Marketing and networking practices should serve as the lifeline of your investing business. With that being said, it is equally important to look for deals on your own accord. The extra effort can only help to supplement and enhance your business. There are deals everywhere you look if you know where to find them and how to work them. The key is to take action and put in the necessary work. Investors who take the initiative will be rewarded accordingly.
Most properties are sold with the assistance of a real estate agent. Accordingly, only 3-5% of property owners will decide to sell on their own. These properties are referred to as FSBOs or for sale by owner properties. You can target these owners online through various websites or by simply referencing for sale signs in respective yards. Pick up the phone and ask them why they decided to sell without the help of a realtor. Their answers will range from trying to save money on commission to having their listing expire after six months. Pay attention to their answer, however, as it will tell you if there is a potential deal to be had.
If they have equity in the property, you may be able to work out a deal with a quick closing and get them out of the property in a short period of time. If there is no equity, they still may not be aware of how the short sale process works and that they may not have to pay any deficiency. Any FSBO property you drive by should result in a mailing, an internet search of a phone number or a knock on the front door. If you are not following through with a potential deal, someone else is.
In addition to for sale by owner properties, for rent by owner properties offer an equally enticing opportunity. Look for FRBOs the same way you find FSBOs. The internet should be your staring point, with Craigslist being your first priority. As with FSBOs, you should also be aware of any signs posted on the front yards of properties. A lot of landlords may be ready to give up on their properties. There is a large portion of landlords who got started in the business of renting to avoid foreclosure, but a lot of them do not know how to properly execute. There is a good chance they are ready to move on. You will never know unless you reach out to them and find out the whole story. They could be willing to sell and get out of the landlord game as soon as possible.
Whatever your core marketing is, you should continue with that until you reach a point where you have too many leads coming in and can’t handle them. This would certainly be a good problem to have. If you are not oozing with leads, there are many things you can do every day that won’t take up more than an hour that could get you an extra deal a month. These are the things that separate average investors from those that find the business gratifying and are most successful at it.