All Forum Posts by: Ryan Dossey

@Matt Slowik Happy to share! I enjoy documenting the stuff we do that produces results. :) 

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. 

Some friends of mine set up a wireless camera in their flips and disclose that it's there. They can't count the # of times the clients have talked about starting at X but being okay with going up to Y. It's also helped them with really honest feedback.

"Yeah I didn't like X" kind of stuff. 

I'm all for sharing actionable goals with people who believe in you and will keep you accountable. 

You can only offer what it makes sense for you to pay. We simply explain where we are at and why. That being said if you don't have the cash or private $$$ to make a cash offer and are needing seller financing for the deal I would probably not even make the offer. 

The rub with seller financing comes with capex. How do you fund turning the units? What if a roof or major system goes out? In my experience the vast majority of folks wanting seller financing could be bankrupted by one. Just my $0.02

Our attorney uses a collections agency that keeps a % (i think about 30%) of anything they can collect. It costs us $0. It ends up on their credit. If we get a check in the mail it's a surprise. Not something we are expecting. :) 

The typical reason is the value add or repositioning play. The ROI that is quoted/projected on these to the syndication (funding partners) is often in excess of what the income could sustain/justify. The goal with these is to sell for a premium at a low cap to a fund or "passive" investor.

Great explanation @Michael Ealy!

Aight, I'm out. 

I think next BP meetup we get you guys set up on one of the blow-up jousting rigs. 😂

@Jerryll Noorden Anyone who reads this thread can come to their own conclusions on who has an agenda. Best of luck with your #1 ranking SEO brand. 

I'm going to keep using my #1 ranking Seo brand + PPC advertising + Facebook Ads + Direct Mail to generate deals for my rental portfolio as fast as my staff can handle growing responsibly. 

I would advise ANYONE doing marketing of any kind to not rely on a single channel for all of your deal flow.

Google changes its algorithm, Facebook loses targeting options as they get into more trouble, Direct Mail varies in effectiveness by the copy/targeting, and networking comes down to who you know. 

Only utilizing one form of lead generation is like only holding one company's stock. When it's good it's good. When it's bad... It's really bad.

In the same way, I don't just own C-class SFR's. I also own A- SFR's. I also own small multi (2-4). I also own a decent chunk of 5+.

We do what @John Underwood does with the exception of some new apartments we did. We included washer/dryer.