In this episode, I continue my month long All-Star Q&A Series. All month, I am asking some of the most incredible real estate investors that I have interviewed over the past seven months questions that I commonly get from new real estate investors. This is an incredibly powerful series and I am really excited to bring it to you. We are continuing the series with the following question: what is the best strategy for finding deals?
Justin starts his answer off with making it very clear that he doesn’t like the way the question is phrased. He much prefers to talk about how to create a deal rather than how to find a deal. This is a very important distinction. I’m really glad that Justin brought this up. Deals are not necessarily found. They’re not sitting out there for you to stumble upon. Deals are created in one of many different ways:
Networking with realtors and finding one or two that you are able to work with well: Justin’s realtor has done 100 deals or more with him at this point. He is a very integral part of Justin’s team. It is a good relationship because they each only make money when the other is doing a good job.
Finding a good wholesaler: When working with wholesalers, look out for things like overinflated ARVs. Some wholesalers will try to take advantage of the fact that you are not experienced. You should obviously never work with anyone who tries to take advantage of you. Justin made it very clear that when you do find a good, honest wholesaler, you should treat them well and always try to make sure that they are making enough money, so that they are happy to continue to bring you deals. Justin also gives a very solid piece of advice: he strongly urges you to do what you say you’re going to do, and always try to exceed expectations.
Direct marketing: Send letters or postcards directly to the homeowners and work with motivated sellers.
In the end Justin stresses the importance of creating relationships with people who have the ability to either bring you a deal or to sell you their home. It’s not easy, but the people who put the work in usually reap the benefits.
You can find Justin at: www.houseflippinghq.com