So, there is no secret that are in an uncertain market with inflation through the roof, interest rates rising, and homes sitting way longer on the market. It is also no secret, that it may have gotten a little harder for the large majority of investors to find deals that fit what they are looking for.
Finding good deals consistently is still very very doable, but it may take some pivoting and adjusting. Here are 5 tips on how to find good deals in a recession!
5 Tips On Finding Deals In A Recession
1. Make offers on double the amount of deal.
As everyone knows, this is a numbers game. The more deals you look at, and the more offers you put in, the higher the chances are that you are going to get a deal accepted at a price that fits your criteria. In a market like this, double it.
If you have to go in with a lowball offer, so be it. Dont automatically think because your offer and the list price are so far apart, that they wont come and meet you closer to your price.
There are going to be a lot of flexible sellers during this time. You have to be sending out more offers with the numbers that work for you, than you were before.
Talking REI – A Weekly Twitter Space
Every Tuesday at 7:30pm CT
2. Look at off-market deals
Going hand in hand with #1, the more sellers that are willing to sell, the higher your chances become at finding a good deal.
Using the MLS or public sites to make offers on on market properties, and using SMS blasts, cold calling, direct mail etc to find off market properties not only doubles the amount of deals you are looking at, but you will have significantly less competition with the off market properties.
3. Add an extra market.
Things definitely get tougher in specific markets. It isnt the worst idea to expand your reach a little bit. Find a market very similar to yours, build a trusted team there, and start making offers on properties there as well.
Expanding your markets gives you a larger ocean to fish in, just do it responsibly.
4. Use creative financing and GET CREATIVE.
Some deals may not work at a certain price with 20% down and conventional mortgage, but it may work at that same price with only 10% down and a 4% interest rate with seller financing.
Or, it may work if you take over the sellers mortgage subject to. Or, it may work if you novate it. I can go on and on, being creative is essential right now!
5. Stay consistent.
This is the main thing. You need to be looking for good deals consistently, and making offers every single day. You need to be building on market and off market relationships.
Don’t get frustrated, understand that this challenge is the same for everyone. If you stay consistent, and follow up with everyone, you will be able to snag more deals that fit you and your buying goals!