In this second of our multi-part “Getting Started” mini-series, we are talking about how to find deals. In a highly competitive market like Atlanta, how are we finding the best deals? It just seems like this space is crowded. I could just cry about not finding the right deals but you know what, I might just do that later. There is a lot you can do to find the deals you want instead of just scouring the MLS—if you’re willing to spend the time. So here are three of the major sources we use to find those amazing deals.
Wholesalers top the list
The first step is really network with wholesalers. Wholesalers are a fantastic source for property because they are the guys and gals who have their boots on the ground every day. They’re the ones knocking on doors saying, “Hi. I want to buy your house.”
What better way to get in touch with amazing inventory and buy amazing inventory then building a good relationship with wholesalers? I can’t think of one.
I love wholesalers. They’re the ones out there, spending money doing everything you need them to do. That’s why they’re paid a premium when they find a house for you. Do I care if the wholesalers make $5,000, $10,000, $15,000, $20,000, $30,000 $40,000, $50,000, $60,000 $70,000 off the deal? No, because if my numbers work then guess what? We have a deal and that’s all I care about.
Wholesalers are the life blood of my business. As much as you think I was going to say probate leads, short sales, sheriff sales or courthouse steps, you didn’t expect me to say wholesalers. They are a fantastic source, an incredible source of good, hot real estate leads. If you can convince them you are the 100 percent, go-to buyer in that market, they will be feeding you deals all day.
I do something a little special for my wholesalers. I give them a whole lot more than what normal buyers would. I give them a website, I give them email addresses, I give them a lot. I really care about them. I really spend a good amount of time with them, whether it’s having coffee or grabbing a drink. But it’s about getting to know them as people. You don’t want to discount them. They’re humans just like you and I are. They’re people too.
Solve a problem, find a deal
A second source of great deals is probate leads. I love going down to the city, taking pictures of all the records and getting scrub data of a person who has passed away. Here is the petitioner, here’s the attorney, here are the heirs, and I contact them, saying, “Hey listen, I understand there has been a death in the family and I understand there may be a property you want to get rid of so you can move on.” It is a tough situation, it’s an emotional situation for most folks. But you know what? Not only are you solving a problem, but you’re also finding a deal. And that could be worth a lot. Not only to you but more importantly to those family members who are currently dealing with a major crisis.
I love probate leads. I love them because I love giving back and I love helping as much as possible. There is nothing more satisfying to me then helping a family get out of a stressful situation. That is the second way I find deals.
An unexpected source of deals
This third way I am going to share with you is also one you may not expect: agents. I know you feel like I’m saying the craziest obvious stuff: wholesalers, probate leads, agents. “Really, Abhi? Where’s all that secret, secret, secret sauce you’re stashing away?” Well, I do have a couple others and they’re coming in the future parts of this series. But the top three are wholesalers, probate leads and agents. Build these leads and you will win, I promise.
The secret with agents, as with wholesalers, is really getting a feel for them. I share my knowledge and my understanding of the market with them. They’ll start opening up to you, too. Keep in mind, they want to do more business, which means more money in their pockets. So you want to be able to convince them, like wholesalers, that you’re good. Say something like, “Hey listen, I like that area. I feel like that beltline in Atlanta is expanding here, here and here. I know this area hasn’t really come up yet. But I don’t mind buying-and-holding a little while. Do you have any pocket listings, do you have anybody who’s thinking about selling maybe not right now, but maybe in like six, seven or eight months? If that’s the case, just let me know ahead of time and you’ll still get your commission. Let me know in advance and I’ll see if the deal makes sense so you don’t have to waste anybody’s time or list it on the MLS.”
And sometimes, agents will want to see proof of funds or want to meet you. They’ll want to get to know more about you. Awesome; provide them with that. If you can’t really provide a proof of funds go to your lender and say, “Hey, I need a quick proof of funds to show my agent that I’m serious.” They’ll be more than happy to provide it for you.
If you need any help with that or if you have any questions about proof of funds just ask. If you have questions about having a conversation with some of these folks, whether it’s with a wholesaler, an agent, going down to the city or to the county and understanding more about the probate process, call or email me.
We will be talking more about this but for now, I wanted to give you a quick overview of the top three ways I am finding my deals. And really, I’m flooded with deals. Just with these three. It’s crazy. If you build it properly, if you’re genuine and honest, and you’re having good conversations with people, it’s going to go a really long way to help you find deals that make sense for you. That’s the most important part; I love that.
Those are three ways we’re crushing it and finding deals in Atlanta, Charlotte and even in St. Louis. It’s crazy. I don’t even know why I didn’t talk about this: St. Louis is another hotbed of activity. And my way of getting into the market is talking to agents, builders, developers, contractors and wholesalers – who are easy to find using Google. You can also go to BiggerPockets.com and get on different forums. You can start calling some of the agents and saying, “Hey, my name’s Abhi. I’m calling form Summit & Crowne, from “Real Estate Deal Talk,” and I’m looking for the best agents I can work with in St. Louis, in Atlanta (or whatever city you are focusing on). I’m looking very specifically for renovation deals. Or, I’m looking very specifically for rental properties. Can you help me?” And a majority of them will, especially if they know you’re serious.
Keep all of these things in mind as we get ready for the next installment in our series, in which we talk about how I evaluate real estate rehabs.
You can see this full video episode here:
https://www.youtube.com/watch?v=fJeyMdc3ws4&feature=youtu.be
About the Author
Abhi Golhar is the host of “Real Estate Deal Talk” and Managing Partner of Summit & Crowne. Abhi uses a “value-added” approach to invest in real estate renovation, new construction and development opportunities in the Southeast United States. He actively educates and works with investors to deploy market-driven strategies that yield success. He holds a B.S. in Electrical Engineering from the University of Michigan. You can find him on Twitter, Snapchat, and Instagram – @AbhiGolhar.
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