Seeking Advice for New Fix-and-Flip Investors in Competitive Market

[Gaya Ben Simon]

Hello Investor Community,

My name is Gaia, and I'm an investor in Cleveland. I've successfully completed deals on the west side of Cleveland using the BRRR strategy. Currently, my partner and I are focusing on finding deals for flips. We've been searching for a couple of months now, but we are facing challenges.

It seems that everything on the market is being snapped up within less than a week by more experienced investors who can offer better terms. As we are just starting out on our fix-and-flip journey, we find it difficult to compete with those terms.

We would greatly appreciate any advice or strategies that you could share for new investors like us. Specifically, we are looking for tips on how to secure deals for fix-and-flip projects in such a competitive market.

Thank you in advance for your help and guidance!

[Chris Seveney]

@Gaya Ben Simon

Have you tried to do any marketing for off market properties or look into teaming with wholesalers or others?

With lack of inventory it’s those who get their first have best chance of winning - so trying to get out ahead is something to consider

[Gaya Ben Simon]

Quote from @Chris Seveney:

@Gaya Ben Simon

Have you tried to do any marketing for off market properties or look into teaming with wholesalers or others?

With lack of inventory it’s those who get their first have best chance of winning - so trying to get out ahead is something to consider

I havent tried to do any marketing for off market properties. I do have connections with couple of wholesalers in the area they are currently my main source for fix&flip deals.

I liked the idea of marketing for off market propoerties , where should I start?

[Chris Seveney]

Quote from @Gaya Ben Simon:

Quote from @Chris Seveney:

@Gaya Ben Simon

Have you tried to do any marketing for off market properties or look into teaming with wholesalers or others?

With lack of inventory it’s those who get their first have best chance of winning - so trying to get out ahead is something to consider

I havent tried to do any marketing for off market properties. I do have connections with couple of wholesalers in the area they are currently my main source for fix&flip deals.

I liked the idea of marketing for off market propoerties , where should I start?

 There is a guy Jerry I think his last name starts with a N here on BP who has a lot of great content on how to market for off market properties. Its not something we do so I would not be the person who can assist on the exact way to do it, but there are several here on BP that can assist. 

[Joshua Janus]

Quote from @Gaya Ben Simon:

Hello Investor Community,

My name is Gaia, and I'm an investor in Cleveland. I've successfully completed deals on the west side of Cleveland using the BRRR strategy. Currently, my partner and I are focusing on finding deals for flips. We've been searching for a couple of months now, but we are facing challenges.

It seems that everything on the market is being snapped up within less than a week by more experienced investors who can offer better terms. As we are just starting out on our fix-and-flip journey, we find it difficult to compete with those terms.

We would greatly appreciate any advice or strategies that you could share for new investors like us. Specifically, we are looking for tips on how to secure deals for fix-and-flip projects in such a competitive market.

Thank you in advance for your help and guidance!

I would be careful attempting the BRRRR method out of state to start. You'll want a great team in place that can

- work efficiently and in a timely manner considering your loan time frame

- communicates very well as you are remote and not at the place

- priced well. This is tough, eats into your margins and normally you'll pay more on your first few projects developing the relationships and it'll get more favorable to you over time.

- ACTUALLY does good work. Now this on top of the characteristics above is very difficult to find. If you do don't stop buying. Keep that team busy and sticking with you.

The chances you find a team right NOW with your 1 house with them wanting to work with someone new is so slim. If you find a crew or were referred a crew always ask - why did they stop working with the other investors in the past? Why are they needing new work? This is very important and will always tell the story of why. If you start with some buy and holds, test out some GC's on maintenance / small work then you can start building a relationship with someone and eventually get full blown BRRRR's / Flips going. I have 50+ people on my contracting company only working on the houses I buy and am speaking from that experience starting with zero contractors less than 3 yrs ago and having been burnt very had multiple times throughout the process.

[Gaya Ben Simon]

Quote from @Joshua Janus:

Quote from @Gaya Ben Simon:

Hello Investor Community,

My name is Gaia, and I'm an investor in Cleveland. I've successfully completed deals on the west side of Cleveland using the BRRR strategy. Currently, my partner and I are focusing on finding deals for flips. We've been searching for a couple of months now, but we are facing challenges.

It seems that everything on the market is being snapped up within less than a week by more experienced investors who can offer better terms. As we are just starting out on our fix-and-flip journey, we find it difficult to compete with those terms.

We would greatly appreciate any advice or strategies that you could share for new investors like us. Specifically, we are looking for tips on how to secure deals for fix-and-flip projects in such a competitive market.

Thank you in advance for your help and guidance!

I would be careful attempting the BRRRR method out of state to start. You'll want a great team in place that can

- work efficiently and in a timely manner considering your loan time frame

- communicates very well as you are remote and not at the place

- priced well. This is tough, eats into your margins and normally you'll pay more on your first few projects developing the relationships and it'll get more favorable to you over time.

- ACTUALLY does good work. Now this on top of the characteristics above is very difficult to find. If you do don't stop buying. Keep that team busy and sticking with you.

The chances you find a team right NOW with your 1 house with them wanting to work with someone new is so slim. If you find a crew or were referred a crew always ask - why did they stop working with the other investors in the past? Why are they needing new work? This is very important and will always tell the story of why. If you start with some buy and holds, test out some GC's on maintenance / small work then you can start building a relationship with someone and eventually get full blown BRRRR's / Flips going. I have 50+ people on my contracting company only working on the houses I buy and am speaking from that experience starting with zero contractors less than 3 yrs ago and having been burnt very had multiple times throughout the process.

 Thank you Joshua for your detailed answer. what would you advice to a foreign investor to do once they come to the states ?

[Joshua Janus]

Quote from @Gaya Ben Simon:

Quote from @Joshua Janus:

Quote from @Gaya Ben Simon:

Hello Investor Community,

My name is Gaia, and I'm an investor in Cleveland. I've successfully completed deals on the west side of Cleveland using the BRRR strategy. Currently, my partner and I are focusing on finding deals for flips. We've been searching for a couple of months now, but we are facing challenges.

It seems that everything on the market is being snapped up within less than a week by more experienced investors who can offer better terms. As we are just starting out on our fix-and-flip journey, we find it difficult to compete with those terms.

We would greatly appreciate any advice or strategies that you could share for new investors like us. Specifically, we are looking for tips on how to secure deals for fix-and-flip projects in such a competitive market.

Thank you in advance for your help and guidance!

I would be careful attempting the BRRRR method out of state to start. You'll want a great team in place that can

- work efficiently and in a timely manner considering your loan time frame

- communicates very well as you are remote and not at the place

- priced well. This is tough, eats into your margins and normally you'll pay more on your first few projects developing the relationships and it'll get more favorable to you over time.

- ACTUALLY does good work. Now this on top of the characteristics above is very difficult to find. If you do don't stop buying. Keep that team busy and sticking with you.

The chances you find a team right NOW with your 1 house with them wanting to work with someone new is so slim. If you find a crew or were referred a crew always ask - why did they stop working with the other investors in the past? Why are they needing new work? This is very important and will always tell the story of why. If you start with some buy and holds, test out some GC's on maintenance / small work then you can start building a relationship with someone and eventually get full blown BRRRR's / Flips going. I have 50+ people on my contracting company only working on the houses I buy and am speaking from that experience starting with zero contractors less than 3 yrs ago and having been burnt very had multiple times throughout the process.

 Thank you Joshua for your detailed answer. what would you advice to a foreign investor to do once they come to the states ?

Do this

"If you start with some buy and holds, test out some GC's on maintenance / small work then you can start building a relationship with someone and eventually get full blown BRRRR's / Flips going."

[Ko Kashiwagi]

Hi Gaya,

Creating an off-market pipeline could be a great strategy for you to not only get great deals but build consistency and control over deal flow. Additionally, you can try offering on properties that are overlooked - canceled listings, listings 90+ days out, etc

[Verna Littleton]

Hello Gaia. I too am a fix n flipper and this is a challenge most fix n flippers across the country are facing. I agree with a lot of the answers you have received. You will need to put time and money into getting off market properties. The properties in MLS are low hanging fruit and there will always be bidding wars on those and the buyers will bid those up. I've gotten a couple lately from wholesalers that have been great deals! Network with investors, find investment groups on facebook in your area, meetups etc. Good luck!

[Erik Estrada]

Quote from @Gaya Ben Simon:

Hello Investor Community,

My name is Gaia, and I'm an investor in Cleveland. I've successfully completed deals on the west side of Cleveland using the BRRR strategy. Currently, my partner and I are focusing on finding deals for flips. We've been searching for a couple of months now, but we are facing challenges.

It seems that everything on the market is being snapped up within less than a week by more experienced investors who can offer better terms. As we are just starting out on our fix-and-flip journey, we find it difficult to compete with those terms.

We would greatly appreciate any advice or strategies that you could share for new investors like us. Specifically, we are looking for tips on how to secure deals for fix-and-flip projects in such a competitive market.

Thank you in advance for your help and guidance!

 Definitely work on building more connections in the real estate industry. You will come across many off market deals just by connecting with agents, lenders, and other people in the industry. It will take some time though, just like any business.