I am so bummed that I am not rolling in the deals. My goal for this year is to get at least 4 deals a month - wholesale 2-3 of them and keep 1-2 of them to flip myself. Just late last year we were getting a lot of REO properties - but this year - dang.....its been tough. I should be a lot more grateful I suppose. We did get 3 properties in Jan and we wholesaled 2 and kept one for fix and flip. We just got another under contract - but we are still evaluating it. So - yes - I am grateful for what we have gotten.... but I want more! LOL!
Another thing... these properties in So. L.A. are getting pretty difficult to evaluate. There are slim pickings out there and the prices are escalating at record speed. I don't like this at all. We are to the point that we are turning down more properties that we are getting - or rather making offers on. We've been getting a lot of "good properties" presented to us by our broker - but after painstakingly evaluating them - the numbers just don't add up and we pass. DARN IT! Why are the numbers not adding up? Two reasons: Prices are too high therefore the margin is too narrow for comfort and not enough comps to justify the rise in prices for these hunks of junks. We are at a crossroad here. There are a lot of Active properties with the comps that would justfy these REO prices - but they are not SOLDS yet. We all know we can't base our ARV on active properties. This sucks! I keep knowing that in 2, 4, 6 months from now we are going to have some mack daddy comps (potentially), but until then - we must - simply must be cautious. It seems like we are pioneering in this particular area. I don't mind being a cautious pioneer. But what I dont want - is to be a cowboy. It is the wild wild west out there in certain areas and it's crazy.
The ironic thing is that once those comps start popping - the prices are going to be even higher to buy these properties and we will be waiting for a new set up comps to start popping up.... LOL. Oh the joy of being real estate investors in this market. Or at least in our high profile areas in Greater LA.
I now have another additional broker finding us properties in my target area and he is one hell of a hustler. He's this close to landing us a couple of properties. We've put in several offers with him in the past couple of weeks - so fingers crossed. Between him and our other broker and some of my friends who are buying at trust deed sales - I hope to get another 4-5 properties in the next month! From my lips to Gods ears.
Let's rock and roll!
