Great real estate investment deals are hard to find, often it seems, impossible to find.
Why is that? Because great deals are most often created, not found.
To find good, consistent business you must market consistently. The ways to market are endless and something you should always be working to improve. Marketing is the starting point for finding deals and, without it, you won’t have many choices on what you can buy. The more leads you have, the more opportunities for you to create great deals.
When working your deals, remember that not all deals need to be home runs. With a bunch of singles, you’re still moving around the bases.
Do what you can to get lots of leads coming in (check out this site’s Marketing tab for ideas) and make sure to keep track of the responses your advertising brings. How many calls do you get from a particular marketing piece? How many of those leads were you able to convert to purchases? Modify your marketing accordingly.
Without marketing, you won’t have leads. Without leads to work, you won’t find deals. With practice, you’ll learn to turn more of your leads into great deals.
Questions?
Jan 24th, 2013 / 11:51 am
Hi Jose:
Homes is what I know. Single family homes are less expensive to maintain than multiplexes. And, I’ve heard that, if you get one bad tenant using drugs, causing disturbances, etc., it can pull the value of the entire unit down and cause other tenants to leave. I don’t really recommend multi-units as the place to start, but an investment to grow into over time when you have experience and finances to handle them.
We buy everything. We take the leads as they come and structure deals out of them. Very few of our purchases are foreclosures as we usually buy properties before they hit foreclosure. We never hold a property if we have done a lot of renovation because we don’t like to have a lot of money tied up in anything we hold. If it’s a renovation, we flip it.
Thanks for your question!
Jan 24th, 2013 / 11:34 am
I have seen a good opportunity in homes as well but do you have a particular reason you prefer them more than multifamily complexes?
I plan to take that step in the future when the market stretches more with homes.
As for the deals that you buy.. what are the numbers that you look for regarding total cost to lease ratio? Are you buying only foreclosures and you make the repairs?
I’m very curious to learn from your success and look forward to hearing from you. Thank you !!