Level Three: Finding Your Own Off-Market Deals
If you want the absolute best deals, you have to go direct to the seller. When you skip the middleman, you can negotiate better prices and find hidden gems that aren’t listed anywhere. But let’s be real: this takes either time or money.
You have to choose your struggle. If you have the cash, you can pay for ads and mailers. If you are starting with a low budget, you have to put in the sweat equity and do the grunt work yourself.
How to Build Your List
Before you can reach out to sellers, you need a list of people who might actually want to sell. You are looking for two things: equity and motivation.
You can use tools like PropStream or work with a real estate agent to filter for things like:
- How long they have owned the house.
- If they are behind on taxes.
- If the house is vacant.
- If they are going through a bankruptcy or foreclosure.
The goal is to find distressed properties and sellers who actually need your help.
Choose a Strategy That Fits You
Don’t pick a strategy you hate, because you won’t stick with it. If you are terrified of knocking on doors, don’t do it. Henry says he hates cold-calling and door knocking, so he sticks to direct mail. He can send out mailers and wait for people to call him when they are ready to talk.
Whatever you choose, you have to be persistent. You have to stay with it long enough to see results.
The Power of Telling Everyone
This is the easiest strategy of all: tell every single person you meet that you are a real estate investor.
This is exactly how Henry got his first deal. He told everyone he met what he was doing. Eventually, a friend called him up because he needed to sell a house fast to buy land for his church. Because Henry had “spoken his future into existence,” he was the first person that friend called.
That one deal allowed Henry to buy ten more properties over the next two years.
Other Sources for Deals
- Courthouse Auctions: You can find foreclosed homes or government-seized properties here. You usually need cash on hand, but you can get properties for way below market value. Just be careful about the condition of the house, as you are buying it “as-is.”
- Social Media: Post once a month reminding people you buy houses. Offer a referral fee if they send you a deal that closes.
- Craigslist and Facebook Marketplace: Look for “tired landlords” in the rental section. If the photos are blurry, poorly lit, or there are only one or two of them, that is a sign the owner is struggling. Give them a call and see if they want to sell instead of rent.
Finding deals is a treasure hunt. If you keep your eyes sharp and stay patient, the deals will start coming to you.
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