I bought a duplex with $50.00 spent on marketing! (How to)

[Ryan Dossey]

This is one of my absolute favorite ways to find a deal or two with a little bit of time and sweat equity. If you're a flipper, wholetaler, or buy & hold investor looking for a deal or two this is for you. 

I purchased this 1,200 Sqft. duplex direct to seller with just a few hours worth of work. 

What you'll need: MLS access or Prop Stream, Skip Tracing Software (I like Skip Genie), Microsoft Excel, and Patience.

Step One: Identify your farm area.
I would suggest starting with just a zip code or two unless you're in a REALLY small town.

Step Two: Identify your preferred asset.
I personally prefer using this method for 2-4 unit properties due to the sheer volume of SFR's this would produce to dig through. If you're wanting to use this strategy for SFR's I would suggest that you get crystal clear in your targeting. Ex: Year built, Sqft, Lot Size, Etc.

For the sake of this example, I'm going to run a search of duplexes in a random Indianapolis Zip Code. 

How to do this in Prop Stream: https://ryandossey.com/wp-cont...

How to do it in the MLS: https://ryandossey.com/wp-cont...

Step Two Part B: What to do with corporate-owned properties?
Personally, I like to crack the LLC's using Open Corporates or your state's assessor site and reach out to the registered agent. For small LLC's this is typically the owner at their house. It could also be their attorney. We've had good luck with both. :)

Step Three: Start to catalog properties!
Remember, you're looking for expired listings that are still owned by the same person or entity who tried to sell it previously. My favorite part of these is that they've "already tried" to sell it on the MLS and it "didn't work" which obliterates that objection entirely.

Here is a free Google Sheet you can use. This is a read-only version so you'll need to make a copy or download it.

https://docs.google.com/spread...

I would HIGHLY recommend copying/pasting out of either the MLS or Prop Stream so you don't have to manually type everything. :D

Step Three: It's time to skip trace!
I prefer to use Skip Genie but another option would be Spokeo. You're simply going to search for the person by name and city. When you find a match put all of the phone #'s you find into your Excel or Google Sheet doc. Pro Tip: This is a GREAT task for a VA your time is valuable. You can also have Skip Genie batch search all of the addresses (minus the companies)!

Step Four: Pick up the phone!
Real Estate is a people to people business. Get over your fears, treat people like humans, and start to have some conversations. I'll attach a basic script that is how these calls flow for us below. 

Script: https://docs.google.com/docume...

The neat thing with this strategy is that you're reaching out to people who wanted to sell but "couldn't". It doesn't get more motivated than people who have TRIED to sell. 

We've done really well on the duplex above. We purchased it in late 2017. We were able to successfully Brrrr all of our cash out of it.

2018 we realized a net profit of: $2,982.41
2019 we realized a net profit of: $1,919.85
2019 had lower cashflow due to an extra $900 in maintenance over the previous year. 

Not bad at all for a property we spend $50 to find, have $0 of our own cash into, and enjoy a 30% equity cushion on.