What advice what you give to a newbie!

Question

Hi everyone,

My name is Kanica and I'm an Investor in D.C., I just wanted to introduce myself and get tips on how to find and secure motivated sellers. I was ecstatic today, I got my first YES through cold calling. Unfortunately, now the seller is not answering my calls or emails.

Also, I want to start my search in my city, however, I think its oversaturated by major corporations. What do you do? How do you overcome being the small guy (or gal)?

Thanks for your support!

Michael Quarles · Answer

Hello Kanica

Overcoming the "small guy" syndrome is all about your mental attitude. If you think and act like a "Newbie" then it will show and no one will follow a follower.

If you act like a leader people will want to do business with you... It doesn't matter how long you've been a leader either. Think of it like this... We have a McDonald's all over the place and they kill it with sales. However you also have the local hamburger stands which do very well also.

Find your niche and own it. In the beginning your niche is going to be nurturing which the "Big Boys" cannot do.... Once you start buying 100 houses a year you wont have the time to cuddle the prospect however in the beginning understand that you have that position power..

As for where sellers come from.. Besides traditional marketing you would be surprised how many prospects and/or bird dogs are saved as contacts in your cell phone.

Call everyone and let them know that after a lot of thought and careful consideration that you have decided to become a real estate investor and then ask them who they know who needs to sell a home.

Happy House Hunting

Account Closed · Answer

In DC the main question is: how much money do you have to invest? I went to couple of investor meetups held by Walnutstreet Finance in Fairfax, VA (they advertise their meet up on this board as well), and they give plenty of valuable advise, absolutely free, if you just show up and listen. I also met couple of investors and realtors there. I wasn't interested in rental properties, as I was looking for fix and flip properties, so I won't comment in regards to acquiring rental properties in DC.  But as far as fix and flips are concerned, the key to making it happen in DC is to have CASH$$$. You should have at least $150K in your bank account, which would allow you to get enough financing for the rest of the project. There are homes you can find in $250K-$280K range that need good amount of rehab work done, and  as soon as you finish your project those properties can be sold relatively quickly, and you can make a nice profit out of it.  I no longer look for investment homes in DC, because it's outside of my price range. But if you can afford to invest in DC go for it. Everyone I spoke with said good things about DC market.

P.S. You can't compete with large multinational corporations, they have capital, leverages and wholehearted support of the government at all levels. They can make enormous profits at razor thin margins, which will throw you out of business unless you want to donate your own money to run it as a charity. No one can grow in a place where market share is owned by few behemoths who benefit from 60% to 80% of all transactions. It doesn't matter how confident or "not in a newbie" mindset you are. Just as you can't fly jumping off the cliff , only because you are confident that you can. Laws of physics couldn't care less about your mindset.  But RE is one of the very few areas where a small guy (at least in theory) can make it. And, I am sure, anyone who has $150K-$200K cash in a bank account and healthy finances at home has a shot to get into RE investment business in DC.

Good luck!

Account Closed · Answer

Thank you so much for sharing, You are absolutely right Mindest is everything!

Account Closed · Answer

Thank you so much for sharing  Allan, I have started cold calling and handwriting direct mail letters. I am going after multi-family apartment buildings, would you still suggest searching on craigslist, facebook, etc to find motivated sellers?

Allan Bishop Jr. · Answer

Welcome to BP Account Closed! That is a beautiful area.

There are several ways to find motivated sellers. Cold calling like you’ve done is one way. “Driving for dollars” is another. Reviewing tax records for out of town owners is another. You can also monitor Craigslist, Facebook, and other sites for folks who are individuals who are  advertising a property for rent. They may be willing to sell.

Also, link up with local investors through a REI group. You can find those through this site or the Meet Up app. Local connections with other investors, agents, and wholesalers can provide leads.

In the meantime take advantage of all the podcasts, webinars, books, forums, blogs, etc on this site. Education will help jumpstart your endeavor! Good luck as you begin!

Jason Miles · Answer

I help investors find motivated data (usually absentee & vacant). If you're targeting DC, I only have high equity list, as well as home owner data, but you're welcome to DM me if you'd like to chat.

What advice what you give to a newbie!

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