"Find a Deal" 101 🎓

Here’s the Rundown for today:

📕 Read: The How-To Guide to Finding Real Estate Deals

🎧 Listen: Episode 010 - Deal Analysis 101

“Find a Deal” - Quick Hitter Tips on Finding RE Deals

Everyone wants a deal right? But what are the things to look for. Where do I start?

Well I have 3 simple segments you should commonly look at if you’re looking to “Find the Deals”.

Motivation 🤑

Red Flags 🚩

Property History 🏚

Let’s dive in….but first, a GIF…because I love GIFS.

 Motivation 

Two things you’re looking for in the motivation category:

• Days on Market (DOM)

• Original List Price vs Current List price

If you checked out last week’s newsletter, average days on market is about 30 Days in our metro right now. But I would say after about 3 weeks the sellers start to squirm.

Usually around 3-4 week’s on the market without an offer you’ll see a price drop. LOOK FOR PRICE DROPS 👀.

EXAMPLE:

If you see a property originally listed at $315,000, it’s been on the market for 42 days and has drop reduced down to $300,000. Is it possible that you could offer $280,000 and potentially get the seller interested?

That would be a nice deal.

 Red Flags 

Two things you’re looking for with Red Flags

• Foundation issues

• Large CAPEX (Capital expenses)

I’ve never bought a bad foundation. Why? It’s something I can’t change. Everything else is pretty change-able.

Houses won’t sell at market prices with foundation issues, so stay away from those. 🛑🛑

Large CAPEX items will also steer people away from paying list price, so don’t underestimate these costs and always factor them into your offer.

Large CAPEX Examples:

• Roof

• Windows

• Exterior Siding

• Garage Issues

• Heating and Cooling Systems

• Electrical Updates.

Property History

What am I looking for with property history?

• Time of ownership

• Is there a loan or not?

When someone has lived in a house longer and maybe even have it paid off, they are less likely to be 10 out of 10 financially motivated and more likely to be convenience motivated.

I.E. if you can close faster. If you can write a contract without contingency. If you can make the sale EASIER in any way. You might have yourself a deal my friend.

CONCLUSION

Patience = higher DOM = Deal Opportunity

Bad basements = No No No

Longer Ownership + Easy-peasy terms = Lower Prices

🤔 QUESTION: Ever Snag a Killer Deal…What’s Your Deal Story? (Comment below)

The Midwest Invest Report LIVE 🎙

LATEST VIDS 👇

010 - Deal Analysis 101 & What do Lenders really need from you

009 - Roll $70K in equity into your next business w/Isaac Balvitsch

008 - Q1 Fargo Market Update

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