THE EASIEST WAY TO FIND DEALS IN THE CURRENT MARKET

[Brennen Thompson]

After speaking with a few other BP members, I’ve noticed that a lot of people have the same question. Since it’s on everyone’s mind (and it probably always is since we’re in RE), I thought it’d be a good idea to share my answer with the group.

The Question on Everyone’s Mind: How Are You Currently Finding Your Deals?

It’s a pretty simple process that I don’t think enough people are taking advantage of:

1.Go to the real estate site of your choosing – Redfin, Zillow, etc.

2. Set the filters to your criteria BUT also filter for homes that have been on the market 60+ days

3. Find the number that makes sense for YOU

The BP calculators are great for this since they allow you to edit the reports as many times as you need. I would suggest initially running the numbers at the list price with an 8.5% interest rate and slowly lowering the purchase price (by editing the report) until you hit your target returns.

4. Pitch it to the agent

Play up the fact that they will be the only agent closing this deal and do some fact finding to see what the home owners pain points are. If you can solve these issues (creative finance?), you’ll get the deal.

5. Repeat until successful

This stuff isn’t rocket science, it’s a numbers game. If you can make five of these calls to your local market daily, you’ll land a deal by the end of the month.

This serves a few purposes:

1.Longer Days on Market = More Motivated Sellers & Lower Prices

With interest rates still as high as they are I can only expect homes to continue to stay on the market for longer periods of time. For RE investors, this means that solid deals are coming our way.

2.Real Estates Most Valuable Friend

Going direct to the listing agent (without an agent of your own) means that the agent can either take double the commission OR they will get more cash back for their buyer since there is only one agent involved. You want to have the agent on your side!

3. Direct to Seller Benefits Without Direct to Seller Headaches

Imagine a world where you don’t have to spend thousands of dollars on mailers and dialers just to find out that your leads were crap… This method eliminates the possibility of both – no money out of your pocket, and leads that we KNOW are motivated

By no means am I the biggest real estate investor out there, but we have sourced three of our last four deals this way. As things continue to get more and more crazy over the next few months I can only see this becoming a more viable option. Especially for those of us that don’t have a ton of experience and don’t have the cash to spend on finding motivated sellers.

Hope this helps!

[Karl McGarvey]

2.Real Estates Most Valuable Friend

Going direct to the listing agent (without an agent of your own) means that the agent can either take double the commission OR they will get more cash back for their buyer since there is only one agent involved. You want to have the agent on your side!

**** This is a DANGEROUS piece of advice, especially for new investors who do not yet know the transaction process and have zero exposure to their states real estate contracts. Listing agents have a fiduciary duty to their client (the seller) not to you, a random buyer off of the street, that means they only owe putting the sellers best outcome first. There are states where going direct to the listing agent and not having an agent assigned to you by that brokerage is illegal, simply because its very hard to ensure the listing agent is acting in the best interest of all parties. As an agent and an investor I have yet to see a seller make any comments about having to pay a buyers agent. But going direct to a listing agent puts you, the buyer, at risk of not having proper representation. I would never advise to any of my clients that this would be a good move to make. The risk does not outweigh the reward.