All Forum Posts by: Tim Campbell

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, 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.

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

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. 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. 2.  I call expired listings that didn't sell.  I have access to contact info via paid programs available to agents.
3. 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. 4.  I just hired telemarketers to my team and they make calls all day long.  My business model allows for this.
5. 5.  I canvas neighborhoods with signage and mailers looking for distressed owners wanting out of their properties.
6. 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...

I would educate the seller on why some agents take lower commissions.  They use the house as a marketing tool to pick-up buyers and other sellers in the neighborhood.  For every listing, you pick up 2-3 buyers.  I would ask them do they want an agent looking to pickup other business or incentivized sole in selling their property.  

I also would show them how my aggressive marketing plan will drive in competitive offers and force a highest and best, which may make up for the extra 1% commission.

It really depends on your comfort level. The goal with flips and rehabs is to do a QUALITY job...On-TIME...On-BUDGET while minimizing risk.  If you are experienced, then you can manage the subs yourself and fill in with your handyman.  Not a scalable system but could mean more profit...also more risk.  If you are not knowledgeable about the process, I recommend you hire a general contractor that you can build a relationship with.  

I have a lot of experience with rehabs and have a great network of contractors in the Minneapolis area.  I'm also a licensed realtor and have a lead system to finding great deals.  

Hope this info helps.  Let me know if you have any specific questions that I could answer for you or if you want to meet up.

Hey Luke,  welcome to BP!  To help, I need more information.  Why do you want to buy and hold investment property (i.e. - passive income to replace job, retirement funds, etc)?  If it is to leave your job and get passive income, what is the number you need in order to do that?  Need more info on your intent in order to help you build a solid plan.  Lot of strategies in RE.  One may fit better based on your goals and timeline e to reach that goal.

 I agree with you.  Your people have to buy into your system and concepts.  That doesn't speak to ability/competence though which seemed to be the emphasis of the comments I saw.  It speaks to attitude.  With the right attitude, he could have turned things around.  So the attitude was the only negative factor and the learning lesson.. Hire the right attitude...the rest can be taught and/or developed through proper systems.

Congratulations on the house hack. I did the same thing. Found a duplex with an FHA loan. I rented one side and lived free on the other side. The plan was to move out and rent both sides but my wife fell in love with the property.