The million dollar question I get frequently from new investors is “Where do I find deals”? Finding deals is a bit of an art and a science that takes time and persistence. Here are 5 ways to find off market deals that work in any area.
#1 Wholesalers
Wholesalers are companies that market directly to property owners and attempt to buy for “cash”. If you’ve ever seen the “We Buy Houses!” billboards or bandit signs on the side of the road, these are from wholesalers. They buy properties, usually distressed, at a discount with enough margin to resell to other investors. At closing, they receive an assignment fee for finding the deal, while the end buyer/ investor puts up the money to buy the property. You can get on the mailing lists for wholesalers by joining your local Real Estate Investing Meetup (REIA) and handing out business cards. You can also join the Facebook group or www.biggerpockets.com groups in your area to network with these companies.
#2 Real Estate Agents
Real estate investing is a people business and, as they say, your net worth grows with your network. The more people that know what you do and what you’re looking for, the better your chance of success. Real estate agents are a good way to find off market deals but they have to know you’re a serious buyer and aren’t going to waste their time. I like to look up the top agents in an area that are selling homes at the price point I’m looking for. Then call #3-10. Why not call #1? The agents a few spots from the top are likely ambitious but are still hungry to get to #1 and will do what it takes to make it happen. Be respectful of their time and stay in constant contact to let them know you’re a serious buyer. When they send you a deal, respond immediately with a yes or no. Your goal is to eventually get to the point where they will send you deals without listing them (pocket listing) because they know you will close quickly and without hassle. Oftentimes a quick, easy transaction is better for everyone.
#3 Property Managers
Property managers know the owners for the properties they manage. They know when they’re getting tired of being a landlord and are always ready to make a quick commission. Call local property management companies and let them know you’re buying and will make it worth their while. Continue to check back with them to stay top of mind.
#4 Attorneys
Partnering with local probate, tax, title/ closing attorneys is a great way to find off market deals. They often know a property is going to be sold before it hits the market. Present a commission structure that will be worth their while and they’ll be calling you every time they get wind of a client that is ready to offload a property.
#5 Market direct to sellers
Much like wholesalers do, you too can market directly to sellers. By using tools like www.listsource.com, you can pull lists from county tax records that meet the criteria you’re looking for. You have to pay for these lists but they’re relatively cheap for the value they provide. You can then cold call, mail, text, send smoke signals, etc. to these property owners and ask if they’re interested in selling.
I’ve used many of these strategies to Scale My Rental Portfolio and ultimately achieve financial freedom.
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