When entering real estate investing there are several tactics and techniques that are presented to “newbies” and tested again and again by struggling vets. Some methods work and some methods have zero success or at least low enough success that they are not worth trying over and over again. Each individual must decide which method, or variation of a method work for them. I have chosen the route of placing offers on a more personal basis and not place offers on every property that slides in front of me. Sit back and I will explain why I have chosen to do 1 on 1 vs multiple offers. (VIDEO)
The conundrum: If I only write offers that I have established a relationship with how will I ever have enough deals to keep my pipeline flowing?
This is a common question for new investors or investors with a lower close rate. My response is always the same, if you get closer to the seller you are going to establish an understanding of what they need to close and what you need to do to make the deal happen. This is going to allow you to close more deals per offer written than blind writing offers. It also allows you to understand more about what is happening with the property, visualize multiple exit strategies, and handle underlying issues that may not be seen in a rapid fire offer operation.
How do I find the leads that I am going to be targeting?
Door knocking is the best way to get in front of leads that you are going to establish relationships with. While it needs to be part of a combination of lead generation tactics, it is the most efficient at creating relationships. Here are some list ideas that you can conquer to find these leads;
- Notice of Default
- Notice of Sale
- Tax Lien
- Probate Sale
- 20 years in property with Equity (a title officer can help you with this)
How do I become known as a solution creator and buyer?
Building a farm can be a great way to become a leader in a community. If you are not familiar with what a farm is, it is a market that you focus in. It would represent a geographical area that you can access on a regular basis. As the above leads pop up within that farm you would reach out to them about selling. Make yourself known within that community and become the leader of that market. This will create opportunities for you by you learning and understanding the neighborhoods. As you work an area you will learn the leaders and movers in the community. They will allow you to know about what is going on and who is in the need of what. Additionally, when something changes in your farm or becomes available you are ahead of the game because you know what homes sell for and what each street is worth in the locale.
All of this is fine and dandy but how will I know it is working?
You will never truly know what is working for you in comparison unless you have tried both, plain and simple. With that in mind I will offer up some reasons why I feel it has worked well for me.
- People like working with people the know and like. I may not know them but if we hit it off I am more likely to close
- Real Estate is very competitive, being close to people can become an advantage.
- Standing out in the crowd is hard to do, so writing an offer amongst 20 other offers is hard to stick out.
- Old School sellers like to do business old school. That means meeting in person, understanding who is buying your home, and being satisfied with that
- Last but most certainly NOT least! Not everyone is looking for top dollar, sometimes they need something more than money. Maybe it is help with moving, organizing homes for their pets, relocation assistance, or just someone to lend an ear and understand there situation.
So does writing multiple offers not work?
NO, it can definitely work but I do not feel it is the best use of time for a true real estate investor. Every investor should be looking for the BEST deals with the BEST margins. I rather take on 2 great deals and make the same as 5 okay deals. My mindset is quality over quantity and if I manage to get the best deals under contract I will always come out on top by not losing money or not working too hard for too little return!
Andrew T Greer
CEO Better Tomorrow Group
Andrew is an active investor, speaker, Realtor, serial entrepreneur, and educator in all that is Residential Real Estate. If you would like a FREE copy of his book follow this LINK. If you would like to follow him on Social media you can find him onInstagram@beastmoderealestate and @bettertomorrowgroup, onTwitter/Periscope@TheBTGRoup and Facebook athttps://www.facebook.com/bettertomorrowgroup/ Also on Snapchat TOO @BeastModeRE