The Simple Strategy I Use to Buy 10 Deals Per Month

by | BiggerPockets.com

Today, I’m talking to you about how I negotiated and bought over 400 properties. That’s right, 400 properties. This is one of the first strategies that I ever learned when I started my journey as a real estate investor and entrepreneur. It was taught to me by my mentor who now owns a $150 million business back home in Australia.

I’ve said it before, and I’ll say it again—real estate is a numbers game. You have to commit to the numbers every single day—meaning, you have to commit to working long hours, you have to commit to sending emails, you have to commit to making phone calls, you have to commit to shaking hands and kissing babies like a bloody president. And last but not least, you have to commit to submitting offers on a daily basis.

Now, what I’m about to tell you anyone can do. You just have to have some thick skin because some of the replies aren’t going to be the most pleasurable. The strategy consists of one phrase: “The more mud you throw on the wall, the more will eventually stick.” I have bought over 400 properties implementing this strategy, and my team is implementing the exact same strategy and buying a ton of properties for my operations right now.

Become an Expert in Your Market

This strategy consists of scouring your local market and becoming an expert in whatever market you are based in right now or whatever market you want to be investing in. You have to have an understanding of what properties are selling for there. Renovated properties, un-renovated properties, foreclosures, sheriff sale— you name it, you have to keep your finger on the pulse and you have to know what is going on in that market.

Related: Investors: Don’t Compromise Your Numbers Just to Buy Deals in a Hot Market

Commit to the Numbers

The second step is quite simple. I just said it: You have to commit to the numbers. You are going to have to submit offers every single day—a ton of offers every single day on a ton of properties. Now, this is where it gets a little interesting. Let’s just say hypothetically, in simplistic terms, that a property is selling for $10. You’re going to go in there and offer a cash offer, quick close, and it’s going to be for $5. I know you probably think I’m crazy, but just do it.You are going to get pushback and negative replies 99 times out of 100. The seller is going to call you mad, the real estate agent is going to say you’re wasting his time, etc. But remember to have thick skin. Professionally diffuse the situation, respond diplomatically, and just blame it on your Australian accent. (Well, actually, only I can do that.) Just blame it on being a new investor and not really knowing the market well.

So 99 times out of 100 guys, you are going to get negative feedback. That one time there is going to be that motivated seller, that desperate seller who needs to cash out. He will be willing to play ball. So, he’s going re-counter your $5 offer with, let’s say, $7 or $8. You know that you’re going to get that deal for around $6 or $7. You’re going to have to put another $10 to $20 into it because most of the time these properties are going to be un-renovated. And then you’re going to list it on the market and you’re going to sell it for anywhere between $13 to $15.

Let’s rephrase that in thousands. On a $100,000 property, you’re going to offer $50,000, the seller’s going to counter with $80,000, you’re probably going to buy it for between $60-$70,000. You’re going to put $10-$20,000 into it, meaning, you’re going to be into that property for a total of $80,000 and you’re probably going to be able to sell it for between $130,000 and $150,000, walking away with a very nice profit. I’m quoting these numbers because I know them to be true. The more mud you throw on the wall, eventually, some will stick.

Related: How I Got to Closing on a Million Dollar Fix & Flip Project [With Real Numbers!]

Be Patient and Submit Offers

The biggest mistake that I’ve made have been not being patient enough, not submitting enough offers, and not waiting for that right deal to come along at the right price. I was buying properties just for the purpose of buying them. Remember, every property matters. Every property has to get you a step closer to where you need to be. These properties are going to put money in your pocket, which is going to fuel further negotiations, further expansion, and further flips. I’m doing 10 deals a month right now; when I started, I was doing only one. So, it’s very important that if you really want to buy bargains, you’re going to have to implement this strategy.

(My sincere apologies to all the real estate agents out there. They’re going to hate you for it, because they’re going to think that they’re wasting time, which they kind of are. But ultimately, if you can find an agent who will understand the strategy and what you’re looking at doing, it will work. And it’s just going to come down to submitting offers every single day. I’m telling you now, I’ve got realtors doing this for me and for my companies and they will still get 2-3 more sales per month implementing this exact same strategy.)

I’m going to reiterate what I said before: Real estate is a numbers game. Commit to the hours, commit to the emails, commit to the phone calls, commit to working hard, commit to submitting offers every single day. Lowball offers, throw that mud. Eventually, some will stick. Have thick skin, be professional, be patient, and I’m sure eventually you will succeed.   

What strategy do you use to make sure you’re closing deals?

Let me know your thoughts with a comment.

About Author

Engelo Rumora

Engelo Rumora “The Real Estate Dingo” is a successful property investor, motivational speaker and serial entrepreneur that quit school at the age of 14 and played professional soccer at 18. He is also a soon to be published author along with becoming a TV personality in his very own real estate house flipping show. To find out more go to engelorumora.com . Engelo Rumora has been involved in over 400 real estate deals and founded five businesses in Ohio. The most successful is Ohio Cashflow, a company that specializes in providing turnkey properties in several Ohio markets. The newest venture is List’n Sell Realty, a real estate brokerage based in Toledo, Ohio and soon to be known as the #1 discount broker in the country.

17 Comments

  1. James W.

    We need to pick up a $500k property 25% under to realize a 10% profit.

    Of course one has to a make thousand offers hoping to get one such deal.

    And thats only one part of the puzzle. The reason you get something 25% under market is “that” is the true value of the house – and not what we write on paper, or what we like to think. If it were any higher, the owner could have sold it himself – why lose it to an investor? Its a no brainer.

    Cases where the owner is lazy or struck by a tragedy are rare, and more importantly, they dont form a sustainable model – its just a one or two time run.

    Lot of ppl try to see it as a deal because thats what they hope it to be.

    Now After Repair Value is there, but it may be overrated too. You put in 20K, and get back 30K, and house sells faster. But that’s just to it. It just changes your profits by a 10k in this example.

    Lastly, lets say you have different experience and i am wrong, the thing is sending postcards to local owners and hoping someone will some day sell the property 30% under market – yes, you can do it – and it may turn your way once or twice, but the biggest problem is – its not a sustainable business model that you can live on. We need sustainability, with something that can be repeated as a business model.

    Just adding my two cents.

    • Engelo Rumora

      If you want to play, you have to pay lol

      $250 as a deposit per property does add up but not that much if you’re in the business of doing a tonne of deals.

      I don’t suggesting putting down more than $250 tho.

      Much success

  2. Marcus Auerbach

    Throwing large numbers of low offers out in hopes of getting some accepted is not only a dated approach like carpet bombing, it also ads to the negative perception that the general public has about investors. It accentuates the worst by taking advantage of people that are so desperate that they have no other choice than to give away a property below it’s current value. How is that going to be looked at by the public? This has not much to do with investing. Its all about being opportunistic and benefiting from people who have no other choice. Can you make money this way? Sure. Do you ad value to the society? No, only to your own bottom line.

    Investors get paid for fixing problems regular home owners can’t fix, they improve homes and neighborhoods that are beyond the ressources and capabilities of most retail buyers. They improve the tax basis, provide rental homes and they perform an important role in our society. And they get paid well for working hard and taking on the risk. But in return they provide a value to the comunities. Sorry, Engelo, but that is an approach I can’t support, not even with an accent.

    • Engelo Rumora

      Thanks Marcus,

      Our dated approach works really well along with a tonne of other “dated” strategies.

      We offer a service and that is a quick cash close.

      I don’t put a gun to anyones head forcing them to sell.

      If you want to give grandma or grandpa an extra $20,000 because you let emotion get in the way of business, you have lost the game.

      I give more money to charity than anyone will ever know along with heavily gentrifying the local area.

      Uncle Sam is also extremely happy with my tax contributions.

      Business is business tho.

      I follow strategy, I’m firm but I am also fair plus my online reputations speaks for itself with how I run my business transactions.

      Much success

      • Marcus Auerbach

        Engelo, I am not questioning if the shotgun offer startegy works – I know it does. But your post fails to go into the buisness ethics and the social responsibility we have. Sustainable business should never be built on exploiting people. Neither distressed sellers (who’s life situation is holding a gun to their head, not you) nor desperate agents that have a family to feed and have not learned (yet) how to do that. In the end it is a business and you are correct, you will not last long if you let emotions get in your way. It sounds like you are doing the right thing in your business, but it does not shine through in your blog – you need to consider the impact of your post on your audience. A lot of new investors will take your word for it and try to execute what you just told them – without having the experience to understand the implications and the bigger picture. They don’t know the difference between an win/win and a win/lose deal. How often have you heard Josh Dorkin speak about our social responsibilities? Sorry if I come across harsh, but your article feels like you are promoting a predatory approach and you probably did not mean to, from what it sounds. We are all responsible for the public opinion about investors and we all like to be seen as someone who is making money by solving problems for the comunity and providing tangible value (and getting paid well for doing so).

        • Engelo Rumora

          Thanks Marcus,

          I’m not a writer but rather an investor making deals happen every day unlike many folks that just write about how to make deals happen lol

          I also don’t sugar coat my words and have no intentions of being a fairy.

          My blogs come across the way they come across.

          Folks can perceive them anyway they feel fit.

          The audience that follows me also knows my style.

          On the other hand, the new investors can get more value from my blunt views on investing rather than from those of “guru’s” with hidden agenda’s in every bit of content they submit.

          There is nothing wrong with low ball offers as long as you have the cash to back up your offer and close the deal.

          i suggest reading some other blogs on wholesaling and what rookie investors are lead to believe with those strategies.

          They never close on the deal and leave the seller stranded.

          Low money or no money down strategies are a joke.

          Thanks again and much success

        • Bill Neves

          I’ll jump in here. I know Engelo doesn’t need any help.

          But I do low offers too. I also never assume when someone puts out their bright shiny new ‘for sale’ sign that I’m going to buy that one right now.

          I talk to them 4 months later when they are tired of no one buying and then I ‘solve their problem’ by buying at my price, not theirs. I ALWAYS tell them to please sell it at their price if they can. If they can’t please call.

          That’s business. i also donate to charities but that’s separate.

          “Taking advantage of people” or exploiting. I’ve been told that, but I’ve also done more deals that most investors ever will. Haven’t done the number Engelo has, but I’ve done a bunch.

          To your success…

          I’ve also tried to help new investors by relaying how to buy at a percentage that will ensure they make a profit. Too many times I’ve seen newbies overpay “cuz they’re gonna make this work”. And get wiped out on their first deal.

          Anyway – good luck with your business and ethics. I always make sure it’s a win/win but I just ask the folks I talk to if they can sharpen the pencil a little more before we move forward.

    • Engelo Rumora

      We only view once we know what price we can buy a property for.

      Time is money and you never want to leave the office as that is when you loose.

      Stay efficient by only betting your time on “certain” things

      Much success

  3. John Barnette

    Very market dependent as well. I live in San Francisco and this strategy would not be possible within at least 100 miles. I can see possibilities of investing with a business person such as yourself in a large scale pre-remodel mass acquisition program or the turn key buyer. In a market where this is possible. I am a transplanted midwesterner btw and lived in Columbus, Oh for several years.

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