So far, I have bought 25 properties in 2017: 23 flips and 2 rentals. This is buy far the most properties I have ever purchased in one year, and I still have a few months to go. For me to be able to buy that many houses and commercial properties, I have had to expand the way I find deals. I have bought properties from the MLS, wholesalers, Zillow, direct marketing, networking, and auctions—all this year. On this episode of the InvestFourMore Podcast, I talk about how I get deals from all of these sources. I also discuss how the ways I find deals have evolved over the years.
You can listen to the podcast by clicking the green button below
How did I start buying deals early in my career?
I started working with my dad right after college in 2001. He occasionally flipped houses and had always found them at the local Public Trustee Auction. I helped him expand the flipping business by purchasing more properties. One way we did that was by expanding the way we found deals. We started to buy properties from the MLS, and it is a good thing we did because deals at the foreclosure auction dried up. More investors started to buy at the auction, which pushed prices too high for us to get a good deal.
After I bought the business from my father, I expanded how I found deals even more. I found wholesalers, started direct marketing, and looked for other off-market properties.
Can you still get a good deal in today’s real estate market?
Obviously, I can still get a good deal in today’s real estate market since I have bought 25 houses this year, but many people claim finding deals in their market is impossible. Fortunately, the my Colorado market is one of the hottest in the country. In my town of 100,000 people (Greeley), we have routinely had less than 100 properties for sale in the entire town. That is an incredibly low amount and makes finding deals tough. However, I am still buying flips and rentals in the area, and I have not sacrificed my profit margins. I have bought 8 of my active 19 fix-and-flip properties from the MLS. You can get a great deal in any market if you know how to find them. In this podcast, I talk about how I find deals and how I negotiate with sellers to get those deals.
How have I learned new techniques to buy more properties?
There are ups and downs in the real estate business. When I was relying on just the auctions the MLS to find deals, it was hard to know how many deals I would get each month. Some months, I would buy five houses, and other months, I would buy none. I knew if I wanted to have a consistent business, I needed to expand how I find deals. Here is what I have done in the last two years to get more deals:
- Buy from wholesalers: Finding good wholesalers is tough, but they can be an awesome source of deals when you find the right one. Four of my 19 active flips were bought from wholesalers, and I was buying many more earlier in the year.
- Use direct marketing: I used direct marketing a couple of years ago with some success. I did not like the postcards I sent out or the angry calls I got. This year, I was approached by a wholesaler and flipper who helped other investors use direct marketing. He created envelopes, letters, a list, and even takes calls for me. The best part is the notes are sincere, and I no longer receive angry calls!
- Networking: I get a lot of deals from other real estate agents, professionals, and even friends of people I have bought houses from. I always go above and beyond to do business the right way. Other people see that and are comfortable referring sellers to me.
- Other sources: I have also bought for-sale-by-owner properties from Zillow and Facebook this year. There are deals everywhere if you know how to look for them.
How can you find good deals?
In the podcast, I go into more detail on how I have found deals from all these sources. I also include more details in my books:
- Build a Rental Property Empire: the no-nonsense book on finding deals, financing the right way, and managing wisely.
- How to Buy a House: What Everyone Should Know Before They Buy or Sell a Home.
- Fix and Flip Your Way to Financial Freedom: Finding, Financing, Repairing and Selling Investment Properties.
- The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property
I also created a video course that has over 2 hours of training on how I find deals. Not only do I cover the details on the sources I am buying with now, but I have more information on HUD, HUBZU, and other auction sites. You can use Deal50 to get 50 percent off the course.
[0:00:13.9] MF: Welcome to the InvestFourMore Real Estate Podcast. My name is Mark Ferguson and I am your host. I am a house flipper. I flip 10 to 15 houses a year, I own 13 rental properties, with a goal to buy 100 by 2023. I’m also a real estate agent. I’ve been licensed since ’01, I run a team of nine and we sell close to 200 houses a year.
So on this show, we like to interview house flippers, landlords and the best real estate agents in the business. So stay tuned for some great shows, if you want more information on my rentals, on the numbers, how I buy properties, check out investfourmore.com.
[0:00:58.3] MF: Hey everyone. It’s Mark Ferguson with InvestFourMore. Welcome to another episode of the InvestFourMore Real Estate Podcast. Today, I’m going to be talking about finding a deal. Something I love to do. I like to say I’m addicted to buying houses, that’s why I keep buying, spinning houses as I can. I know a lot of people struggle with finding deals. They think they can find deals in their market, but there will always be deals in every market. You just know how to find them.
Before I get into this podcast, I did create kind of an online course to talk about this as well with two hours of videos I did on all the topics I’m going to talk about here on exactly how to get deals to find them. If you’re interested in that, check out my shop, my resources page. It’s listed on there, and is called How to Find a Deal. Very simple, and then, yeah, you Deal 50 to get 50% off on it. I’m doing a special introduction promotion on that. Yeah, it’s a great program. I’ve been spending a few months putting it together. Of course, like most my program, I make it as affordable as possible to help as many people as I can.
On this show, like I said, I’m going to talk about finding a deal. I have bought properties this last year from the MLS, from auctions, from wholesalers, for sale by owners, networking, direct marketing, all over the place, and it’s really helpful to have a lot of different sources to buy deals from. When I started out, I worked with my father and he had flipped a couple of houses a year. Almost everything he bought was from the local trustee sale. That’s a foreclosure auction that houses go to before the bank takes them over. He never really looked anywhere at all.
What happened was more and more investors came around, pushed prices up. It’s really hard to find a deal at those auctions. So we started looking at different ways; MLS, different types of auctions, and really expanded how we bought deals. I’m really glad that I’ve always expanded the way I buy properties, because it seems like we got really good at buying a trustee sale. Well, other people did too, so it dried up. Got really good at buying from the MLS. I still buy a lot of properties from the MLS, but it’s also a lot tougher now in today’s market to buy from the MLS, so I started doing direct marketing. That’s worked out really well.
All types of other ways to find deals, from wholesalers, that’s up and down. The more sources you’re going to have to find deals, the more consistent your business will be. You won’t be buying three deals one month and go six months without buying anything. Really, by building a super successful business whether you’re buying rentals or flipping or wholesaling, it’s just having those consistent deals come in and avoiding the ups and downs that often occur in this business where you have a bunch of deals one month, no deals the next month, and it can make things tough.
The first way to find deals I’m going to talk about is the MLS, the multiple listing service, where real estate agents list houses for sale. I get emails all the time, comments from people who tell me, “I can’t believe how you get deals from the MLS in your area. In my area, there just are no deals.” I don’t think that’s true. There are deals on the MLS, everywhere. They’re not easy to get. They’re not just sitting there waiting for one investor to come pluck them off the market, but there are ways to find deals on the MLS.
Now, a few years ago after the housing crisis, there were a ton of deals on the MLS. I think that spoiled a lot of people. It’s really easy to get deals. It’s not so easy anymore. There are short sales, there are REOs still, but not nearly as many as there used to be. I think a lot of people, all they do is look for short sales or REOs and they leave out state sales, just regular sales.
I’m trying to think. I don’t think I’ve bought one property this year that was an REO, a bank owned foreclosure. I did buy one short sale, but all of the rest of the properties I’ve bought from MLS have been regular sales, estate sales, and I think I’ve bought 10 or 11 properties from the MLS this year. Do not limit yourself by what type of listing it is, if it’s a short sale or REO. Look at everything. There’re a lot of signs you can see for a property that’s going to be a good deal. It’s not always about the price. It’s not always about how long it’s been on the market, but it can be.
A lot of the properties I buy have wording in the description, like needs TLC, quick sale, motivated seller. There are signs in there that they’re willing to look at a low offer. I don’t go around offering on every single MLS property, 50% of value. I think that gives me a bad reputation and be a waste of time. I only offer on very specific houses that I find that I think will negotiate. There’s one I just got under contract this weekend that in the comments the house is priced decent, not bad, around 199 and it’s probably worth 250,000 fixed up. There’s some room there, but not quite enough room for me to fix it up and make money flipping it.
I looked at the house, not bad shape, definitely needs work, but in the comments it said, “Hey, motivated seller. Will look at all offers,” and then I think they lowered the price $5,000 like the first 10 days, which is another huge sign to me that they want to sell it quick when they lower the price very fast. We made an offer. We got it under contract for over 10% less than asking price, which is not a huge amount, but it’s over 20 grand, which made a good enough deal to flip.
There’re properties like that all over the place. I had another one like that I bought where they said in the comments, “Seller has not had time to clean the home. Please excuse the mess. Motivated seller.” And then they lowered the price in the first five days. Huge sign that they’re willing to negotiate and willing to take less money than what their asking price is.
As I said before, sometimes age listings can have opportunities for whatever reason. Some sellers don’t lower the price when a house doesn’t sell even though they’re willing to take 20% less than what they’re asking. I don’t know why that is, because not a good marketing tactic, but once in a while you’ll see that. There’s a lot of different ways to make offers on the MLS, look for properties. Don’t limit yourself to REOs or short sales. REOs and short sales can actually be harder to buy than traditional listings, because the banks have so many policies in place to get the most money. It makes sense. They’re selling a house. They want to get the most money they can. They put policies in place to make that happen.
A lot of the big banks won’t review offers for seven days, so you can’t get an offer in superfast, or you can but it won’t do any good. A lot of banks want to sell to investors in the first two weeks or seven days. They’ll only sell the owner occupants, because the government wants owner occupants in houses and they help the banks get — Are looked upon better, they’re selling more houses to owner occupants.
The banks will almost always do highest and best if there are multiple offers. That means everyone gets notified their multiple offers. Everyone has a chance to raise their offer. Everyone gets a couple of more days to submit offers, which makes it harder to get a good deal as well. There’s a lot of reasons why REOs aren’t as good of a deal as they used to be. The last REO I bought I think was last year. It was listed for like 169, then they lowered it to 159, lowered it to 149 and I ended up coming in there with an offer around 110. We negotiated five times back and forth and settled on 130. It was a good deal for me. I think we ended up selling it for 230,000 after putting about 40 or 50,000 of work into it, but that’s the only one I’ve done in like the last two years and it had a ton of problems; foundation work, roof problems. It was under contract twice and fell apart with other buyers. There are a lot of reasons why I was able to get that good deal on an REO, but most of the time they’re selling for more money than I’m willing to pay.
Short sales, again, there can be opportunity there to act fast, get an offer in, but there just aren’t as many short sales as there used to be now. The one I bought this year was under contract like four different times, and what happened was the buyers just got tired of waiting. I came in as investors. I said no inspection. I’ll wait as long as I want. They got my offer submitted and actually got it accepted like six weeks later. It was pretty quick. Again, that’s for a short sale I’ve bought in the last two years as well.
Don’t limit yourself to REOs and short sales. Look for all types of properties. There are estate properties out there, properties that need work, people who are just motivated to sell, and I think it’s easier to deal with individual sellers and banks because of the way the policies are put in place for bank properties.
That’s some information on MLS. Like I said, it’s a great — There’s opportunities there. You just have to really know your market, be able to act quick, get offers in right away. When I make offers, I almost never have an inspection clause. I almost never have an appraisal clause. I will use financing, but make cash offers, because my offer is not dependent on that financing. That helps me get offers accepted as well. There’s a lot of different things you can do on the MLS to get your offers accepted. Raising earnest money sometimes, like I said, waving inspection, shortening closing dates. All types of things going on.
All right. Another way I’ve bought properties. Auctions, like I said, we used to buy from the trustee auction all the time. That really dried up, although I have bought two properties from the foreclosure auction in the last two years. One of those, I’ll just show up to the auction once in a while when I see an interesting property. Usually they’ll bid up you 10% more or higher than I want to pay. I’m like, “Why am I even come into these? It’s a waste of time.” Once in a while I get a good deal there.
I bought one for 110 last year that we ended up selling for 215, which was a good deal, and I just bought one a couple of months ago for 134, which we almost have done that we’ll be listing for around 230 in that range. That will be a good deal as well. The last one I got was kind of a fluke, because they had the sale on July 5th and I think most of the investors didn’t even realize there is a sale that week. It’s the day after the 4th of July, so no one is paying attention. I showed up and only one other investor was there bidding against me. That worked out well.
Since then, it’s rare to find a good deal at the foreclosure auction. Prices are pushed up higher than I want to pay, and you have to be really, really careful too because, one, in Colorado, you have to have your cash there two hours after you bid. I bought that house for 134,000. I had to bring 134,000 cashier’s check within two hours or else they would give the house to the next higher bidder.
Every state has different laws. Some states make you bring cash with you or cashier’s check that total the amount you want to bid. Others give you weeks to bring your money in. It just all depends on your state laws. With most properties, you’re not guaranteed clear title. You may not even be bidding on a first deed of trust, which means there could be a second loan in place that you’re responsible for if you don’t know about it. No inspections obviously. Sometimes you can’t see in the houses. You’re just kind of guessing on what you’re buying.
If I’m having to pay more money for those auction properties than what I can get on the MLS or through other sources and can’t see the property and I don’t have guarantee title, that makes it even less sense for me to buy from those auctions. It really has to be a good deal to buy from there.
There are other auction sites, like hubzuauction.com, homesearch.com, Xome, which is X-O-M-E, Williams & Williams, Hudson & Marshall. Oh! I forgot the other one. I’ll put it in the show notes what the other one is. Sometimes they have good deals. They’re always foreclosures. Around here, the deals have almost completely dried up because there’s almost no foreclosures in Colorado, but I’ve bought a lot of houses from Hubzu. Bought a couple from the other sources, but primarily Hubzu is my best source for getting deals. They’re kind of a hot mess to work with, but that’s one reason why I can get good deals. Their title company is not the best put together. Their auction process is kind of weird, and it’s really frustrating dealing with them. A lot of people won’t deal with them, and that’s why you can get good deals because there’s less competition.
Hubzu has been great when they have inventory. I’m going to go through how to buy from them in my coaching program in detail. What to look for, price changes, when to submit bids, negotiating with them. There’s all kinds of things I’ve learned over the years about Hubzu. Yeah, I think in one year I bought six or seven properties from them, although lately, like I said, there’s almost no foreclosures, so they don’t have much inventory in my area.
All right. Another place where I have been pretty successful recently is buying from wholesalers. There are probably 10 bad wholesalers for every good wholesaler you will meet, and it’s very frustrating for investors. I talked to a lot of investors who say the same thing about wholesalers as they do from the MLS. Just like, “Hey, there’s no good wholesalers in my area. I can’t get a good deal from them.” I can see why they say that, because you talk to so many wholesalers who talk a big game and never send you a deal, or the deals they do send you are not deals at all. You have to be really careful with wholesalers, and it takes a lot of work to find the ones actually doing deals.
Some tricks to finding good ones. I know a lot of people say go to a real estate investor meet ups. You can find wholesalers there. In my experience, most of the wholesalers there are brand new, don’t know what they’re doing, don’t have many deals, but that doesn’t mean that all of them are like that. Once in a while you can find a good wholesaler there. How I like to find wholesalers is find the ones who are marketing, who are spending money to get deals in your market. That means look for bandit signs. Those little signs you see in the street or in yards that say we buy houses. Call them up. Tell them you’re looking for deals. If you own rental properties or flips now, you may be getting postcards in the mail from people wanting to buy your properties. Call them up. See if they have other properties to sell you.
Look for the billboards. Look for advertisements online for people who are buying houses. Look for anything you can see where you can tell someone it’s trying to buy houses. They’re using the for cash, no closing costs, no agents, whatever it is. Those are usually wholesalers or flippers who are trying to good deals. A lot of times those wholesalers will sell those properties to other investors even if they’re flipping houses. Sometimes they may have extra deals to sell to other investors. Call those numbers. Talk to those people, network. That’s the best way to find wholesalers.
Another way I have found wholesalers is by being a real estate agent. I’ve had a couple of wholesalers who simply called me up or emailed because of an agent and they said, “Hey, I’ve got these deals. We’re willing to pay a commission if you add it on to the price if you have more buyers.” I’m like, “Hey, I’m a buyer myself.” That’s how I found the wholesalers who I bought something like six properties from last year. Maybe it’s more than that. Quite a few, just because they sent a mass email out to every agent in the state and I got on their buyers list.
Don’t be frustrated by the wholesalers you see around who aren’t doing deals. Look for the ones who are actually doing those deals by seeing who’s spending the money on advertising. That’s how you’ll find them. When you buy from a wholesaler, it’s a little tricky. You have to have cash or financing that can happen very quickly. A lot of times you don’t get inspections. A lot of times they want answer right there. You got nonrefundable, and it’s money deposit. Once in a while the deal doesn’t go through. Sellers back out. They find tax liens or something they don’t know about. Something happens.
Once you get a deal under contract with the wholesaler, it’s definitely not a done deal until it closes. If you are working with a brand-new wholesaler who doesn’t know what they’re doing, you may have to walk them through the process of selling a house and make sure nothing gets messed up. I did that on a deal last year where a brand-new wholesaler did his first deal. He wasn’t really sure about the contract, how to do anything, had some hiccups, but it worked out well.
Actually, I ended up working with the seller. He is working with more than he did, and because of that the seller and I have built a rapport. We’re talking to each other. That seller referred me another house I bought this year. That kind of moves me into my next topic of networking. How to get deals from networking? The first thing to think about with networking is you have to do business the right way. You can’t be screwing people over. Trying to save a nickel here or a dime there, lying to people, trying to hide things. That is not a good way to do business, and it will cost you money in the long run, because people will not want to work with you.
Another reason why I have people sending me deals and have done so many flips is because people trust me. I do what I’m going to say. I don’t back out of contracts, and they know I will follow through with what I say I’m going to do. If you build yourself a good reputation as someone who does what they say they’re going to do, don’t back out of contracts, don’t play games. You will get more deals, and those deals will be worth much more money than the hundreds of dollars you’re re trying to save by playing games. Do things the right way. For example, on the referral I had from the property I bought from a wholesaler. They wanted to rent the house back for 30 days. The wholesaler never told me this until I signed the contract. I agreed to it, because there’s no other way I was going to get the deal. They put down a security deposit. When they moved out, they left the house a mess, but they still wanted their deposit back. I could’ve easily said, “No. You don’t get it,” but it was still a good deal for me. They had mentioned they know people who want to sell. I decided, in the name of good business and possibly getting more deals in the future, I will give them back their deposit even though I didn’t have to. I gave them back the deposit. A month later, they send me a text and say, “Hey, our friend wants to sell. Can you talk to him?” We met the friend, ended up buying that house as well.
By giving back a $1,200 deposit, we got another deal that will make $30,000. Doing business the right way, doing things you don’t have to do often will make you more money in the long run. That’s the first thing about networking is to build a good network, to make friends, you have to do business the right way and help others out. You can’t be selfish and trying to suck every penny out of a deal. I have had other agents, like I said, bring me deals before they were listed multiple times, because they know I do what I say. I’ll close out inspection. They’ll have no hassles.
Lenders have sent me deals before. Other sellers, like I said. Anyone you work with if you network with them; doctors, lawyers, lenders, insurance agents have sent me deals. Let them know what you do. Let them know you flip houses. You’re always looking for deals, and depending if you’re an agent or not, there are laws about sending referral fees, but a lot of times you can pay them a referral fee if you’re not an agent. If you are an agent, maybe there’s other ways to do it, but where you can reward them for sending you deals.
One of my contractor sent me a deal. I tell them, “Oh, hey if you find vacant houses, let me know. If you know people who want to sell, let me know.” He found me a deal on Facebook marketplace, awesome. I’m going to give him $500 when that deal closes for finding that. All they did is send me a text saying, “Hey, check out this property,” and now he’s looking for deals all over the place for me. He gives sending me more and more properties. Nothing else has worked out, but it’s awesome to have other people working for you to send you deals and you’re not doing all the work yourself or spending money on it.
Treat them right when you’re networking with people. Make sure you reward them if they do find a deal that you can buy, and then don’t be afraid to tell everyone you know. You’d be surprised how we people know of houses or people who are wanting to sell, but don’t have their house listed, don’t want to use an agent for whatever reason. A lot of people are hesitant to say, “Oh, I flip houses or I buy. I’m looking for houses to buy.” They feel a little slimy. You shouldn’t, because you’re helping out people. Some people don’t want to sell house that’s a mess. They don’t want it to be shown. There are a lot of people out there saying how horrible we are for buying those houses, stealing houses from little old ladies, things like that. But I’m very honest, very clear about why I pay what I pay. What market value is. The work that’s needed, and I’m making a profit. That’s why I’m in this business, is to make money, and when you explain that to people and be honest with them, some of them are like, “Okay. Thank you. I’m not interested in that, but I appreciate you being honest with me and I see what you do.” Others will be like, “Sure. Great. That’s exactly what I want. What price do we need to sell that?”
Just be confident when talking to sellers who are off-market or from referrals, whatever it is. Be honest with them. Tell them you’re making money, what you’re doing, and if it’s a good deal, great. If it’s not, move on the next one.
All right. Another way that I have bought deals this way are for sale by owners. There are people who want to save money by not using a real estate agent, not paying commissions. I believe they are not saving money by selling with that tactic, but a lot of people think they are. I always use an agent to sell my houses even if I was not an agent myself and saving a commission, I would still use a real estate agent to sell my houses, because I think that 2% or 3% or whatever commission you are saving, a real estate agent will make that up in a heartbeat by marketing it right, putting it in the MLS. They’ll reach more buyers. I always use a real estate agent, but some people don’t, which is opportunity.
I bought a house from Zillow. Actually, that was two weeks ago. I bought a house from Zillow that was for sale by an owner. It was listed for 199,000. It was probably worth 235 or 230, so I’m like, “You know, it’s a kind of a good deal, but not that amazing.” Then a couple of weeks later I saw the price was dropped. It was down to 179,900. Like, “Ooh! That’s a pretty big price drop. That’s a good indication they want to sell it fast.”
So I met the homeowner, actually his son who’s living there. Saw the house. It was not in bad shape. I’ve got a video of it on YouTube. Have videos of almost all of my flips on YouTube. Just search InvestFourMore on YouTube and you can find me or search for Mark Ferguson on YouTube and you can find me. I talked to the occupant who is the son, he said, “Hey, I’m just showing it. If you want to negotiate, talk to my dad.”
Talked to the dad for a little bit, we ended up texting back and forth. I love buying property through text. I think I’ve bought four or five properties by texting people. It’s so much fun. We started negotiating. I had offered something like 152, and he came back at 165, something like that. We talked about the roof, different things. He’s like, “Okay. Let me get the roof checked out and I’ll let you know.”
We ended up getting a deal done at 157. Yeah, simple. He left it clean for me. It does need some work, but not a ton of work. We’re working on it right now. Again, same thing, dealing with a seller directly. I was honest with them. Told them what I was doing. The repairs it needed, the work it needed, what price I get paid. He was cool with it. He didn’t have to pay any commission or real estate agents, and he didn’t have to do any work to the property. It worked out great for me.
Now, if you would have listed that house with an agent, he probably would’ve sold it, foreclosed to that 199 and made more money, but some people don’t like agents and don’t want to use them, so that I can be opportunity for investors.
Other places you can find for sale by owners; Craigslist. One of the wholesale deals I bought, the wholesaler found it on Craigslist for sale signs and yards, advertisements on sale by owner sites or the local paper. A lot of FSBOs, a lot of for sale by owners overprice their homes. There aren’t great deals, but, hey, you’ve got to try, and it’s a numbers game. The more people you talk to, the more listings you look at, the more offers you’re making, the better chance you have of getting a deal. A lot of FSBOs I talk to want to much money. I’m honest with them, say, “Hey, I won’t work for me,” but once in a while you find one that does work. That’s another way to get a great deal.
All right. The last way I’m going to talk about on this show is direct marketing. I’ve talked about this before quite a bit. I’ve bought three houses in the last three months from direct marketing. Been really, really successful campaign. I’ve sent about — I’d have to check. 4,000 letters out in my first campaign, and that’s where those three deals came from. I have a couple of more deals that may work out as well, but nothing signed yet. These are great deals. The thing I really like about them is they don’t need that much work, at least the couple I have. Bought two, fixed them up, put them back in the market. They’re both under contract now. When I bought for 110, and we have it under contract, it’s 210. Another one I bought for 210 and it’s under contract for 278 in that range. Both, you know, one needed much less work than the other one, but both, really easy rehabs. Could get them done quick, and I love that.
It’s been fantastic using the direct marketing I’ve used a company that’s helped me create the letters, create the notes. They even answer phone calls for me, which makes it so easy for me, because I don’t have time to answer my phone. I hate answering my phone anyway, so even if I did have time, I probably wouldn’t do it. So much better with someone else answering it and figuring out the list for me, figuring out the marketing, all of that. It’s been fantastic.
Some things to think about when you’re doing direct marketing — What is direct marketing? You’re marketing to people who might want to sell their house, but don’t want to list with an agent, don’t have it listed with an agent for whatever reason like we talked about before. You can send letters to different lists, absentee owners, elderly, inherited properties, tax liens. There’re all types of lists you can send to. You can drive around looking for vacant or dilapidated houses and try and talk to those people or send them letters or market to them. You can market to pre-foreclosures, people who might be going to foreclosure or in foreclosure who might want to sell their house. All types of way to use direct marketing. You’re basically trying to buy a house, it’s not listed, without agents.
What we did, I do some drive for dollars, send letters to people. Also, do the absentee list, and we’re working on some different lists as well to send out the letters to. We sent out the letters. That’s where those three deals came from. Very unique letters, very cool. I can’t talk a whole lot about it, because it’s proprietary stuff, and the company doing it for me won’t let me talk about it, which I totally understand, because it’s really cool. Really cool letters, I get people to open them. Really short, nice notes as well that aren’t slimy and lying.
I get so many postcards myself on my properties and half of them are those third notice postcard that says, “We’ve e been trying to reach you for weeks and you won’t answer your phone. We need to talk to you about your house,” blah-blah-blah. It’s all just a big — Pretty much misleading postcard with a little bit on buying a house on it.
I know that postcard works. That’s why so people do it. I actually used it a little bit when you first started out, because someone told me to, but you get so many mad people calling you, so many angry calls. With the market I’m using now, we get very few angry people. Just once in a while someone is like, “Hey, I’ll sell my house for $2 million,” but it’s about 100,000. Really, the letters, high-class, legit and I feel much better sending it out than some of the other stuff.
They have a call center, not only a call center, but people who answer the phone. Trying to get as much information they can, then they send me notes on what people are trying to sell for, what the house is. Any information they can so I can call them back and talk to them myself, set up appointments and trying and get the deal.
It works out super well. If you want information on that company, email me, [email protected] We can start a Facebook group page. I know a lot of you emailed me about for people looking to work with them, because it is kind of a very small company, just starting out and they don’t have a lot of space and room for more people to work with, but they are adding people slowly. Yeah, send me an email, [email protected] if you want more information from them.
If you join that group, by the way, you get my course on how to find a deal for free. That is included. Yeah, lots of great information on there on wholesaling as well, because a lot of the guys in that Facebook group are wholesalers. That’s what they use their direct marketing for, and the guy who created that marketing, I think he’s bought over 50 houses this year already and he’s like 23 years old. It’s crazy. I think about what I was like at 23. I’m like, “Man! You’re on top of things.” I was not on top of things at 23.
All right. That’s all I’ve got for this show on how to find a deal. We went through quite a few different techniques that I’m using. I know there’s other ways out there too, but having just a bunch of different ways to find deals is really the best way, because like I said, even with me, I have a ton of success on MLS some months, then it’ll will completely dry up and I’ll get nothing. Then I’ll have a wholesaler send me a bunch of deals that I’ll get, then they’ll dry up, or there’ll be more buyers in the list who are paying more from me and that wholesaler will dry up.
The direct marketing is really nice, because it’s pretty much how much ever material you send out. You know you’ll get a certain amount of leads and probably a certain amount of deals from it. It’s not as much about the MLS having deals, or the wholesalers sending you deals, or auctions showing up. You’re in more control of the direct marketing, which I really like. I cover all these in a ton of detail. Like I said, I’ve got detailed long videos on every single one of these. How to work them? How to use them? As well as other resources on the little course I put together for finding a deal.
Like I said, I’ll have links to it on the show notes. If you want to check it out, use deal 50 to get half off right now. Yeah, that’s about it. It’s on my resources page. It’ll be on the shop, the shop\investfourmore.com, something like that. I’ll have the link to it. There’s also a link from my site, investfourmore.com to the shop. I’ll make sure you can get there. If you have any questions about anything, you can always email me, leave a comment on this podcast below too if you’re on the page, and thanks for listening. We’ll have another show next week. Yeah, welcome to fall. We just got our first snow in Colorado, so it’s starting early here.
All right, bye everyone.