How to find distressed properties?

Question

How can I find distressed properties to flip? Seems like everyone wants the one on market so its nearly impossible to secure the property. How is the real estate market in socal? Are the profit margins good for flipping? Should I look out of state? What are some ways i can find distressed properties

Chris Seveney · Answer

@Alex Ng

Reach out to note investors.

I say this all the time and never ever get contacted. We always have 5+ properties going to market across us. Note investors are the lender and when they take a property back they look to move it quickly

Joshua Janus · Answer

Yes propstream for the lists, websites such as REISkip for the #'s and Mojo as the dialer.

I find deals from 6 different sources:

1. MLS listings. I scrape new listings, old listings and expired listings and have my team reach out to the listing agents to determine if the deal will work at the listed price and if not they will ask the agent if the desired price would get it done. If so I’ll gather the information on those deals and present them to you.

2. Pocket listings from agents that I follow up with on a consistent basis. I try to make contact with every single multi family listing agent every 1-3 months to make sure they know my name and bring deals this way when they find them.

3. Wholesale lists. I get 100+ deals a week coming from wholesalers. The majority of those deals are poor and I focus on the best ones, gather the necessary information and present those to you!

4. I call, text, email and meet with off market sellers on a daily basis. I’ve built up a strong network this way and it ends up producing 5+ off market deals a month that I can present to you.

5. I have a team that calls, texts, emails and meets with off market sellers in order to find the best deals possible to present to my investors. This area of sourcing deals is growing for me and I want to continue to build out a bigger and better team to find more deals.

6. There are 15+ agents in my brokerage that leverage many of the sources above. They will send the deals to me to present to you.

Jacob LeBar · Answer

I would recommend working with an investment real estate brokerage. I specialize in Austin and we help investors find deals. But there are plenty of resources to find deals, such as Facebook groups, Bigger pockets marketplace, connecting with a brokerage or wholesaler

Joshua Janus · Answer

If you want to find the deals directly, you'll need to go out and prospect the sellers and see who would entertain an offer. I do this through cold calling, texting, emailing and whatever it takes to find a deal. If you do this on a consistent basis you will find deals as it is just a numbers game in the end.

Get as much information from them on the first call as you can. Here is what I try to gather: notes on owner / owner motivation units / beds / baths price range Save email / phone #price?Lease price, structure, length and longevity of the current tenantsCondition of the capex items including the roof, structure, water tank, furnace, ac, appliances etc.

Eliott Elias · Answer

If you are not going to market direct to seller, your best bet is finding a deal via a wholesaler. There is no generic profit margin, it depends on the deal you find.

Emmanuel Y. · Answer

The best advise I can give is to networking. Connect with real estate agents, investors, and property wholesalers who specialize in distressed properties. Attend real estate investment meetings, join online forums, and build relationships with professionals in the industry. They may have insider information or leads on distressed properties.

Believe it or not, but driving for dollars around neighborhoods. Take the time to explore neighborhoods and look for visible signs of distress, vacant properties, dilapidated buildings, or properties in need of significant repairs. Research ownership information to contact the property owners directly.

Hope that helped. Good luck!

Anibal Mijangos · Answer

Best way is to approach it like a wholesaler - you can look up wholesaling strategies online.

Driving for dollars, using software like Propstream, cold calling, sending cold letters, and more.

To increase your margins, you're going to want to acquire properties as low as possible under market value. Using wholesaling strategies will help until you get to the point where they come to you from your network.

Chris Seveney · Answer

@Alex Ng

Let’s flip the question - what are you doing to find deals? You are in a market with significant competition. What are you doing better or differently than the competition?

If you just throw your name on a few lists to get deals, of course your not going to get any.

Doug Smith · Answer

There's a cheesy moving from the 80s or perhaps early 90s called "The Cutting Edge" about an Hockey Player that gets injured and turns to pairs figure skating. In it, the skating coach is looking for a male parter to pair with his "difficult" female skater and none of the male skaters out there would put up with her. He says something to the effect of "We're at the bottom of the barrel" to which the female skater's father says "then find another barrel". I don't know why I always think of that, but that's exactly what we did more than a decade ago. We found other barrels. I was a banker with lots of banker and lender buddies that were charged with working out severely delinquent mortgage loans. I approached them and said, "Can you sell me and delinquent loans that you want off the books". At that time, no one seemed to know you could even do that. Instead of competing with everyone else at the foreclosure auctions, we simply purchased severely delinquent mortgage loans from my banker buddies, got the properties back, and rehabbed them. We then started doing them through hedge funds by purchasing HUD assets. Now that's more common, but the bottom line is you've got to find another barrel. For instance, we'll now buy lots and build on them where we didn't have the experience to do that before. Few investors can buy a lot and do a completely new construction deal. You've got to find niches that you have expertise in that others don't, exploit it, and then shut your mouth about it for as long as you can because others are going to figure out where your fishing hole is eventually and steal all the fish. Good luck to you!

Kareem Al-mufti · Answer

Are you cold calling, texting, and emailing contacts from data lists?

How to find distressed properties?

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