Every real estate investor would absolutely love to find good multifamily deals without stress. The focus is always on improving their process in the system, taking advantage of opportunities. However, this is for people who have been able to study the market successfully, and after years of practice, you could call them pros. So, what about the beginners or students who are just trying to figure out how to get into the larger multi-family business? Those beginner investors whose main hold up is their deal flow? Well, if this correctly describes the real estate investment stage you’re in right now, then this article is for you. We’ll be talking about those foundational pieces you should have in place to get started on building your deal flow right now.
Tip #1: Do What Other People Aren’t Willing to Do
This seems like such obvious advice. That’s until you realize that most beginners are mirroring the same moves of others without putting in a personal touch. Now more than ever, you have to do what other people aren’t willing to do. A good example is working through brokers. Instead of taking that route, you have a better potential with going direct. What does this mean? Ensure that most of your deals are done by going directly to the owners of multi-family properties. Even Jacob Blackett was able to purchase a 50-year-old apartment this way, pretty neat. Keep your eyes out for properties with the “for rent” sign, and don’t be afraid to give them a call. You may think it doesn’t matter but eliminating any unnecessary middle man will increase your deal flow.
Tip #2: Leverage the Power of Technology
Just as we mentioned earlier, you need to interact directly with owners of multi-family properties. An excellent way to do this is to leverage the power of technology. We are basically holding terabytes of information in our smartphones. All it takes is a simple Google search and access to the right tools. If you know where to look, you will be equipped with all the information you need to have a fantastic deal flow. A huge part of your real estate investment journey involves finding the right property owners. You could simply buy a list of owners in a metro. It’s that accessible. Even better, you can gain instant access to owner details on several subscription platforms today. All you have to do is find the right software, and you’re good to go.
Tip #3: Don’t Run from the Tough Deals
According to the expert, Jacob Blackett, “In my experience, there’s always gaps.” He was referring to the fact that there would always be some sections in public record data that would have addresses without owners. In those cases, it’s extra difficult to figure out who owns the properties. Now, the instinctive reaction here would be to move on to complete details instead. Of course, who would want to go through all that trouble when there are easier options? The problem here is that you and thousands of other people are thinking this at the same time. The result: you all leave the tough ones, and too many people will be focusing on the others. But here’s a tip. Stick with the tough ones with no owners and don’t leave them because everyone else is skipping them. These are the ones that will give you a big-time opportunity when you finally crack them. Yes, it’s going to be tough but don’t move on from that deal. Most of the time, it’s worth it.
Tip #4: Use an Existing Firm as a Springboard
If you’re young and just getting started in the real estate industry, then you should consider using an existing firm as a springboard. It’s not as complicated as it sounds. In this case, a springboard simply means using a company to gather as much experience as you need on bigger deals. So, get familiar with the movers and shakers in your local real estate market. Be familiar enough to understand their business model and build a stable relationship where you learn all you can about them. You can identify serious investors with top-notch software like SyndicationPro, which saves you a lot of time.
Another option is to watch out for hiring positions and consider it as a foot in the door. When these companies have vacancies, even for interns, get in as this experience will be very valuable. It could be as little as six months to as long as 3 years. However, your time in this organization will help you understand all the moving parts and meet the decision-makers. Use this experience to get in and get going without feeling like you have to do everything yourself.
And that’s a wrap. Remember that you’re allowed to make mistakes but learn from them. Now, you’re ready to get out there and increase your deal flow.