If you don’t know how to find off market deals, you’re going to waste too much time competing on the market, which could cause you to overpay the real estate game. However, if you get it right, you’ll never be at a loss because off market is where all the money is. This is true regardless of your asset class or exit strategy. So, stay with us and learn why it is important to learn how to find off market deals, where to look for them, and how to keep getting them over and over again.
What You Will Learn About How to Find Off Market Deals:
- The book suggestion
- Why it is important to learn how to find off-market deals
- Where you can’t find them
- The elements you need to look for as you are searching for a discounted deal
- How to find the property owners with problems
- How to approach them
- Why you should strive to automate your efforts and the ways to do it
- What approach worked for Matt
- The real estate bottom line
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Matt Theriault: Yo check one, two y’ all. This is Flavor Flavor. My man Matt Theriault, yo, and you are listening to The Epic Real Estate Investing Show, you know what I’m saying? And if you can’t learn to invest here, I can do nothing for you man. This is Theriault Media. [Song plays 00:00:26]
Yeah. Hello everybody. Big shout out to Flavor Flavor, a big shout out to Michael Myers. I hadn’t heard the whole version of that intro in quite a while, I just felt like giving it a listen. Actually, I’m away from the office on personal family business and I’m having some professional withdrawals, but I am limited with my resources out here in the mountains, so I’m working with what I’ve got. And by the time you’re hearing this, I will be on my way back home and won’t be playing this so many encore episodes like I have been and I won’t be doing that for quite a while. So I tried, I did try to pick the very best ones for you, but we should be all brand new moving forward.
Alrighty. So, and speaking of that, did you catch Friday’s episode? The science of getting rich in real estate. I haven’t heard that since I recorded it. I don’t know. That was probably three, four, maybe even five years ago. What a good message. If you missed that one, go back and listen to Friday’s episode, only four minutes long. And you know, that that message, it was all based on one of the oldest personal development books ever published, excluding the Bible of course. And that was Wallace Wattles, The Science of Getting Rich, I think it was written in 1910, highly recommended read. And it’s a short read, it’s an easy read and a very compelling and inspiring read. So thanks for tuning in and we’re going to be talking about finding off-market deals. And before we get started, I just wanted to welcome you to The Epic Real Estate Investing Show. This is the show where we help people everyday people get tips, strategies, and tactics to escaping the rat race using real estate.
And if you’re just getting started and you’re looking to take down that first deal, I’m working with a small group of investors inside of a pilot program around what worked really well for me in the beginning and it’s now working really well for them. So if you want to see how it works and what’s involved, go to freerealestateinvestingcourse.com, got a little web page there, designed it myself actually, and if you like what you see, there are some instructions there on how to join the party. Alrighty. Now let’s talk about how to find off-market deals. And the operative word there is off the market because if you can’t do this, you’re going to be paying way too much for real estate and competing with the market of which could cause you to overpay in many cases as well. But if you get this part right, you’ll never be at a loss of how to make money in real estate because that’s where all the money is gotten. It’s in finding the deal and it doesn’t matter what your asset classes, it doesn’t matter whether it’s single-family or multifamily, or storage facilities, or mobile home parks, or vacant land.
And regardless of your exit strategy as well, doesn’t matter if it’s wholesaling, or fix and flips, or buy and holds, or lease options, or notes, you see, what they all have in common is you have to be able to find the deal first and the best deals are going to be found off-market. Listen, if you’re on social media like I am and I’m not even on that much anymore, and like me though, you’re probably noticing a new real estate guru in your newsfeed daily. In fact, I think I saw two new ones just today and they’d be happy to take your money in exchange for their educational program to show you how to do deals their way. But where so many of them fall short is how to find that the deal. You’ve got to find the deal first before you can do the deal.
You see as much as people like to complicate the process of real estate, it’s actually pretty simple. Here it is. Step one, find off-market deals. Step two, sell them to people that can’t find these types of deals themselves. Now everybody knows the second step is easy. You know, if you’ve got a good deal, there’s no shortage of people ready, willing and able to pay you for it. You can do that part in your sleep. But how do you find the off-market deals in the first place and continue to find them over, and over, and over again? Well, it’s really simple. There’s a system for it. There are no gizmos required, there are no gimmicks, there are no shiny objects, just the nuts, and bolts of finding off-market deals. And here’s where off-market deals are not.
The multiple listing service, no deals there, no off-market deals there. Auctions, Aureos, classified ads, certainly you can find deals there of course, and working those sources consistently with persistence and tenacity can often lead to off-market deals, you know, indirectly. And for that reason, they can certainly be worth your time and even enough to support a lucrative, successful real estate investing business. But the deepest discounts and the most flexibility in terms will lie within the off-market deals. And to find off-market deals, you’ve got to look off market, you’ve got to go straight to the source. The property owners themselves before they go on the market. Now just finding a seller before they make their sale public doesn’t mean there’s going to be a discount to be had there. There’s a second element that is needed.
The seller needs to have a problem greater than the need to get top dollar for their property. That’s a mouthful. In short, you just need a property owner with a problem to find deep discounts. And the types of problems that are most common are divorce, death, disease, drugs, job loss, bad tenants, property tax, delinquency, deteriorating property, and those are just some of the problem sellers can have on any given day. That’s how I know that there will always be a business to be had, there will always be money to be made in real estate, because unfortunately those types of things, and we’ll just call it life, life happens to people on a daily basis and it happens to property owners as well, they aren’t excluded. So they can happen on any given day. So who’s not motivated today could very potentially be motivated tomorrow just because that’s the way life works.
So how do you find these property owners with problems? Well, there are many ways to do this directly and indirectly, but the most common ways would be through strategic relationships, such as with a divorce attorney, or a CPA, or a city official. You know, anyone who would come in contact with or be privy to property owners with problems. You know relationships, those are free by the way, they take time to build but can be worth millions when nurtured authentically and sincerely. That’s where most of the deals I do today come from the relationships that I built years ago. And really when I say that I can pick up the phone and essentially find a deal that’s going to work for me. That’s not too much of an exaggeration, in fact, it’s not an exaggeration at all. Relationships are very powerful and a great way to find off-market deals. They take time to build for sure, but they can be worth, it can be worth, they can be like a cash register almost when you nurture that relationship authentically and sincerely.
Another way to find property owners with problems is to take a trip down to the courthouse and look through the public records, such as the divorce records, or the eviction records, or code violations, or probate records, bankruptcies, and those too, for the most part, are free. You know, different cities and counties, they’ve got different policies and how they make their public records available, but for the most part, like building relationships, it’s going to take your time and your effort to do that.
Now the third way to find off-market deals is to simply buy lists, purchase lists of property owners with problems. Some of you didn’t even know that existed. You can just go out and buy a list of property owners with problems. Yeah, pretty much so, that’s pretty much the case. You know, a simple Google search of marketing lists will turn up countless options, or you can get more specific with your search and Google out-of-state property owner mailing lists, and if you’d like to take a look at the services that we used to do this, you can go to buyheregetmore.com, buyheregetmore.com. Like, buy, like purchase here. So buyheregetmore.com and this is where we’re now keeping our list of services posted for your reference. If you want to know what we’re using, that’s where you can go and you can see, and nothing shows up on that page there by the way, other than the services that we have used and we’re happy with.
All righty. So now, you know the three most prominent ways to find property owners with problems. You have through relationships, you can go to the public records, or you can just flat out buy the lists. But now you’ve got to talk to them and you’ve got to tell them about your solution to their problem. That’s the second part. Once, one, you’ve got to find the problem, second, you got to promote your solution and you’ve got to be able to determine whether or not they’d be willing to exchange some equity for peace of mind. That’s how you buy properties at a discount. You exchange equity for peace of mind, meaning you are sharing your solution to their problem, that gives them peace of mind and for the people or the property owners with problems will be happy to exchange equity for that peace of mind. You just can’t put a price on a good night’s sleep. You know what I mean?
And so, there’s no real secret here, right? You can one, initiate that contact by knocking on their door or calling them on the phone, or you can two, advertise and market to them and wait for them to contact you. And some of the more popular ways of doing this is through a direct mail, bandit signs, digital marketing, there are probably countless ways of how you could market your solutions and countless ways of how you could spend your money on marketing and advertising. So those are the two ways. The first two steps of finding these off-market deals are one, to find the problems, two, promote your solutions. And the third step would be to automate the two. That’s step three because it’s through automation that’s going to create consistency, that’s where the system comes in, and through consistency of these two steps, that’s going to produce consistent opportunity of locking up off-market deals.
So to create automation, there are two ways you can pay for it. First, with your wallet, you can pay for it with money. Or second with your time and your effort. So to pay for it with money, it would come through what I basically just mentioned earlier, or just over a second ago, schedule your direct mail for six months at a time. That’s automated, right? So you schedule it, set it and forget it and for six months, that mail is going to go out consistently. Or you can hire someone to put out your bandit signs on a regular basis. Like every weekend on Fridays, I’m going to give you 100 bucks to put out 50 bandit signs, something like that, or hire an agency to run your digital marketing campaigns for you. To pay for with your time and effort, that’s going to look a little bit different.
You can exercise the daily discipline of knocking on doors or making phone calls, basically turning yourself into this disciplined automated cold caller or something like that. And that’s something that’s free to do or something that’s virtually free to do, place magnet signs on your car when you drive around town because wherever you drive, your message automatically is going to follow you. Or wear your company name and phone number on your clothes, like on your tee shirt, or an “I buy houses” tee shirt with “ask me how” on it. Because wherever you go, there’s your message, it’s automatically following you everywhere. Or wherever you go, carry a book about real estate with you, for sale by owner books really work, really, really well.
And I used these three right here, these three lastly that I just shared with you religiously in the beginning because I didn’t like knocking on doors. I did that for about six weeks, it was my goal to knock on 100 doors a day, I did it for six weeks and I hated it. And there was just no way I was going to, they were going to get one day more out of it than six weeks out of me because I’d had it.
And not to say it doesn’t work, and not to say that aren’t people that aren’t successful at it, it just didn’t work for me. It just didn’t fit my personality or my tolerances, it didn’t fit my strengths I guess. I don’t know, it just wasn’t working for me. And I didn’t like cold calling either. I just don’t like to bother people. I don’t like to be bothered, so why would I want to make a living bothering people? That’s how I felt. And I’d rather just have people initiate the contact when they’re ready they call me and then I’ll be happy to help them, I’ll help them all day long then. But I didn’t have a marketing budget, in the beginning, to make that happen, the wait for them to contact me. So I was my own marketing.
People would call the phone number on my car magnet, people would ask me how when they read my tee shirt, people would ask me about the book I was carrying. How does that first sale by owner thing work? Or are you thinking about selling your house? I was thinking about doing the same thing. Those types of conversations would just happen because I was my own automated marketing machine. The bottom line is, this is a people business and it’s a big advantage if you make it easy for people to talk to you, you’ve got to make it easy for people to approach you and talk to you. And that’s essentially all the different ways of how you find off-market deals. You find the problems, you promote the solutions and you automate the process. So if you want to crush this real estate investing business, keep listening to this show, subscribe so you don’t miss an episode. And if you want to go fast, go to reiace.com. All righty, God bless and to your success. I’m Matt Theriault, living the dream.