Hows your success In Nashville?

Question

Hello Nashville Investors!I am curious what kind of success everyone is having in Nashville. My partner and I are implementing a business model that has worked very well in Colorado Springs but we have heard the Nashville market is very competitive so I am curious If anyone else believes that to be true? It seems the talk around Nashville is that deals are hard to find.. I have sat down with some high volume wholesalers and they are pulling 3 - 7 deals a week out of the market so I can't believe this to be true. We are in our 3rd month and expecting things to really pick up 3 months from now. Our marketing looks like this: 5000+ DFD leads (increasing by 150 per month)400+ Probate (increasing by 200 per month)2900 tax liens1000+ evictions (increasing by 100 per month) 500+ VA web scrubbing (increasing by 100 per month)All letters are handwritten and very personable. We have done a couple deals, seen all of our competitions marketing, and feel confident we have differentiated ourselves. (Sellers have called us over 8 other mailers sitting on their table and this has been the case on multiple occasions.)The main focus is to build a wholesale business and short term rental portfolio like we have in Colorado Springs. I understand Nashville is no longer giving our Type 2 permits so Type 3 is our focus. We are still learning the laws around STR in Nashville and how to accomplish this. What degree of success are you having in this highly competitive market?Are deals legitimately that hard to come by? If so, what are these big time wholesale companies doing differently than everyone else?Feel free to reach out to me. I am always looking to learn as much as possible from others in new markets and help in anyway I can. If you have any type 3 rentals I would love to hear from you.Good luck to everyone out there and happy hunting!Cheers,Brandon

Roger Poulin · Answer

@Brandon Cobb I want to know who these high volume wholesalers are.

Lucius Carroll · Answer

I'm a native Nashvillian - Commercial RE Broker, just picked up a nice little buy/hold residential property via MLS (by accident, really) - looking at more off market opportunities via networking & cold/warm calls. It's an active market, lots of tear down/new construction. Still, opportunities abound.

Sean Wilson · Answer

@Brandon Cobb I've been buy and hold (BRRR) investing in Nashville for about 6 years. From an appreciation standpoint, it has been great, but I buy on cash flow and not appreciation. On the buying side the market is definitely tougher than it has ever been. Rents haven't appreciated nearly as quickly as property values, so finding SF properties that cash flow at a respectable ROI is difficult. Even a 1% single family at 80% of ARV is hard to find. There are still good deals out there off market, but there are a lot more letters going out and a lot more competition than there used to be. There are quite a few amateur wholesalers that are buying at retail prices, and to fuel that every wholesaler has a long list of novice investors who are willing to overpay for property (the latter part of that is probably a good thing for you). The local real estate investors group (REIN) used to bring 10 or 20 people in for deals meetings, and now its 60-80+.I'd love to hear your perspective as you get ramped up.

Allan Smith · Answer

It really depends on who you talk to, but the vast majority are all hunting for deals with perhaps less than ideal results. Even some of the big hitter investors in the area are moving to adjacent counties or other MSAs entirely.If you can find a really unique niche you'll be fine. Marketing ROI is dropping for everyone but you have to pay to play.

Brandon Cobb · Answer

@roger poulinNew Western is by far pulling the most I've seen out of the market. They're doing a few a week. You have to go see the vacant ones immediately and make an offer on the spot or they're gone. Many go within the first hour. All the ones I have seen are in Davidson County.

Aaron Lovett · Answer

It's a good market - I see deals both on the MLS and, of course, off market. That's not to say it's not work to find them, but my clients have had success getting the kinds of properties they were looking for and at reasonable prices.

Kelly Kormos · Answer

Nashville is tricky right now. We have been multiple offers and very competitive for about the last 5 years- each year more than the last but I see things slowing down more this fall than the last few. Not sure if it’s a sign of things to come but many of us are noticing it. (I’m an agent). There are deals but they aren’t on the MLS from what I have seen unless you plan to hold (and that’s still not common for the areas I prefer). If someone can find the deal and work directly with the homeowner that is where I have seen money made. My 2 flips were found off market. Please feel free to reach out to me and I am more than happy to discuss this all much deeper just wanted to give you some high level market info here. Lots of changes coming to Nashville as there are discussions of mass transit and redevelopment to connect areas to downtown via bridges. Lots still up in the air though. Hope this helps!