Various Routes to Acquire Real Estate
It’s no secret that real estate has provided financial freedom and generational wealth for most millionaires. The different real estate routes have attracted potential investors for decades, so it’s essential to be creative when reaching out to homeowners to purchase their property. We live in a world where we adapt or get left behind; just like anything else in life, the real estate industry continues to grow and transform. Over the years, most industries and businesses have switched to the internet rather than the previous standard methods of conducting leads such as mailers, word of mouth, or posters. Although it’s essential to consider every route to attract sellers, some techniques produce more results than others! This blog post is dedicated to the different methods to acquire real estate.
Utilizing Online Real Estate Services
Within the last few years, most investors have changed their focus on the methods to acquire real estate. Different online services and applications, such as prop-stream generate leads for potential sellers. Propstream is becoming very popular, and it’s a service that allows you to initiate potential leads and accurately skip trace the homeowner. A system that covers every step in locating and acquiring real estate is highly beneficial, saving time and energy. Prop-stream is a paid service that resembles MLS (multi-listing services) without the requirement of obtaining a license to be a real estate agent. A downside of prop-stream will be the “rehab costing” calculator; this service will not provide the most accurate construction costs, so be cautious using this aspect of the application! Overall, prop-stream is a beneficial service that allows investors to participate in real estate without obtaining a real estate license.
Dialer Services and Skiptracing
Another aspect of acquiring a property will be a dialer system/service to reach potential property sellers. Once the leads are generated, it’ll be time to cover the leads by contacting each homeowner. A popular dialer service that most investors use will be the Mojo dialer. Mojo is a multi-line dialing system that allows users to reach up to 300 contacts per hour on the three-line system with automatic voice mail drop. In addition, Mojo dialer has marketing options and an option to send a mailer/postcard to the potential seller directly. Still, most companies utilize their services simply for skiptracing and dialer.
Marketing Using Social Media
One of the most readily used methods for finding investment properties outside the MLS is direct marketing, such as online advertising. One of the most popular methods for investors to acquire investment properties will be to run google ads or marketing campaigns through social media platforms. When you conduct paid ads and promotions, you can directly reach out to the homeowner by targeted ads. Google ads seem to be the most productive considering it’s linked to Google searches; this is beneficial because the potential client goes to the search bar on Google to find results. The potential seller will type in specific keywords or terms directly connected to your ad, allowing users to see what they searched for during their online session. This method also allows the investor to find a potential seller motivated to sell the property. Additionally, running ads through google or other social media platforms allows for more website traffic which strengths your website’s algorithm while earning your company more attention!
Drive for Dollars
The term “drive for dollars” refers to the concept of driving or walking around your ideal investment area, collecting addresses for properties to market to that fit your criteria. It’s a simple, cost-efficient method; you’ll gather addresses to place into an excel spreadsheet to skip trace the property address to determine the owner’s name and phone number. Some investors choose to record additional information beyond just the address, including the overall condition of the property and possibly even a photo of the home. Driving for dollars can be time-consuming, but it may lead to a potential deal if a seller is contacted at the proper time. Some indicators to consider while searching for a distressed property to acquire would be overgrown grass and bushes, deteriorating exterior, code enforcement violations, boarded-up windows, or mail piled up at the front door. Another benefit to consider while driving for dollars is the tax deduction; you’ll be able to deduct the expense of mileage and gas costs from your yearly taxes.
For Rent Signs and For Sale By Owner
A great way to locate and acquire investment properties will be contacting homeowners with signs posted on the property that states for sale by owner or for rent signs. Usually, for purchase by the owner, signs indicate that the homeowner wants to avoid the hassle of selling property the traditional route on the market, which is time-consuming, requires repairs and will cost six percent of the total sales price for agent fees/commissions. These properties are typically excellent for investors because they need renovations or room for profit. The theory behind focusing on properties that have for rent signs; landlords who aren’t using the most popular listing sites to rent their properties, such as Zillow, Craigslist, or MLS, are probably older or less tech-savvy, which means there’s a decent chance they may be looking to sell and avoid managing rental properties and being a landlord. Just like any other method to acquire property, this way should be considered and at least attempted!
Treat Referrals Like Gold
It’s highly recommended referrals for acquiring property, and it’s an excellent method to generate leads. Over the last few years, Buying Property 215 has built relationships with homeowners, and these relationships have allowed us to gain extra leads. It’s a simple concept, conduct good business, and individuals will complete more business with you in the future. We’ve had individuals we worked with within the past bring us friends or family members properties they desire to sell; the trust is already established, so it allows for a smooth transaction from start to finish! Most investors offer a referral of five hundred dollars, and we believe in going above and beyond, so at Buying Property 215, our referral consists of between two and four thousand dollars; this amount provides more of an incentive to conduct real estate transactions with our family-owned real estate company.
Utilize An Agent
A proven method to acquire real estate in any market will be to use a licensed real estate agent. There’s a list of pros and cons to utilizing an agent to achieve properties. Some investors tend to avoid using agents to finalize a transaction because of the agent commissions and fees; personally, if you’re not an experienced investor, we recommend using an agent simply because of their knowledge of the market along with their solid connections within the industry. Another positive aspect when using an agent is that as a buyer, you’ll be provided a property disclosure of any possible issues and the ability to conduct inspections compared to an off-market-as-is sale. Not every agent has the same credentials and experience, so choose your agent wisely, or the simple mistake may cost you valuable time and money.
Conclusion: Understand The Business
There are numerous methods to acquire real estate for rentals and fix and flip opportunities, but nothing else matters if you’re not adequately able to run the real estate comps. It’s essential to understand your market and conduct the comps properly; this skill is vital to conserve your efforts and not waste the seller’s time. If you don’t properly understand the real estate industry, search for guidance, either find a proven experienced mentor or a licensed real estate agent. If you’re searching for a general contractor to finish the renovations, verify that they’re licensed and insured also compare estimates from at least two different companies. The real estate industry is not simple, and daily, investors lose money if they don’t make the correct moves.