Sourcing deals & relationships

[James Kim]

Hey guys. Just got my license and sponsored by a brokerage. For those with experience in hard money, if you were just starting out in the business of hard money brokering.. how would you source your deals? When niching down and selecting a market, what matters most to you in terms of opportunities?

[Travis Main]

Hey James, 

If I were starting over in hard money brokering today, I'd spend less time worrying about the perfect niche and more time getting in front of active investors every day. Most of my early deals would come from local REIA meetings, BiggerPockets, Facebook investor groups, wholesalers, real estate agents who work with investors, and networking with flippers and landlords. The biggest thing is consistency. A lot of new brokers talk to investors only when they need a deal, but the brokers who build a pipeline are the ones who stay visible and provide value even when there's no transaction on the table.

As far as markets go, I'd look for areas with strong investor activity, decent transaction volume, and enough spread between acquisition costs and ARV to make deals work. It doesn't matter how hot a market is if the numbers don't pencil out. I'd rather be in a market with active investors doing repeat business than chase the newest trend. Focus on building relationships, learning how to structure deals, and becoming a resource for investors. If you can help someone close their first deal and then their second and third, you'll build a book of business much faster than trying to sell rates and terms alone.