This One Thing Can Help You Find Deals!

“Stop Following The Herd, And Get Out Of Your Comfort Zone To Find Deals!”

By Van Sturgeon

Real Estate Investor

I feel sorry for so many “would be” real estate investors who scour the MLS listings, and try to pick up a great deal.

Sorry...there are no deals on MLS.

I feel sorry for so many first time home buyers who scour MLS listings, and try to find their dream home.

They all will eventually find their homes, and will have spent thousands of extra dollars for no reason.

Over the last 30 years of being involved in the real estate industry, I do not need MLS to find great deals on properties across North America. My methods and systems are pretty simple, and I have written on how I identify and find real estate deals that are 40%-60% off the market value.

Even with that information, I find that there are many people who still struggle to find that real estate deal that will make them some money and start their real estate investment journey.

What differentiates a successful investor from a struggling investor when it comes to finding great real estate deals is :

Drum roll, please….

Persistence...

Anybody can place a classified ad, hang a bandit sign, or post on social media that they are looking to buy real estate. If you want to drastically increase your odds of landing the “deal”, you must have a system in place to consistently follow up and continue to network with people.

There are many reasons why someone is looking to sell their property, and that reason could happen over night. Owners sell their properties for a number of reasons, such as :

• Too many repairs, not enough money
• Loss of job/New job in a different location
• Death/Illness
• Divorce
• Starting a family and need a bigger house
• Kids have all moved out and want to downsize

And the list goes on and on...

In most cases when the owner of the property discovers your marketing efforts, they will not be ready to sell.

So how do you know when they are ready?

You simply have to keep following up…

Your job is to make sure that when the property owner is ready to sell, that you are the first person that they think of, and the first person they call. You have to constantly work at the relationship, and never give up until the property is sold.

Hey...Off-market deals can save you tens of thousands of dollars. Nothing is free in this world so you need to work at it to be successful, and help you create the financial independence that you desire. Following up is such a simple thing to do, but yet many people in the real estate industry do not do it.

Real estate investing is more about understanding people, rather than understanding the property. If you take some time and invest in building relationships, often when it comes time to sell, you will be the first and only investor that they call.

Would you rather compete with all the other investors fighting for properties on MLS, and overpay to just get a deal?

OR

Would you rather be the only investor at the table and close on a deal that provides a nice profit margin for you, and helps the property owner resolve their problems at the same time?

Remember people like to do business with the people that they like.

Your long-term goal is to create a real estate portfolio that funds your desired lifestyle, so until you have scaled it to a size that delivers enough cash flow to fund your desired lifestyle, you gotta keep going. There is no reason to stop your marketing. The nice part about being in control is that when you want to buy more properties, you simply increase your marketing and follow-up systems. If you want to take a break, all you have to do is shut down your marketing machine, and look after other things.

I would like to give you an example…

I own a smaller apartment building in Detroit, and I got to know the owner of a bigger apartment building that was a few blocks away. I knew this owner had owned this property for over 40 years, and he was getting up there in age. 

One day, as I was driving by his building, I noticed that there was a roofing contractor, preparing a quote.

Now...I have had my fair share of roofing expenses and I know that roofs and elevators are the more expensive items to renovate and repair. I let a few days go by and I decided to reach out to the owner, and see how things were going. I learned that the owner was looking at a $200,000 roof repair, and it really stung him to fork over that kind of money on an expense like that. 

In addition, I learned that he had a vacation home in Florida and was starting to spend more time there, than he did in Detroit. Anyways...I told him that I really liked his building and if he didn’t mind, I would submit an offer and I hoped that he would consider it.

The next day, I presented an offer that I thought was fair, however he quickly rejected it. He told me that he needed more time to figure things out and he was emotionally attached to the building since he owned it for over 40 years.

I was persistent and a couple of days later, I sent him another offer with better terms for him to consider like an increase in the monthly payments, and a strategy to reduce his tax obligations. I also reminded him that he wouldn’t have to worry about the roof repair, and it was going to be my problem.

Still no deal, as he told me that he was still trying to figure things out.

One month had passed and I still had not heard back from the owner. Through a mutual acquaintance, I was able to learn that the owner had lost one of his family members, and the death was devastating to him.

So I submitted yet another offer, but this time I included a personal cover letter. I expressed my sorrow for his loss and explained to him why now might be a great time for him to sell so that he could enjoy his time in Florida, and that I would take care of the roof repair.

It took me a while to win this person over, but I would not have been able to own this property without persistence. I still own this property today, and if I ever decide to sell it, I will have made several millions of dollars in profit. 

That’s not chicken feed…

Now to be clear you won’t find deals like this everyday, but if you are persistent, you will find many deals that are below market value. In some cases, you will be able to find deals that are so far below market value that they will change your financial future forever.

For more information on house renovations and real estate investing, visit www.vansturgeon.com to help you in your real estate investment journey.