Real Estate is a numbers game. The more sellers you talk to and give offers, the more luck you will have to find great deals. Never be desperate to buy real estate and always have a pipeline to find deals. My real success came when I could call from my pipeline every day and have many deals come in front of me including commercial and residential real estate! You should be proactivity calling every day for 2 hours a day and build a pipeline of at least 500+ sellers. These are actual leads where the seller is looking to sell the property, but deep motivation may come later so you have to follow up.
Steps To Start Finding Deals
- Driving for Dollars – CHEAP
- Craigslist – FREE
- Facebook – FREE
- For Rent by Owner – CHEAP
- Website – LOW COST
- Cold Calling – LOW COST
- Driving for Dollars
Driving for Dollars is a strategy in which you drive in areas that you want commercial real estate deals at. Collect the addresses of distressed commercial real estate while you drive the area. I would use Deal Machine, an app that records the routes you drive and collect addresses. Deal Machine is not free, around $100 per month, but totally worth it! I personally would not use the 99 cents per address in Deal Machine to find the number and use an outside source like Fiverr to hire assistants who can skip trace the address. Fiverr is a website where freelancers can post gigs with lots of cheap work due to freelancers being in a low GDP country. Skip tracing the list from a freelancer in Fiverr and cold call the list. If you have extra money, I would highly suggest using a virtual assistant from Fiverr to cold call! Don’t just collect addresses, but also collect phone numbers from for sale by owner or for rent by owner signs!
Use my links 😉
Deal Machine (affiliate link)
Get $10 of direct mail credit w/ promo: HTDCCD https://dealmachine.com/?promo=HTDCCD
Fiverr (affiliate link)
I love Craigslist because it is FREE! Craigslist is classified as advertisements and has a site for major cities. Search for commercial real estate property owners in real estate or business section of whatever city you are interested in. All you need is a computer and a phone. But be warned, most CL leads will not be motivated in beginning but get much more motivated in a couple of months or years down ahead. Use search tags like commercial real estate, property, business, specific commercial assets (gas station, warehouse, office, rv park, etc….).
I know you got to be using Facebook! Stop being used by Facebook and start using it. Look for leads in the real estate for sale (marketplace) on Facebook. Just like craigslist, the leads will not be motivated until later on the process since they are actively trying to find buyers in the beginning. Do not just call for real estate for sale. Call people who are selling the business too, as they may know the owner needs to sell or are the owner of the property. Use search tags similar to the ones used for Craiglist.
- For Rent by Owner
Not as obvious as collecting “for sale by owner numbers” while you drive, so I made “For Rent by Owner” as a source. While driving for dollars, collect every sign that looks like an owner renting a property out. Call everyone and ask if they are open in selling commercial real estate. If not, try to determine if the person you are talking to is the owner. If so, now you got a lead for a lifetime and always follow up with the seller even if the seller says no the first time! Remember the goal is to build a huge pipeline and help distressed owners when the time comes. This is a great way to gain leads as many people do not target owners who are trying to rent their properties and ask them if they would sell.
Create a website that attracts sellers to find you and send a request on the website to give an offer for their property. SEO is search engine optimization which determines how well your website is ranked online. SEO does not happen overnight and takes months for your website to get ranked on the internet. Depending on how hot the market is, it will typically take 3 months to 1+ years to get ranked. I would make individual pages for each market and each commercial asset class.
I use Carrot for my websites. Carrot is a company that specializes in creating websites for real estate investors and agents. My cost is around $150 per month for 3 websites. Other plans cost $49 (1 site) and $99 (3 sites).
Carrot (affiliate link)
Shark Home Buyer (my seller’s website, commercial and residential)
Investment homes for sale (my buyer’s website, commercial and residential)
If you are looking for discounted real estate, commercial or residential, please do sign up so I can add you to my buyer’s list.
- Cold Calling
Cold Calling is exactly what it reads, you are calling people out of the blue (cold) to ask if they are open to selling their property. This is not easy and lots of rejection will be received from people. The best results stem from the quality of the list you are calling. For example, calling a list of people that you received by deal machine from collecting distressed properties will probably provide better results than calling random numbers. Stay tuned, I will release a blog on how to get a quality list at great prices to cold call. Personally, I do not cold call but have a group of virtual assistants who do the cold calling for me.
I would use a customer relationship management software (CRM) like Podio to organize the leads as it does get overwhelming if you are using excel. There are many more ways to fill the pipeline, but the ones I explain above are my favorite. Other ways include postcards, referrals, bandit signs, google ads, facebook ads, Instagram ads, and much more! These are much more time consuming and expensive for someone who is just starting out. I personally do not like doing mailing and bandit signs. I would, however, use ads on different social media if you had a good amount of money to lead generate.
You must be consistent to build a pipeline. A pipeline will not be built overnight but will take several months. Finding deals is nothing wrong. If the seller is in a situation, you must take action to buy a great property at a steep discount. Take action now and go find yourself some real estate deals!
Best Quality Investment