Over the past couple months, I’ve been finding it harder and harder to come across deals that are good enough to meet my standards for rehabbing/flipping. Apparently, I’m not alone. I’ve talked to lots of other investors across the country, and it appears that in many (most?) major markets, competition has increased tremendously, owner occupants are revving up their buying and new investors are jumping into the fray.
Unfortunately, while prices are increasing on the buying side, they’re not keeping pace on the selling side — resale values are still often limited by appraisal values, which aren’t increasing very much, if at all…at least not in my market.
That said, we’re “expanding our horizons” a bit, and are going to be trying a couple new tactics to find deals (along with continuing what we’ve been doing):
- We’re going to be starting a decent sized direct marketing campaign, sending letters and postcards to “qualified” landlords and owner occupants who may be good candidates to sell their properties; and
- We’re starting to visit other markets outside our current area (both within the state and in other states) and are starting to try to find deals in these other markets.
I imagine I will have a lot to write about if either of these tactics starts to show results. In fact, I’ll try to document both of these things as I make progress. Stay tuned!