How do I get to the deals first?

Question

Every property that gets my attention in Hunterdon County, NJ is under contract before I can get an appointment. Everything else is still available because it's overpriced. I monitor Trulia, GSMLS, Realtor.com and Zillow and am not finding anything in time to get a deal. I work with 2 separate realtors and they both suck for different reasons and to be honest, once a property is listed getting a deal is even harder because of their commission. I see wholesalers on here, but they have nothing in my area and/or their websites don't even work...

There has to be some trick that these flippers, rehabbers and/or buy and holders are using to find them before everyone else...SO WHAT IS IT?

Chris Eaker · Answer

Direct mail to the homeowners, but if the info is already on Zillow, then you will be competing with every other Tom, Dick, and Harry real estate investor. Figure out the market you want to target, then figure out the best list criteria to hit that market. Buy the list from a list broker like Listsource.com and hit them with a letter or postcard every 3-4 weeks for 4-5 times total. You have to build it up, it doesn't happen on the first mailing. You want to be the first person who comes to their mind when they decide they need to sell.

Chris Eaker · Answer

It's called direct mail. Good wholesalers also have lots of eyes and ears on properties in the area so they get calls when anything looks like a deal. But direct mail is the way to go.

Derek Lamonde · Answer

This confirms what I've suspected. I've actually received them at my primary home for rental units that we own. Although I've never seen follow-up, so that my be the trick.

Ned Carey · Answer

@Derek Lamonde  Direct mail is only one way to market. There are LOTS of ways to find deals before they hit the market. There are many threads and blog posts about this.

To get listed deals first get on an automated email list. Any agent should be able to set up a criteria for you and send you all the listings automatically as soon as they are listed.

Then it is key to know your market. I had a freind who knew his market so well you could give him a price and an address and he know whether it was a deal or not  - without even going to look at it. He was able to have an offer in before someone like you has even looked at the property.

Jeff Stewart · Answer

Direct mail is a fantastic method for finding off-market deals. I'd also recommend "driving for dollars." Cruise your farm area looking for vacant houses. Write down the addresses and then get to work on Google to track down the owner. Look for a mailing address, but really try to find a phone number if you can. There is no substitute for talking directly to the owner of a distressed property.

Claire Trammell · Answer

Spot on Chris! You broke that down beautifully.

I absolutely agree with Chris. It doesn't always happen the first mailing. On average it takes around 3 mailings for someone to actually take action. That's why follow ups are important.

I would also suggest switching up your mailer each time. If you send the same thing time and time again, then your message will have a greater chance to be thrown away before being read again. Plus, sending a different piece each time widens the niche of folks who may respond. Some folks may be drawn to a postcard, while others like yellow letters, while others still may like a professional typed letter. Diversifying has shown great results.

Randall Williams · Answer

And - @Chris Eaker, Zillow publishes "pre-forclosures" for homes in default. Does one track those lenders down, or would you direct-mail the residents who might want to short-sell?

How do I get to the deals first?

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