1/ Want to buy off-market properties from sellers who inherited property (probate leads)?
These deals are very profitable.
I haven't personally done this identical strategy, but I have done each of the pieces numerous times & very similar things. It'll work for sure.
2/ You can have someone run this for you. It's an entry-level / experienced intern skill set.
I'll even show you how to finance this so you're not out of pocket after 4-6 months.
3/ Create a Facebook group about inheriting property / wills / probate in your state.
Talk about best practices, local rules, state laws, customs, courts, judges, how long things take, fees, etc.
4/ Make this a resource for everyone in your state who's inheriting a property.
These things are heavily influenced by local rules, regulations, courts, etc. so a local resource have a lot of value to people.
5/ When folks apply to join your group (that's the standard FB group process) ask them for their email address and then once a week send them a newsletter that's basically a little digest of what's going on in the group.
6/ Soon your group will include thousands of people going through a difficult time in their lives who are dealing with a serious RE issue
How to finance this: get a local probate attorney, broker, mover, title company to sponsor your group
You've now paid your intern/employee.
7/ After a couple of months start posting about the options people have when they inherit a property:
1) they can sell through an agent 2) they can sell to a family member 3) they can rent it out and become a landlord 4) they can sell to you for a cash offer 5) etc.
8/ Soon, people will recognize that you're a trustworthy, credible expert who specializes in structuring these types of deals.
You can structure a purchase that is easy and efficient for them, work with their probate attorney, help them handle any family difficulties, etc.
9/ Probate deals are often priced at 70% of ARV minus rehab so you're basically buying at half the ARV, if not a little less.
I'll argue that at volume the juice is worth the squeeze.
10/ The point of having a group, where Facebook's algorithm works 24/7 to bring in new people (after a little while), is that people who want to sell to you just roll in.
You don't have to chase anyone down.
They come in (thanks FB!), they see content, you nurture, you buy.
11/ You don't have to do mailers. You don't have to cold call. You don't have to mass text and feel you're spamming anyone.
You built a little content site on Facebook and email and you're providing value and then asking for the sale (or in our case the buy).
- fin -
• • •
Missing some Tweet in this thread? You can try to
force a refresh
1/ Lots of GPs & brokers say "become the buyer every agent wants to bring deals to".
But brokers bring deals to their favorite 5-20 buyers.
Your chance of becoming a favorite buyer in your market are slim.
Even if you do accomplish it it'll take years + even top brokers churn.
2/ If you're not investing corporate (family office + HNWI) money you chances of out-competing those who are are even smaller.
Plus a broker's interests aren't aligned with yours. They don't make more money by bringing you a better deal so many focus on dumb money.
3/ Work with brokers, but make sure you know it'll take a long time & you might do some deals you don't love just to prove you're a legitimate buyer in your market.
Also, build your own acquisitions strategy and rely on that. You have to have control over your own deal pipeline.
1/ Many real estate investors who want to buy more rental properties talk about 'pulling lists' or 'building lists' of homeowners who are in some sort of distress.
This way can work well, but there are others.
Here's one that works well now for buying off market properties.
2/ I'll start with my quick definition of off-market:
A property the owner did not really intend to sell before you reached out to him.
The owner has a need to sell but did not have the intention & thanks to you contacting them they are now going to sell.
That's-off market.
3/ Identify 3 neighborhoods you want to buy in 1 market.
Each neighborhood will statistically speaking have 1,500-3,000 houses. Let's assume 2500 per neighborhood.
So in 3 neighborhoods you'll have 7500 households.
1/ A quick thread on buying even more properties in alignment with where the market is at right now
Create a little resource for owners of construction companies and fix and flippers. It can be a FB group or a texting group with a piece of advice a day. NOTHING fancy.
2/ You can provide info about material pricing, new city ordinances that affect them, investor intros (to folks you don't need to raise from), etc. etc.
We're in that stage of the cycle where flippers are not able to deliver projects they took on.
3/ You can see this in local investor Facebook Group every day.
Usually something like "hey, I started this but I've got 3 other builds at the moment and I need someone to take this over".
1/ How can you, a SFR and/or small MF investor, leverage the extended eviction moratorium as a hedge?
Let's assume your ability to collect rent is limited & it will be for a while.
What can you do to turn the situation on its head and grow your portfolio in the next 6 months?
2/ Of course there's rental assistance, but as a deal maker you understand that a challenging situation is also an opportunity & if you're getting hit by the effects of the moratorium you want something to fight back with - to capitalize on.
You also know others are hit too.
3/ If you've ever bought existing rentals from other landlords you know that very often rental properties are mismanaged.
You can tell by the below-market rents, the physical state of the property, the lack of documents you ask for and so on.
Paul R. Williams, architect of some of the grandest homes in Hollywood & iconic buildings in L.A., learned to draw upside down bc his clients did not want to sit next to a Black man.
His handwriting is portrayed in the Beverly Hills hotel sign, which he could not stay at.
I'm happy to see this is resonating with so many. It is a sad part of who we are as a nation. Unfortunately much of this endures.
I tweet about real estate, architecture, home ownership for ppl coming from nothing & how our built environment impacts equality. Follow if you like.
I've got nothing to promote, but there's an African-American architect who sells t-shirts and apparel promoting Black architects and Black architect history.