109: Where I Find Houses to Flip in 2017

I have had up to 20 flips going at once this year, which can be a lot to handle.  I have a great team who helps me, and I have systems to get them repaired and sold. Before my team can do anything with the properties, we have to find properties to buy! In the past, I bought most of my flips from the foreclosure sale then had to change strategies and buy from the MLS.

In the last year, I have bought many flips from wholesalers, and I am adding additional ways to buy. I have had good luck buying flips from the MLS and wholesalers, but I have not been buying as many houses as I thought I would. Last week, I bought my first flip since the middle of May. I have a goal to buy three flips every month, so that was a pretty long spell without buying any houses. I now have three more houses under contract and am getting back on track. On this episode of the InvestFourMore Real Estate Podcast, I talk all about how I find deals in today’s real estate market.

How many flips have I bought and sold in 2017?

It’s hard to believe it’s already July. In fact, when this podcast is published, my family and I will be in Disneyland. I have bought 12 flips so far this year, which is a little behind where I hoped to be. To meet my goals for the year, I should be at 18 bought and 18 sold. I tend to not reach most of my goals, which is okay with me because I feel goals are meant to push us, and sometimes that means we do not accomplish them. I have three potential flips under contract, and hopefully I will get many more under contract and purchased by the end of the year.

I have sold 13 flips this year, which is also behind my goal of 3 per month. However, I have six flips scheduled to sell in July. I will be really close to my sales goal once this month is done. I have 16 flips in my inventory and 3 under contract, and all of those should sell in 2017. That means I will sell 32 flips in 2017 if I don’t sell any more properties.

How am I finding houses cheap enough to flip?

When I flipped houses with my father, we bought almost all of the properties from the foreclosure sale. Competition at the foreclosure sale grew and grew, so I convinced my dad to start buying from the MLS. For the last five or so years, I have bought most of my flips from the MLS. Last year, I was able to find a few wholesalers in the area who I started buying properties from. I will still occasionally buy from the foreclosure, and I have bought a few off-market properties as well.

I started sending  letters earlier in 2017 with pretty poor results. A few months ago, someone approached me about doing a direct-marketing campaign for me. They offered to create my list, create the letter, create the envelope, and even take calls. The biggest issue for me is finding enough time to do everything, so I was very willing to try outsourcing a campaign. We sent our first batch of letters, and one of the houses I have under contract is from that campaign. I also have another off-market property under contract, which was a referral from someone I bought a house from earlier this year. It takes a lot of time and money to market with direct mail, but it can be a great source of leads if done right.

It is a good thing I have added a new source for finding deals because I have not seen nearly as many deals on the MLS or from wholesalers over the last couple of months.

What is the best way to find deals to flip?

I do not think there is one best way to find deals. You never know when one source that may have worked great for years will dry up. I think the best approach is to have multiple ways to find deals and focus on the ones that produce the best results. I am excited about my direct-marketing campaign because it could be a constant source of deals. If anyone is interested in getting in touch with the person who is running my campaign, send an email to: [email protected]. We are also thinking of putting together a coaching group to teach people exactly how to buy off-market properties.