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EP30: How To Find Discount Off-Market Real Estate Deals - Rob Swanson
The REAL Wealth Formula Podcast
1 hour 26 minutes
2 months ago
EP30: How To Find Discount Off-Market Real Estate Deals - Rob Swanson
Are you a high earner still living paycheck to paycheck? This episode of The Real Wealth Formula is for you. Host Brad Hovis sits down with real estate expert Rob Swanson to talk about how to find and acquire off-market real estate deals. They discuss going beyond the traditional on-market approach and how to locate motivated sellers directly. Discover the strategies for finding distressed properties and turning those leads into successful investments.
Key Takeaways
Go Off-Market for Better Deals: Many investors only look at properties listed on the MLS. The best deals often come from off-market properties, which you acquire directly from the seller.
Direct-to-Seller Marketing is Key: To find off-market deals, you must engage in lead generation. This means finding property owners with a problem you can solve. Common motivations for selling include job transfers, inherited properties, or bad tenants.
Find Success by Following Clues: Don't reinvent the wheel. Look for areas where other investors are already active and making money. Start your search by building lists based on geography and then layering on distress signals.
Absentee Owners are a Goldmine: The most common lead for a deal is an absentee owner, someone who does not live in the property they own. This is often an investor or someone who inherited the property.
Layering Distressed Signals: Combine a list of absentee owners with other factors like "vacant house" or "out-of-state owner." This helps pinpoint sellers who are more likely to be motivated.
The Power of Direct Mail: Direct mail is a consistent and reliable way to generate leads. Using an "ugly" yellow postcard with different fonts and misaligned text can increase response rates by making the mail piece stand out.
Response Rates and Conversion: Direct mail response rates are low, typically 1% or less. The key is to focus on the small percentage of responses that show genuine interest. Once you have a lead, the real work is converting it. This requires strong sales skills to identify the seller's true motivation or "why."
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REI School
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