market is always good.  It is just a matter of if it is good for sellers or for buyers.  This means not only do you need to find the appropriate way to find deals in you current market but what strategy to use.  Is your market best for buy and hold, wholesaling, rehabbing and flipping?

Keep reading, looking for deals, making offers and taking action.  The deals will come.   Good luck - Ned

Dev Horn · Answer

The only way the deals would "dry up" is if every house is now in perfect "retail ready" condition, every homeowner gets a great job, everyone makes all their payments on time, people stop getting divorces, people stop passing away, etc. etc.

Yes, market conditions will vary by locale, but deals happen every day and new opportunities pop up all the time.

Successful investors do it thru MARKETING - the constant communication with your target market via multiple "touches" over an extended period of time.  You want people to begin to "know" you and "trust" you because they are aware of what you do.  That's why we think branding is important.  Homeowners in targeted areas or situation get a LOT of contact from "a guy that wants to buy their house".  For them to actually pick up the phone and call you, they need to feel that you are offering a (legitimate) potential solution to their "problem".  That came thru establishing TRUST.

Now, sure some people find deals on the MLS, where literally HUNDREDS of investors are trolling for deals.  Prepare to get in a bidding war.  The best scenario is finding those motivated sellers who are NOT on the MLS and are only talking to YOU.

Bill Gulley · Answer

How we do deals in any kind of economic condition is TOP SECRET!
(LOL)

As Karen mentioned, all RE is local. It's also personal. Deals happen because of personal needs of owners, not so much due to any macro economic situation.

There are always "life events" death, incapacitation, illness, divorce, job loss, bankruptcy and incarceration. Things happen to people that set the stage for opportunities for some, those who can identify such matters and provide solutions for owners get the deals.

There are many posts here about foreclosures, loans adjusting, economic conditions, housing trends, housing inventories, etc. which, in the end, mean very little to an individual owner as thier personal situation is not a function so much to any of these big picture occurances. While these factors may bring about some personal situation, like a bank not renewing a loan, it's an individual's ability to survive these life events that keep them from getting in distressed situations.

To identify or become aware of such personal situations you need social connections. It's just about being in the loop, knowing people and being known as a problem solver or one with resources, knowledge and means so that people inform you of circumstances. Just make lots of friends!  :)

Ali Boone · Answer

I'm kind of surprised no one here has asked what kind of deals you are looking for. It may not make a huge difference in the answers, but it could...

I only buy turnkey properties for myself (for now at least), so I never have to go through all the nonsense of

"1. PPC on google/bing 2. Direct mail 3. Other wholesalers 4. referrals/word of mouth 5. Other agents 6. Estate sales 7. FSBO's 8. MLS 9. Probate attorneys 10. Craigslist. For Sale by owner section"

I just have no desire. But I still get great deals, great returns, and none of them are on the MLS. It's all about knowing people.

If you want to put work into properties, I'd say the MLS only works in certain markets. No matter what the deal, network and meet other investors. You'll be amazed what you find access to.

David Krulac · Answer

Brian W.

Right now it is still a buyer's market, meaning that the market favors buyers.  There are no price increases every month, there are no competing buyers (for the most part), and there are no offers over asking price.  All of which was happening in 2004.

So right now it is advantage buyer.

But, I don't care if its a buyer's market or a seller's market, I'm always buying, every year, up or down market I'm still buying.

I look as many different ways as I can.  I have about 30 different ways that I've bought property, some are pretty obscure;  I've bought property from the state highway department, from the US Marshall Service, life estate, etc.

But one of my favorite ways, which works in all markets is buying from sellers, who are not selling their property, no MLS, no signs, no ads, no craigslist.  really reduces the competition as nobody else knows the property is for sale except you.

Brian W. · Answer

Fantastic advice.  Thanks a lot Craig.

Craig P. · Answer

Honestly there is really not a simple answer to this question.  Most savvy investors use several strategies to drive leads/deals.  We cast a wide net out into the market and get leads from a variety of methods.

Buying deals via the MLS in Denver is extremely challenging.  Due to the market conditions being incredibly strong deals go well above what they should go for.

Here are a few ideas...we have bought deals via all these strategies.

1. PPC on google/bing
2. Direct mail
3. Other wholesalers
4.  referrals/word of mouth
5.  Other agents
6.  Estate sales
7.  FSBO's
8.  MLS
9.  Probate attorneys
10.  Craigslist.  For Sale by owner section

Good luck.

Ben Leybovich · Answer

Brian W.  I haven't bought a thing off the MLS in years.  That's where everyone looks, so I don't bother.   - hope this helps :)

Brian W. · Answer

Do wholesalers work with people who are planning to get a conventional mortgage?

How do good, savvy investors find good deals in any market?

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