Very Frustrated - can’t find good deals

[Carlos Soto]

Sorry folks just need to vent.

I’ve had a heck of a time finding good deals in Albuquerque. I have networked and established good relationships with 2 realtors that work with investors and a broker.

After a couple months I’ve come up empty. A lot of people don’t have cash to start but I do. I have 200k cash ready for a great deal for a fix and flip or a good buy and hold but nothing so far. Maybe I need to get more creative but finding that elusive good deal has been tough so far.

Any good advice or suggestions to overcome this problem and get going on this idea of Real Estate being the best investment I can make in my life?

Sorry just frustrated right now...

[Don Konipol]

@Carlos Soto

You need to forget realtors and MLS. After the crash of 2008, outstanding deals could be found this way because there was more forced sales than there was buyers. Now local markets are either in balance or more buyers than sellers.

When capital was scarce, cash could demand a significant discount. With cash and loans readily available this is no longer the case. So what can you do?

1. Look for properties that are not financable, usually because of condition. Also some condos are not financable because their HOAs and owner occupancy requirements don’t meet Fannie Mae guidelines.

2. Look for mixed use properties that are not as much in demand and harder to finance.

3. Piggy back other investors deals by providing capital for partnership interest.

4. If you’ve been looking for a property that just needs a cosmetic facelift, you are in competition with too many rehabbers. Look for properties needing more extensive renovations. For example old homes with 3-4 bedrooms and only 1 bath. Adding 2 more bathrooms can put that house into an entirely more upscale market.

5. You can buy at market in areas that are gentrifying and still make money through appreciation

Most successful investors in today's markets find properties not listed by realtors through various methods of generating deal flow. Some cold call, some use direct mail or direct email, others extensively advertise through various social media. Realtors who list properties have a legal obligation to inform sellers of comparative values, so listing prices tend to be at market or higher. From your post I get the feeling that your looking for a property ‘priced right', that is priced at or about what your willing to pay. That animal may not exist. You need to make offers, probably quite a few, at significantly below asking price. The vast majority will be rejected, sellers will become upset with you, agents will become frustrated. Which is why if you go the MLS route you'll need an agent specializing in representing investors. Not an agent who thinks they can expand their business by taking on some investor clients but one who actually deals with investors exclusively. Otherwise the agent will quickly realize that a owner occupant buyer will end up submitting 2 offers to get 1 accepted while as an investor you might submit 10 to get 1 accepted. So you are 5 times the amount of work!

As a final note, the market is saturated with people looking to invest in real estate or start a real estate fix and flip or wholesaling business. The low hanging fruit is gone. So success in the market is the result of knowledge and expertise. Part of which is spotting value that the less knowledgeable overlook.