5 Inexpensive Ways To Find New Deals
By JD Esajian on September 7, 2018
All real estate investors are on the hunt for new deals. Regardless of what you have going on or how many deals you are working on, it is important to constantly fill your pipeline with fresh leads. The more leads you have the greater chance you will turn one of them into an actual deal.
Finding new deals does not have to be as much of a challenge and financial strain as it may appear. There are many ways to generate leads without breaking the bank. If you are willing to put time and effort in there are many outside the box ideas that can prove to be quite effective. Don’t use a lack of options as an excuse not to search for deals. Here are five inexpensive options of finding new deals.
- Internet. It is no secret that the internet has changed everything about the way we conduct business. As an investor the internet provides a treasure trove of lead generation options. For starters there are a handful of go-to websites that should be part of your daily routine. While Craigslist is not the lead producing powerhouse it once was it shouldn’t be dismissed. There are still numerous property listings, rentals and potential contacts that can be explored. The same is the case with Zillow, Trulia, Postlets and even realtor.com. Use these sites to find outdated listings, distressed properties and deals that may simply fall through the cracks. Working on these sites is a numbers game in that you may reach out to twenty owners and only get one or two call backs. All it takes is one deal to make it worthwhile for you. If you commit to scouring these sites for 45 minutes a day you will be surprised at your results after just a few weeks.
- Driving for dollars. As archaic as it may seem, it wasn’t that long ago when driving for dollars was a popular way to find deals. Even with all the advances in technology, it can still produce results. There is a good bet that if you drive for thirty minutes you will find a good amount of potential leads. Start by writing down any property with a FSBO (for sale by owner) bandit sign in the front yard. The longer the property has gone without an offer, the more open the owner may be to listen to what is out there. Simply call or write to the owner asking if they would be open to a quick, cash closing. If they say no, keep their information and try back in a few weeks. You should also make note of any abandoned looking properties you see. Overgrown shrubs, residual garbage around the exterior and deferred maintenance are all signs the house may either be abandoned, or the owner threw in the towel and doesn’t have money for updates. Find the owner through the tax records at town hall and reach out to them. If they have had enough of the property, they may be open to taking any reasonable offer.
- Rental listings. Every rental listing you find is a potential deal. Between the internet and your good old newspaper there are many ways of finding rental listings. Reach out to the contact and ask if they have any other properties they would entertain parting ways with. Regardless of their answer you should ask if they would be willing to grab a cup of coffee or lunch to discuss the business and see if there is a way to work together in the future. Most investors are open to meeting and building their networking database. You never know when you will reach a landlord who is tired of renting and wants to move on from the property.
- Mortgage broker. There are more real estate investors than ever before. In the last few years alone there has been a rush of new investors in the business. There will always be deals out there, you just may have to change the way you find them. Instead of relying on mortgage lists or foreclosure notices you should contact people who are on the front lines. One of the best contacts to make is with a local mortgage broker. A mortgage broker talks to dozens of people every week in various situations and scenarios. They often deal with borrowers who cannot be financed and need to explore the option of hard money or a quick transaction. Even if you get one or two leads a month, they have a much higher closing percentage than almost anything you will find. In turn, you can refer your mortgage broker to potential buyers in any properties you have.
- Eviction notices. Eviction notices can be a great way to find diamond in the rough leads. You can find these either at town hall or through the local website. Eviction notices can be treated like abandoned property leads we discussed before. Send a letter to the address listed on the tax bill in addition to the subject property. Ask them if they are sick of dealing with poor tenants, fixing toilets and constantly chasing rent. If they are currently dealing with an eviction or just got over one you may catch them at just the right time. Commit to sending every notice at least three times and you will be pleased with the results.
If you are willing to hustle and have thick skin, you can find deals on any budget. As good as things may be right now, you never have enough deals in your pipeline. Use these five tips to help find new deals.