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Updated almost 6 years ago, 12/30/2018
Very Frustrated - can’t find good deals
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...
@Matthew John
And possibly learn from someone who knows the market! 😉
#3 All Forums Contributor
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- Lake Oswego OR Summerlin, NV
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#3 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
Originally posted by @Dennis M.:
As long as there’s death disease alcoholism drug use divorce etc.. there will always be deals if you look hard enough
basically the miss use of credit and the above things are a causation of miss use of credit. or with medical bills lack of insurance or what have you.
- Jay Hinrichs
- Podcast Guest on Show #222
Are you only open to investing in your current area? You may have better luck with long-distance investing.
In the New Hampshire/Massachusetts areas, we are not finding any great deals these days, but we have come across a handful of good opportunities. I think much of it comes down to what you believe would be a "good" deal. We have started considering expanding outside of New England and into the Midwest in hopes of finding truly great deals.
#3 All Forums Contributor
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#3 All Forums Contributor
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- Lake Oswego OR Summerlin, NV
Originally posted by @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.
seems to me its also coming back to belly to belly.. IE locals who door knock and all those folks now doing telemarking. I get 10 calls minimum a week now.. and my direct mail is running in sperts.. not nearly the volume it used to be.. IE postcards to sell .. or post cards to put me on their cash buyers list.
and a little off topic but now with all the wire fraud.. title companies out our way are accepting cashiers checks again.. it used to be they would not accept them over 10k because of all the fake or forged cashiers checks running around. I just close a deal at 5.2 million and I went to the bank and got a cashiers check I was scared to death to wire that amount of money.. and first American honored it that day..
it might just come back to were we have to use regular checks and escrows are going to have to start 2 weeks in advance to allow funds to clear.. its no joke on this wire fraud.. Most states are now coming out with a mandatory addendum realtors must get buyers and sellers to sign that outline how wire fraud happens and what to do to protect.. too much hiding behind internet and text messaging.. those are very dangerous ways to do financial transactions.
- Jay Hinrichs
- Podcast Guest on Show #222
Listen to Podcast 309 (17 mins in) "When to Grit & When to Quit" https://www.biggerpockets.com/podcast
#1 Multi-Family and Apartment Investing Contributor
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- Poway, CA
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#1 Multi-Family and Apartment Investing Contributor
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- Poway, CA
There is a lot of ways a RE can be a great deal. Below market, easy but profitable value add, more creative value adds, beneficial financing, path of progress/gentrifying, etc.
I not only claim that there are good deals but that, if you are creative with value adds, there are good deals on MLS, LoopNet, etc.
I recently considered teaming with another local RE investor on a mixed retail/residential RE. His plan was to convert half the retail space (the second floor) to communal living. Each unit would be a studio with a small bathroom and kitchenette. In the common area would be full kitchen, living/social area, maybe a game area. The property was located near a continuing education college.
My prospective partner on this deal was more creative than I am at envisioning value adds.
Look for non-obvious opportunities. This includes financing opportunities. There is a lot of competition for that 1970s home that has never been remodeled (my normal type of value add).
Good luck
Have you pursued any OFF-MARKET potentials?
I have not found a deal that fits my criteria in nearly three years. I have put in offers in my market, got to inspection on one deal, but it just didn't work out. I have followed Kiyosaki's advice, which is to find value investments in other areas. I've done pretty well in one segment of the stock market. I cannot share those stocks, or the research I took to find them. Just want to encourage you that real estate is not the only game in town.
@Carlos Soto Hey Carlos, I totally hear you when it comes to not finding deals. You were correct in your statement about needing to get more creative. For example, on my last deal, someone down the street from me passed away. I noticed the relatives of the deceased flew up here, as I saw a new car in the driveway. I walked up, introduced myself and told them what I do.. Long story short, they sold me the house and I fixed it up, and am renting it now. You already have done the hard part with saving all that cash, so you are ready for when an opportunity presents itself. Try checking out your probate court, or look at you local newspapers for recently deceased people.. I hear a lot of the time, the executors phone number will be in the ad. Anyway, good luck to you!
Waiting for realtors to send you deals from the MLS will be a long frustrating road. They might exist, but won't be apparent. You'll need to make offers that make sense to you, lots of offers, several every day. Soon the agent will no longer return your calls...
The MLS is only a tool, and should be one of many in your toolbox. There are plenty of articles here on BP that detail how to find deals, with MLS and realtors low on the list these days. You have to do the work. Direct to seller marketing, probate, tax lien, expired listings, worn out landlord, driving for dollars, doorknocking. It's been said many times on this thread - the low hanging fruit is long gone. Time to get out the ladder!
#4 Real Estate Horror Stories Contributor
"I’ve had a heck of a time finding good deals in Albuquerque"
-----------------------------
Translation: "I’ve had a heck of a time finding people stupid enough to be willing to leave money on the table for me to pick up in Albuquerque."
Start by defining "good deal." If your definition of "good deal" is a 10% return on investment when the market says 8%, then your problem is staring you in the mirror every morning.
If you are finding that others are getting "good deals" (whatever those are) but you aren't, then compare how they operate with how you operate and adjust/resign yourself accordingly.
So how do you justify venting?
As my senior drill instructor was fond of saying, "my heart pumps kool-aid for you."
It might be a predicament that many places are facing, but you can't just trust two realtors. You want them sending you deals daily/weekly/etc. Start going to open houses and finding out who the agents are and what they have going on. Build a mailing list and start to email them for deals. Let them know what you are upto. I always stress on getting things before they hit the market. It took us a few months to start getting deals sent to us in LA. Once we did, we had to come through with what we thought the price would be and make sure we did our homework. Start to become more aggressive with the deals that are on the market, if something has been sitting on the market for 60+ or 90+ days, they are distressed properties, start sending offers in. Go back and forth it takes time.
If all this is not working, its time to search for another option, mate. If the deals are not there and the above doesn't work, I would start looking at other options. $200k is good amount, where I live it doesn't even get you a full rehab budget. It might be better to just BRR, become private money, or start to focus on a different type of market- may be go into triplexes, or MF. Usually it takes time, I have flipped for a year now and it took me 6 months just to feel comfortable with the process.
Best of luck.
@Aditya Oza thanks for the advice, I’m also working with a broker who has a multi family lead for me to review.
For everyone on this thread thank you for all of the comments and advice.
I’m definitely not giving up was just a bit frustrated last night.
I know there are deals to be made so onward and upward.
I appreciate everyone’s support. I’ll be sure to share when I do find that elusive deal :)
I suggest that all of us spend more time in the acquisition phase. Dig deep and use alternative contacts and sources to find deals. You'll find one eventually.
@Carlos Soto I'm a multifamily investor out of Albuquerque. The deals are still there, but harder to find. However, I'm getting a 16-unit building under contract shortly, and that was through direct mail marketing. I'm buying at a 7CAP in Nob Hill, so that is pretty good.
I'd be happy to network with you the next time I come to town. I live in Durango, CO.
@Jens Nielsen Absolutely let’s connect, I’m interested to hear your approach and strategy. I am definitely willing to share what I have going right now including a very good and trustworthy contractor. Let me know and I’ll be happy to meet with you.
Originally posted by @Jay Hinrichs:
Originally posted by @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.
seems to me its also coming back to belly to belly.. IE locals who door knock and all those folks now doing telemarking. I get 10 calls minimum a week now.. and my direct mail is running in sperts.. not nearly the volume it used to be.. IE postcards to sell .. or post cards to put me on their cash buyers list.
There's hundreds of ways to find deals and market for them. You just have to find the one that works for you.
@Michael Quarles is right that it's definitely the golden age of being able to sit in your pajamas and deal surf, and here's a BP post I wrote a while back that outlines at least 50 ways to do just that:
https://www.biggerpockets.com/blogs/8814/72016-55-...
But I @Jay Hinrichs is also right and my original point still stands, eventually you have to put on some pants and hit the streets and start talking directly to sellers.
@Carlos Soto - Hey Carlos, there’s only a handful of markets where you can still do good flips and buy/holds especially with $200k. But I had to leave my local market in Denver as well and now I find them everyday. Go check out BP Marketplace and see the 3 that I have posted on there now. I’m a SPOC investor, (Single Point of Contact) so I find deals, analyze them and when I don’t keep them, I sell them with strong #’s to other investors, some turnkey, some that need rehab, with a network of solid dependable GC’s, sub-contractors, and project managers & property managers in place. We always have to know the numbers, find profit and the Win/Win in the deal. Feel free to reach out.
@Carlos Soto
Have you tried the drive for dollar approach ive had my realtor tell he has had good buys on the off-market deals look for maybe boarded up house .... houses in distress find a few analize and funnel the good deals that way knocking on a few doors one of those houses is bound to set a good deal...
@Matthew John I am interested in learning how does one become hard money lender? Also how safe/risky is it? Any information is much appreciated.
I'm not sure if these have already been suggested to you, but I would:
- Setup Zillow saved searches & notifications for homes in the zip codes your interested in that are "FSBO" or have the keywords "as is", "as-is", and "cash only". If a good deal comes through from these, you'll have to jump on them that day, view them, and be ready to offer cash without inspection (bid appropriately for the risk).
- Research your county's foreclosure process. If they require "judicial foreclosure" by banks you might have a great avenue. Many clear all liens through the foreclosure process (except for IRS, who gets 90 days to buy the property for what it was auctioned for but usually don't). See if your county has "sheriff sales" or "sheriff auctions" and attend some and learn about them.
- On the realtor sites, search for homes that have been empty and on the market for a long time. They may be open to very low bids. It's a game of numbers here. Even a house that has been empty and on market for 45+ days may be willing to accept a substantially low offer. You pay nothing to your realtors to have them make an offer for you if the sale doesn't go through.
Hope one of these helps. I have to say, I do all of this and more and it's a dry time for me right now. All I need is one though. They always come eventually so long as I am diligent. Don't get desperate and pay too much though!
@Carlos Soto
If you are sitting back and waiting for Realtors to find all of your deals then nothing is going to happen, especially in this market. Also may need to re-evaluate your expectations, 50% of something is better than 100% of nothing. 2 doubles is just as good as a home run. Are you a meme we of a local REIA? Are you networked with any other wholesalers or flippers? Ask them if they have any excess inventory that they are looking to dump. This has worked for a couple of investors I work with recently. Yes being creative is key. Find some niche that no one else is doing in your market.