Saturday, 22 June 2019

5 Step To Find Good Real Estate Deals

There are 2 main issues that almost everybody who reads our blog has, they can't find any deals and they can't find any money. Well, I'm not going to focus on the second one, I am going to focus on how do you find good deals, because after all if you find a good deal you can find the money to back that up. In other words, if you find a great deal you should be able to find a way to put it together so really everything comes down to finding a deal. Today I want to share with you my top 5 strategies for finding a great real estate deal even in a competitive market. Keep in mind, you don't need to do all 5 of these in order to find a deal, in fact just focus on one of these right now and rock it, become really good at that one avenue and if you want to branch out to more and more then you can always do so 

Let me give you the list of the top 6 you can use to find a good deal

1. MLS - Stand For Multiple Listing Service

Maybe you are familiar with that or not, the multiple listing service is basically where agents put their properties for sales, so if you're a real estate agent you're probably going to list for sale on what's called the MLS. Again, if you're like hey I'm going to go and list my property for sale, the agent is going to put it on the multiple listing service so all other agents can go and look at it. That's where most people in the world go, to look for a deal at least in America and so it's the biggest playground, there's a lot of properties there but there's a lot of people looking as well, so if you want to do good on the MLS, you got to be a little bit smarter than your average bear, 

I got 4 tips for doing that.

Tip #1: I would recommend finding an investor-friendly agent

An investor-friendly agent can help you find the best deals that are out there because they understand what you're looking for.

Tip #2: Look for what's called a hidden potential

Hidden potential means you're looking for things that nobody else sees in a property.

Tip #3: Look for fixer-uppers

A fixer-upper obviously is something that needs to be fixed up, a lot of people don't like buying them because there are a lot of work, there's a little bit of risk involved, so if you can look for a fixer-upper you can sometimes find an amazing deal that way 

Tip #4: Be either the first or last in a deal

When you're trying to buy in MLS, there's a lot of competition, so you either need to be the first one to jump at a deal which means get automatic alerts set up for deals that match what you're looking for. 

When a deal comes on the market, don't delay, don't wait, rush go get them or be the last one, in other words, wait and look for a deal that has been on the market for months and maybe even years and go in negotiate on those ones because nobody else is looking at them anymore, so the competition is a little bit lower.

2. Driving For Dollars

Driving for dollars is this idea where you get in your car and you go out and you drive and you look for vacant properties, it's very easy to find, look overgrown like junk in the yard that looks like it's been there a long time, the more you do it the more you'll realize what a vacant house they kind of stand out like a sore thumb not too hard to find. So what you're doing when you're driving for dollars if you're looking for these properties then you're going to go home and research, you're going to look for the owner of the property, you can usually find it online on your County Assessors website. You want to contact the owner and maybe a letter or you want to call them if you can do some phone number research, call them and say hey you want to sell? Not everyone is going to sell but some of them might

3. Direct Mail Marketing

Maybe you've heard this term before direct mail marketing is something done in a lot of different industries, for example, car dealership loves doing it. You get a piece of mail that says congratulations you won a new car. You didn't really win the car but they're trying to get your attention that maybe you'll go test-drive a car and then if you test-drive it maybe you'll end up buying it. They mail thousand of letters hoping a few people end up test-driving and a few of them end up buying. Same thing with real estate you send out thousands of letters hoping that a few people will call you to sell their property and then a few of those calls will turn into sales.

Direct mail marketing can be a great way to scale up your business because if you want more deals just spend more money on letters, typically a letter might cost you around $1 to $0.40 including postage, you can save some money by doing the work yourself or you can spend more and have somebody else do it all for you. There's a lot of companies out there that will handle direct mail marketing for you. 

Keep in mind that, with direct mail marketing you want to focus on 4 things

a. Your List 

Your list is who you send too. Maybe absentee landlords or people that are 90 days late on their mortgage, you can buy a list online.

b. The actual mail that you send out

What is the in the mail, maybe postcard or letters, whatever?

c. Focus on your funnel

What that means is focus on every part of that, 
  1. How many letters did you send
  2. How many phone calls did you receive
  3. How many deals did you close
Do work on that funnel and always keep track of that funnel, where you at, how can you improve it if you got 50 phone calls out of a thousand letter that's 5%, what could you do to get 7% or 8%

d. You've got the follow-up

Focus on your follow-up because the key with direct mail marketing is you never usually get the deal on your first mailing. Sometimes you get lucky. 

Keep mailing these people, you might want to mail every month or every 3 months whatever you decide for years and eventually when they're ready to sell who are they going to go to, somebody they never heard of, or maybe contact the guy who's the house or the girl who's the house buyer.

4. Wholesalers

A wholesaler is somebody who goes through all of these things that will are be talking about today, and they do a lot of different strategies to find good deals, once they find them, they don't actually want to buy them. A wholesaler is a middleman, wholesaler finds good deals and then basically just sells them, flips them or however they get the deal to an end buyer. There's a lot of wholesalers out there today that is looking for good deals and they're going to mark it up a little bit maybe they get the deal under contract for $50,000 and then they're going to see if you want to buy it for $55,000. They make a quick $5,000 just by marketing it up but $55,000 might be a great deal for you. A wholesaler can be a great way to potentially find deals but you got to find the wholesaler

5. A Lead Website

A lead generating website is a website that you own that has something like. "l buy houses" and these areas kind of a message. There's a number of ways to create a lead website. If you are a little bit tech-savvy you can use WordPress to do it yourself or you can use, Squarespace, and more. You can create a website but you don't have to have any technical knowledge but you do have to do all the writing yourself, you have to know what you're getting into and make all the pages and within a few hours of work, you can probably create a decent-looking lead generation website.

No comments:

Post a comment