“I can’t find any good deals, Brandon.”
I hear this over and over and over from individuals on BiggerPockets and out in the real world.
And I get it.
It’s hard to find good deals today. Real estate is becoming more and more popular, and even mediocre deals seem to be snatched up before conservative investors ever have a chance.
However, today I want to share with you the stupid-simple truth about acquiring more deals this year.
Are you ready for this?
The stupid-simple way to get more deals is this: analyze more deals.
Let me explain.
Real Estate is a Number’s Game… in Several Ways
Real estate is a number’s game, but I’m not referring to the financial side of it.
Real estate is a number’s game in the same way that dating is. Or being a salesman is. Or begging for money on the street corner is. It’s all about the odds.
In dating, the more guys or girls you ask out, the greater the chance of one of them saying yes. The more people you date, the greater the chance one of them will become your future spouse. Therefore, if your goal is to get married, you’ll find it incredibly difficult to get there if all you do is sit at home and read about dating.
Ever wonder why vacuum salesmen still go door-to-door trying to sell vacuums? What is this, 1950?! It’s because great salesmen (and sales companies) know that it’s a number’s game. They might get 99% of the doors slammed in their faces, but that 1% can have a tremendous impact on their bottom line, so they keep knocking.
Even the homeless gentleman on the street holding the sign that says “need money for beer” understands this concept. He knows that only a small percentage of people will give him money, but that’s all he needs. It’s a number’s game.
So… let me ask you a very important question:
How Many Deals Have You Analyzed Today?
Seriously… how many?
When people tell me they can’t find a deal, this is my standard response!
The typical answer?
Look… if you want to buy more deals, you need to make more offers. If you want to make more offers, you need to find more potential deals. If you want to find more potential deals, you need to analyze more deals.
Go ahead and read that previous sentence again. It’s life changing. Go ahead, I’ll wait…
Now think about it: If you analyze two properties every day, at the end of a month you will have analyzed sixty different deals. Let’s just assume that 10% of those deals, after analysis, looked promising enough to pursue and make offers on.
That leaves you with six properties that you can make an offer on each month.
Of those six, how many of those offers will get accepted?
Perhaps one of them?
I think one out of six offers is very reasonable. Therefore, if you analyzed just two deals per day, made offers on 10% of them and had just 16.66% of those offers accepted, you could buy a new property every month.
Every. Single. Month.
So, if you are looking to do more deals, start analyzing more properties. It really is as stupid-simple as that.
Ask any of the high-volume real estate investors on BiggerPockets, and you’ll hear the same thing. They look at a LOT of deals.
How many deals are you looking at?
How to Analyze More Deals, Faster
So, what do I mean by “analyze more deals”?
For me, it’s like a funnel:
- I look at hundreds of properties in my area (on the computer screen) and quickly “screen out” 90% of them for being the wrong type, the wrong location, or clearly being the wrong deal.
- Then, of the remaining potential deals, I run them through the Rental Property Calculator or the House Flipping Calculator here on BiggerPockets. It takes about five minutes to analyze a deal, so maybe 10 minutes a day.
- If one of those deals looks promising, I’ll pursue it with a call to my real estate agent to get more details. If I like what I hear… I’ll submit an offer. It will probably be rejected, but that’s okay.
It’s just a number’s game.
What If You Can’t Find a Good Deal?
Now, of course, what if you start analyzing a lot of deals and NO deals look promising?
What if 100% of the properties that are for sale in your area are too expensive and don’t look good after analyzing them?
This is an increasing problem these days, especially in expensive areas. If you find yourself in this situation, the simple answer is: You need to get more creative in how you find properties. You won’t be able to rely just on the MLS anymore.
Lucky for you, I’m doing a free webinar NEXT THURSDAY on this very topic and I want to personally invite you to join me as I share the Top 10 Powerful Ways to Find Incredible (and Hidden) Real Estate Deals here on BiggerPockets.
Can you make it?
Then, leave me a comment below. Do you agree? What would you add to this discussion?