1/ Lots of GPs & brokers say "become the buyer every agent wants to bring deals to".
But brokers bring deals to their favorite 5-20 buyers.
Your chance of becoming a favorite buyer in your market are slim.
Even if you do accomplish it it'll take years + even top brokers churn.
2/ If you're not investing corporate (family office + HNWI) money you chances of out-competing those who are are even smaller.
Plus a broker's interests aren't aligned with yours. They don't make more money by bringing you a better deal so many focus on dumb money.
3/ Work with brokers, but make sure you know it'll take a long time & you might do some deals you don't love just to prove you're a legitimate buyer in your market.
Also, build your own acquisitions strategy and rely on that. You have to have control over your own deal pipeline.
4/ At the end of the day using brokers, while it has a lot of advantages, is also platform risk (of which third-party vendor risk is a component).
Deal sourcing is the #1 REI differentiator. Everyone can raise money & run an spreadsheet underwriting model in this market.
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1/ Many real estate investors who want to buy more rental properties talk about 'pulling lists' or 'building lists' of homeowners who are in some sort of distress.
This way can work well, but there are others.
Here's one that works well now for buying off market properties.
2/ I'll start with my quick definition of off-market:
A property the owner did not really intend to sell before you reached out to him.
The owner has a need to sell but did not have the intention & thanks to you contacting them they are now going to sell.
That's-off market.
3/ Identify 3 neighborhoods you want to buy in 1 market.
Each neighborhood will statistically speaking have 1,500-3,000 houses. Let's assume 2500 per neighborhood.
So in 3 neighborhoods you'll have 7500 households.
1/ A quick thread on buying even more properties in alignment with where the market is at right now
Create a little resource for owners of construction companies and fix and flippers. It can be a FB group or a texting group with a piece of advice a day. NOTHING fancy.
2/ You can provide info about material pricing, new city ordinances that affect them, investor intros (to folks you don't need to raise from), etc. etc.
We're in that stage of the cycle where flippers are not able to deliver projects they took on.
3/ You can see this in local investor Facebook Group every day.
Usually something like "hey, I started this but I've got 3 other builds at the moment and I need someone to take this over".
1/ How can you, a SFR and/or small MF investor, leverage the extended eviction moratorium as a hedge?
Let's assume your ability to collect rent is limited & it will be for a while.
What can you do to turn the situation on its head and grow your portfolio in the next 6 months?
2/ Of course there's rental assistance, but as a deal maker you understand that a challenging situation is also an opportunity & if you're getting hit by the effects of the moratorium you want something to fight back with - to capitalize on.
You also know others are hit too.
3/ If you've ever bought existing rentals from other landlords you know that very often rental properties are mismanaged.
You can tell by the below-market rents, the physical state of the property, the lack of documents you ask for and so on.
Paul R. Williams, architect of some of the grandest homes in Hollywood & iconic buildings in L.A., learned to draw upside down bc his clients did not want to sit next to a Black man.
His handwriting is portrayed in the Beverly Hills hotel sign, which he could not stay at.
I'm happy to see this is resonating with so many. It is a sad part of who we are as a nation. Unfortunately much of this endures.
I tweet about real estate, architecture, home ownership for ppl coming from nothing & how our built environment impacts equality. Follow if you like.
I've got nothing to promote, but there's an African-American architect who sells t-shirts and apparel promoting Black architects and Black architect history.