How to Find the Best Real Estate Deals

Robert Kiyoski the author of Rich Dad, Poor Dad once said - Make your money on the buy, not the sell, this is true in any investment whether it's real estate, business, or the stock market.

This is something I think about regularly and try to tell anyone that is willing to listen! The problem with saying this and leaving it at that is it is foolishly obvious. Everyone wants to get a good deal. Everyone I know wants to “Buy Low and Sell High”! Who doesn't want to guarantee they make money on every single deal they do?

How to Find the Best Real Estate Deals

In this week's blog, we are going to look at seven different ways of approaching finding the best Real Estate deals in any market.

By finding the best deals, doing the proper due diligence and closing at a price that makes sense for YOU, we can almost feel the cash in our bank account already! Okay, that may be a stretch but we are a lot closer to guaranteeing a profit by looking for deals where the masses are not.

I am a big believer that if a property is already on the market, it is likely to be too late.

                                        My Top Four Deal Sourcing Strategies

1. 1. Networking
2.            - The Elevator Pitch
3.            - Family, Friends & Strangers
4.            - Chambers, BNI, Rotary & Local RE Groups
5. 2. Real Estate Agents (Off Market Opportunities)(One Agent - Old MLS/Current MLS)
6. 3. Driving for Dollars
7. 4. Wholesaler List

Networking -

We are going to start with Networking for a reason. I strongly believe this to be the most realistic way for most investors to find their next (and best) deal.

The Elevator Pitch - Before you even start networking, you need to build your 30 second elevator pitch and polish it. Let’s assume you already know what kind of property or investment you are looking for, if not consider pausing here and jumping back to Choosing the Right Real Estate Investment Strategy.

Your goal is to tell people Who, What, When, Where and Why in just a few brief seconds. Let me give you an example of our elevator pitch when any opening presents itself.

“Brittany and I are actively looking for another Mixed Use Commercial Property somewhere around Conway, NH. We love old tired buildings or landlords that are on the back half of their Real Estate journey. We never judge and actually like a bit of work, it is where we feel we can add a bit of value. If you ever run into anyone in this situation, please think of us. We are always happy to at least look at the property.”

Now that you’ve taken a few minutes to think about your own situation and know what you’re looking for in an investment, tell everyone! Did you hear me… I mean EVERYONE!!!

Tell Friends, family and strangers. I promise, it could be the difference from you talking about Real Estate Investing to actually making your dream a reality.

Once you’ve gotten out the bumps and kinks of your elevator pitch it's time to test it on a professional level. Let me be absolutely clear, it does not matter if you’re the janitor, a teacher, a manager or the CEO of a company, this part is not about your day job, this is about finding your next big deal.

When people ask what you do, give the 10 second version and pivot giving them your Real Estate Elevator pitch. People will be so impressed that you know exactly what you want that if they have any way to help you, I promise you, they will. Once you've given your pitch, do not forget to take a genuine interest in others, you never know who will remember you when a deal passes them by.

Real Estate Agents -

Now that you’re a professional networker, I am sure you’ve met a few Realtors along the way. It is important to tell them exactly what you are looking for and let them know you are serious about closing if they can bring it to you off market and will make sure they get paid the same as if they were to list it.

Three lists that your Realtor should set you up on immediately for properties that meet your exact Real Estate Investment criteria -

1. MLS Listings That Hit 90 Days Active
2. MLS Listings That Hit 180 Days Active
3. New Listings That Meet Exact Property Criteria

Driving for Dollars -

There are a number of pros that do this on a large geographic scale but I am a firm believer doing it locally can be even more fruitful on a deal by deal basis.

Being observant is half the battle. Ever notice how many houses in town don't mow their lawns in the summer or plow their driveways in the winter? Have you seen a small business on main street suddenly close its doors and wonder if they own their Real Estate as well?

Sometimes, a bit of curiosity and a few phone calls can change your life.

I sent multiple cold calls and emails to an owner of a Restaurant that closed in town because I assumed he owned the Real Estate as well. Two years after that initial cold email, we have bould two buildings (eight units) off of him via Seller Financing and likely have a financial partner on future deals if we need one!

Wholesaler Lists -

Many local Real Estate Groups will have a number of wholesalers that attend events. Get to know them and ask to get on their email list ONLY if this is applicable to the kind of investment you want to buy. Most of these lists consist of Fix and Flips and Commercial Properties.

DO NOT look at every property in detail. Only ask for more information on deals that make sense for you and your portfolio. Wholesalers will have a lot more respect for you as a new investor if you can articulate exactly what you are looking for and stick to it!

                                  Three Other Deal Sourcing Strategies

1.                                   Direct Mailers - Lists/Websites
2.                                       Foreclosures & Auctions
3.                                    Zillow, Commercial RE Sites

Direct Mailers - It may feel a bit old school and that is okay! When done thoughtfully, a postcard or mailer can allow you to get really specific on what type of property you want to acquire or how you want to acquire it.

We won't go into depth here but there are sites you can use to build Real Estate Lists based on basic factors like type, size, prices and the standard “zillow listing filters”. You can also go as deep as to target specific properties that are paid off or on the flip side, are on the brink of foreclosure.

Foreclosures & Auctions - There are also a number of sites to find properties up for auction. From government sites like the Department of Housing and Urban Development, to private companies like Auction.com there are several ways to acquire properties across the U.S. For newer investors, I would stick to local auction houses and work on developing relationships with any local banks to see if they have any “R.E.O. 's” (Real Estate Owned) or Bank Owned Homes they may want to consider getting off the books.

Zillow, Commercial RE Sites - There is a fair amount of thought in putting Zillow last. If done correctly, zillow can be another wonderful tool at your disposal. Done incorrectly, it is worse than aimlessly scrolling on instagram.

Wait until you can clearly define your target property or target investment area before sitting down to look at Zillow. If you are using Zillow or other large commercial sites, consider doing it at your work desk with a notepad instead of on the couch at night.

You are about to make one of the largest investments of your life to date! Don’t take that lightly.