Updated: Oct 9
A lot of real estate investors make the tragic mistake of depending on the multiple listing service (MLS) as the sole source for finding investment properties. The fact is that many real estate deals get bought and sold before they even hit the MLS.
The secret to successfully investing in real estate is knowing how to find the opportunity that other investors miss. From networking to online real estate marketplaces, and everything in between, here’s an in-depth look at where and how to find great real estate deals in every market today.
There are investment nerds who seem to understand everything. They just attract big business as a magnet, and it can make you crazy. The reality is they do have a system. And you can have one of your own. . . Read on to find out how to improve a system such as theirs for yourself. Attract homeowners with relationships. Rather than trying to track down all the commercial owners and hoping to approach them promptly. —when they're prepared to talk about selling their home—here's a better way: Create systems that make it possible for business owners to be attracted to you.
For example, we've put together a special report entitled "Three Little Known Ways to Increase the Value of Your Commercial Property". It is the commercial property owners that we have this valuable report at their disposal, and they can get it free of charge; All people must do is provide their details. Previously, it is the report by mail. The sending of these reports not only took a long time but also used many envelopes and stamps.
A better way to get business owners to answer is to go to your website after you send them a postcard, or you can put an advertisement in the newsletter of the owners' association. encourages the owner of a commercial building to visit your one-pager website that provides more information on the special report.
After all, commercial property owners will be looking for this report immediately. All they must do is input their name and email address onto the site, and they will get the special report instantly. The great advantage of this process is that you acquire their contact information, allowing you to contact them in the future. You also expect that it will allow homeowners to learn more about you and for you to learn more about them.
Properties that are not registered for sale as you bid on unsolicited offers. It's a great way to add commercial ownership to your portfolio.
With the help of some web resources and new marketing software, we have set up a database of all the big (more than 50 units) names of apartment owners, e-mail, and cell numbers in a certain town. Our automated software emailed them or texted them saying we were interested in their property. On half of the properties, we had sufficient information about the bare property to send a PDF version of a purchase agreement by e-mail. We received far more responses from landlords who received contracts than a simple text message or e-mail expressing interest.
The most interesting thing we found was that almost all the homeowners who responded had other properties they wanted to sell. The same can be done for malls, office buildings, and warehouses.
Find properties that have been inventoried. One of the biggest frustrations for business investors looking for interesting offers is talking to brokers or homeowners far too early in the process. Often, the landlord may list the property at a certain price, either because of the wrong expectations of the landlord or because the broker miscalculated the deal, the price of the property is too high, and the figures are meaningless — even if you did get great terms.
If you find yourself in such a situation, wait and let the market bring the landlord's expectations on land. When the asset owner is willing to relive the asset for a second or third time, it generally becomes more realistic about where the demanded price should be because commercial properties do not have multiple listing services such as residential properties, some of the best offers come from these properties which have been rechecked to a new price, but the new price has not been advertised on the market.
To benefit from an agreement like that, you must find a way to stay in contact with the broker and preferably with the owner of any property of interest you come across. The secret is that automation is the key. When one of our customers enters the name of a landlord and emails our marketing system the newsletter goes to the landlord every month. The system merges the contact information of our clients into the newsletter, so it seems they took the time to write it down themselves. Some investors like to send reminder postcards, but our favorite tool is the answering machine without ringing.
Finding the best real estate deals requires a lot of time and energy. That’s one of the reasons why online marketplaces are growing by leaps and bounds. You can compare hundreds of properties side-by-side with all the information you need, including financial projections, inspection reports, neighborhood analysis, and market comparables.