Do you use Marketing/Prospecting for House Hacking?

Question

Hey everyone - I am doing as much research as I can to find deals for my first house hack. I know Brandon, many members on here and the podcast, books like the Millionaire Real Estate Investor, etc. all talk about marketing to find off-market deals, and how critical it is in the investing process.

It seems that most of the time wholesalers are the ones using these methods (direct mail marketing, drive for dollars, sending mail, cold calling, etc.) - does anyone use these techniques to find house hack deals too?

Or are you using agents mostly? They seem especially helpful for navigating markets and deals as a new investor, but I'd like to hear what others have found success in.

I am in the Greater Boston market, so I'm looking for any way I can to find deals.

Thanks so much!

John Warren · Answer

@Nick Jasinski real estate agents use direct mail marketing as much or more than wholesalers, and it really does work. I send out several thousand pieces per month here in my local Chicago market, which gets me around 1-2 leads each mail campaign. If I am able to convert one of those leads, then it pays for two to three rounds of mail campaigns. The big issue you would have as a house hacker is that this direct mail stuff costs money... a lot of money! Sometimes these campaigns cost thousands of dollars, but I only need to convert a very small percentage for it to be worth it.

In your shoes, I would find a great local agent in your market here on BP to help you navigate the process. I have nothing against off market deals, but most first time investors are very poorly set up to take down the really juicy deals. If you buy off market, you often times have to buy as is with cash or hard money. Most of the time it probably makes more sense to focus on good quality buildings where you can use an FHA loan (hint. they have to be in great shape for this to happen).

Nick Jasinski · Answer

@John Warren this is very very helpful - thank you so much!

That definitely makes sense, and is clear now. I will use the local agent route! I appreciate the insight.