Using traditional methods of finding deals is becoming more and more difficult.
Many markets are flooded with real estate investors fighting over the same deals found through these traditional methods and this in turn is having a negative impact on our margins.
In todays competitive real estate market investors need to think outside the box to continue locking up great deals.
While there are many unconventional ways to find deals I am going to cover six that you may have not thought about or pursued yet and can start to implement right away.
The first of six unconventional ways to find deals is by building relationships with attorneys.
This one avenue of locating great real estate deals is often overlooked by real estate investors but it can be a highly effective way.
There are many types of attorneys that you can network with and build solid relationships with which can lead to a stream of great deals over the year. Here a few:
If you take the time to build and nurture relationships with attorneys in these fields it will pay dividends over time.
Many homeowners that are seeking attorneys in these fields are looking to sell their home and they are often motivated to do so.
Mailmen and other couriers for companies such as Fedex, DHL or UPS can be a good source of leads.
These couriers often come across vacant houses that they can let you know about. Some couriers get to know many of the people on their routes as well and may found out through regular conversation that the homeowner is looking to sell.
Offer a per lead fee and or referral fee if you close on a deal that they bring your way.
Another source of deals can come from meter readers. These individuals work for gas and electric companies and each month they walk through neighborhoods, house to house, to read the meters so that the company knows how much to charge.
Meter readers can notify you when they come across vacant, boarded up or abandoned houses. Seek out these individuals and offer them incentives to bring you leads.
Retirement communities are a great way to come across real estate deals. People that live in these communities often have a lot of free time on their hands and what better way to use their free time than socializing with others within the community.
If someone in the community is getting ready to unload their home there will be other neighbors that will know about it.
Get out there in those communities and talk to the residents. Ask them if they know of anyone looking to sell their home.
Let them know you will pay them a referral fee if you end up buying it.
Leave them with your business card and or a handout that explains what it is that you do, has your contact information on it and also shows the amount of the referral fee they will get if they bring a home to your attention and you buy it.
Lastly, you can post a flyer in the recreation center of the community if they have one.
Since the market crash in 2007 qualifying for a home loan has become much more difficult. Due to the stringent qualifications and requirements buyers must meet in order to receive a loan, many transactions end up falling out of escrow.
The fourth of six unconventional ways to find deals is by tracking pending sales via the Multiple Listing Service.
Keeping a watchful eye on potential deals that are currently pending you will come across a good deal that fall out of escrow. When I seller just got their hopes up that they were about to receive a big check and it falls through, it creates motivation on their end.
It is important to touch base with the seller’s agent on a consistent basis when a property is pending. Let them know that you are serious about stepping in if the buyer is not able to perform. Ask them to call or email you if they feel that the buyer is a little shaky.
The goal with this strategy is to get the seller’s agent to contact you before they set the listing back to active. This may cut out all of the competition and give you first shot at it.
Junk Removal Companies
Often times when sellers are getting ready to sell their home they will hire a junk removal company to take away any belongings they no longer want or need in an effort to make the home more presentable.
Often times the drivers for these companies will find out through conversation with the homeowner that they are not only moving but also why they are moving as well.
By befriending the drivers or haulers at these companies and offering them a sizeable referral fee you may get some great motivated seller leads.
You can offer to pay the driver on a per lead basis as well as a larger chunk if you buy the home.
Estate Sale Companies
Often times when a family member or friend passes away the heirs or beneficiaries will hire an estate sale company to sell all of the belongings still within the home.
Build relationships with these companies and offer them a referral fee as well if you end up buying the home.
You can also look for these sales in your area then track down and contact the heirs or beneficiaries. You may be able to negotiate a deal before they seek out an agent to list their home.
If you add these 6 unconventional ways to find deals to your deal finding toolbox you will surely come across some gems that will be highly profitable for your business.
There is no time to waste in a highly competitive market. Get out there, get creative and think of new ways to locate great deals.
I hope that this post was very helpful to you. If it was, please share with someone who you think may benefit from it.
Here’s to your success!!!