OfflineI get lots of emails from folks asking me how do I find buyers? So I'm going to answer everyone like this:
Finding investors and buyers IS an important step. But, it's not the first step.
Finding the deal is the first step. Let me repeat this. Finding the DEAL is the first step! Yes, that sounds crazy, but it's true! I'll tell you why... When I first wanted to get started in rei I was working for a mortgage/real estate company at the time. I told my boss,(who was also a childhood friend) that I wanted to start investing in real estate. His asked me are you afraid to 'lock up' a deal? I said "no". He said you lock up a deal and I'll fund it, but I felt like he didn't take me very seriously. So I went out and found one, it didn't appraise and he wouldn't fund it, but I knew it was a GOOD deal. So I found another mortgage company that would fund it. A year later I sold it, paid back the mortgage company (including the penalties for paying the mortgage off early) and STILL walked away with $48,000 in my pocket! I'm NOT bragging folks, I'm just using this as an example. Now, my point is, that until I had showed him I would lock up a deal, he didn't take me seriously. So finding the deal and locking it up gives you ALL the power, and YOU are in control... Now people know you're serious and that gives you credibility! Use the escape clauses if you don't find the buyer that's what they're for. Give yourself 45-60 days to close, so you have plenty of time to market the deal.
But don't spend all your time trying to find buyers... Find the DEAL first and they will come!
Elena
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Thank you for posting this. I still have trouble with it sinking in. I mean I believe it and I tell other people the same thing, but it's good to hear it again (and again) from others who have done it. I swear I am going to do an assignment this year if it kills me. (well, maybe just short of death. lol) Even though the REI I do works great for me, I want to have the experience of doing an assignment so I can have the knowledge from actually having done one.
Thanks again, Lena. It's so cool to have so many people here with experience in different areas.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
You're going to laugh when you see how easy it is to do one. As a matter of fact you might like it so much that it will be the ONLY way you do deals. LOL! Ya never know...
Continued blessings and success to you,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I like to keep what I buy. (AND I get emotionally attached. I know, that's a no-no) But hey, I don't mind selling for a big profit. It's not like they're one of my kids. haha
But, yeah, if you could do just assignments it sure is less hassle and a person could get good at it and rake in the money! (Boy I'm sounding unlike myself, aren't I. lol) Especially if you get your contacts in place and a good system.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Great post there Lena! Love it! Embrace it! Do it! You speak nothing but the truth on that. I found an investor today that will possibly be a good one....
65% of MV - Repairs. I just need to find some deals now... Lol i guess i kinda did it a little backwards...
Yeah Rina i think Lena has brainwashed you there... Assignments do sound a lot less of a hassle and time restraining that rents, flips and rehabs. I'm starting out with assignments and i'll probably be agreeing with Lena soon..
Great post nonetheless! Just awesome! Keep up the great work!
"The soul of a lazy man desires, and has nothing; But the soul of the diligent shall be made rich." Prov 13:4
Start Here - FAQs - http://www.deangraziosi.com/node/3355
Cleaning Up Your Credit - http://www.deangraziosi.com/node/4724
Dean Graziosi's Conference Line Resource Center - http://www.askdeang.com/
Bird-Dog/Assignments - http://www.deangraziosi.com/node/3783
South Texas Realtors/Investors - http://www.deangraziosi.com/node/7752
You get out there and prove it to everyone! Then you'll be on the "assignment advisor" team.
I'm sure it will not take you long. You've got the right stuff. 
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Not to be counter productive here but I feel finding a buyer first is the best route. When I am looking for rentals my goal is to find the renters first then qualify them and then find them a house. That way there is no lag time in getting it rented, also you won't have to go overboard on the rehab if they already agree with the house the way it is. Likewise, although I am not a flipper, creating a buyers list of qualified buyers or investors before you have a deal would do 2 things for you. 1. you create competition when you find a deal by sending everyone an email with the details of the property and 2. you go out and look for the type of property the people on your buyers list are looking for. This way you would have no lagtime on selling the property especially if you are working against the clock with your offer and only having 45 days to close the deal. Just my opinion.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
There have been a lot of posts from newbies saying they have found investors (sounds like there are a TON out there) who give finders fees and are willing to take properties as long as they're less than 65% of the current value. With that being the case I can see Elena's point of getting those deals locked up. Sounds like they don't even want to discuss it until you have something to send their way. I'm in the mindset of holding or flipping. I guess assigning is a whole different animal, where you don't take the risk of having the costs yourself (expect maybe earnest money to lock it up, which of course you shouldn't lose if your escape clause is in place). So you're not actually looking for "buyers" per say. You're just looking for those GREAT deals to pass along. What do you think?
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I am a newbie and complete novice to REI. I was interested in REI and told my family and now they are all on board. What is going to do are family the best is to have complete involement. That being said, we are looking to flip. Why? So that my brother, husband and myself are being paid to do most of it if not all the work needed to flip for profit. Our biggest concern. I believe is being able to sell it quick enough to make that profit. Scarry!!!
I need to find out how long it is taking to sell in my area. The comps look promising but how long did it take? That is the question. Right?
The scenario you are discussing is a scenario where the investors (buyers) were found first. Knowing that they are able to lock up deals at 65% of value and sell them to the investors that initially told them what they were looking for(a deal that was 65% of value).
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I'm new at this and i was wondering the same thing. If i should find someone first or find the deal first.I was thinking if i find a person first then show them the house and they like it , i could just fix it and paint it the way the buyer would want it. Then the rent you ask for would be ok. Ineed some feed back it would be great thanks
I understand what you're saying.
But I think Elena was just talking about assignments specifically. I'm thinking it takes a LOT more work to actually find and lock up deals at discounts of 35-60% off, so people should get to work on that if they want to do assignments. Sounds like there are PLENTY of investors out there that will snatch up deals like that! I'm even thinking about it myself. It's HARD work looking at 100s of houses and making 100s of offers. Although I love it! (Not that I've made HUNDREDS of offers yet, I don't think)
So, yes, you do need a buyer/investor, but start locking up those properties now to pass on to them.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Yum yum you're house hungry? What has Dean created here? You've turned into a house eating machine! Just kidding! LOL! Thank you for clarifying that for me Rina. CBR, I'm just sharing what I've been taught, not by just one, but by many successful gurus who are actively investing. While I appreciate your opinion, I can only speak about my OWN experiences, yours may be different. I'm not looking for renters, I'm looking for deals to assign. So you're way may work for what you're doing, but not for what I'm doing. I had an assignment contract on my deal within two days. Like I said, if it's a good deal there will be NO lag time and you will get people that will say 'put me on your list for the next one' after it's gone. That's how I've built my buyer's lists.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Rina it sounds like you search out the good deals and call your investors to purchase these deals. Do you do all the work up front. Find home, talk with owners, have them sign a promissory note that you will find a buyer in a certain amount of days and then assign it to an investor? What percentage do you ask for your finders fee?
How do you find your inivestors? Do you have a website? Thank you for your contribution to this site. You're fantastic!Do you use the Foreclosure Finder to search for your properties?
That last comment was for Elena not Rina...
Hi Dee,
Wow, that was a comment? Whoo, my head is spinning!! LOL! I'll try to answer them all for you if I can.
I have many ways of finding sellers. My Realtor emails me listings, I also put out ads, drive neighborhoods, etc. The more methods to produce leads, the better your chances are of turning them into a deal. When I find one, I contact the owner with the usual questions, the coaches have them on one of their posts, then I walk through it with the seller, make them an offer based on the comps and repairs needed. So yes, most of the work is done up front, I'm a firm believer of doing my homework so I know what I'm getting into and how I'm getting out. I do have a website, you can get the address from my profile and check it out, (so I don't break any rules.) I'm in the process of changing it though so check back in a couple of days. Now I don't do bird dogging, my philosophy is, if I find it I want to control it. Then I call my list of investors, I got from my ads or their ads. So I lock up the contract and assign it, which means I choose what I make. Of course that's based on the fair market value and what I purchase it for. You can't just pick a number out of thin air, it has to be fair and make sense or you will get a bad reputation and that's NOT good in this business.
Well, my hands hurt from all this typing so I hope that answered all of your questions, if not let me know and I'll answer those after I shake out my hands a few times.
God bless and thank you for your kinds words,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."