Real estate is all about location, location, location! It’s also about finding deals and knowing who to talk to. If you are consistently saying you can’t find deals, you are probably not looking in the right places or with the right lens. The real estate market is hot right now, no doubt. Deals are harder to come by and people are paying stupid money for properties that cost 10-20% less just a year or two ago. That doesn’t mean you need to pay that kind of money for them, nor do you need to panic. The deals are out there. Make sure you know who to talk to, what you want to buy, and where to look for them.
1. Talk to People Close to You Who Are Doing Deals
Remember, someone is buying. Start talking to the people you know who have sold you properties before. Look on social media in your local real estate groups and pages. Are there people posting properties for sale that are getting overlooked? Think of the people you are well acquainted with who would be able to point you in the direction of the actual deal makers.
There is nothing like a direct human connection with someone you want to work with. Make a phone call, and then send a follow up email. Do it over and over. Make a list of every wholesaler you know, every real estate agent who has deals on and off market. Start each day, each week, calling each person on your list and find out what they have or whats coming up. It doesn’t hurt to ask, “Do you have anything coming up that would fit my criteria in the next 30 days?”
2. Be Laser Focused on What You Are Buying
If you don’t know what you are looking for, you definitely will not find it. Having clarity on your buying criteria is so important. If you haven’t laid each item out by bedrooms, bathrooms, location, “east or west of this road,” “up to this price point” … you are not prepared. Take the time to write out all of this criteria. Write it down!
Then, create your buyer sheet. Lay it out with your company or name, your contact information, where you buy, and what you are looking for. I’ve attached ours so you can see what we would send out (just removed our contact information). Be clear on what kind of property you are looking for and be able to execute and lock those properties down when you see them.
3. Become the Best Buyer for your Niche
I remember distinctly a call I received the week of Christmas just a few months ago. It was past 5 p.m. on a Tuesday. A seller desperate to sell, and wanted the property closed “by Christmas.” To be clear, we hadn’t been in the property and hadn’t ever seen it prior to the call. I took the call, worked up the deal, confirmed a time for my VP of construction to be in the house that evening. By 10 p.m. that night we had our offer over and waived inspections. Went under contract and to escrow on Wednesday. And closed by noon on that Friday: The Christmas miracle of 2017!
But seriously, we got a great deal on the house and the seller got exactly what they wanted. In our market, we are known for having our systems in place to help these deals get to the closing table. Our team rocks, not that I’m biased or anything. Our deals always close on time (at least anything in our control). We are cash buyers, and we are able to close in a day or two, or in two to three months if necessary.
Be known. And be able to execute when you say you want the house, are under contract, and ready to close it.
4. Take a Second Look at Deals You’ve Already Looked At
Just this week I put a house under contract that was near another couple houses we have recently done. The property was a little bit different in style than others we have done, and I kept looking right over it when I was doing my searches.
For whatever reason, I pulled it up and spent more time looking at it just a few days ago. I quickly realized it was a monster deal in a great up and coming part of town. The house had been sitting on the MLS for quite a while so we offered well under their asking price. We locked it up within a few hours. This single house has a potential of $50,000+ profit with an under $200,000 sales price—well under in fact.
Don’t miss opportunities. Take your time, review back through. Take a second look. Examine carefully. It may just be a $50,000 deal or more.
5. Be a Broken Record
Keep asking. Every single week we are posting on social media about buying and selling houses. Sometimes we are talking about houses we are buying, or the types of criteria or area it is in (see what we did there), or sharing pictures that are jobs in progress or pictures of completed properties that are going on MLS or to one of our turn key clients. I may send a message to a few of the guys we work with all the time on the wholesale side, or work back through all the MLS listings to be sure I haven’t missed anything.
Put it in your email signature. Write a post on social media. Post videos on Facebook Live or youtube about what you are looking for. Be a broken record about what you are looking for, what you want to buy, and what it is like to work with you. I share that Christmas story with new folks we work with all the time. Why not? It’s a great story. It’s true. And it shows our ability to understand the situation, review the deal, and execute.
Don’t get frustrated or feel discouraged if you aren’t finding deals. Take a new approach. Write it out. Be clear on your goals. Talk to every one. Be a bona fide buyer able to execute from contract to close. Prepare for what you need to do to put your deal together before you get there. That way, you have clarity, calm, and direction as to what you are buying and your ability to make an unwavering decision in the moment. GO GET SOME.
What strategies do you use to find deals in this hot market?
Share them in the comments below!