Have funds... strategies to find properties? - Posted by Eric

Posted by Jimmy on March 29, 2007 at 06:50:44:

rehab and flip. a good business that can work almost anywhere. I am a rehabber, but I keep all of mine. Here are a few of the ways that I have found properties:

  1. newspaper ads. every morning, I read the online real estate sections of about 9 local papers in my little corner of East TX. by far the best single source of leads and deals.

  2. referrals from my “people.” My people are my managers, tradepeople, housing officers, etc. All of them know what I do and what I want. and they find me stuff. these people are in the streets everyday, and know the neighborhoods. my crew guys know they will get to do the rehab work, which is all the incentive they need. every 3-4 months, I put a call into the housing directors at the agencies from whom I have Section 8 tenants. I chit chat with them, and always ask them if they have any landlords wanting to get out. Those little phone calls have brought me several good deals.

  3. Once in a blue moon, I will find a listed property that works. I like doing major rehabs, and these are not often listed. Realtors don’t like to mess with majors, because they are hard to sell.

  4. HUD/USDA properties. I’ve bid on 20 or so over the years, and only got 1. but it is a good one. I still pay attention, but I don’t invest a lot of tiem and energy into this one. owner-occupants get the first crack at these, which is why I rarely connect. the one deal I did get was a 4-plex. I do pay attention to multi-family props that come up with HUD/USDA.

  5. Shoe Leather Approach. I have 2 properties that I found the old fashioned way. I drove by. one had a hand-painted FSBO sign. the other was different. I saw a fat, sweatty dude hauling drywall into a duplex. I stopped and asked him about the prop. he was the owner, and was doing the work himself. 5 minutes later, I had a deal.

  6. CAVEAT. as you may already know, your two biggest risks with rehabs are (a) underestimating the rehab budget, and/or (b) overestimating the ARV. as your expeeience grows, you will get really good at this. but even veterans can get stung. I have a beautiful house worth $65,000, and I have $62,000 in it. a big mistake. not fatal, but a mistake. My sin was not having better control of my rehab crew. They had just completed a wonderful project, and I turned them loose without making them bid out the job. my mistake.

Have funds… strategies to find properties? - Posted by Eric

Posted by Eric on March 28, 2007 at 14:58:56:

I have finally secured funds to purchase properties, but what are the best ways to find them. Should I contact the REO departments of banks? I have already talked to a couple people who work in the REO departments and they have not been very helpful. Any help here would be very much appreciated!!!

Re: Have funds… strategies to find properties? - Posted by Phil

Posted by Phil on March 29, 2007 at 09:32:21:

Re: Have funds… strategies to find properties? - Posted by keith

Posted by keith on March 28, 2007 at 18:06:56:

we are building new townhouses in jacksonville florida. We are building a total of 15 in this little neighborhood(developing the raw land). The property is ideally located to many hot spots in the area.

If anyone can tell me a good way in addition to Realtors and MLS to locate people like this please email me.

Thanks, Keith

More Info, please - Posted by Jimmy

Posted by Jimmy on March 28, 2007 at 16:02:12:

tell us, precisely, what it is that you want to find.

only them can you get an intelligent answer to your over-broad question.

Re: More Info, please - Posted by Eric

Posted by Eric on March 28, 2007 at 17:16:35:

I guess I was pretty broad there. I am looking generally for properties needing rehab and can make a decent profit. My market seems to be pretty oversaturated with investors, but I am sure there are properties out there with the right strategies in place. I have done a few rehabs, and lease options, and am open to these or other types of investing. I want to get into properties and out of them though, had a rental with a nightmare of a tenant and do not want to go through anything like that again. As I said, I have procured the financing for projects up to 150k, and would appreciate any input that you might have.