Deal Flow

Question 1

Deal Flow

Answer 1

Deals that you have coming through your marketing pipeline to evaluate. AKA deal pipeline

Question 2

How to nurture real estate brokers:

Answer 2

• Best to get face to face if you can to build rapport
• LONG DISTANCE, BUILD RAPPORT OVER THE PHONE UNTIL YOU MEET THEM
• After you do your first deal, brokers will be much more excited to work with you bc they’ll see you as a performer

They are gold mines, establish good RELATIONSHIPS with them. Get them to LIKE you and TRUST you.

After receiving deals from them, Call them, instead of emailing, within 24 hours and thank them, explain why deal isn’t good for you. Keep clarifying your deal criteria.

Even when they send you bad deals early on, BE HYPER-RESPONSIVE AND THANK THEM for the deals and having the opportunity for scanning them. On average takes 7 calls with broker (building rapport) to get a decent deal from them. ONCE THEY TRUST YOU, WILL CALL YOU FIRST INSTEAD OF EMAILING OUT TO EVERYONE, which creates bidding war

Question 3

Direct mail to owners:

Answer 3

• Focus on finding burnt out landlords
• Get a list of property owners. Hire list broker or get it yourself at City Hall and assessor’s office will most likely have it. Best if you can get it in the form of a spreadsheet. Great to contact out of state owners, who many times are burned out.
• Mail at least once a quarter to these owners
• Hire someone to do the direct mail for you - too tedious to do yourself. Can even hire family members to do it for you. Or Google “direct mail services.”
• Refresh list(s) at the start of each year
• Start with 100 owners/month, then ramp up to 1,000 when you start doing deals. 1,000 letters is a very effective campaign. Expect just a 1% response rates, about 8 to 12 interested sellers from which one or two deals come.
• Your goal for each deal should be to profit at minimum $20,000.
• Average direct mail piece costs 75 cents to get out the door, so $750 a month, $9,000 a year, but you should get at least $20,000 a month in deals.

Question 4

Landlord Association Meetings

Answer 4

Find Landlord Association Meetings to attend (don’t have to be landlord) and find some way to add value to them.

Question 5

Housing Court

Answer 5

Just show up to some of the sessions and you may find frustrated landlords

Question 6

Drive for dollars

Answer 6

Knock on doors of tenants and then tell them you want to do repairs on the dilapidated building to get the owner’s info.

Question 7

Tax Assessor’s Website

Answer 7

See where the tax bill goes. Call or mail that person a letter if phone doesn’t work.

Question 8

LoopNet

Answer 8

Where the leftover deals go but you can still find some good ones

Question 9

Other methods:

Answer 9

Go to foreclosures, eviction court, network with estate attorneys, accountants, financial planners, disposition agents of other real estate companies, talk with real estate investment trusts and see if they’re looking to dispose of anything, read classifieds, put in classified ad, SEO.