Finding Real Estate Deals
There is a key ingredient that is necessary for you to have more profitable deals as a real estate investor, and that key is probably something different than you think! While there are many things that you could do to increase your profit per transaction, there is one item that makes it happen for every investor…
It is all about the leads!
More leads will equal more deals and more money per transaction. The more leads you have, the more selective you can be about the deals you do and how much money you make per deal. Everything starts and ends with your lead flow.
So, how do you increase your lead flow? Well, let’s compare your real estate business to something else.
For the moment, imagine that your real estate business is a train. Trains are one of the most reliable methods of transportation. They always arrive at their destination. What makes them so reliable? Their reliability is due to the train tracks. The tracks are what helps them get from the starting point to the destination.
If you think of your real estate business as a train, the question you want to ask is:
What tracks are you laying down to get you to your destination? When you focus on laying down the right tracks or foundation for your business, it will inevitably take you to where you want to go. For the purposes of this article, creating systems that produce consistent leads is like laying down the tracks that will take your investing business where you want to go.
Most investors start off their business by finding deals on their own. They drive and look for vacant properties. They work with their real estate agent to locate potential deals. They call on for-sale-by-owner properties. They mostly rely on their own efforts to find deals. While these techniques do work and will produce deals, you will get more results from changing the focus so you start getting deals coming to you.
There are many advantages to getting leads coming to you:
- You can increase the amount of deals you do each year. When you turn up the volume of leads coming in, it becomes a numbers game. The more leads you have coming in, the more deals you will do.
- The quality of your transactions will improve. Usually the seller that contacts you will be more motivated to do a deal. After all, they were motivated enough to contact you to try and sell their property. Some of the most motivated sellers you will ever work with will be people that contact you.
- You get to pick and choose the best deals for yourself. Usually, brand new investors do any kind of deal because that is all they have access to. When you increase your leads and get deals coming to you, you get to pick the most profitable and lucrative ones and let the other ones go.
As you can see, there are a lot of compelling reasons to get deals coming to you. So, how do you do it? Well, there are many different ways to do it. It really doesn’t matter which strategies you use. It really has to do with your personal situation.
You may be in a situation where you have more money to spend on advertising than you have time to spend. Others may not have any money to commit to an advertising budget but they do have time to spend. Or, they might be able to spend both time and money to get leads coming to them.
Regardless what your situation is, there are solutions and ways to accomplish this. It just takes a concerted effort and discipline.
So you can create a plan, let’s review strategies to get deals coming in that require money and others that mostly just require time:
Methods That Require Time
- Driving for dollars
- Power team
- Expired listings
- For-Sale-By-Owner marketing
- Social media
- Bird dogs
- Door knocking
- Letters of intent
Methods That Require Money
- Magnetic signs
- Newspaper ad
- Direct mail list
- Business cards
- Pay-per-click advertising
- Radio/TV ads
- Bandit signs
- Door hangers
As you can see, there are plenty of ways to get deals to come to you and there isn’t a wrong answer. You do not have to be great at all of them to get great results. Since this list may be a little overwhelming, the best thing to do is to select two to three strategies that make the most sense for your situation and start there. As needed, you can always change your strategy or add another method to reach the level of success you desire.
As you get further and further in your career as a real estate investor, you will want to get to a point where the majority of deals that are coming to you result from your marketing, networking, and your power team. You will want to leverage your time so that you are spending more of it structuring deals instead of finding them. Let your advertising and the efforts of others create the leads and spend your time putting the deals together. That is the highest and best use of your time.
Going back to the analogy we used at the beginning, these methods are like laying down the tracks for your train. The only way that you can get your train closer to your destination is to lay down the tracks that will take you there. Each and every track you lay down takes you inevitably closer to your destination.
What tracks can you start laying down right now? While these ideas and thoughts are fresh on your mind is the best time to start implementing them in your business. If you say you will do it later, later usually turns into never. Start laying your tracks today!