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MASTERING CONSISTENT �DEAL FLOW

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“Be A Problem Solver and Entrepreneur, Not Just an Investor”�-Rod Khleif�

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The Importance of Building Relationships

Real estate is a relationship �driven business
It’s impossible to do it alone and unnecessary
This is a team sport

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Foundation of a �Successful �Business �Relationship

Rapport

Commonality

Trust

Respect

Overall “I like this person”

People only do business with those they like

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Utilizing Brokers

One good broker can make you wealthy
Ask the good ones to refer you to other team members you’ll need for your team.

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Finding Brokers - LoopNet

Multifamily for sale

Find a broker who has several properties for sale
Can also reach out to large RE brokerage teams.

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Script

Hello, my name is _____, and I’m an investor out of “your city”, how are you today?

I’m calling in regards to one of your LoopNet listings. It’s “Shady Oaks”…Is that property still available?

Great, I definitely want to see some more information on that. Before you send that, I do have a few quick questions.

What’s the story on this property? Why’s it for sale?

Interesting, this sounds like it has potential. Here is my contact info:

Also, do you typically list properties similar to this one? �My partners and my criteria is “_____”, and we’re currently looking �to acquire several properties within the next year. Feel free �to send anything similar, I’ll be sure to get back �to you as soon as possible.

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Valuing Brokers – Following Up

Most people never follow up
Say why the deal didn't work for you with specifics from your analysis
Refresh their memory on your exact investment criteria
Respect the broker’s time
Set yourself apart

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Brokers – Consistent Communication

Every few weeks email or call your broker(s)
Maintaining the relationship is key
How do you set yourself apart?
Goal is to get off market deals

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Online Sites

“LoopNet is the place deals go to die”

(not true)

Look for what others have missed

Could you increase income or decrease expenses?
What expenses are high?
Management overpriced?
Are the rents at the current market rate?
What’s the area’s vacancy percentage?

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Example: 24 unit near Tampa, FL
Listed on LoopNet for almost 3 years
Didn’t have any info or even rent amounts listed
Very little info because sellers were in their 90’s
Determined rents were $150 below market
Expenses were very high

Being overcharged on landscaping and maintenance

Huge value opportunity overlooked by thousands

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Other Online Sites

Other listing sites include

City Feet (cityfeet.com)
NAI Global (naiglobal.com)
The Commercial Investment Multiple �Listing Service (cimls.com)

Broker sites that have a high volume of properties

Marcus & Millichap (marcusmillichap.com)
CBRE (cbre.us)
Cushman and Wakefield (cushmanwakefield.com)
Coldwell Banker Commercial (cbcworldwide.com)

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Be on the Lookout for:

Abnormally low rents
Abnormally high or low �expense ratio
Expenses missing
Seller that has become increasingly motivated due to “stale” listing
Very little information available
The market’s vacancy percentage compared to subject property’s %
Overpriced management

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Property Management Companies

Property management companies speak with their multifamily owners at least once a month
They also know the property better than anyone, including the owner

The problem tenants
The most common maintenance problems
The best contractors
When the owner wants to sell
Know the “situation” of every owner and property

They know who wants to sell now
They know who wants to sell soon �(6 months – 2 years)
They know who will always sell if the price is right

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Auctions

Always listed significantly below market value
Usually below replacement value
This is by design to entice you to bid

Few things to be aware of:

Properties sold as is
Sellers can hide defects
No contingencies
Need financing lined up prior
Must have money ready prior
Online and Onsite auctions and sometimes webcast

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Auction Houses

Biggest nationwide auction houses

Auction.com / Ten-X (ten-x.com)
Tranzon (tranzon.com)
Treasury.gov/auctions
Williams and Williams (williamsauction.com)
Hudson and Marshall (hudsonandmarshall.com)
Albert Burney (albertburney.com)
Bill Fair & Company (billfair.com)
J.P. King (jpking.com)
Joe Roebuck (roebuckauctions.com)

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Direct Mail

Most well known marketing method
Best way to get mom and pops
It’s the most successful method for finding deals yourself

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Direct Mail

Motivation

Inherited property
Management problems
Divorce
Retirement
Out of state owner
Pre foreclosure
Poor health

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Direct Mail – Your Lists

You can buy your list

First American �(firstam.com)
Dunhill International List �Co. (dunhills.com)
Experian (experian.com)
List Source (listsource.com)
DM Database (dmdatabases.com)
US Lead List (usleadlist.com)

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Direct Mail – Your Lists

Build your own list
County assessors websites
Go to netronline.com

Click on public records online
This will give you a list of every �county’s assessor site

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Direct Mail

Property size to search for at assessors
Duplexes
Triplexes
Quads
5-10 unit
10-15
15-20
20 and up

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Direct Mail – Getting Around LLC’s and Corps.

Go to Secretary of State’s website
Locate online business search
Will bring up copies of filed Articles of Organization and annual reports
Find name(s) of managing members
Some LLC’s are managed by attorney
Search managing members names on free online searches such as White Pages or use paid skip tracing

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Direct Mail – The Letter

Typed
Can use mail merge
One page
Personalize by using owner name and address
Put property address in first paragraph
Put a picture of you and your spouse

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Direct Mail – Points to put in your letters

You could say you need to purchase a property in 30 days
You could say you really love (town name) and want to buy there.
You can save them the real estate commission
You can save them thousands of dollars in taxes

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Direct Mail – The Letter

Give them multiple ways to respond. Phone, email, contact form on a website etc.

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Sample Letter

Investor Needs to Purchase the Property Within the Next 30 Days

Dear “Owner Name”

I’d like to speak to you immediately to discuss your apartment building at “__” address. We are in the process of finding a building to acquire within the next 30 days, and yours is an ideal candidate.

We can save hundreds of thousands in taxes and real estate commissions. We can often pay full market price, and close quickly.

Time is limited, as we need to acquire a property within the next 30 days. If you have any interest please contact me at your earliest convenience.

I look forward to hearing from you!

Sincerely,

Investor Smith

Contact info:

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Direct Mail – The Envelope

Hand write all of our envelopes
Hire someone from Craigslist
Stay at home moms or people from VA, or can run an add on Craigslist
Companies that will do this as well

Click2Mail
ITI Direct Mail
Lob

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Direct Mail:�Repetition

We mail lists every 3 months

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“A Secret to Success in This or any ��Business is Being Willing to do ��What Other People Won’t”

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Q&A Time

Ask Questions

Clarify any concepts from today's session

Share Insights

Contribute your perspective on market analysis

Group Discussion

Learn from peers' questions and experiences

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Content Schedule

Access the full program calendar with upcoming classes and events & meeting Links.

https://www.addevent.com/calendar/oK860101

Call Recordings

Recordings of all scheduled calls and virtual meetings will be found in your online course portal

Resources & Call Recordings