February 2017

The 5 Lead Sources I Used to Find My 5 Latest Deals

In the good ole days of real estate — like 2008, 2009, and 2010 — you could pretty much pick up a rock, throw it in any direction, and hit a good deal.

Cheap real estate was EVERYWHERE.

However, things have changed dramatically.

Finding a deal through a real estate agent is tough. So I had a couple choices: I could sit around and wait for the next real estate crash, or I could get creative and find some different ways to find properties.

So I shifted my lead acquisition strategy, and it worked. Today, I don’t rely on just one method for finding deals — I rely on several. And I recently discovered that my latest five deals all came from completely different sources. So today I wanted to share with you what those five sources were.

1. HUD / MLS

So the first deal I’ll talk about came from the MLS — the Multiple Listing Service, which is where real estate agents post all the properties for sale.

I know I just said that I don’t get a lot of deals from the MLS, but this one is a little different. In this case, I bought a single family home that was a HUD repo. In other words, it was a foreclosure being sold by the United States Department of Housing and Urban Development.

The house was a classic “BRRRR” deal — buy, rehab, rent, refinance, repeat. It needed some work, so I was able to buy it for $70,000, put in about $30,000 worth of work, refinance it to get all my money back out — and now I’m sitting on about $60,000 in equity in that one property. Plus, I own a great cash-flowing rental in a great neighborhood. Thank you, HUD!

Related: 4 Simple Tips for Finding Incredible Real Estate Deals

Be sure to check out the latest HUD deals in your area by going to www.HUDHomeStore.com or simply talking with a local real estate agent.

find-deals-CAD

2. Zillow

The next property I bought came from Zillow.com. Now, I know Zillow often just lists properties already available on the MLS, but sometimes people post properties for sale by owner there.

That was the case with Bert, who had recently inherited a single family home and needed to sell quickly. After a little negotiation, we put the property under contract, closed on the deal, and are in the middle of the fix and flip right now.

3. Lead Gen Website

I have a pretty basic “I want to buy your house” website, but it works. In this care, Florence searched Google for “local house buyers” and came across my site. She called us up, we looked at the property, and we bought it a few weeks later. This fix and flip will likely become the most profitable I’ve ever done.

If you don’t have a lead gen website, don’t worry. It’s easier than it sounds. You can get a basic one using a site like SquareSpace.com or Wix.com, or you can opt for extra fancy and get some really great features with a company like LeadPropeller. And FYI — if you are a BiggerPockets Pro member, head to BiggerPockets.com/perks for discounts on LeadPropeller and other great services.

(Continue reading on BiggerPockets…)

4 Questions That Separate ‘Want’-repreneurs From Entrepreneurs

Michael Jordan once said, “Some people want it to happen. Some wish it would happen. Others make it happen.” Which kind are you? Do you take action to achieve your goals, or are you just waiting for what you want to materialize?

In other words, are you an entrepreneur or a “want”-repreneur?

Perhaps that’s an unfair question. After all, most of us can be a little of both at times. Some days, I’m an action-taker, and other times I realize that I’m dreaming but not taking steps to get there. So, how can you make sure you lean toward the “entrepreneur” side as often as possible? Easy — ask yourself these four questions.

1. Are you asking ‘if’ — or ‘how?’

There are few things in today’s world that simply cannot be accomplished. Everything else is on a sliding scale of difficulty. In other words, in today’s connected world, it’s rarely a question of “if” but “how.”

Therefore, if you want to move from want-repreneur” to entrepreneur, you must become someone who continually asks, “How?” rather than “If.” Because, asking the latter gets you nowhere: It allows your brain to simply say no.” It signals your return to evenings of Netflix and popcorn.

Related: Want to Be a Bona Fide Entrepreneur? Avoid These “Wantrepreneur” Habits!

Asking “how,” in contrast, gets your creative juices flowing and allows for solutions:

  • How can this business be built?
  • How can I raise capital?
  • How can I buy that commercial building?
  • How can I write a book?

By assuming that something can be done, you’re just a matter of time away from figuring out how to make it happen. For example, when I invest in real estate, I don’t ask if I can afford to buy a property; I ask, “How can I afford to buy?” That question has allowed me to acquire more than 50 rental property units, and I’m just 30 years old.

So, how are you going to reach your goals?

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2. Whom are you learning from?

Three times a week, I play racquetball at my local YMCA against my good friend Robert. Robert has played, on and off, for almost as long as I’ve been alive; naturally, he kicks my butt every game. So, why do I keep playing him?

Because I’m getting better. Sure, I could play someone with less skill, but I’ve had to ask myself: Do I want to win games, or do I want to get better? If I wanted the former, I’d play against my 4-year-old niece, Jada.

The same principle applies to entrepreneurship. While it seems silly to take advice from someone less successful, want-repreneurs do it all the time. They take money advice from broke friends and entrepreneurship advice from family members who have only ever worked a day job. Half of the advice is bad, and the other half is far too kind.

On the other hand, entrepreneurs look for those who are wildly more successful than themselves. They want their butt kicked because it means they’re growing. They want to suffer because they know suffering produces endurance, and endurance produces character.

(Continue reading on BiggerPockets…)