As investment real estate specialists, it is important that we are able to locate deals on a regular basis for our clients. In 2009 – 2013 there was more than enough good deals on the multiple listing service that there was not much of a need to go elsewhere. These days, as there are too many to count flipping shows on HGTV it seems that everyone has suddenly gotten on the real estate investing bandwagon.
So how is it that we are able to consistently find our clients high cash flow and highly profitable properties? We are expect treasure hunters! What do I mean by treasure hunters? While other agents and their clients are focused on listed properties on the Multiple Listing Service, we are looking at other opportunities. These other opportunities include off market properties, the foreclosure auction, and locations that most investors would not consider investing in.
Due to the volume of real estate that our team sells, we often receive referrals or inquiries from owners who for one reason or another do not want to put their home on the Multiple Listing Service and they want a quick sale. We consult them on their options and that often times listing their home would net them a higher price, and when their reason is compelling enough to accept a quick sale from an investor it does create a win win for everyone. We’ve had owners relocating do this, and owners who had several dogs that they did not want to crate for showings. When an owner comes to us for this service, they are thrilled in getting a guaranteed quick sale.
The foreclosure auction has at times been a great opportunity for deals for our clients. We’ve been representing our clients at the auction since 2010 and have been very successful finding properties that either become rentals or flips. We’ve even flipped vacant land purchased at the auction! Very few real estate agents know about the auction, and fewer know how to navigate the auction itself. For a person who does not know all of the risks of buying at the auction, it can be a dangerous place. When buying at auction you are buying a note position with no title insurance. Our clients enjoy the experience and leveraged relationships to mitigate the risks when being represented at the auction.
We are also often first to market in areas that other investors are not considering. Such examples include Auburn, Spanaway and Sedro Woolley. When we researched Auburn and Spanaway in early 2015 we found stability, market growth and high return properties. We were able to purchase many properties there yielding 13-15% cash on cash return. The prices were considerably less and our clients were happy to take the risk of those areas for the high cash flow.
Sedro Woolley had a very different opportunity than we would normally consider. It is a very small town, with a few local employers such as Janicki. It is off the beaten path, and has virtually no price appreciation. We heard that the military had moved 2000 families to the area, and that there was a shortage of housing. We found a neighborhood of duplexes that had been on the market for quite some time. Understanding the risks, we decided to start offering investment opportunities there. Much like the Auburn and Spanaway areas, we realized there was no competition and we were able to negotiate considerable discounts for our clients. The Sedro Woolley properties have returns in the high 16% range, and our clients feel like the risk is minimal due to the cash flow and understanding this is a long term investment strategy and price appreciation is not on their radar.
Our strategy of focusing on cash flow and our treasure hunting skills allow us to often find deals where other cannot. Our clients enjoy the buffet of opportunities presented to them on a daily basis, and we are constantly innovating to make investing more attainable for everyone.
-Jennifer Beadles 4/30/16