I wanted to show you a free, simple method for finding investment property in your area. This method will guarantee that you are not competing with any other investors in your market. These properties are not listed on the MLS, not for sale by owner (FSBO), no ads on the internet or in the paper, nothing like that. So because they are not listed and have no exposure in the market, you can bet that they will be all yours, no competition. How can this be, you might ask? Because I am going to show you how to create these opportunities.
The tip I am talking about is called “Farming Markets”.
You may have heard of this, but let me break it down for you. The gist of farming markets is to canvas a neighborhood or area that you are interested in, look for signs of sellers, and try to make deals. But I want to take you beyond that today. I want to show you more than just looking for signs and other propaganda in a neighborhood that screams homes for sale. I want to show you how to create something out of nothing.
The idea is simple, once you have scoped out an area that you are interested in, and made sure that the homes are priced closed to what fits your particular style of investing, do a direct mailing. If possible, hand write the mailings, or hire someone to hand write them, and hand write the envelopes as well. People are always more likely to open a hand written envelope, and read a hand written letter, than they are to open a typed envelope and letter.
In the letter, simply let them know that you have seen there home, are interested in it, and/or have cash and can close very quickly. Ask them to give you a call for details. You may even tell them you specialize in helping crisis situations like divorce or job relocation and that you can bring a speedy conclusion to a tough situation. This will ensure that you get motivated sellers, and lets them know that you are wanting to help. And in truth if you are able to buy the property from them, you will be helping them to solve their problem.
Once you receive the phone calls, screen the sellers, and find out what their motivation is. If they really don’t need to move and are just wanting to make some money, let them go. But if they do have a problem, and are motivated to sell, setup a meeting to walk through the house, and find out if it needs any repairs, etc.
So there you have it, simple, yet highly effective and cheap to implement. And you will be guaranteed to be the only one competing for the property. Cool, huh?