RE Agent finding 70% Appraised Value Deals in Minneapolis???

Question

Question for the BP community, how are you finding the 70% market value deals?

As a real estate agent and investor in the Minneapolis metro area, I'm utilizing a BRRRR strategy to build wealth.  The big component of this strategy is the 3rd R ("Refi") which allows me to suck the invested capital back out and into the next property.  I buy distressed properties, rehab, rent and found sources that will allow me to refi at 70% LTV to get my initial investment back.

This is the catch!!!  I must be all-in under 70% of the appraised market value in order for the strategy to work.  So where are those deals???  How are you finding them???

As a licensed real estate agent in Minneapolis, I developed a system that consist of a lead generation engine that increases my odds of finding these deals.  It is very time consuming but this is the only way that I increase the success for finding these deals.

My system centers around the goal of making 120 new contacts per week.  That's just over 17 new contacts per day.  I know my numbers and currently I find a really great deal every 90 new contacts I make.  That's a great deal every week.

Here are a few strategies that I personally use as an investor and that I use for my investor clients as a Realtor to make my contact goals and find really great deals:

• 1.  I knock on doors in neighborhoods I invest in.  Found some really great deals of people that want to sell fast and motivated sellers.
• 2.  I call expired listings that didn't sell.  I have access to contact info via paid programs available to agents.
• 3.  I also call abandoned properties and homes looking like they have been neglected.  I use my contact program to find contact information for these owners.
• 4.  I just hired telemarketers to my team and they make calls all day long.  My business model allows for this.
• 5.  I canvas neighborhoods with signage and mailers looking for distressed owners wanting out of their properties.
• 6.  I have a professional network of lawyers, contractors and others that call me when they find someone looking for a buyer off-market.

There are other things that I do to find these deals.  So when I hear in the forums how hard it is to find deals under 70% market value, I believe it is only hard because you haven't created a system to find the deals.  As a real estate agent, this is a value-add that I offer to my investor clients in Minneapolis.

What do you do to find your great deals?  I'm interested in hearing...

Tim Campbell · Answer

@Marc Jolicoeur my telemarketing strategy is new.  They are appointment setters only.  They call expired listings, FSBO listings, delinquent tax databases, properties on condemned list, pre-foreclosures, etc.  They are given scripts and their only objective is to set an appointment for me to meet with the property owner.  Once I meet with the property owner face-to-face, it's up to me.

This is a numbers game.  As an agent and investor, I have several different angles.  They can contract with me to sell the house, find them another house, give me referrals to other properties they know about, negotiate a deal to have me or one of my clients purchase their property, etc.

Marc Jolicoeur · Answer

I have wondered if it would be worth it to hire a telemarketer or va to call on Zillow and trulia rental and Fsbo listings to make some contacts with owners.   With a 50 hr per week day job I would need to outsource this task.

@Tim Campbell what types of leads are your telemarketers calling and getting the best success rates?

I recently low balled a HUD home and got it at 80% arv.   Flipping that one for a modest profit.  Hope to get a quick buyer as inventory in that area is really low right now.

Tim Campbell · Answer

Staying true to the purpose of my original post, I'm interested in hearing and sharing strategies for how others find great deals (total investment less than 70% of market value)...Please share any strategies you find to be helpful.

Bruce Runn · Answer

@tim

@Tim Campbellundefined

I have a very good team to go with me.  I'll mention that my realtor averages 60 sales/yr over the past 3 years so I can bounce all my ideas/MLS listings through her.  I'm an advocate for using realtors for their experience.  Of course, I've generated a lot of sales through me and other for her so it's a great symbiotic relationship.

I understand your sharing as you are a realtor and your job is to find opportunities for your clients as well.  Hope to meet you at some point and would be willing to share the case study.

Tim Campbell · Answer

@Bruce, lead generation is the life blood of my business.  I understand why you wouldn't want to share your proprietary strategy.  I don't mind sharing mine because I know that I won't be outworked.  For me, it's a numbers game and if I do the numbers I'll get the results through the funnel.  Looking forward to reading your case study and meeting you at one of the meet ups.

Tim Campbell · Answer

As an agent with clients, the deals that I find for them end up in contract majority of the time since we're in a non-competitive type environment.  I have had some fall out of contract but it is more due to circumstances surrounding my buyers rather than the sellers. That's been consistent...if the deal doesn't go through, it's usually on the buyer side.  I'm looking for more investors to send these deals to and creating a site with an email list for investors to screen these deals via email.

This month, as an investor, I prospected to close to 400 contacts.  I've found a few properties fitting the 70% rule.  Some are going to clients.  I'm only able to do one of the deals myself.  It's a SFH that I'm going to do the BRRRR strategy with.

Bruce Runn · Answer

@Tim Campbell

Hi Tim,

I share a lot of what works for me including leading BP meet ups to share how I've built my business including a case study on a duplex I bought about 8 weeks ago including price/renovation estimates, how I'm getting my money out ect. along with helping about a dozen people get into multi family properties but one of things I'm overt about not sharing is how I find my deals as it's one of my two main proprietary skills/tools I've learned through the school of hard knocks.   I don't need other people beating me at my own game-LOL.  I'm glad to answer lots of other questions though but as I am active in continually buying new properties for renovation/hold/rent, I don't want to give away tactics that you only learn through doing.

Laura Thorne · Answer

@Tim Campbell your diligence and hard work is truly impressive!  When you say you find a good deal for every 90 contacts you make, how many of those deals end up with accepted offers?

Tim Campbell · Answer

Bruce, what are you doing that gets you to the table so fast while other investors are slow coming?