How does they do it?

Question

Hello everyone!

Though I've been perusing BP for a bit, this is my first post because I really need some help.

We  all know that there are several ways to acquire properties at a  discount. I have been a fan of direct mail. That said, there are two  investors in my area that do not utilize direct mail whatsoever yet they  are doing extremely well (about 4-8 deals per mo with spreads of 8K-20K  a piece).

On top of that, I respectfully say these two investors  are "old school". Meaning they are above 50 yrs old and they are not  that "tech savvy" (seo, social media, savvy with direct mail) like a  younger generation of investors perhaps.

So I'm need your help because I've been struggling doing deals via direct mail (which is another story I won't get into).

I really would like to know, how these investors are getting the 1) quantity and 2) consistent deal flow!
	
	So that you may be able to help me. I do know the following:
	
	1) They have been in the business a long time (circa 10 yrs)

2) They or there spouse is a realtor

3)  When I pull up there properties they have double closed on, most of  them are coming from banks (Wells Fargo, Deutsche Bank, etc.) Does this  mean they are "in" with asset managers that are feeding them?

I  thank you in advance because I really am tired of struggling and want to  see consistent deal flow. If these guys can do, I know I can!

Bill Gulley · Answer

Being "old school" I let you in on an old secret.....it's face to face networking, not staring at a computer screen.

As to your #1, hard work, walking and talking (is what us old school guys call it) should yield something in 3 months in a slow market.

#2. A Realtor in the family, well, my parents were Realtors and there may have been a dozen deals over 20 some years that were directly from MLS listings. There are many more that spin off from listings as secondary transactions. These came about due to the relationship made from those MLS deals.

#3.  Citicorp or BofA or WF probably don't have corporate asset managers in Hollywood, FL, so I doubt there is any personal relationship where employees would risk their job pipeline activities. However, if I buy 5 houses from a bank through their regular process I'd bet someone who is in that section dealing in Fl. properties (doc clerks) will recognize the name if they called.

These are points of contact part of the circle of active RE types that you need to walk and talk with. Here are some more:

The planning and zoning office/building regulations. Yes, they may post properties and everyone and their dog knows what hose got tagged three days ago. Eat breakfast with the inspector and you can learn a lot.

Loan officers at banks, they want slow paid loans and potential defaults gone before they happen, this takes some skill, knowledge and a reputation, so develop your relationship over time.

You public housing authority and Sec. 8 administrator deals with landlords, they know of marginal LLs and properties. They can introduce you and you can spark interest in getting them out of the pains they may have.

Many areas have Landlord Associations, where LLs swap stories and stay abreast of changes in their area. Don't forget property managers, usually they have a license but many never go into the broker's office, you can buy through them.

Street people, no, not homeless folks but those that are on the streets everyday. Postal workers, the meter readers, police officers can have part time work, the pizza deliver kid, the pharmacy deliver guy or flower truck driver. Pay them something for leads meeting specific conditions regardless of any deal made, just for tips, this can save you from driving for dollars, teach them what to look for.

Most contractors don't buy houses, but they know homeowners who are making repairs to sell.

Social organizations, church, school, anyplace people gather, tell everyone you know what you do.  You should never have coffee in a Waffle House without telling someone what you do, even the waitress lives somewhere. Everyone you do business with, your auto mechanic, your barber, the bar tender (especially in a "RE joint"), your dry cleaners, should know what you do.

Now, you tech savvy young'ns get on your computers and search listings, CL and what ever RE site you have locally and I'll go out for a day and walk and talk and I assure you' I'll have more good leads on private deals than you will. That's how the old school guys do it and it works, wear out some shoes. :).

Eric Black · Answer

Hi Richard,

Chances are, since they've been in the business a long time they are probably getting all of the deals due to the networking they've done throughout the years. They did not start out with all of these leads and deals. Since they have been doing this for a long time and have their connections, they don't need to know about SEO, direct mail, etc. Someone picks up the phone, calls them and tells them about a deal because they know they'll buy it.

Why not reach out to them and try to network with them? They obviously know what they're doing. Don't try to beat them, join them.

Paul Timmins · Answer

@Richard Rodriguez

Eric hit it on the head networking.

You could do the same. Go to as many REIA club meetings here you will meet wholesalers who provide deals get on their mailing list.

Paul

Richard Rodriguez · Answer

I greatly appreciate the feedback to all of you. I've been pondering about it and putting together the plan of attack on this. Thanks again.

Account Closed · Answer

@Richard Rodriguez,

If you show the two guys, you are talking about that been doing it for years you have cash money and ready to buy they might help you, but if you start with all the weasel clause, they might not help you. And most of the old timers have built connects at banks over the years that will feed them good deals, and I bet they don't use a Google voice mail, and they answer their phone when it rings.

Joe Gore

Brian Mathews · Answer

I think Bill nailed it.  There aren't many people out there willing to talk to people anymore.  It's all texting, surfing and emailing.  When you find a deal, don't be a pretender and screw around.  Do your diligence, have the money lined up and close it.  Because if you don't, they will find somebody who will.  Likely a person like these 2 you speak of.  I'll relate this back to my hvac business.  I do the postcards and website and online this or that.  I'd be foolish not too, because there are potential customers that don't want to talk face to face.  But by and large, I get the most customers by networking, getting on the phone and asking somebody for business, referrals or putting refrigerator magnets on peoples homes around where I do a service call.  Good old fashioned pounding the pavement.

Richard Rodriguez · Answer

Hello Eric,

I really appreciate your feedback. It makes sense what your saying.

I do know them and have approached one of them but I do know that they are "tight lipped". I wish I could think they would be open to helping me but let's face it, I don't think they have an interest in training competition. I could be wrong though.

Ok, so there getting deals from who though? How would you advise me to get in there position? Do you think the majority of the deals they are doing are coming from agents?

Richard Rodriguez · Answer

Anyone?

How does they do it?

Most Popular Reply