How did you reach your REI goals?

[Eunique Gill]

I would like to invest in another property within the next 4 months. I'd love to know more about how some of you have found success as real estate investors.

What has been the most successful method you have used to find deals ( direct mail, driving for dollars, etc. )? How did you find your first deal and how long did it take you to close?

[Jim K.]

The most successful method we've used is a real estate agent who was recommended to us by a successful master plumber in our target area. The real estate agent has turned out to be worth his weight in gold. I'm going to call him "Boyd." Boyd is a volunteer fireman and used to be on the municipal council. He literally knows EVERYONE in our target area. Boyd's eaten rubber chicken at a thousand municipal social events in the last thirty years, passing his business card over and over again at every one. Among other reasons, that's why Boyd often gets the first call when someone of his age cohort in the area is thinking about selling a property.

So when Boyd calls us up and mentions that we need to get out to a good-looking property quickly, we drop everything and make an appointment for the next day. I bring my inspection bag and checklists. Boyd sits at the kitchen table and pulls out his phone to make calls as he waits for us to do our thing.

After our inspection of the property, we make the decision at the location to make an offer or not, and inform Boyd so he can inform the seller immediately if we're going to make an offer. My wife and I go home and run the numbers, discuss the offer, and we call Boyd. We make an all-cash offer with no contingencies and about 5% in earnest money with a promise to close in the shortest possible time frame, right after the title clears. If Boyd told me it would be wise to hand over 20% earnest money to close a particular deal, I would get the money and do so in the next day. If Boyd told me I needed to get a rent boy and a bag of Bolivian marching powder to close a deal, I might consider it.

After I call, Boyd drives over at 90 mph to get us to sign a contract and the earnest money check. Boyd helped hire half the local cops when he was on the municipal board. He does not get speeding tickets in this town. Boyd runs the contract over to the seller, flashes the check and tells the seller the simple truth: "These people are professionals. They do not back out of sales." And it's not just some anonymous dude saying it. It's Boyd, the guy you've known for the last twenty years, who coached your kid's softball team, who's handed out the soft serve at St. Mary's Assumption festival ever August since forever, who brought some of his homemade kielbasy for your retirement party.

Pittsburgh is a city of many neighborhoods and many close-knit municipalities surrounding it. Each has a Boyd or two in it.

Boyd does not send me a Christmas card every year, or a newsletter about his grandchildren. Boyd is not my Facebook friend. Boyd does what's important. When he has the right property with a motivated seller itching to get rid of it and get paid ASAP, Boyd calls our number, Boyd flashes the seller our earnest money check, Boyd vouches for us, and we make money.