Need to Find More Real Estate Deals? 5 Expert Strategies
With nearly two decades of experience in real estate investing, starting with my first investment property at age 19—a property I still own today—I’ve learned a thing or two about sourcing great deals. Whether you’re a seasoned investor or just starting out, finding properties that align with your investment goals (your “buy box”) can be challenging in today’s competitive market. Below, I share five proven strategies to help you uncover more real estate deals, backed by my experience and industry insights.
1. Find a Full-Time Realtor Specializing in Investment Properties
One of the most effective ways to find deals is to work with a knowledgeable, full-time real estate agent who specializes in investment properties. Unlike residential agents focused on primary homes, investment-savvy agents understand metrics like cash flow, cap rates, and return on investment (ROI). They can source deals that fit your specific criteria, saving you time and effort.
In my career, I’ve sold hundreds of investment properties, and my success is reflected in my client retention: by my fourth year in the business, 80% of my transactions came from repeat clients or referrals. Why? Because I consistently delivered deals that met their needs.
How to Choose the Right Agent
- Test Their Knowledge: Use investment-specific terms like “cash-on-cash return,” “ARV” (after-repair value), or “BRRRR” (Buy, Rehab, Rent, Refinance, Repeat) in conversation. If they’re unfamiliar, they may not be the right fit.
- Ask About Their Investments: Inquire if they invest in real estate themselves and what their portfolio looks like. An agent who invests understands the market from your perspective but ensure their buy box doesn’t directly compete with yours to avoid conflicts of interest.
- Look for Experience: Seek an agent with a track record of working with investors. Ask for references or examples of deals they’ve sourced.
Resource: The National Association of Realtors (NAR) offers a Find a Realtor tool to locate agents in your area. Filter for those with designations like Accredited Buyer’s Representative (ABR) or experience in investment properties.
2. Network with Other Real Estate Investors
Networking is a goldmine for finding off-market deals. Over the years, many of my best deals came from relationships with other investors. When they come across a property that doesn’t fit their strategy—say, it’s outside their preferred asset class or location—they’re often happy to pass it along, especially if you’ve built trust.
How to Network Effectively
- Join Local Real Estate Investment Associations (REIAs): These groups host meetups where you can connect with like-minded investors. Share your buy box and build relationships.
- Attend Industry Events: Look for real estate conferences, workshops, or seminars in your area. Platforms like Meetup or Eventbrite list local real estate events.
- Leverage Online Communities: Join forums like BiggerPockets or Facebook groups for real estate investors in your market. Engage in discussions and share your expertise to build credibility.
- Offer Value: If another investor shares a deal, consider paying a referral fee or reciprocating with leads of your own. A win-win approach strengthens relationships.
Pro Tip: Always follow up after meeting someone new. A quick email or coffee meeting can turn a casual connection into a deal pipeline.
3. Drive for Dollars to Find Hidden Opportunities
“Driving for dollars” may sound cliché, but it’s a tried-and-true method for finding off-market properties. The idea is simple: drive (or walk) through neighborhoods, looking for signs of distressed or neglected properties—think overgrown lawns, boarded-up windows, or faded “For Sale” signs. These properties often belong to owners who may be motivated to sell.
How to Drive for Dollars
- Target Specific Neighborhoods: Focus on areas that align with your investment strategy, such as up-and-coming neighborhoods or areas with high rental demand.
- Take Notes: Record addresses, property conditions, and any visible contact information. Tools like DealMachine can streamline this process by providing owner information and tracking leads.
- Reach Out Tactfully: Use public records or skip-tracing services like PropStream to find the owner’s contact details. Send a polite letter or make a courteous call to inquire about their interest in selling.
- Be Persistent but Respectful: Some owners may not be ready to sell immediately. If they decline, ask if you can follow up later or if they know anyone else looking to sell.
Mindset: Rejection is part of the process. The worst outcome is a “no,” but the best is a deal no one else has access to.
4. Master the MLS for Consistent Deal Flow
The Multiple Listing Service (MLS) is the most robust source of real estate deals, despite what some investors believe. Foreclosures, short sales, estate sales, and motivated seller listings all appear on the MLS. The key is to treat it like a full-time job: always be looking.
How to Leverage the MLS
- Set Up Alerts: Work with your agent to create customized MLS alerts for properties that match your criteria (e.g., price range, property type, or distress signals like “as-is” listings).
- Analyze Efficiently: Expect to review 100 listings to find 10 worth visiting and one or two worth pursuing. Use tools like Realtor.com or Zillow to preview listings and narrow your focus.
- Look for Keywords: Search for terms like “fixer-upper,” “motivated seller,” or “estate sale” in listing descriptions to identify potential deals.
- Act Quickly: Good deals don’t last long. Be ready to tour properties and submit offers promptly, especially in competitive markets.
Resource: If you don’t have direct MLS access, platforms like Redfin provide near-real-time listing data for free. For deeper analysis, consider subscribing to PropStream or BatchLeads to identify motivated sellers.
5. Tap into Wholesaler Lists for Off-Market Deals
Wholesalers can be a valuable source of off-market deals, but quality varies. A good wholesaler negotiates contracts on distressed properties and assigns them to investors like you for a fee. While the hit rate may be low—perhaps one good deal per 100 listings—getting on the right lists can uncover gems.
How to Find and Work with Wholesalers
- Build Your List: Search for wholesalers in your market through Google, social media, or investor meetups. Ask for recommendations from your network.
- Vet Their Deals: Request proof of their track record, such as past deals or testimonials. Ensure they’re transparent about the assignment fee and property condition.
- Stay Active: Wholesalers prioritize investors who respond quickly and close reliably. Check their emails regularly and act on promising leads.
- Negotiate: Don’t be afraid to counter-offer if the numbers don’t work. A good wholesaler wants to close the deal as much as you do.
Resource: Websites like MyHouseDeals or Connected Investors aggregate wholesale deals in many markets. Use them to supplement your local wholesaler relationships.
Final Thoughts: Always Be Looking
Finding great real estate deals requires persistence, strategy, and the right partnerships. By working with an investment-focused realtor, networking with other investors, driving for dollars, mastering the MLS, and tapping into wholesaler lists, you’ll build a robust pipeline of opportunities. The key is to stay proactive—adopt the “always be looking” mindset and align yourself with experts who understand your market and goals.
For more resources, check out BiggerPockets for educational content, PropStream for lead generation, and your local REIA for networking opportunities. With these strategies, you’ll be well on your way to finding more deals and growing your portfolio.