When I meet with a realtor for the first time and they ask me what I am looking for, I tell them "turds".
Yes, their reaction is probably not a lot different than yours - but it does make an impression.
The wonderful thing about turds is they are yucky and smelly and no one wants to be around one - but soap and water fixes turds.
Real estate that has been mismanaged creates opportunities:
- It can almost always be bought at a higher capitalization rate (lower price) than "perfect" real estate, even when considering the additional investment required to bring it up to speed
- The cosmetic renovations "turds" require give an investor the opportunity to add disproportionate value to the property. for example skuffed up "ugly" walls can be painted with colors and trim that make the room more special than a "perfect" white box room that sells for top dollar.
- Sometimes the problems that make a property a "turd" require specialized knowledge or creativity that prevents competing investors from even participating in the opportunity.
One of my wisest teachers, Peter Fortunato taught me, "use what you've got to get what you need to get what you want". Looking for investments that you can craft into investments that meet your criteria instead of those that directly do so, will open many opportunities that you would otherwise never see.