What is your best menthod of finding a deal?

Discussion in 'General Property Investment Discussion' started by Josh Caldwell, Apr 23, 2018.

  1. Josh Caldwell

    Josh Caldwell Josh Caldwell - American Real Estate Investor

    In my business, I am always marketing to find off market deals. Those off market deals are by far my best and most profitable deals. As such, I am always looking for new ways to find property. So tell me, what is your best and most creative method of beating everyone else to the good deals.

    I will start, just to give you an example. I do a lot of marketing. I place signs in front of my rentals that say "I buy houses" but my best technique has been direct mail. I buy lists of target properties that fit certain criteria, making them most likely to be bargains.

    So what do you do?
     
  2. Longterminvestor

    Longterminvestor Active Member

    I tend to look at areas where there is significant investment in infrastructure which has the potential to make a big difference to house prices. There is obviously a degree of risk, as other investors also anticipate an increase in value because of the infrastructure investment, but if you are careful there is significant money to be made.

    Also, sometimes these infrastructure projects get delayed or cancelled - but if you buy into the area early enough then you should avoid the premium (which can disappear overnight) which builds in anticipation of what the additional infrastructure will bring to the region.

    Potential high risk but potentially high returns.
     
  3. Josh Caldwell

    Josh Caldwell Josh Caldwell - American Real Estate Investor

    That is a great idea, I have a friend who uses that strategy quite successfully. He attends the local planning meetings and learns about projects years in advance. Sometimes the project doesn't happen but when it does, he is so far ahead of the herd that he more than makes up for the times when he misses.
     
  4. FWL

    FWL Member

    That is a very interesting strategy because if you buy early enough then you are effectively buying at “market value” before any premium as a consequence of the expected infrastructure spending. Therefore, in theory, if the infrastructure projects are delayed or cancelled you should still be left with a property valued at fair market value. There is obviously a degree of risk in this strategy but if you get it right there is significant upside.
     
  5. MarkOBC

    MarkOBC New Member

    What types of property are we mainly talking about here - lettings, renovations, new builds? In terms of sites to develop, I quite often find that a lot of really good ones (off-market) already have an Option taken out on them. Unfortunately it seems like often the Option isn't exercised, but the fact it's there prevents another developer from taking that opportunity (until it expires).
     
  6. Josh Caldwell

    Josh Caldwell Josh Caldwell - American Real Estate Investor

    My problem is that my I have too many deals. Over the years I have built a huge national network of real estate investors, more than 2,000 in my town alone. Because my network is so big, deals tend to find me. So in my case building a network has been my best technique. The key to building a massive network of investors is to teach a lot of people how to be investors or how to make their business more profitable

    If you would like a method that anyone can reproduce, then my answer is direct mail I will send direct mail to non owner occupied property in my target area. Non owner occupied can get me rental property, abandoned property, people going through divorce, people who have job transferred out of the area, and inherited property. My direct mail is simple, hand written, and designed to look like personal correspondence, so that it doesn't get tossed before it gets read.
     
  7. Longterminvestor

    Longterminvestor Active Member

    What size deals do you target?
     
  8. Josh Caldwell

    Josh Caldwell Josh Caldwell - American Real Estate Investor

    As a real estate investor, I am a true generalist. I do a bit of everything. Typically, I will market for one of 3 things. The first is a single family rental that I can add to my portfolio. In my town, the median price is $139,000 USD. My second target is fix and flip properties where my price point after repairs is generally between $150,000 and $300,000. The big one for me is commercial real estate, where I target deals between $1,000,000 and $5,000,000 but I am currently involved as a partner in a $40,000,000 deal on two hotels, and a $18,000,000 deal on 1,800 acers of land with substantial mineral value attached to it.
     
  9. SteveK

    SteveK New Member

    Probate properties have been a source of good deals for me in the past. These are often advertised in the open market here in the UK and can be found on the online property portals if you know what to look out for. They often have motivated sellers looking to cash in an inheritance or offload the hassle and responsibilities that come with inheriting property.

    However, the estate agent will normally try to hide the fact that it is a probate sale. But there are ways to identify and verify them without speaking to the agent which can give you the edge when you are putting in an offer.

    I'm currently working on an approach to automate the process of finding them among the other adverts on the online portals and compile a weekly/monthly list for a city or postcode.
     
  10. MarkOBC

    MarkOBC New Member

    Hi Steve. I'm really interested in this approach as I tried something similar when I first started out. I'd set up search criteria on the Gazette - https://www.thegazette.co.uk/wills-and-probate - and then had a little system for it to email me with matches. I also saw some common phrases in online portals too that I could set up alerts for e.g. "by order of", etc.

    Would love to talk to you more about this if you're up for a chat. Prior to property my background was software development, so I'm all up for automating hard work - esepcially where there's available data involved.
     
  11. Adiel

    Adiel New Member

    The simplest way to find off-market deals is direct contact with real estate agents, you can find some real gems before they hit the adverts. Many estate agents will have a database for you to join when they have a deal available before it goes on the market
     
  12. Longterminvestor

    Longterminvestor Active Member

    Do you have to pay a commission/subscription to join these internal databases of potential gems to get a chance of buying them before they are listed?
     
  13. Adiel

    Adiel New Member

    No you don't, just call them up and say you are an investor looking for off-market properties
     
  14. MarkOBC

    MarkOBC New Member

    Hi @SteveK - sounds like you've made good progress since we last spoke. I'd be interested in seeing a sample from Maidenhead (or nearby if there are no results there). Thank you.
     
  15. SteveK

    SteveK New Member

    Hi Mark,

    A few here for you

    https://www.rightmove.co.uk/property-for-sale/property-65920495.html
    https://www.rightmove.co.uk/property-for-sale/property-54839346.html
    https://www.rightmove.co.uk/property-for-sale/property-69783320.html
    https://www.zoopla.co.uk/for-sale/d...h_identifier=7df866180885b5701c57fba90c971ee1
     
  16. MarkOBC

    MarkOBC New Member

    That's very impressive, thank you @SteveK
     
  17. Longterminvestor

    Longterminvestor Active Member

    Has anybody tried these crowd funding/collective investment vehicles? Look like a useful way to get some good diversification especially for those with limited funds.
     
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