How to find off market deals for investors, as a realtor?

Question

I'm wanting to focus on working with investors, and I'm a relatively new agent.

if my goal is to find off market leads, and I want to start with cold calling distressed owners, what exactly am I saying to them?

let's say they've got a property that needs work and they're interested in selling. Do I get them to suggest a price that they would sell at?

then do I take that number and find a buyer at that price?

am I representing only the buyer in this transaction?

or do I ask the owner to let me list it for them,  knowing it would only sell at a discount on the MLS?

what are my goals on the cold call? and technically who am I representing??

James Hamling · Answer

Ok @Sam Epperson, ready for me to literally hand away the "secret sauce"? Seriously, I'm gonna do it right here, I am going to put it "on-blast", the exact "Top Secret" strategy

First, look up on whatever recording system you have in your farm area for seeing tax records. Look for ownership name in LLC and address's other than property, these 2 things are very good indicators it's a rental property.

Next you use whatever skip tracing system you like. I used the ever so complicated one called "Google" lol. Yeah, no joke, often just doing that got a name/number. But can also look up business registry and often get name/number, all for free.

Than, call em up. Don't be dumb, use common sense for when to call. 7pm on a Friday is dumb, so is 6am on a Tuesday. Set an AM time that makes sense and PM times that make sense. And record which you called in so next you call on a different one if didn't get through.

When they answer, you say Hey ___, I'm ___. I'm a local agent, and I tend to work with investors and investment property, looking to take on more, so i was calling on your property _____ and was wondering , HOWS IT GOING?

There it is *POW* the million $ line "HOWS IT GOING"........

See, when your not ooozing BS like 99% of such calls are, it gives people hessitation.

When you ask a simple, direct, human questions of "hows it going", it's definatively disarming.

And every answer is the right answer.

If things are great, FANTASTIC, you congratulate, ask how they got so dang good at it because some others, they really struggle. And ask if interested in picking up more, because as you said your looking to do more so if there looking you'd love to help keep any eye out for what there looking for.

POW you maybe just gained a buyer.

If they say "Oh that F___g place, oh-let-me-tell-ya" you may have just found a seller.

It's that simple.

You don't look for distressed, or blue doors or any other BS indicator you just get interacting.

You want the fast-track for finding whos-who, call everyone. SIMPLE.

Be humble, be honest, be direct and HAVE FUN. If your having fun they can be calm.

And let the conversation go where it goes.

Yes, it really is that simple. Because everyone is with shinny object syndrome, or chasing some scheme, gimmick or what not. Be different, BE GENUINE.

Henry Clark · Answer

@Nicholas L.

What Nicholas said.I would also develop a list of buyers and what their buy boxes are.

You’re in Indiana.  Leaves are falling.  Pick a 10 block neighborhood.  See who hasn’t raked their leaves.

See who hasn’t shoveled their snow after day 3.Look on the tax GIS map and find the owner.

Find someone who can do AI searches on the GIS database.  Look for properties that have past due taxes more than 3 months, one that always pay late, ones with multiple listings ids say 15 or more, go through the obits from 1 year and beyond- not recent.  Now go get the listing.

Each of the above have an angle.  If they are not keeping up they need to sell.  If they passed away, stepped up basis,  multiple properties then a landlord- getting old they will want to sell- their kids won’t want them, etc etc.  You just have to be hungry and creative.

Nicholas L. · Answer

@Sam Epperson

some of these are questions you have to answer.  if you're calling them to offer to list it, say that.  if you're buying it for yourself, you say that.  if you're going to sell it to a buyer who isn't you, say that (and actually have a buyer.)

if you're a full time agent though... i'd spend try to spend most or all of your time on on-market activities.  finding leads who are able and willing to sell off-market can be a full time job in and of itself.

Abel Curiel · Answer

Hello @Sam Epperson,

if my goal is to find off market leads, and I want to start with cold calling distressed owners, what exactly am I saying to them?

It is less about what you say and more about what you ask. Find out their goals (current and post sale), desired timeline for selling/moving, where they'd like to move to next (if owner occupied), reason(s) for not already selling to an investor or with a Realtor, Plan B if they're unable to sell within the desired timeframe.

let's say they've got a property that needs work and they're interested in selling. Do I get them to suggest a price that they would sell at?

Run your comps and be prepared to adjust a suggested price based on condition, layout, and other factors. They may have a # in mind but you should have an idea what its worth.

then do I take that number and find a buyer at that price?

Once you've agreed on a price with the owners and they've agreed to let you sell the property, you're free to begin marketing the deal.

am I representing only the buyer in this transaction?

Aim to represent the seller primarily. One buyer could take up a lot of your time and energy and there is no guarantee they'll stick with the deal. Investors typically won't care that you're representing the seller and others will prefer that you're direct to seller.

Listing it on the MLS will get the most inquiries for the property. Some investors may be turned off by this b/c it means they have to compete with the open market, others won't care.

what are my goals on the cold call? and technically who am I representing??

Main goal is to listen... then follow-up regularly. Aim to rep seller but if they are unwilling to work with you, ask if they'd still be willing to allow you to shop the deal around to your buyers.

Sam Epperson · Answer

@Abel Curiel

this is so beyond and more than helpful. it's been a tough gig to start, but this really simplifies it and brings me confidence. I sincerely appreciate your reply. thank you

Lauren Cutchen · Answer

@Sam Epperson We are also focusing on distressed sellers and focusing our efforts there. We approach them saying that they have options. We buy, we can sell off market, or we can sell it traditionally. Either way, we are there to help. "What other Realtor can offer you these kinds of solutions?"

Winning their trust and saying that you're licensed and follow a code of ethics, unlike investors and others that may want to buy your home directly (they don't know the terms wholesalers). I have past examples of people I've helped in all cases.

And like agents do, farming an area for a few months is important. Skip trace and call/email them too.

Sam Epperson · Answer

@James Hamling

love this so much.

Edgar U. · Answer

@Sam Epperson I am actually licensed in FL. So here is what I do:

1 - Get buyer criteria for what they are looking for (exact criteria)

2 - Go source that criteria using data provider

3 - Scrub the list and plan a marketing campaign around it (i.e) > Direct Mail > Cold Call > SMS > Online Ads > Social Media, etc

4 - Once I get inbound leads coming in. I actually close on most of my land deals; however, I do represent some local flippers in the areas so the strategy doesn't shift. I then do following:

5. Market > Mail > Lead > Analyze > Offer > Acquire > Sell > Rince/Repeat.

6. Bonus, since you are licensed a lot of folks don't want to sell at a discount. You could offer listing service for them. Remember to disclose, disclose, and disclose!

How to find off market deals for investors, as a realtor?

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