Thread by @mhp_guy

The best off-market real estate deals are found by driving around & putting notes on eyesore properties.

But can it scale?

Oh yes! For both residential & commercial.

I cracked the code.

Here's exactly how you can copy. A quick thread:

You'll need a few tools:

- Craigslist
- Google Forms
- Some petty cash
- Some faith & patience

We start by writing the note. Take a sheet of paper and write:

"I want to buy this property. I can pay cash and close fast. Please call/text ASAP."

- first name

now what?

Take a pic of the note and save to your computer as a PDF

Go to Craigslist and post a job in the "Labor Gigs" category in the target city(ies) - It should say:

"Get paid $10/door to put notes on properties in (city name). Must have reliable transportation"

CL charges $10/post

Now create a Google form for your gig workers to upload pics. They need to prove they did what you asked.

You need them to upload 2 pics per property + the address.

1 pic of the entire building and 1 pic of the door with the note taped on it.

Here's what to ask the applicants:

Can you send a pic of your vehicle? or FaceTime.

Many will apply without a car. No bueno

Tell them you'll need them to go to a FedEx store & print copies of the note you'll email them

Reimburse them upfront for this

Describe EXACTLY the types of properties you're targeting

They need to document all of this so you don't get swindled

Describe the picture taking and upload process. Have them test it w/ a couple pics

Be VERY clear about what parts of town to look. Don't let them guess

Start w/ only 1 person in 1 city. Document it all on Google drive

Have them knock before taping the note to the door.

If someone answers, have them hand them the note and tell them they work for you and to call with any questions.

That's it.

Now you need to start sorting through these pictures.

Look at each one closely at first.

The mostly likely times a gig worker will try to scam you are:

1. In the very beginning.
2. After you're complacent & checking the pics less.

You may go through a couple before finding a rockstar.

Give them feedback along the way so they know if they're on the right track.

Once the first pics/addresses are uploaded do some research on the property

Tax records & Facebook

Call the owner yourself & reference the note. If you don't they think there's more demand than there is. No bueno

Conversion rates go nuts if you do outreach via multiple angles

This strategy works best with:

1. Abandoned residential
2. More dense areas

But it can work anywhere. Some of the best commercial properties we've found have been in rural, overlooked areas

With this strategy you're only competing with local investors. Unlike listed properties

Just because it's abandoned doesn't mean no one ever goes there.

This is why you need to be patient.

Almost no one else does this because it's hard, tedious and is thought to not scale.

This is exactly how the best deals are found. And it CAN scale!

Once this works, scale it!

If the city is big enough, have this person lead a small team of others to do the same thing. Give him a raise.

Since you aren't paying hourly, it can be done on any schedule

Yes, it'll cost money, but the ROI is outrageous

Here's how we've done:

18% of notes lead to a call (eventually!)
14% of calls lead to a deal
38% of deals lead to a closing

This was residential. So 1 great deal per ~$1,000 spent

We saved 10s of thousands on these deals than via other traditional sourcing methods.

What about commercial?

Storage, industrial, MHPs & MF are different, but the same principles apply.

Notes instead get handed to managers.

Lower quantity & more driving so the gig worker should be paid more

The key is PATIENCE. We routinely get calls 6-8+ months later

Hope this helps someone!

Would always appreciate a follow @mhp_guy and a share!