Tips for finding off market deals!!

[Karim Elahi]

Hello,

Hope everyone's well. I'm looking to find more deals in my local market but haven't had the best of luck with wholesale deals. Looking for properties in Philly metro area(Mainly South Jersey etc). Can you suggest any tips for finding deals on my own if I'm unable to find any wholesalers? Does direct mail work? Any suggestion is welcome. 

[Joe Gonzalez]

All marketing works but the main question comes down to what kind of a business you want to run.

A more proactive business - Cold calling, SMS, etc 

A more passive business - Direct Mail, SEO, Billboard, Radio etc. 

I locked up 7 new deals this week, here is a breakdown:

1 Billboard marketing

3 Direct mail (post card, two of these deals are from the same seller) 

3 Cold calling (code violations, I have American callers)

I will always suggest to choose both a proactive and a passive marketing channel when starting out.

[Michael Zane]

Hi @Karim Elahi 

I've had success running a DIY direct mail marketing campaign. As silly as it sounds, I send out letters to the owners of multifamily and potential fix and flip properties, and then I simply wait for them to call me. The response rates on campaigns like these are typically below 10%, so it's all about sending a large enough volume of mailers to generate responses. Some people use postcards because they are less expensive, but I use letters because I like to introduce myself to the reader. I build out my own, targeted lists in the towns where I operate (NJ-based) because I feel that I know these areas better than any list provider. It take a lot of time to build and maintain lists because it requires driving/biking/walking around my target towns or spending ample time on Google Street View. I also have to keep track of ownership changes over time. It's hard work if you're doing it yourself, but I can attest that it works.

I'll also add that there is a whole science around letter and envelop templates. As you ramp up the volume of mail pieces that you send out, it becomes possible to study what works best in your market.

The key skills needed to do this are pretty straightforward - Excel for building a property database, Word to create letter and envelop templates and do mail merges, Google Street View, and property tax records to gather ownership information.

[Wale Lawal]

@Karim Elahi

Here are Best ways to find off market properties:

1. Real estate agents and brokers
Realtors and brokers often have both a buyers and sellers list. Some of these sellers may be prompted into selling if shown that market conditions are favorable. Additionally, hungry agents may actually cold call homeowners in the area and turn them into sellers.

2. Direct mail marketing
Direct mail marketing, just as the name implies, is sending targeted mail directly to an owner in hopes of being able to purchase their rental property.

3. Contractors
Contractors can be a great way to find off-market deals because they’re usually working with property owners. A great contractor is not only good at the physical building aspect of the role, but also possess some soft skills, such as listening and data gathering.

4. Networking with fellow investors
Knowing other savvy investors immediately gives you access to literally thousands of properties. If you know or meet someone who has a property that you would like to buy, who’s to say you shouldn’t make them an offer right then and there to buy it; it’s real-life Monopoly!

5. Driving for dollars
This is a method in which you literally drive, or have someone else drive, in an area and look for real estate deals. If you come across a property that looks appealing, you get in touch with the owners and make them an offer or at least get the conversation started.

6. Wholesalers
Wholesalers are people who find deals, get them under contract, and then flip the right to purchase the property in contract to another buyer for a “finder’s fee.” Wholesalers are putting properties under contract all over the place.

All the best!

[Steven Foster Wilson]

Quote from @Karim Elahi:

Hello,

Hope everyone's well. I'm looking to find more deals in my local market but haven't had the best of luck with wholesale deals. Looking for properties in Philly metro area(Mainly South Jersey etc). Can you suggest any tips for finding deals on my own if I'm unable to find any wholesalers? Does direct mail work? Any suggestion is welcome. 

 Cold call! Cold call! Cold call! It has worked well here in Ohio. You just have to get used to hearing no but for every no there is bound to be a yes. Through cold calling I was able to find a deal in Columbus Ohio for $35,000. That does not always happen and that sure was a home run, just keep trying. 

[Remington Lyman]

Quote from @Karim Elahi:

Hello,

Hope everyone's well. I'm looking to find more deals in my local market but haven't had the best of luck with wholesale deals. Looking for properties in Philly metro area(Mainly South Jersey etc). Can you suggest any tips for finding deals on my own if I'm unable to find any wholesalers? Does direct mail work? Any suggestion is welcome. 

 You should start cold calling!

[Simon Ashbaugh]

Cold call. you may only get a yes for every 200 no's but that yes could make you tons of money!

[Vaughn Smith]

@Karim Elahi There are several options when it comes to wholesale marketing I won't list hem here as Im sure people already have, but here are a few things to consider:

1) Everything works if you're consistent and you market to a big enough population. Expect to invest in whatever marketing channel you're using for 6 months minimum

2) The north east is VERY competitive when it comes to wholesaling, in the two markets you've chosen, marketing in Philly will be a bit more expensive than south Jersey

3) Consider the cash conversion cycle for each form of marketing, don't expect a dollar for dollar return on every form of marketing some forms of marketing will require a bigger spend than others

4) More expensive marketing isnt better marketing this goes for marketing channels, types of marketing (IE mailers) etc

5) Low cost options (driving for dollars/door knocking) are inexpensive but very hard to scale or do consistently

6) Direct mail works, but make sure you don't miss calls from potential sellers, also expect calls from angry people who don't want to be a part of your campaign(happens all the time)

Marketing for your own deals will usually yield the best returns as many wholesalers keep the best deals for themselves and wholesale the deals that aren't always worth buying. 

[Jerryll Noorden]

Dudes please...

You all need to stop saying stuff like :

"all marketing works"

or, "you may get ONE yes for every 200 No's" and then tell people that is "ok".

You need to see what damage you do saying things like that!

"Everything works as long as you are consistent"? 

If everything truly worked, don't you think a lot more people would be successful? Do you know why the BP forum is so successful? Because nothing you all recommend truly works. If it did, there would be no use for the BP forum where most people here are trying to figure out how to make it.

But guys, please consider the following:

Let me get this straight. My DMM is not working, so you are telling me, "do it more" and if it is STILL not working... you are telling me to do it EVEN more. So .. do you see what advise you give others here? 

"If something does NOT work... please know that everything works, you just need to keep on doing it." That is SUCH horrible destructive advise. Honestly. You MUST see this right?

So no. FAIL!

Next.

200 no for each "yes".

OK that is 0.5% conversion rate. Let me get repeat that. That is 0.005 chance of success.

OK now let me translate this in English for you.

You are recommending a lead generation system with a HALF a PERCENT SUCCESSRATE. Are you REALLY sitting there with a straight face telling all the eager little newbies here on BP they should invest in a system that has a less than half a percent success rate to generate motivated selelr leads?

Now consider this:

Your success as a real estate investor depends on your ability to find motivated sellers and you are telling people to use a system that has a less than half a percent to find motivated sellers. Guy, you can not argue with the numbers, with logic.

Let me tell you what the disconnect is.

Here is why you do not see you are wrong:

You will say "it doesn't matter if it is 1/4% as long as you make more money than you spent right?)

SURE.. but here is your mistake. WHERE is it written that for every 200 calls you get one yes? Is this a divine rule? Is your cold call list provider giving you an absolute GUARANTEE that for every 200 entries of their list there is ONE deal to be made?

If they are not giving you a guarantee then you absolutely know it is BS!

SAYS WHO  will you get 1 deal for every 200 calls. That is a HUGE (and quite moronic) assumption to believe blindly in yes?

Now let me ask ALL of you something.

How many people truly are successful doing what you just recommended? Honestly.. I am not talking about the gurs and flashy investors offering some sort of course or product... all you NORMAL people trying hard to m ake it. How many of you consistently make deals doing this? Consistently to me means 15+ deals a month. How many of you.  OK fine.. how about 10+ deals a month. 

Now ...

How many of you are NOT successful doing this? I am willing to bet FAR more people.

My question to you gentlemen is this. EVERYTHING I said is common knowledge to you. Nothing I said here is "opinion" this is math, numbers logic.

So how on earth are you going to convince me or anyone else that we should follow that advise?

So would you ALL please stop playing the guru and expert and wiseman and stop giving people friggin REDICULOUS advise.