“I've been sending out direct mail and added 645 properties, but I still haven't gotten a deal. How do I get my first deal?”
That's a recent comment from one of our members in the DealMachine Facebook Community Group.
Since it's something a lot of investors want to know- I thought I'd answer here as well.
The most successful real estate investors are doing a few .
Make sure you do all of these to land your first deal.
5 Steps To Find Your First Deal
1. Don't give up! Consistency is key!
Plenty of our members say this was the number one thing that made the difference. One person said it even took him 9 months to get his first deal, and now they're flowing more naturally. So don't give up!
A general rule of thumb- contact at least 300 property owners to get a deal, and 1,500 in hotter markets like LA. Everything else in-between is a sliding scale.
2. Have confidence when taking pictures.
There's a joke saying "if you don't get pulled over by the cops while driving for dollars, you're doing it wrong."
That said, there's a reason why it's important to look confident while taking pictures. You don't want to appear like you're up to no good while slowly driving by a house.
You can put a sticker on your car to let people know you're an investor, or wear a professional polo with your company name on it while driving. Have proof that you're not just being sketch and scoping out a good time to break in and steal something.
3. Know what to look for in a lead, and narrow them down so you can get a deal with less spend.
If you're driving for dollars, looking for a distressed property... it's not going to do you any good if you're adding a property to your list that doesn't make the cut.
Knowing what to look for is an important first step to getting a deal. Things like- falling gutters, broken windows, stuffed mailbox, tall grass, etc.
Also, if you're using list engine... you can use that to increase your chances of finding a seller that's motivated!
You can draw a box around the area of town you're interested in... and then click a filter. You can filter by vacant property, absentee owner, taxes owed, etc. You can take it even a step further to REALLY up your chances of getting a deal by logging the lead in DealMachine's free CRM software for real estate and tracking your lead's progress over time.
For example, if you want to find an absentee owner who also has 50% equity and hasn't sold in a while, you can do that. Which drastically increases the chances the absentee owner you contact is likely to sell.
4. Set Your Expectations - Know how much you'll need to spend for how long to get a deal.
5. Know what to say on the phone. This is scary for a lot of newer investors. We go over all of this each day on a free training call, where you can get all of your questions answered.
Get the DealMachine App
Once you identify distressed properties that are ripe for deals, use the DealMachine real estate management software to stay organized, follow up, and send mailers. For your best chances of success right off the bat, follow our “Distressed Formula” by finding 300 properties and sending three postcards apiece. Try it out with a free 7-day trial of DealMachine.