Finding Deals - How To Find Great Deals As a Real Estate Investor
According to the "Millionaire Real Estate Investor" book with Gary Keller, which interviewed real estate investors, they found that millionaire real estate investors found deals in the following ways:
- 32% of deals come from networking
- 28% come from real estate agents and the Multiple Listing Service
- 10% came from driving and walking
- 9% came from newspaper ads
- 7% came from foreclosure listings
- 4% came from For Sale By Owners
- 3% came from the Internet or Database Research
- 2% came from targeted marketing
- And 5% came from other sources
So, when you look at the above, do you see that there are quite a few different ways to find great real estate deals?
Between networking with your dream team and people you know and a good real estate agent, you cover 60% of the deals that millionaire real estate investors find.
I spend quite a bit of time teaching real estate investors of to do targeted marketing to find motivated sellers, but having a great agent and some networking will get, according to the book, 30 times the results!
So, I started to do some deal analysis of properties that are listed in the MLS to help investors around the country find great deals from just full price houses where the numbers just don't work. With my analysis, you can see quickly how houses compare to each other since I compare what the numbers look like if you put no money down, 10% down or 20% down and rent the house out. I also do the analysis for you if you are planning to offer the house on a rent-to-own.
Is this analysis precise and to be used to make financial decisions? No, I think it is a good screening tool for you to determine which houses you should do you own, very detailed due diligence on. But it is a great way to save you some time of having to compile and run the numbers of lots of different houses yourself.
If you are interested in seeing an example of the analysis I do, you can check our deals in your city at AnalyzedDeals.com.