Feeding The Beast - 5 Ways to Find Great Real Estate Deals

By
Real Estate Agent with BMC Capital

I've been told time and again that the biggest challenge faced by commercial real estate investors is finding enough high quality investments to keep them gainfully employed.  A good friend of mine used to refer to finding new deals as "Feeding the Beast".  Without a steady deal-flow investors are faced with two choices.  They can either let their investment business starve, or they can choke their business by buying a less then stellar deal.  Neither of these are good options, so if you are planning on being a successful real estate investor you need to figure out how to keep the deals coming.  Here are a few ideas that I've used, or seen others use successfully.

Classified Ads:  One friend mine in the business keeps an ad in his local paper every week year round.  He has two variations that both seem to work pretty well.  He either states that he buys commercial real estate, or he states that he has money and is looking for partners with good deals.  This tactic has provided him with numerous deals over the years.

Networking:  I have another friend who is an unbelievable networker.  He tends to befriend people who are in the types of positions to refer deals to him.  He probably know half of the attorneys in his town, and he's working on meeting the other half.  I know that in 2008 100% of his deals came from networking.  Of course he does still look for deals other ways, but networking creates a very large portion of his deal flow.

Internet:  There are several ways to find deals online.  This ranges from trolling sites like loopnet and realtor to posting ads on craigslist or meeting sellers on Facebook or linkedin.

Direct Mail:  This is one tactic that I have used several times.  I have found that sending out a well written letter to a targeted mailing list causes the phone to ring for days.  If you are interested in mailing to owners in Reading, PA send me an email and I'll share my letter template and mailing lists.  I know some of you are thinking that I must be crazy to offer these tools.  I do happen to make my living by selling real estate, but I know that investors will always be looking for deals on their own.  I figure if I share my resources with you, and you find a deal that doesn't meet your criteria, maybe you'll refer the seller to me.

Brokers/Agents:  Many newbie investors believe that you'll never find a good deal through an agent or broker.  I used to be one of these newbies, but I have since learned that there are always great deals being marketed by professionals.  I think that all investors agree that great deals come form motivated sellers.  Well for me it's hard to believe that a seller ia very motivated if they haven't even taken the initiative to put their property on the market.  I think that the secret to working with agents is making a lot of offers.  Often agents will list properties for what the property is worth, not what the motivated seller might be willing to take.  One of the most successful investors I've ever met simply looked at lots of properties and made 10 offers a week.  A simple but extremely effective strategy.

Of course there are several other ways to find great deals.  What is your favorite strategy?

 

Posted by

Please note my blog and I have moved.  If you'd like to keep reading my thoughts on commercial real estate, please visit my new blog at www.CommercialMortgag.es or for info on self storage please visit www.usStorageNews.com.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Pennsylvania Berks County Reading Downtown
Groups:
1031 Investments and Ideas
Commercial Real Estate
Creative Real Estate
Investing in Real Estate
Investors
Tags:
commercial real estate investing
direct mail marketing
internet marketing
working with commercial real estate agents

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the robot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the robot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
75,613

Joseph Cacciapaglia

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tshirt to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information