How to approach RE Agents to search for potential house flips

[Sergio Rodriguez]

Hi All, 

So as part of my strategy starting out I am looking for a few fix-and-flips to build up cash to purchase future multifamily homes for passive income. I like most of you have a full time job and unfortunately cannot spend my day looking for homes online with great potential to flip. I live in the DFW area and there are 100s of investors in the area so competition is heated. 

I'd like to ask a few RE agents I have in my contact book to help me look for great deals with a few requirements (criteria) that I have for the search. My approach: I want to inform a few agents about my search and if they find a great deal for me and I agree to move forward, I will use that particular agent that found the deal to buy and re-sale the property.

Is this a common approach to finding homes? 

Thanks,

Sergio Rodriguez

[Tony Wooldridge]

@Sergio Rodriguez, I feel your pain, finding deals is a complicated, time consuming process. It takes a GR8 deal of time and effort to find a TRUE deal. At least in my limited experience, RE agents can be a GR8 asset when it comes to purchasing off the MLS (which these days in most markets is a rare find, TRUE deals) but a more effective way to find deals are not always but more than likely off market. Now I am not saying you cannot find deals on the MLS and you already mentioned you are in a competitive market (who isn't these days!) but more times than not off market deals is where you will typically find true motivation. I might recommend finding an agent that is an investor themselves as they are more apt at knowing and understanding better of what a TRUE deal looks like.

So having a full time job makes finding off market deals even that much more difficult. But it can be done. It all depends on your level of commitment as well as what time you you can allocate to building your business. I myself don't live in a large area like you. So for me, at least in my extensive research have not been able to find a wholesaler so I had to become good at learning a wholesalers (WS) job as well. It is a TON of work but when faced with a problem you need to find a solution. So I put in the time (which it requires a GR8 deal off, weekend warrior!) and after compiling a substantial list I started my Direct Mail Marketing (DMM) campaign. To my surprise it worked or a least a good deal of people contacted me about my marketing. I ultimately didn't get a deal off of the DMM but know that it works and will employ it again in the future when I get done with my current Flip (which I purchased off the MLS, as I was making offers on off market and MLS deals). So in your area I would assume you might have access to Wholesalers, that would be a good place to start for off market deals. Now word of caution (not that I have personal experience with this, only what I have heard and read) do you due diligence vetting the WS as well as any deals they may bring to you.

Sorry for the elongated post. So to sum it up, if possible find a RE agent that invests as well if possible, find a GOOD WS in your area or if not and you have the time and inclination do your own marketing to find a deal. By the way, I work a full time job as well and also am in the process of building my REI business. Disclaimer, I am relatively new to REI and these methods have worked for me and there is absolutely no guarantee that this methods work for everyone but as always do your homework (educate, educate, educate) and once that is done TAKE ACTION! The taking action part is extremely important nothing will happen until you commit to actually executing your plan. Best of luck to you and I appreciate you allowing me to share. Here is to wishing you a successful 2017 in your REI ventures!