How to Find deals
Previously I wrote a blog on where to go and how to network with people who might help you find great real estate deals. I find this an important topic because it is the people that I have developed strong relationships with who are bringing me the majority of my deals today. Meeting the right people is the crucial first step, however you must nurture these relationships in order for them to be productive. For this blog, I will assume for a moment that you have already met people who may be able to help you in your business. Let’s now focus on how to rise to the top of the list for each and every one of those important people that can help you find a deal now.
I have 3 golden rules that will help you succeed in most aspects of your life and business, and they certainly apply to developing strong relationships. First, do what you say you will do. Second, be easy to do business with. And last, help others succeed with no expectations. Apply these simple guidelines to the people you meet, and they will serve you well. Amazingly, following these rules will also make you stand apart from most others.
Finding deals thru your “network” is simply about being “top of mind” with those people who are effective at identifying the deals you are looking for. Staying in regular contact with people is pretty basic stuff, but most often it is where we fail. The more you can prioritize and systemize your communications, the more likely you will succeed at consistently “staying in touch”. Having a CRM (customer relationship management) system is the best way to stay on track. This can be a simple spreadsheet that you visit weekly or something more sophisticated. There are many online CRM’s that are economical and work good. Highrise is one that you might want to check out (www.highrisehq.com). As you set your daily and weekly goals, make sure you are putting time aside to reach out to your network (even if it is only one or two people a day). Try to have something of interest for them, so the call isn’t about “do you have any deals?” If you ask them about their business first, you will often learn about their challenges and maybe you can help. Share something relevant to their business or personal lives (even better). You also want to share any relevant successes you have been having, since that builds credibility and makes you more desirable to do business with. To that point, I have recently started a newsletter, sharing what I hope are valuable insights, tips and RE information. It takes a little time to do every other week, but it reaches about 300 people in my network on a regular basis. Your visibility gained by consistent communication is what will put you “in the right place at the right time”. This is important, where deals come and go quickly.
Intrinsic rewards are what really motivate people to put you at the top of their buyer list. Always be a matchmaker. If you can help somebody solve a problem by introducing them to the right resource, you become instantly valuable. Go out of your way to make referrals to your network. These are the lifeblood of many businesses. Pro-actively offer testimonials for the people you have some experience doing business with, because these will cement your relationships. A testimonial gives you the opportunity to publicly praise someone, which is always appreciated. Another tip is to send short, handwritten personal notes. In our email and text world, these will absolutely make you stand apart.
Last, I will touch on extrinsic rewards. Financial rewards to people who have helped you succeed are critically important. My agents and brokers know that they will earn a minimum 2 sides of sales commissions when they find me a deal. I have agents that earn 3% when I buy and 3.5% when I sell. I often give extra commissions or bonus on successful flips. Personally, I like those payments to be unexpected. I guarantee you this brings much loyalty. When there is substantial money to be made on each deal, sharing a little of that with the people who helped you succeed will expedite the next deal coming your way.