{"id":130405,"date":"2020-10-12T15:00:04","date_gmt":"2020-10-12T21:00:04","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=130405"},"modified":"2021-08-26T11:53:06","modified_gmt":"2021-08-26T17:53:06","slug":"find-real-estate-deals-low-effort","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/find-real-estate-deals-low-effort","title":{"rendered":"The (Nearly) No-Effort Way I Found My Last Multifamily Deal\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Sometimes the simplest things give you the best results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Three years ago when we moved to Syracuse, I noticed an apartment complex at a major intersection on my route home from work. It appeared to be the size I was looking for, and each time I drove past it, I told myself I would try to find the owner and make an offer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the new city, new job, new baby, and so on, that desire to track down the owner remained a wish for another two years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In July 2019,&nbsp; I finally sent postcards to the owner. I wasn\u2019t conducting a particularly robust marketing campaign, but in my \u201ctrying out\u201d the DealMachine app, I also set up automatic mailings\u2014and forgot about it!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One quiet evening in November, I got a call from the owner. He had been out of the country and came home to find my postcards. He wasn\u2019t interested in selling the building I had asked about but wondered if I would be interested in another seven-unit he was looking to offload.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Um, sure<\/em>!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><meta charset=\"utf-8\"\/><em>(<strong>Agents<\/strong>: Want an easier way to find clients? Try <a href=\"https:\/\/www.biggerpockets.com\/companies\/premium?utm_source=blog&amp;utm_medium=blog-ad\" class=\"rank-math-link\" target=\"_blank\">BiggerPockets Premium<\/a>!)<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He gave me the numbers\u2014they sounded amazing!&nbsp;I was a bit hesitant when I got the address, but after a little while, I snapped out of it and went to take a look. We closed on this building right when the COVID-19 lockdown started.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-marketing-virtual-assistant\" target=\"_blank\" rel=\"noopener noreferrer\">Real Estate Marketing: How to Save Time &amp; Get Better Results (Hint: Virtual Assistants!)<\/a><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Deal<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Details about the property:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>7-unit apartment complex<\/li><li>Fully rented with some tenants on public assistance (<em>ahem<\/em>, <a href=\"https:\/\/www.biggerpockets.com\/blog\/recession-proof-investing-plan-success-good-bad-times\" target=\"_blank\" rel=\"noopener noreferrer\">gold in this COVID era<\/a>)<\/li><li>Each unit has its own furnace (meaning I won&#8217;t pay for tenants&#8217; heat in cold Syracuse!)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The Numbers<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We negotiated price and terms.&nbsp;He was planning to list it with a Realtor but instead let us pay what he would have gotten after Realtor fees were removed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Details about financing:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Seller financed<\/li><li>20% down, amortized for 20 years, but due in 5 (no banks were involved)<\/li><li>Expected cash-on-cash return: 53%<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What Is Driving for Dollars?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re looking for multifamily property, don\u2019t ignore the good old \u201cdriving for dollars.&#8221; The idea behind driving for dollars is that you spot potential investment opportunities as you drive around neighborhoods of interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I think of driving for dollars in two ways:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Intentionally driving for dollars, and<\/li><li>Spotting \u201cdollars\u201d when you drive.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Driving for Dollars Step by Step<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You may think of driving for dollars when searching for properties to wholesale or rehab; but it works just as well with multifamily properties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/driving-for-dollars\" target=\"_blank\" rel=\"noopener noreferrer\">Driving for Dollars Bible: Finding Distressed Properties and Marketing<\/a><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1 &#8211; Find the Property<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on your goals, you <strong>specify your target property type<\/strong>, and take note of properties that meet your criteria as you drive. Look for tell-tale signs of age, vacancy, or distress (i.e., tall grass, undisturbed snow, a full mailbox, etc.).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the deal I described above, it was simply the location and property type that caught my attention.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2 &#8211; Find and Contact the Owner<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When you find a property that matches your criteria, <strong>contact the owner.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While I found this owner\u2019s mailing info on the app I used, I could quite easily have looked it up on the city\u2019s property assessment website and sent him postcards myself. I could also have used a skip tracing service to find a phone number or email address.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Irrespective of the method, the key thing that made the deal successful was persistence. People may not respond to the first or third mailer they receive. Keep at it!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this case, I was able to be persistent without even having to remember to be. I&#8217;d forgotten what I had set in motion via DealMachine.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But even that makes a point! Set up systems so that your business doesn\u2019t rely on YOUR remembering.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;What do you say to the owner?&#8221;&nbsp;you might wonder. Here&#8217;s what I write.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>I saw your property on 123 Main St. Would you be open to selling?<\/em><\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Nothing complicated. The worst they\u2019ll say is \u201cno.&#8221; If they do, you come back in a few months!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And if they say, \u201cYes\u201d?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3 &#8211; Make an Offer<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re now direct to the seller. You can negotiate both the price and terms.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Price:<\/strong> Remind the seller they would be saving on Realtor fees, and negotiate a price that reflects that.<\/li><li><strong>Terms:<\/strong> You can negotiate owner financing (either partial or full financing), negotiate the down payment, as well as the amortization and duration of the loan. Don\u2019t forget creative ideas like lease options.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The key is to understand what the seller really wants and structure the deal in such a way that works for you both.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile\"><figure class=\"wp-block-media-text__media\"><a href=\"https:\/\/www.biggerpockets.com\/companies\/premium?utm_source=blog&amp;utm_medium=blog-ad\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/amy-hirschi-uwpo02K55zw-unsplash.jpg\" alt=\"\" class=\"wp-image-139822 size-full\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/amy-hirschi-uwpo02K55zw-unsplash.jpg 500w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/amy-hirschi-uwpo02K55zw-unsplash-300x300.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/amy-hirschi-uwpo02K55zw-unsplash-150x150.jpg 150w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/amy-hirschi-uwpo02K55zw-unsplash-200x200.jpg 200w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure><div class=\"wp-block-media-text__content\">\n<h3 class=\"wp-block-heading\">Get more leads as a BiggerPockets <strong>Featured Agent\u00a0<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Stand out as a\u00a0preferred agent\u00a0on the largest network of real estate investors. Fuel your pipeline with high-intent leads, and instantly match with potential buyers who are interested in your market.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-agent-lead-bundles-for-investors-biggerpockets?source=blog&amp;medium=guide\" target=\"_blank\">Become a Featured Agent<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Wrapping Up<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s the real gem about this deal: The owner says he\u2019ll be selling the original property I asked him about in a few years. Guess who will be waiting and ready to take it off his hands?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>What other simple ways have you found mouth-watering deals?<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Share with a comment below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the market as hot as it is, learn the simple method I used to land an off-market deal I wasn&#8217;t even looking for\u2014and seller financing to boot.<\/p>\n","protected":false},"author":72121,"featured_media":121865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5529],"tags":[],"class_list":["post-130405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-marketing"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/130405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/72121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=130405"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/130405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/121865"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=130405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=130405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=130405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}