Where Are All The Deals??

Lately I have heard a lot of Real Estate Investors all complaining about the same thing……and that same thing is the fact that they all need more deals! I have been talking about the importance of learning how to market directly to motivated sellers and not to just be a foreclosure investor for a while now, and the reason is because all of this low hanging foreclosure inventory will eventually go away (or dramatically decrease at the very least).  Well it seems that the banks have decided to slow the flow of these foreclosed houses onto the market to nothing more than a trickle this year, and it no longer appears the supposed big wave of foreclosure inventory is coming any time soon like a lot of investors had speculated……which means the small number of MLS foreclosure deals that are out there right now have multiple offers and are being pursued by everyone and their mother! In addition the foreclosure auctions all around the country are now over crowded with buyers thanks to the many bidding service providers, who help investors pursue the American dream of buying a foreclosed house at a discount, fixing it up, and re-selling it for a profit! We have started to enter a period of time where more and more investors are getting back into the house flipping game, but the amount of easy low hanging foreclosure deals are decreasing rapidly! You see there are two main types of investors out there…..the foreclosure investor who mainly chases the foreclosures in any given market through Short Sales, REO’s and Auctions. Then there are what I consider “Real” real estate investors, who do buy Foreclosure’s but they also have the ability to source and purchase non-foreclosure properties at wholesale prices. Now don’t get mad at me if I don’t consider you a “Real” real estate investor because you have been flipping foreclosures for the past couple years, but the reality is if you are only a foreclosure investor it appears things are about to get a lot tougher for you and your business.

So what does all this mean?? Well it means that most of the foreclosures listed on MLS are now being bid up by lesser experienced investors who are generally overpaying for properties, mainly because they just don’t know any better and/or they are just overly ambitious to get into the house flipping game. In addition at foreclosure auctions around the country investors are having to bid much higher than they normally would just to get a deal, and this is due to the dramatically increased number of foreclosure investors chasing the American dream. So what does all of this mean to the future of  your real estate investment business?? Well it means if you are just a foreclosure investor who has always relied exclusively on the MLS or auctions to source your deals, you will soon be in for a rude awakening…..and unfortunately it looks to be much sooner than many of us had thought. I personally had figured that we would have at least another year, and maybe two where foreclosure inventories would be at a level where deals would remain plentiful on the MLS and at auctions. Well it turns out that window of time may be closing much faster than previously thought, and this is very evident by the number of foreclosure investors who are currently struggling to find deals in the market place.

So what do you need to do so that your house flipping business doesn’t slow to a trickle? Well the answer is simple…..learn to market your business and do it fast! If you don’t commit to learn everything you can about direct response and online marketing asap your businesses bottom line will likely not increase anytime soon (and it will probably decrease). You see once you have mastered the art of finding motivated sellers you will be able to write your own paycheck at will…..which will put you at the top of the real estate investor food chain. I made the decision to master the art of finding motivated sellers directly about 3 years ago, and now that most foreclosure investors are struggling to find deals, we  have more than we can handle! In addition the wholesale side of our business has become much more profitable than it was before since investors are now lining up to pay us more money for deals, because they know how hard they are to come by right now. So as far as your business is concerned you need to put together a marketing plan that includes direct mail marketing, online marketing & signage. Now there is lot to know about each of these niches, so I would suggest reading everything you can get your hands on for all three of these topics…..then start implementing them into your business ASAP!

By being able to source your own motivated seller deals it will not only provide your business a lot more deals with bigger profit margins, but it will also allow you to grow your REI business into real business with longevity & multiple profit centers. I have grown my business through motivated seller marketing  to include 4 major income streams…..

1. Rehab’s & New Construction

2. Wholesale Deals

3. Lease to Own / Seller Finance Deals

4. Long Term”Subject To” Rentals With Large Amounts of Instant Equity

Most all of us get into the real estate business because we don’t want to fall victim to being stuck in corporate America or working a job that we don’t have passion for. In addition we all want to know what it feels like to take control of our own financial destiny….the only problem is most real estate investors don’t treat real estate like a “real” business. Having a house flipping business is just like running any other small business, except for the fact that you can generally run it with very few actual employee’s (which is great). So start treating your House Flipping business like a real small business, and commit to doing the things that will give it longevity and continued profitability (marketing, marketing, marketing)…..and don’t be satisfied with just being a foreclosure investor.

In an effort to provide help to fellow real estate investors and to grow our business at the same time, we have designed a Mentor Program that will provide you with an exact road map on how to take your business from buying MLS and auction properties to buying direct from Motivated Sellers. There is a lot that goes into developing this side of your business, but we have been through all of the trails and tribulations of it….and in the process we have perfected many online and offline marketing systems that consistently deliver the best leads that a market has to offer. These marketing system took my business to the top of the real estate investor food chain in my market…..and it can absolutely do the same for you! We will begin accepting applications for the program towards the end of this year, so sign up for our newsletter on the MIM home page to be notified.

Now get off the MLS and start marketing for Motivated Sellers!!

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