Sometimes it can be, and seem like you are doing nothing but spinning your tires and climbing up hill when trying to find good real estate investment deals. However, there is hope. As long as you stay focused and don’t give up, sooner or later you will get your first or next real estate investment. Just how to go about this and make it easier is what I will touch on here and hopefully keep you motivated.
Don’t Give Up On Your Marketing
I’ve been in the same place that you are right now, “when will I find a deal”? It can really run you down and almost enough to make you loose hope and wonder if you need to find another occupation. I’m here to tell you though that if you give up, more than likely your next deal was just right around the corner.
Paul Esajian from Fortune Builders (one of my favorite blogs for real estate investing) has some really good tips and thoughts on this:
2. Give Your Marketing a Chance
It can be frustrating, when trying to get your real estate investing career off the ground, to endure the many stops-and-starts that come from marketing for real estate deals. Though we’d love to able to predict with absolute certainty what the results of our marketing will be, it’s not always a quid pro quo — do “this” and “that” will happen — situation. This requires we approach our marketing with patience, focus and more than a little innovation.
Key things to keep in mind include:
Not giving up too early: Just because those 10 bandit signs you put up over the weekend or those 50 direct mail postcards you sent out last month didn’t yield any instant leads, doesn’t mean that the entire campaign should be scrapped. It’s important to give each form of your marketing — whether Facebook Ads or Craigslist posts — a chance to work its magic.
Know what’s working: Again, it’s all about the numbers. What’s your conversion rate? What’s your cost per lead? Which marketing sources create the best, most profitable leads, and which provide very little return on investment (ROI)? Many times what you don’t do is just as important as what you do do when it comes to marketing.
Always be testing: Unfortunately, there is very little “set it and forget it” when it comes to marketing. You must always be attentive to how a marketing campaign is doing, and whether there is any way that you can improve it, even on a small scale. Will a change in copy (or color scheme or subject line) make a difference? Change one thing at a time and track your results. This can often reduce marketing cost, and make the slightest difference between profit and loss.
Good advice from the Pro’s. One thing I want you to take away from that is the amount of bandit signs and direct mailings he mentioned – 10 and 50. Those numbers aren’t very big at all. I suggest that you should be doing at least 25 bandit signs and a few hundred mailers. This will greatly increase your odds of finding a deal.
If you have the time put out 20 to 40 bandit signs. This can be more of a time commitment than with mailers. The reason for that is because in most cities now you have to put out your signs on Friday night, then pick them up Sunday evening because of code enforcement. Most municipalities will not allow you to have bandit signs out during the week and will fine you. So because you have to pick them up, it’s much more time consuming.
However with mailers you should be able to do a lot more than 50. If you are purchasing lists, more than likely it’s bigger than 50. Go ahead and hit the entire list to increase your odds of finding a deal.
Have You Tried Wholesalers?
This is sometimes overlooked by investors. Why not connect and network with wholesalers? I know, some people don’t want to pay any extra than they have too. But if you find a good real estate wholesaler, then there will be plenty of meat left on the bone for you. That means that even after you pay them their markup there is still plenty of money for you to make after repairing and selling a property.
There are lots of ways to connect with other wholesalers. First, look for bandit signs and contact them, see if they have a deal for you. Next your local real estate investor association. All of the major cities have multiple associations that you can attend and just network the room and let other investors know you are looking for good deals for yourself. And of course, don’t forget the internet. Just do a search for “wholesale real estate deals” and you will find a few. Just don’t forget to do your due diligence before purchasing any investment property.
Summing It Up
Whatever you do – don’t give up! There are deals out there, even with the market as strong as it is. Take Paul’s advice and also network with other investors and you will be sure to come up with a deal before you know it.