Finding Deals
Written by Dante   
Wednesday, 01 December 2010 05:00

When starting out as a bird dog it's easy to lose focus an work on scatter brain projects.  All of the different tasks can get confusing and cause a new investor to burn themselves out.  That is why this message is dedicated to finding deals, without deals you won't be a productive bird dog and your hopes of supplementing or replacing your income will be near impossible.

First you have to determine what types of deals or sellers you want to locate before you go out spending a lot of time finding deals, which means you probably want to locate your buyers first but since we have investors contacting us to bring them deals you are in luck.  Our investors want deals that can either cash flow or something they can flip in a few months.

Knowing what your buyers want can make your job easier so now you can focus on cash flow deals or equity loaded deals.  A lot of marketing programs will tell you to chase after foreclosures to find good deals, and you can find some really good deals sifting through foreclosure.  The truth is, most foreclosures make bad deals because the owners are either upside down (have no equity) or their payments are lop-sided (mortgage payments to high to cash-flow).  The numbers make foreclosures not an attractive source for good deals.  You can try short sales, but they take to long and might not close with the timelines lenders install. I have made money with short sales, so have a lot of other investors but as a bird dog that is looking to collect residual income you want something more promising.  However you can try your luck at a few short sales as long as you don't base your deal finding efforts on locating them.

Next you want to figure out if a demographic will bring you the best deals or a geographic territory.   A few demographics are; non-owner occupant houses, estates, foreclosures, bankruptcies, job transfers, divorces, and the list goes on or you can choose a geographic area in your city such as; east, north, south, west or narrow down your search to specific neighborhoods that you think you can locate some good deals.

Before going out finding your deals, you need to know what potential sellers make the best or else you might come across that lead that might not be a lead.  There are plenty of investors that throw away leads that they could use but they haven't taken the time to know their buyers or the types of deal that can be attractive to their buyers.

The one thing the demographic types of seller mentioned above have in common is they could possibly be motivated.  The worst type of sellers you can deal with are the one that are not motivated.  Sellers that don't really have a reason for selling will be the tough ones to deal with and they should be avoided at all cost.  We don't want you submitting random leads to us because we can find those from anywhere.  The demographics mentioned don't necessarily make a motivated sellers but the chances of you find a motivated seller increases.

A seller that's not motivated today can be motivated in a few weeks or months if their circumstances change since you last spoke with them.  That's why once you get a qualified leads it's a good practice to follow up because you never know where your next motivated seller will pop up from.

In the next few articles I will go over in a little more details on a few of the ways to find potential deals.

Last Updated on Sunday, 05 December 2010 23:19