It stuns us how many investors say, “I can’t find any good deals.” Folks, you’re not looking! We think that many new investors (who watch too much late-night TV) are under the impression that if they decide to become investors, the “investor fairy” will drop deals out of the sky.
Not true! Investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine-to-five rut and bound by the bosses’ rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.
The oldest method in the book: Knocking on doors
We want to share a few of our favorite methods for finding deals. First and foremost, we’re here to tell you that knocking on doors is still the best way to find deals because other investors hate to do it. The biggest problem is that investors don’t know what to say.
It’s simple, just tell the homeowners that you were at the courthouse doing some research and noticed that they have a pending problem with their property, and you’d like to help. NEVER mention the “F” word–foreclosure. Ask them if they took care of it.
Typically they say, “yes.” Ask what they did (filed an answer, sold it, brought the back payments current, what?). You can tell by the blank look on their faces that they haven’t taken care of anything. Offer your assistance and move forward with your deal.
What about postcards?
Do you religiously mail them? To whom? Most investors mail postcards to people in foreclosure. This is a great idea, but did you know that there is a wealth of other information that is public knowledge?
Try mailing to people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge, and the typical investor doesn’t tap into it. NEVER be typical.
What about mailing lists?
Have you ever considered buying a mailing list and “farming” neighborhoods? It works for Realtors; why won’t it work for you! We buy lists by the zip code and mail where we want to own property. won’t it make sense to have several properties for sale in the same area opposed to all over the county?
How about phone calls?
How often do you sit down and call foreclosures? Never? Why not? With a criss-cross directory you can find almost anyone. Investors, take the time to find people who have moved or changed their numbers. If they have moved, you have a deal because the mental attachment to the property is gone.
Do you run ads in newspapers?
Why not? Many investors think ads are too expensive. How many deals do you have to do to pay for a year’s worth of ads? One? We’ll give you a little known tip: Place your ads under “money to lend.” Many times the homeowners’ first choice is to save their house, not sell it. Once you have them on the phone you can negotiate your way into the deal.
You will make as much money as you are willing to work for. Our question for you is: How much are you willing to make? The sky is truly the limit. The bottom line is this: There are thousands of deals out there. If you don’t make the effort to find them, other investors will.