Even The Simplest Tricks Can Help You Find Your Next Deal
By Paul Esajian on January 8, 2016
As a real estate investor, you can have financing lined up and a strategy in place, but without deals you won’t get very far. Regardless of where you are in the business, you need different ways to get your phone to ring. One of the common misconceptions is that you need to spend money to find deals. In some cases, money may help, but there are many inexpensive alternatives as well. In time, doing these everyday tasks will slowly build your pipeline. Here are four simple ways to find more deals:
1. Word of mouth: How many people know that you invest in real estate? Even if it is something you do part-time, people should know that you are involved in the business. In any market, word of mouth and personal contacts are the best lead generators. You need to do something every day to increase your local presence. This can be as easy as telling the parents on your kids T-ball team, or making daily posts on your blog. If you are fresh into the business, you should send an email to all of your friends, family members and coworkers letting them know you have a new interest in real estate investing. Odds are, you will get at least a handful of responses saying that they may know someone who is interested in selling. You should also utilize the power of social media. It doesn’t take more than a few minutes to make a new post. Doing this consistently allows you to gain a bit of a following that eventually may lead to a deal. If you are looking for deals, start by focusing on the people around you.
2. Create local presence: People tend to work with others they know, like and trust. To get to a point where people think of you as their go to real estate source, you need to increase your local presence. You don’t need a huge billboard on a main highway to gain a following. Start by joining the local networking club. These clubs usually consist of realtors, mortgage brokers, contractors and anyone else that relies on leads to survive. Not only may you find a direct deal or two, but in time you will build relationships that will come in handy. Aside from networking, you can target a market and saturate it. Placing an ad in the local church bulletin or newspaper is an inexpensive way to get your name and face out there. You can also place your business card at local pizza shops, dry cleaners and laundromats. The next time you are out watching the game or enjoying happy hour, leave a card with the bartender. Instead of trying to reach a large number of people at once, focus on your local market and make it your own.
3. Craigslist: All new investors should hit up Craigslist for at least a few hours a day. Some may argue that it is a lot of work to generate a return email, but all it takes is one deal to make it worth it. There are a few ways to tackle Craigslist. The first is to post your services as an investor. When doing this, you are looking to attract real estate agents, mortgage brokers and fellow investors. Very rarely will you find a seller this way on Craigslist. The second method is to respond to some of the property listings posted for sale. In the post, you should be able to figure out if they are an investor. You should have a template set up for your emails so that all you need to do is change the name and property address. You may get an investor who has a deal they are looking to get rid of, or simply start a business relationship. The last method is by looking in the rental section. You should send every landlord an email asking if they are sick of renting and want a way out. There are a good number of landlords who were forced into renting and would love to sell and move on. If you spend a few hours a day focusing on these three areas alone, you should have a solid handful of new contacts and potential deals.
4. FSBO’s/Bandit signs: Every time you are in the car, you should be looking for deals. There are often times when a potential deal can be right in front of you without even realizing it. There are two main items to look for in the car. The first is for sale by owner (FSBO) listings. These properties may have nothing more than a FSBO sign in the front yard. There are many reasons why a homeowner would opt to sell on their own. They may be looking to avoid a short sale by saving on the commission. Whatever the reasons may be, it is worth a letter and a phone call to gauge interest in selling. Any FSBO should receive at least a handful of letters or calls. The other way is by reaching out to any phone number from bandit signs you see. Bandit signs are the “we buy houses” signs you may see in busy intersections. These are from investors like you who may have deals come their way that aren’t for them. It couldn’t hurt to give them a call and at a minimum introduce yourself.
All of these methods cost next to nothing and a few hours of your time. The more consistent you are with them, the more effective they will be.