Welcome to another in-depth look into the world of real estate! This blog post is perfect for anyone curious about the strategies and technology driving successful real estate acquisitions, especially in wholesaling. We'll take you behind the scenes of the groundbreaking app DealMachine, which has revolutionized the way investors find and close amazing deals.
The Power of Technology in Real Estate Investing
In today's digital age, leveraging technology in real estate investing isn't just an option; it's a necessity. The use of innovative tools like DealMachine can significantly enhance your acquisition strategy and income. DealMachine is designed to help investors and wholesalers streamline their processes and maximize their profits by identifying potential properties and accessing vital contact information.
Wholesaling Real Estate: The Basics
Wholesale real estate is a popular business model among new and seasoned investors alike. Essentially, it involves finding a run-down or distressed property, negotiating a purchase price, and then selling the rights to purchase the property to an investor for a fee. This fee compensates you for the time and effort spent locating the property and securing the deal.
Advantages of Wholesaling
- Low Start-Up Costs: Unlike traditional real estate investing, you don't need a significant capital outlay.
- Quick Profits: Transactions typically close faster, allowing for quicker returns on investment.
- Skill Development: Wholesaling helps develop critical skills like negotiating, marketing, and understanding market values.
The Origins of DealMachine
David Lecko, the CEO of DealMachine, initially created the tool eight years ago. At its core, DealMachine is an app designed to assist real estate investors in streamlining their property acquisition processes. Since its inception, the app has helped users close over 10,000 deals across all 50 states.
David's Journey
David's foray into real estate and software development began soon after college. With a background in engineering from Missouri S&T, he developed a recruitment software for fraternities, which he sold for $10,000. This experience laid the foundation for his future ventures, including DealMachine.
An Inside Look at DealMachine's Capabilities
David was recently interviewed by a DealMachine member at a conference in Tampa, Florida, attended by top house flippers. During this interview, David shed light on some of DealMachine's innovative features and future plans.
Key Features of DealMachine
- Unlimited Contact Info: Unlike many skip tracing services that charge per lookup, DealMachine offers unlimited contact information. This feature is included in the app's monthly subscription, starting at $99.
- Accurate Homeowner Data: DealMachine's unlimited contact info boasts 50% more accuracy and is instantly available in every lead card, eliminating the need for conventional skip tracing. When traditional services fail to find a match, DealMachine provides a list of all individuals with the same owner's name in the U.S., prioritized by likely matches.
- Automation and Integration: The app allows for automatic mailing of postcards and pinning properties, significantly reducing manual work.
"The best way to learn is from somebody who's two steps ahead of you." – David Lecko
The Real Estate Market: Then and Now
David's experience highlights the evolving nature of the real estate market. Originally, he was told that the opportunity for finding good deals had passed post-2008. However, David's journey and the evolution of DealMachine demonstrate that opportunities abound if one knows where to look and how to leverage technology effectively.
Staying Competitive
Innovation is crucial for staying ahead in the real estate investing game. DealMachine continues to grow and improve, driven by user feedback and constant updates. The app's development team listens closely to its members and rolls out thoughtful updates every three weeks to ensure the tool remains user-friendly and effective.
Real-World Applications
David advises newcomers to real estate investing to focus on "driving for dollars"—finding distressed homes and connecting with their owners. This method remains one of the most effective strategies for wholesaling, and DealMachine simplifies the process by providing comprehensive tools in one app.
Future Goals and Continuing Education
David's commitment to innovation extends beyond DealMachine. He is passionate about continuous learning, both in business and his hobbies, like race car driving. He emphasizes the importance of giving 100% in all endeavors, whether it's a high-stakes race or developing new features for DealMachine.
Conclusion
In the ever-evolving landscape of real estate investing, leveraging innovative tools like DealMachine can significantly enhance your success. Whether you're a seasoned investor or just starting, the app's features and continuous improvements offer a competitive edge. David Lecko's journey from a college graduate to a successful tech entrepreneur in real estate underscores the transformative power of technology and determination.
For those interested in diving deeper into wholesaling and real estate investing, check out the DealMachine podcast with over 190 episodes of valuable insights and advice.
For more information, visit DealMachine, and don't forget to subscribe to their podcast for the latest updates and strategies in real estate investing.
About Benjy Nichols
Benjy has been a media specialist at DealMachine for the last 2.5 years. He produces, writes, shoots, and edits our media content for our member's DealMachine and Real Estate education.