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How I found my last 4 off market deals-- you just gotta do it
After being involved in real estate for about 2 years at this point. I've begun to be more vocal about my real estate dealings, I've made efforts to network, and just be totally immersed in trying to be a full time real estate investor.... one day. I've gone to meetups, convinced a buddy to rent his house out and start his investing career, and done a deal with my father as he's become interested in the real estate investing world.
Anyway, my point being, this mindset, has truly helped me get my last 4 deals. These weren't found on craigslist, the MLS... these weren't on the market... I take that back, I actually wholesaled a deal off the MLS. The education and confidence podcasts, articles, etc from BP and other outlets are truly valuable.... and all I've really done to get these deals was listen and take action. It's really as simple as that.
Deal 1
I sent letters to every house in my "strike zone", irrespective of if they were LLC's or owner occupants. A lady responded, it was her dads house, he was in the hospital and they wanted to sell quick-- a very similar situation to nearly every wholesale account you'd hear on the BP podcast.
Got under contract for 68k, found buyer 80k.... a buyer on BP nonetheless.
Deal 2
Another idea from a BP podcast, I can't recall which, but I remember someone on the pod saying always ask, "do you have any other properties for sale?" So I called up David, who I bought my first property from and asked if he'd sell me his other one in the neighborhood. Long story short, he's agreed to put it on land contract for me at 9% interest. The deal worked out great for both sides, I've got a property near the University area.... he got rid of a property that he didn't have time to run and manage.
Deal 3
MLS Deal in my own backyard. I invest solely in the neighborhoods adjacent to the University of Cincinnati... I live in the suburbs... I'd never bought anything in the suburbs... but I kept driving by this nice looking house... then I found out it was a Duplex and decided to check it out... it was listed on MLS and had been on market for a long while at 185k. Well, when I went to check it out, it was in great shape, well maintained, in the most ideal school district, and best yet, it could easily be outfitted into a Triplex. I was kind of just like f^^% it, I'll offer 125k. I had intended to rent it out, but actually wound up wholesaling it to a fellow BPer, who now will have a great deal... and I was able to make 15k... and my buyer was able to still buy at a discount.
Deal 4
Letter, in my "strike zone", this was a deal I intended to wholesale. But, as soon as I walked through, I loved the house... it was in a great location, with parking, gorgeous trim, original hardwood floors, central AC, and just an absolute killer college rental. I wanted this one for myself, so I decided to get an owner occupied 5% down conventional loan on it. I'll live there for the year.... and I may or may not have it rented out for next school year already.
My goal in this post is really just to show you that there are many ways to get a deal. Everyone of these strategies were brought to my attention via BP blog, or podcast episodes. So you really just have to listen, educate yourself, and start doing it.
Cheers.
Comments (5)
Hey @Jake Walroth, great post. I like that you've got skin in the game and are actually getting in the weeds here. I'm in Cincinnati too -- currently rent in OTR -- but looking to move into a multifamily in the next six months. From where you're sitting, which of the Uptown neighborhoods do you think has the longest road ahead of it?
Jon Moore, almost 7 years ago
@Jon Moore near UC, the only areas I wouldn’t buy(yet) are the border of Corryville/Avondale north of the hospitals and then the western part of Clifton Heights down by Central Pkwy.
Jake Walroth, almost 7 years ago
North of the hospitals on border of Avondale and Corryville is an area that could explode... there are 10 townhomes that are being built..... think they're going to list those for around or over 500k..... the hospital system/university is the largest employer in the city- great tenant base.... but most of my properties are in Corryville proper..... hard to find.....3/4 in that little area are from marketing... not much on the market in that neighborhood.... mostly landlords raking it in and some families...... but long story short, you're on the right track... the only areas I would not buy with the intention of renting to students is north of hospitals in avondale.... and down the hill west of campus towards CPWY. I've got a house in the gaslight district--- great area, I've got a house in CUF(undergraddy)... but high demand in that area for students.... my favorite is corryville and border of clifton and corryvillle.... easy to get med students and close to law school.
Jake Walroth, over 6 years ago
Good post, I assume you are buying around UC. I love hearing real life examples.
I passed on an owner occupant 3 family right next to short vine back in 2015. It sold for 85K, still kicking myself for that one. They sold it in 2016 (after their 1 year requirement was fulfilled) for 190K without doing a thing. Son of a gun!
Jacob Murphy, about 7 years ago
Thanks for sharing! Great to hear of your successes.
John W., over 7 years ago