This episode, I discuss the importance of becoming a lead machine. If you can find leads that turn into solid deals, the world is your oyster. Everyone is looking for deals; that doesn’t make you stand out. But if you have the leads that are actually going to turn into good deals, you hold the keys.
There is a debate in real estate that centers around what is more important: finding deals or finding money. Almost all real estate investors will acknowledge that both are very important, but what they don’t all agree on what should be done first.
I will say this: it’s very difficult to find money if you’ve never done a deal. However, it can certainly be done. There are always hard money lenders and banks that you can turn to fund your deals. Neither will fund all of your rehab, so you have to have that money, or partner with someone who will bring it in. But again, it’s difficult to find partners if you have no experience. So we get back to the original question: should you try to find money or deals first?
For the purpose of this episode, I am going to make the argument that it’s important to find leads first. When I say leads, I don’t mean crappy junk leads that a realtor can send you off the MLS. I mean really solid leads that turn into really solid deals. If you are creating quality leads that can turn into profitable deals you will be much sought after.
In this market, most real investors are having a hard time finding good deals. If you can be the source of those deals, you will have no problem partnering and working with people in this business. You will make money and you will find people willing to work with you.
I am not necessarily suggesting that you become a wholesaler. But if you can generate enough leads, you could eventually start wholesaling some of the leads that you can’t hand to other investors. Generate as many solid leads as possible, and you will be looked at as a person to be around in this industry. You will always find someone who is willing to buy a good deal from you. The real key and trick to this is to actually know the difference between a lead and a deal.
A lead is a dime a dozen, but a deal makes you money.