Manage episode 278655669 series 1016666
David & I Discuss:
- How to Find Off Market Deals
- How to Build Your Best Lead List
- How Price & Competition in affects Your R.O.I
How to Find Motivated Sellers-Real Estate Podcast with David Lecko
David Lecko, founder of the Deal Machine app, joins us on the REI Diamond Show to discuss How to Find Motivated Sellers using techniques including driving for dollars, direct marketing to absentee owners and other sellers with distressed property. The Deal Machine is a driving for dollars app that allows users to simply enter a property address while driving through a specific neighborhood, which then processes the public record for the mailing address and triggers a sequence of direct mail to the property owner. In addition to the Deal Machine design and use case, David & I also discuss a few common questions investors have when seeking the best deals in real estate.
How to Find the Best Deals in Real Estate?
The best deals for a real estate investor to buy are distressed homes. In other word, you have to find deals on houses that need renovations. This is the real estate investors function in in society-to find distressed properties, purchase those properties, and complete a renovation. The end result is a renewal of the neighborhood.
We should identify what is meant by a "good deal" for real estate investors. Anyone buying a distressed property needs to know their numbers: What is the repair budget needed to renovate the property, what is the property worth when complete, and how much can I pay the current property owner for this house and still make a profit? The key here is PROFIT.
The best deals in real estate investing are done directly with property owners who are motivated to sell. This means they are motivated to sell for some reason, perhaps the condition of the house is very poor, or they have to sell very quickly to meet a deadline, or maybe their tenant has stopped paying rent and is squatting in the house. Whatever the reason, the motivated seller has decided they absolutely must sell their property.
So how does one find these motivated sellers?
Well, by marketing directly to them, of course. Investors & real estate agents often market directly to sellers they believe may have a motivation to sell. While bulk you can purchase a bulk list of motivated seller leads, such as a delinquent tax list from list providers such as PropStream, David describes the higher value of developing a list of much more specific properties by driving for dollars.
What is driving for dollars and how does it work?
Driving for Dollars is exactly what it sounds like. You're driving neighborhoods looking for distressed houses that would make a good deal for two reasons: the house needs work and the owner might be interested in selling their home. You can use the Deal Machine to track your route, instantly upload photos along with those specific addresses, as well as trigger your real estate marketing right from the road. Then anytime you need another deal, you simply trigger another round of mail to the leads in your Deal Machine App
What’s the Best Way to Find Motivated Seller Leads for Real Estate?
David's favorite method of finding motivated seller leads is to hire a team of hourly reps to continuously drive neighborhoods and add leads to his Deal Machine of distressed properties. You can quickly copy this scale strategy of driving for dollars by hiring your own team of drivers. Listen to the full REI Diamonds Show episode on the Deal Machine, Driving for Dollars, & finding motivated sellers here.
Relevant Episodes: (There are 171 Content Packed Interviews in Total)
- Owning & Operating 4,500 Apartment Units with Mark Kenney https://youtu.be/HUMlFhhN6vE
- Benefits of Scaling to $350 Million in Self Storage with Kris Benson https://youtu.be/oX4amIr6hJ4
- From House Hacking to $300 Million in Commercial Real Estate with Ivan Barratt https://youtu.be/Fl2IojDF0lI
Resources Mentioned in this Episode: