New Investor Trying To Find Deals
Hi everyone,
I've been looking to get involved with REI for about two years now, and I'm finally ready to start making some deals.
I'm 21 years old, FICO scores in the 730s. I've got credit cards with a little over $13k total limits to use. I've also been approved for 95% and 100% LTV no doc loans.
I'd like to start off doing some rehabs, and flipping them to generate some cash profits. I plan on moving on to buy and holds for long term passive income.
Unfortunately, I'm having a hard time finding the deals. I've scanned over the foreclosure and REO lists. I've also been working with an agent, who's been sending me MLS listings. I've been through one REO several times, with different contractors. Unfortunately, the repair costs are too excessive to leave enough money to purchase the house and make a profit.
My next step is to start attending local REI club meetings. But my question for the TCI board members is, where is a good place to find these deals?
This is purely a numbers game and cannot expect that many of the deals will be advertised because those deals are already taken.
Take a drive through neighborhoods and look for properties that aren't well maintained and look vacant. My wife likes to go to garage sales, so Saturdays, we get out and go driving through different neighborhoods, looking at garage sales, but also looking for signs of vacant houses in those neighborhoods.
I'm sure others will give you different scenarios to try, but that is one of the things I have been doing.
Robert
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be creative:
"Unfortunately, the repair costs are too excessive to leave enough money to purchase the house and make a profit."
What about offering less or asking your agent to rebate some comm. esp. if the same is repping the seller.
The networking aspect is important.
What about cutting the contractors in on the profit?
That might work to your advantage. Build a team of people. A couple GCs, brokers, mortgage people, HMLs. Someone will always have something going.
Good luck.
I would advertise in the help wanted for a jack of all trades. I have ran into several in my area who work cheap. There's also a large pool of semi skilled mexican labor for the low low. I have a tree and landscape service. These spanish speaking fellows can out work two white men for the low low.
the problem with undocumented and up insured labor is "liability". When I was younger and had nothing to lose I cut some of those corners and used that type of labor (especially since I am fluent in spanish) now however the stakes are too high. In Oregon work comp claims can follow you for life with no limits on your liability, no filing bankruptcy, no escape. Hardly worth saving the few dollars extra in the face of that
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