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...

[Russell Brazil]

I find that many people have a hard time having realistic expectations for the current market and market conditions. They think they should still be able to buy at the prices and margins of years past. Markets change, and with that so should expectations for the market.

[Kuba F.]

We are all feeling this pain nationwide.  If you're looking for help from realtors then you're unlikely to get it.  They're happy to sell you inventory at market, because there just isn't any.  All of us have to basically cut out as many middlemen as possible and learn how to go direct to seller to make any deals work anymore.  

[Mike Dymski]

Analyze 100 deals and you may find 1.  Two months is not a long time.

Everyone has cash...this is the golden age of capital.  Real estate investing is about deal flow...lots of it.  Market and put 100's of opportunities through the funnel or invest with someone who does.

[Mary M.]

Being a genius in REI has been so easy the last decade..... now we are seeing it revert the the mean. Making money is possible, it just isnt going to grow on trees anymore

[Carlos Soto]

@Russell Brazil thanks Russell is it too much to ask to find something where you make 15-20k in the market? I feel like it’s out there just haven’t found it yet..

[Carlos Soto]

@Kuba F. In your opinion what percentage under market are you willing to invest in?

[Carlos Soto]

@Mary Mitchell thanks Mary what strategies do you use and what percentage of under market are you willing to take a risk on?

[Kuba F.]

@Carlos Soto that depends on the risk, but I aim for at least a 15% return, more if there is risk.  How much under market is the wrong question, as it requires too many assumptions on what needs to be repaired, or what the money costs are for that project.

[Carlos Soto]

Understood, but there is no cost to the money because it’s my cash but just trying to get an idea of how much under market I should be looking for to know if it’s a good deal. I’m new to the Albuquerque market. I’m from AZ and know it well but just learning Albuquerque.

[Garric Nahapetian]

@Carlos Soto I understand how that could be frustrating. Have you tried looking in a different market?

[Carlos Soto]

@Garric Nahapetian no not yet, would like to figure out the Albuquerque market because I feel like there’s opportunity here. I’m new to this market. I know the AZ market well but since relocating I would really like to know this market well and take advantage where I can.

[William Russell]

@Carlos Soto Stay the course! There is no rush. Housing markets go up and down, and it varies by area. Most Realtors want nothing to do with investors. We look at to many properties and low ball offers. This doesn’t give them the margins they need. It is up to you to find the deals! PM me for more info as to how!

[Matthew John]

@Carlos Soto If you have 200k cash, have you considered becoming a private money lender?

Sure, you won't actually own Real Estate yourself, but you'll get all the same benefits of monthly cash flow without dealing with finding a deal, rehabbing, finding tenants, dealing with tenants, or dealing with all ongoing issues of a property. 

200k @ 10% interest/yr = $1666/m for just lending your money. Might not be exactly what you had in mind, but could be a good idea for you until the market turns and presents some favorable opportunities again! 

[Account Closed]

Originally posted by @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...

 So the joke goes: "It was dark out and a man was looking at the ground under a street light. A passerby was intrigued and asked the man what he was looking for. The man said he had lost some money at the other end of the block. This was very confusing to the passerby who asked "if you lost the money at the other end of the block, why are you looking here?" The man replied "the light is better here". 

If you can't find good deals where you are, why are you still looking there? Look elsewhere, where the deals actually are.

[Chuks Erinne]

@Carlos Soto Sir, if you've "driven for dollar", found 5 good wholesalers in your market, attended your REIA, Called all the FSBO/FRBO in your market and still no deal after 1 year...then consider looking in a different market

[Tony F.]

@William Russell

Also curious about specific techniques to find deals in this market.

[Ian Walsh]

More sources of leads and more marketing.  The deals are out there.  They always are.

[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.

[James Canoy]

@Carlos Soto

If you have the money then consider leadpropeller and investor carrot (oncarrot) to set up a tailored set of websites and get leads direct from the people?

[Kenneth Garrett]

@Carlos Soto

Finding deals on the mls is very difficult today.  Although if you are going to find one this is the time of year.  Winter/late fall where sellers might be stuck for months because of the holidays and winter time.  Look for off market deals, go to the local banks and ask if there holding properties they have taken back.  You are perfect for this.  Cash buyer. Advantage is there is no or very little competition.  I have bought my last 5 buy n hold properties this year directly from small banks.  You still need to negotiate with them which can be difficult at times, but if you find them when need to get the non performing assets off of there books you can get a great deal.

Good Luck.

[Michael Ohara]

@Carlos Soto in what markets are you looking? Ever consider out of state?

[Michael Quarles]

Personally I think technology has set us towards a path of deal making unlike any time in the past. 

With amazon and google teaching folks that they don’t need the belly to belly approach as much as in the past it opens markets and virtual investing like never before.  

With data virtually at our fingertips and systems which can append info we are in a great time in history. 

The old way of cranking up your car has long past however a lot of nnbrstors still do the same ole same ole 

I can run numbers on a market which will tell me where hot is scalding.  Enter it with technology and get out before it dries up 

The backyard buying model is great however very limited 

My advice would be stay committed and go kill some houses.  It’s like shooting ducks in a pond right now.  

[Dennis M.]

As long as there’s death disease alcoholism drug use divorce etc.. there will always be deals if you look hard enough

[Jay Hinrichs]

Originally posted by @Kenneth Garrett:

@Carlos Soto

Finding deals on the mls is very difficult today.  Although if you are going to find one this is the time of year.  Winter/late fall where sellers might be stuck for months because of the holidays and winter time.  Look for off market deals, go to the local banks and ask if there holding properties they have taken back.  You are perfect for this.  Cash buyer. Advantage is there is no or very little competition.  I have bought my last 5 buy n hold properties this year directly from small banks.  You still need to negotiate with them which can be difficult at times, but if you find them when need to get the non performing assets off of there books you can get a great deal.

Good Luck.

 this method of buying form local banks is EXTREMELY market specific.. like here in  Oregon there are no homes owned by local banks. NONE.. that ship sailed years ago and is now on the other side of the world.  in some states like where your at.. there is still plenty of hangover inventory and or vacant homes.. like most of the major rust belt cities still have vacant homes virtually on every block.  mainly landlords who are totally burnt out and gave up.

this also is not a new phenom.. as deals in Oregon got really tough in 2001 2002 that's when I started scouring the US.. and now have done deals in 20 plus states.. so like as some have suggested you may need to widen your net.. but if your going to do deals in other states to start with in states were its legal.. lending or partnering could be a wise move.. remote rehab is fraught with RISK.. not matter what anyone says or any book says.. it simply is..

[Frank Wong]

Hi Carlos,

It's hard for everyone to find a good deal but I can tell you they pop up all the time.  Frustration is more about how you are processing everything.  Understand that this is part of the game and to find a good deal it takes time and patience.  The harder you work the luckier you get.  Its weird thing investing in real estate.  You can go months without finding anything and then all of the sudden 2-3 deals coming falling on your lap.

Frustration is a good thing.  Just imagine how frustrated you are and think about how everyone else feels.  People will give up while you will work harder and get the deals they left.