What is the best way to find deals if you are just getting started? What if you don’t have money to spend? If you are new to flipping and you have more passion than you do cash, we have a few tips to help get you started.
TIPS:
- Get involved in the Real Estate Community.
Go out and network and real estate networking events, talk to agents and anyone willing to help you. How do you meet that agent? Most of us know a realtor, or someone who knows a realtor right? Be straightforward with them, it may look something like ‘I am young, I want to flip houses. Will you help me learn what I need to know?’ Tell them your vision and ask them if they want to work with you. It can be a win/win for both of you.
Finding the right agent willing to show you the ropes and help you get your first flip is a great way to get started. Maybe you find a newer agent that isn’t highly experienced but is hungry for commission and will work as hard finding homes as you are working to flip them.
Counting on someone else to bring you deals does have its limits. So by all means network, it is great and costs you no money. The only guaranteed method however, is putting in the work yourself. The best way to put in the work when you are starting that costs no money, is:
2. Driving for Dollars
Driving for dollars is a method of finding leads by driving around neighborhoods with an eye out for distressed properties. You can do this the old fashioned way using a pen and paper to write down addresses and it will cost you no money at all. If you want to spend some money for technological shortcuts, I recommend buying the app Deal Machine. It allows you to ping properties and it will give you all the necessary details associated with the properties. You can pin properties and export it directly to an excel sheet. It even helps you plan your driving route. Drive for one to two hours every day and you can generate hundreds of leads. If you don’t buy this app you get the details by:
3. Skip Tracing
Skip Tracing is sending off an address to a website like batchskiptracing.com to get all the info (numbers, emails) associated with the property. You may receive 100’s of numbers and you need to call them all. If you have extra cash, I recommend getting a dialer like Mojo Dialer which calls three people at the same time and whoever answers the phone is who you talk to.
4. Making Contact
You have to get over your fear of those first phone calls. They get easier and easier the more you make the calls and have the conversations. Have the mindset, ‘I am really trying to help these people out of challenging situations.’ You get deals and contracts by really desiring to help people. People connect with sincerity, not tactics. Listen for what their needs really are and how you can solve their problems.
Pro Tips:
- Drive around on trash day, the houses that don’t have trash cans out are a clue that the house may be vacant.
- Look for physical clues for run down houses; long grass, weathered paint, boarded up windows.
- Start getting creative about how you can manage Driving for Dollars (you can for example ask an uber driver to give you a lead and offer them five hundred dollars if it sells).
- If you get many numbers back when you skip trace a house, call the first 3. You may get tons of numbers and information, be smart and persistent. You have to put in the time.
When you are just starting out, there is plenty of opportunity if you put in the work.
Make the phone calls, make the offers, because the rest is just procrastination.
This is an on the ground, person to person process. Don’t get stuck in analysis paralysis!
What should people watch out for or avoid when they are starting out?
The number one thing to avoid is allowing your pride to hinder you from asking questions. Get yourself a mentor to help you break down the numbers with your first house. Don’t be afraid to ask questions from people who are more experienced than you. If there is something you don’t understand about the process, ask! It could save you thousands of dollars. Use other people’s experience as you are growing your business.
Join our free Facebook group here and ask any and all questions!
There is a lot of opportunity out there right now, so don’t waste any more time!
