For one reason or another, new investors often feel as if there are not enough deals to go around. However, in reality, an inability to find deals is more likely due to poor work ethic – not the amount of available deals. The investing business can be quite difficult if your strategy is nothing more than waiting for a deal to fall into your lap. You need to put in time and hard work. Every investor, old or new, has the same chance on any given deal. Oftentimes what separates the successful investors from those who are struggling is the willingness to go out and find good deals. They are there for anyone who is willing to go after them, but not everyone is willing to do so. If you really want to increase your pipeline and find good deals, you need to go out and get them. Again, put in the time and you will find good real estate deals.
Finding new deals starts with a plan. It can be pretty demoralizing doing the same thing over and over again to no avail. Therefore, you need to make a plan of attack for how you will increase your business. Perhaps even more importantly, follow through with the commitment to do so. This process can take weeks and even months to show results. If you give up after only a few tries, you will never know what you could do. By starting with a plan, you will be much more efficient and productive.
Instead of constantly trying to find deals, shift gears and look to build relationships. This will often take much longer to cultivate, but the ones you do get will be stronger and longer lasting. If you go into your meetings with the mindset that you need to create value for the other side and make them the focus, you will be remembered long after you leave. A relationship or a deal cannot be expected after the initial meeting, but if you continue to show your face and reach out, you will slowly start to see an opportunity here and there. Once you get that opportunity, you have your foot in the door. If you treat the deal and the lead source well, they can lead to many more deals down the road.
These relationships, and ultimately deals, will not come to you. To find them, you need to knock on doors, attend networking meetings and join investment clubs. Meeting new people and networking may not be your strong suit, but it is necessary. To be successful in business, there are times when you need to step out of your comfort zone and do things you really don’t want to do. If you can bite the bullet and do this for a couple of years, you should have enough business that you can find deals and network on your own terms. Until you get to that point, you need to put the work in and face any fears you may have. The first couple of times you speak at a networking group may be uncomfortable, but the more times you do it the easier it will be. If you avoid the things that you fear but know will grow your business, you will regret it in times when you are looking for deals.
It is not enough to say that you want to meet with ten new attorneys or realtors every week. You need to come up with a compressive plan for when and how you will do it. The more detailed you are in your plan, the more likely you will continue with it for the long haul. Before you start, you should make the commitment to yourself to continue your plan for 60-90 days, regardless of the success. During this time, you will get to know what works and what doesn’t.
There are many little things you can do every day to find deals. From calling people on Craigslist to sending letters to any fore-sale-by-owner (FSBO) property you see, there is always something you can do. You never know when or where you are going to get your next deal from. The time it takes to send a letter or an email is well worth the chance. Everywhere you go is an opportunity to find a deal if you are willing to put yourself out there. Doing the little things consistently is what separates busy investors from those wondering why they can’t find deals.
The real estate investing business is one of the few that allows you to realize success without formal education or training. The most important qualities are hard work and persistence. If you are willing to put the work in and go after deals, you will eventually find them.