How to Find DEALS in Real Estate

Start Growing your
BNB Business Today!

Get inside access to our professional courses, hosting community, and much more!

Hey, what's up guys, it's James here. And in today's video, I'm gonna be talking to you about how to find really great deals when you're investing in real estate. So this is going to be a video that is going to kind of go over how to find deals in pretty much any market. But more importantly, it's especially going to be important for people who that are in markets that are really competitive, which a lot of short term rental investing markets are right now, we're seeing all over the place that these markets are really skyrocketing. There's a lot of people getting interested in short term rental investing, the space overall is growing pretty rapidly. There's a lot of demand. And so I want to talk about how you can compete in a competitive marketplace. How can you find really good deals with a great ROI potential in a marketplace in an area where there's a lot of different buyers and properties you're going way above asking, we happen to be investing in areas like that right now. And I want to share with you exactly what we're doing in order to get the best deals on properties. Now, before we dive into that, I do just want to remind you, there's a link in the description down below to our free training that goes over every single step of the process for how to successfully invest in short term rental property. So if you are interested in investing in short term rental properties, you want to build cashflow, and long term wealth by investing in Airbnb vacation homes, that kind of thing, then just check out the link in the description down below that is a free training, we're also going to give you our analysis spreadsheet completely free is our gift for you once you sign up for the training. So I highly recommend you check that out to learn more. Now let's go ahead and start talking about it. And specifically, what I'm going to talk about is off market deals. Now, I assume that most of you guys watching here know pretty well how to find deals on market cuts, pretty straightforward, you just need to have a straight up list of criteria for what you're looking for. And make sure that you're diligently scanning the market or you have all our reminder set up or you have a realtor you're working with so that you can get notified when new properties come on. That's pretty straightforward. The challenge there, though, is well, there's actually a couple number one is that you're going to be paying about a 5% premium to buy those properties on the market versus buying a property off market because that is how much a realtor charges in their commission. So you're paying extra money to be buying those properties on market versus buying off market. And the other challenge with that is that you're often going to be competing with other buyers, because let's face it, when a property goes on market, it's getting marketed to a lot of different people. So there's a lot more buyers, and that's where you tend to get into bidding wars, a lot of competition sellers that have a lot more options. And so what we want to do is focus on properties that haven't yet been marketed as being for sale, and deal directly with the property owner. Now there's a few different reasons why a seller might choose to sell their property off market. But those are really the properties that we want to focus on. Because number one, we're not paying that realtor Commission's we're not gonna be paying a premium on the property. And then number two, we're also not going to be dealing with sellers who have multiple different offers on their property. So we no longer have to compete and pay way above the fair market value or the real worth of the property in order to acquire it. Now, in order to do this, there's a few different steps to the process, but the most important is actually finding these off market deals. And the number one question I get asked by people when they're talking about buying off market is how do I actually find a seller someone who's looking to sell to me? Wouldn't they just go and market their property and with a realtor and just list the property up for sale? Well, a lot of the time they would but there's still a lot of people who wouldn't for various different reasons. Right now with everything going on in the world with the the pandemic and everything. There are still some sellers that are really reluctant to have a bunch of people through their house for an open house for health concerns. And so the idea of being able to sell to one person deal with one person not have to interact with a whole bunch of people, the realtor people going through and walking through the home that is really appealing to some people. Other people just don't want to deal with the whole headache. Other people are in a rush and they want to get the property sold quickly. There's a whole bunch of different reasons why a seller might not want to list the property on the actual market, but would still be interested in selling the property. And so we want to do is get in touch with those people. And the way to do that is primarily going to be through sending out flyers door knockers, whatever you want to call them, or posting ads online. Now there's a whole bunch of different methods for finding off market deals. You can even go door to door and just knock on doors. But the methods that I've found to be the most successful with our investing in real estate, has been sending out flyer campaigns, it's probably the kind of lowest barrier to entry. The other one that's really nice. It's a really easy one low barrier to entry doesn't take a lot of time is just going to be posting ads saying you know we buy houses on sites like Kijiji and Craigslist. Now in terms of the ladder they're posted on Kijiji and Craigslist, what you'll want to do is go on to those sites and make a few different ads. Basically the goal here is to communicate, hey, we buy houses, we buy houses quickly, we buy houses for cash, and then highlight some of the real
Here's why someone might want to buy with from you. So we buy houses without realtors, we're not realtors. So you're not going to pay a commission. You know, we buy houses cash, we close quickly. So you can get, you know, you can communicate that, hey, we can get you that money quickly, we can close the deal very, very fast, you're not going to have to interact with a whole bunch of people. And you'll want to just be refreshing these constantly so that people if they do go and decide, hey, I want to sell my house, there's a decent chance that they're going to actually find you there. Now, one of the better ways though, because a lot of people don't go on sites like Kijiji and Craigslist when they're thinking about selling their house. One of the really effective ways and it allows you to be very, very targeted, is to actually put together flyers and send them out through USPS or Canada Post depending on where you're located. Just send them out in the mail. Now, if you want to save some money, you can actually just drive around and plop them into people's mailboxes. But the goal here is to have these flyers printed, you're not going to want to do anything overly fancy, it does not need to be honestly what we recommend is just writing it out and then photocopying it. So it looks very personal, it looks like you actually just hand wrote a letter and dropped in their mailbox. And you just want to explain to them, Hey, we buy houses in this area, I'm looking for properties to buy, you know, kind of go through the the main bullet points and then drop them in a bunch of houses. Now you're going to need to drop out 10,000 flyers in order to have enough deal flow to see a good return on that to actually be able to find a cold properties that are you know, looking to be sold, find one that actually meets your criteria. But the nice thing is that doing that is only going to cost you maybe let's say 5000 or so dollars 5000 $6,000. And in return for that, you're likely going to save 10s If not even $100,000 on a property depending on the market and how competitive it is, you know, we're in market some some places around the world right now, where properties are going for multiple 100 1000s of dollars over their asking price. So there's a huge amount of money saving potential by in making that investment into a flyer campaign. And the goal there is that you're going to basically send out those flyers in the targeted area that you are looking to purchase properties. And you can even list criteria, if you have specific criteria, hey, we're looking to buy 3000 square foot properties and larger or three bedroom properties and larger whatever you want. And then basically just leave your phone number for people to call. You can also leave email address, but we found phone number to work the best. And then people can call you or call someone that's on your team. And again, this is going to be a bit more time intensive. But it's a really great way if you want to make that investment into saving money and finding a really, really great deal that other people aren't going to have access to. And then when people are calling you, you can go through an initial call script where you're just kind of screening to make sure that the property meets your criteria. And then you're going to go ahead and the next step is going to be to set up a showing that this can be in person or it can be virtual. But this is a really important step. Because this is also where you're going to get a chance to really ask questions to the seller to understand what their motivation is for selling the property and it go through next steps. And that's going to be that next kind of missing piece before you can submit an offer. And from there, you need to make sure that you understand fully how to write up a proper offer, write up an agreement of purchase and sale and actually buy that property and you don't need to work with a realtor to do this. In most areas around the world. You just need to know how to put together the documentation or do it properly, you want to make sure obviously, that you're buying this place legit, you're buying it legally. Again, if you want all the details and all the different tools and resources for doing this properly. The link in the description gives a free training on the step by step process for how to successfully invest in short term rental properties. And one of the big pieces we cover is how to do this how to actually buy off market properties. But this has really been one of the big secrets to success with real estate investing for investors for years and years and years as being able to buy properties where you're taking advantage of saving 5% and realtor commissions and not needing to compete with other buyers in the market. So especially when the market is hot when it is really a seller's market. These types of strategies are really crucial for you to continue growing your portfolio but do it in a safe and sustainable way that you're not going to be you know, riding the way up and then crashing all the way back down property values do go down eventually. So I hope you got value from this video. Hope you enjoyed it. If you want more details again, check out that free training. It's linked in the description down below. We're also gonna give you our analysis spreadsheets so you can analyze these deals, make sure you're making good good deals when you're acquiring properties. All that again is it the link in the description and then if you liked this video, please do take a second and just give it a thumbs up hit that like button. It really helps me out while I'm growing this channel and also subscribe to the channel. So if you're new here or you're not yet subscribed, for whatever reason, make sure that you hit that subscribe button so you can stay up to date with the two new videos we post every single week. And I'll see you in the next one.