Finding Deals Worth Purchasing

[David Schmiediche]

Howdy Investors! Every serious investor is looking for a good deal to purchase and with the seller's market that we're in right now, deals are getting harder and harder to find. I am looking for a fourplex in Bryan/College Station to purchase within the next few months and have clients looking for small multifamily units to purchase as well. The MLS is a great place to find deals and in the current market we're in there are very few multifamily units on the MLS and even fewer worth pursuing. Because of this I am looking at pursuing more off market properties to increase the number of possible deals to pursue. For the past few months I've been doing direct mail marketing and have had a decent amount of success with this. This is how my business partner and I found our last deal and now I am looking into different ways to find deals worth purchasing. Not necessarily only off market deals, although that is the best place I can see to start looking. What ways are you or other investors looking for deals worth purchasing?

[Andrew Postell]

@David Schmiediche the BRRRR strategy relies heavily on "off market" deals. Especially here in Texas where every investor in the country is looking at the MLS. I mean that Chip and Joanna thing has Waco as the most viewed city in America for properties. Everyone uses the MLS.

Now, for multi-family properties the strategy here is entirely backwards. Take places like Chicago, or San Francisco, or New York, or DC....places where land is so expensive that I have NO CHOICE but to build multiple units on my little sliver of land. Here in Texas though, it's like land is just being given away (comparatively). I can build a single family home on an acre and be totally fine. Try buying an Acre in Los Angeles...forget it. It's the complete opposite here. So the need for multi-family just isn't here. But there's still every single investor across the country that will bid against you when one hits the market. So most investors here get lucky from time to time with them but mainly focus on single family homes. There's so many SFH and we know how to make those work.

Anyways, I hope some of this is some help.  Thanks!