How to Find Undervalued Properties in Orlando FAST!

When you think of Orlando, do you just think about theme parks and tourism? I need you to think again. In today's Deal Finding Friday, we're going to be uncovering the hidden gems of the Orlando real estate market. Whether you're a local or looking to invest from afar, this is an insider scoop you can't afford to miss. Welcome back, everybody. I'm Nathan Payne, your guide to navigating the landscape of real estate. Today, we're going to be zooming in on Orlando, a market that has a ton of opportunities for real estate investors. Join me as we explore these things. We're going to explore the trends that are shaping the real estate market in Orlando. We're going to be exploring undervalued areas in Orlando that are ripe for real estate investing. And I'm going to give you tips for finding deals in a market known for its competitiveness. But before we dive in, if you're watching from Orlando or any other state, do me a favor, drop a comment below. I really want to know where you're watching this from, because as we know, you can invest in wholesale from anywhere in the United States. Let's see how many of you that are watching this video, no matter where you're from, are eyeing this hotspot of Orlando. All right everybody, so join me as we explore today how to get a deal in Orlando and exactly what steps to take. I'm actually going to take you through a live call, a live walkthrough video of how to use Privy to find a deal and get a deal done in Orlando.

So let's check it out.

But before we dive into this video and this live call, do me a favor and go join my free Facebook group called Painless Flipping.

It's a community of investors where you guys can network and do deals together.

So go ahead and join the Facebook group right now. So let's dive into this live call and let me show you exactly how I'm able to get deals in Orlando using Privy.

So right now, guys, I'm focusing in the Orlando market. Ocala, that is outside of Orlando, is a really good area. So all I did is I typed in Ocala and then I went to deals right here and I filtered it for deals that were 50% of ARV according to the system. So it's super easy. It just finds the opportunities according to what you have filtered. Okay, I didn't really put any crazy filters other than 50%. I wanted to see what was available. So right here we have 2 opportunities, and we can take a look at these opportunities and say, okay, what would the ARV be? What comps do we have? Investor comps, $299,000. Let's take a look. We can take a look at this one and see what it looks like rehabbed. You can see this isn't completely flipped, but it's a good comparable and shows you other comparables, other solds in the area. Okay, so $299,000, as you guys can see right here. So guys, we're just taking a look. It looks like $299,000 is a little on the high side according to this, like $270,000, $273,000. So we're looking at the property I have. I'm going to make a call. We're going to inquire about it. I'm just going to let them know, hey, I'm an investor out of Utah, kind of figure out what we can do with this deal. Okay, that's the goal here. We want to call. Guys, it's all about conversations. It's all about how many people you can talk to. If you haven't done a deal, you've got to like look yourself in the mirror and say, okay, how many people have I really talked to? Oh my gosh, this house needs quite a bit of work. That's a good thing. We can come in there and talk to them. Let's see what— I'm curious to see what they say in the description, just to learn. This home offers endless potential. Of course it does. This fixer-upper, contact your trustworthy realtor. Okay, so it's Daniel. Okay, usually they have the— I like to look up the phone number of the agent itself, not the office, because then you usually get someone and it just takes a little bit longer. So I just go type in the name. That might be his phone number. Let's just double-check that it's not 322. Okay. Let's call him. Let's see if this is our guy right here. Hey, Daniel, how you doing? My name is Nathan Payne and I was calling about your property that I see they have listed on 3116, I think it's Southeast 8th Street in Ocala. Yeah. Is it still available? It is.

Yeah, we've got— we're negotiating a contract right now.

Okay.

Yeah, we got quite a few offers on the property and so we're just in kind of negotiating process.

Got it. Okay. Well, do you have a couple of minutes we could chat about it? I'd like to ask you some information about it.

Go for it.

All right. Well, just to kind of let you know, I'm actually— I live in Salt Lake City, Utah. I'm an investor, and right now the market's a little stagnant, so Florida is a good place that I've relocated to. So I'm investing in this area, just to let you know, be aware of where I'm at. But I'm taking a look at this property. It looks like it needs a complete rehab, like roof, pretty much everything. Is there anything that I'm missing on what needs to be done other than maybe even potentially a gut job?

I mean, it's a It's a pretty major rehab. It needs all the big ticket items. I mean, it's got multiple holes in the ceilings. A tree came down on it a while back and water's gotten in there and ceilings have fallen in and all that kind of stuff. So it's a pretty major rehab.

Yeah.

Do you have an idea with all the people that have come and already kind of made offers? Do you kind of have an idea of the estimate on the rehab budget?

I don't. No, I mean, nobody's given me an estimate at this point in time. You know what I told them at the very beginning, you know, when I was kind of talking to sellers about all the different options, right? You guys could rehab it. And, you know, I think on the low side of things, I don't even know this is realistic, right? You know, low side of things, I would say $60,000, but I would probably plan more on $100,000.

Yeah.

Yeah.

$60,000. It probably won't go that far, especially if you have to do roof. You're going to have to take care of like all the flooding, not the flooding, but the water damage. One thing Really all I do is I see if the numbers, if it pencils out, if it makes sense and there's enough profit in there for me. I looked and I think like $299,000 was like on the high end of what like ARV or what properties could sell for after they were fixed. Is that accurate or is that a little low, a little high in your opinion?

Yeah, I think it might be a little bit high.

Yeah.

So I told them again, like with all that, I said, yeah, if you rehab it, you know, it's like depending on the quality that you put into it, depending on what you do, how you do it, all that stuff, you know, on a bare bones side of things, you know, you can bring it back up to livable standards and you can sell it for $220,000 or something like that.

Yeah.

If you put a lot of work into it, you know, and make it really high-end, real nice stuff, then we can sell it for a lot more.

Yeah, that's what I'm kind of seeing by looking at the comparables right now. Like $220,000 is like livable, maybe like $250,000, $270,000 seems to be. But these, the ones that are going for like $270,000 seem to be like ranch, Rambler style. This one's got a little different kind of layout, it seems like.

Yeah, it does have a little— around here we kind of go by square footage.

Okay, versus style.

Yeah. And so people aren't super picky on styles a lot of times.

That's good.

More of like the interior finishes is really what people go for.

That's kind of— that's exactly how it is here in Utah. Like, it doesn't really matter if it's, you know, multiple stories or one story. Okay. So just taking a look at it, I'll run my numbers, but just kind of from my experience on like the numbers, if I were to buy it at the asking price of $140K, it seems really tight, especially if you're supposed to— like if you get it for $140K and put $100K, for example, then like obviously there's no margin. So without offending Sending the seller with like an offer that they've already received and they've said no, like where are they kind of open to where I run my numbers, I put it in and see if it works for me? You don't have to tell me what other offers are, but just kind of curious.

So we do have a full price offer that we're working on right now. Oh, wow. They're going to take a look at the house today. It's someone who is a contractor and they're not looking to flip it. They're looking to buy it and fix it up and then live in it.

Wow. That's the best buyer. Yeah. Yeah.

So it's like, so they're willing to pay a little bit more for it.

Of course.

But the average, I would say the average offers that we've gotten have been in the $110,000 to $120,000 range.

Right. Okay. That sounds a little bit more what I was thinking. Is there anything like if that $140,000 buyer, the full price offer doesn't go through, is there anything that like would stand out to them and make them feel like it's more beneficial to go with me versus others? Is it like speed? Is it cash? Is it, is there anything specific?

Everything we've gotten has been cash.

Okay.

Deed is actually not like there's, so they have a family member that's actually still living in the house.

Got it. Yeah. It looks pretty lived in right there.

Yeah. And so we need about 30 days to close on it. And other than that, I mean, but that's, I mean, it's kind of pretty standard. Everybody's done that. Everybody's offered to pay title. And so it's, yeah, I'm not sure other than price, I'm not sure what really could stand out at this point.

Have they considered, I'm sure you've been approached by this, by many other investors, but like, do they own the house outright or have a mortgage? And if we could pay out their equity, they would leave the note in place and we could just take that over. They've been talked to about that. Yeah.

There's no note in place. It's paid off.

Do you think think they'd be open to something like that if I could pay a little— because I'm going to get hard money on this. So if I don't have to pay 12% and 2 points over the time period that I flip this and I can pay like less of an interest, they could potentially, you know, I could pay them, they could make a little bit more. But again, I don't know if that's something that they've already considered or been approached about. It enables me to pay a little bit more.

Yeah, they have not been open to that.

Okay.

The scenario is it was a mom and the husband. The husband is still living in the house. He's the family member that's still living in the house.

Okay.

But she was the one who bought it. She passed away and the husband continued to live there because he inherited the house, but he wasn't paying taxes. And so the sons came along basically when he was basically about to get kicked out and they said, okay, we're paying the taxes on the house, but you're signing over like all of the rights to sell the house.

Makes sense. Yeah.

And so we're going to sell it. And so that's kind of what they are is they just want to sell it, be done with it and move on.

Yeah. So getting an extra 5 or 10 isn't worth the hassle of being, you know, for them if they can just get it Done. Okay. Well, is there a time by, like, if I make my offer to you, is there a time that you'd let me and the other buyers, like, know that they've made a decision? Like, is it the end of the day? Is it next week?

Yeah, I'm hoping by the end of the day today.

Okay.

Because these buyers are going in to see it. So I'm hoping by the end of the day today we'll have a good answer on that.

Okay. Well, I'll run, I'll look at my numbers again and see if it makes sense. I got, like, I'm putting the rehab not, like, at the $270,000, $290,000. I'm putting it, like, after I fix it, like, $250,000 to be conservative, but I'll look at it and I'll make you my offer. And by the way, do you— now that I'm more active in this area instead of like focusing on Utah, do you come across a lot of opportunities like this that don't really work for a conventional buyer but potentially work for a flipper?

Yeah, I mean, I do periodically. I'm more specialized in resales of, you know, homes, different styles of homes.

Right.

This is a personal friend that contacted me, but I do, I come across them periodically. Yeah.

Okay.

I'm more than happy to to take a look at them.

Yeah.

So if you're looking for something in the area, I'm more than happy to help you out with that.

Yeah, I'd love that because for me, like the benefit that I give— I work when I work with agents is like I'm very quick to give you an offer. Like I know sometimes it like sellers want like, hey, what would a cash offer look like? And it's beneficial for you as an agent just to be like, well, it's a lot lower than what you probably think. And I can at least give you like a good, good idea of what I could pay. So either they accept it and I can pay your commission, you can take whatever, both sides of the commission or whatever, or I just get you an offer and then And that helps the seller, you know, know what's out there.

Yeah, I think that's great.

Well, I'll text you right now. This is my cell phone, but I'll text you from my work phone and I'll give you all my contact info. And then let's keep in touch because I'm aggressively looking for something. You know how it is right now.

Absolutely. And I'm more than happy. I actually have a video of a property I can send over to you if that's helpful as well, so you can see the inside of it.

Yeah, that would be extremely helpful. So I'll text you from my work number and I'll send you my email. And if you just send me anything over and let's connect on like some social just so you know who I am everything.

Yeah, sounds great.

Okay, thanks so much.

All right, you bet. Thank you.

Yep, bye.

All right, everybody, bam! So we are looking— I'll run you through this property, what it looks like. So this house, a 140, is, uh, really distressed. Very, very, very, very distressed. And we're seeing some comparables, but majority of them, uh, that's like the investor comp is like the highest one. So we're looking at this deal at the 110 range. So according to this, according to my numbers, everybody, there's a 13% margin and there's a flipper that potentially would do it because there's enough margin. My flippers want to be around like 10% and higher. So I could come in there, get it for $110,000 and wholesale it to them for like $117,000 and they're still at 10%. Most people, to be honest, that I know won't do such a big rehab and make such a little margin. Some flippers will make— they'll want to be about 10% or above of the ARV price. If they can make 10% of the resale value, they'll do it. Some want to be 10% of the amount of money that they put into the rehab. So it really depends what kind of buyer you have.

So that's it for today's live call and a look into the Orlando market. Thank you for joining me. Remember, every market has its secrets and it's all about finding them. All you got to do is take action and you'll do deals, I promise. See you on the next one.