Blog - DealMachine for Real Estate Investing

$500K in 6 Months: Real Estate Secrets

Written by Maria Tresvalles | Oct 27, 2024 1:30:00 PM

Have you ever wondered if some success stories sound too good to be true? If so, this blog post is for you. Today, we delve deep into the tactics and strategies that can turn ambitious real estate dreams into reality.

The Real Estate Dream

David Lecko founded DealMachine eight years ago as a marketing tool for his own wholesale real estate investments. Back then, he had completed just three deals. However, the platform quickly gained traction among other investors. One standout success story is that of Krystal and Dedric Polite, who earned an impressive $500,000 in just six months. While it may sound unbelievable, their success was built on strategic marketing and a solid foundation of business experience.

“Marketing takes more than one postcard per house; it takes six.” - David

Key Strategies for Success

Consistency and Persistence in Marketing

Consistent and persistent outreach is crucial when marketing in real estate. Krystal and Dedric Polite’s success can be attributed to their targeted marketing strategies, which included sending multiple postcards to potential properties. They understood that one-time outreach wouldn't suffice and planned for repeated touchpoints.

Expanding the Search: Importance of Volume

David emphasizes the significance of broadening your search. More properties to contact mean more opportunities for success. When he started, he fixated on a single property — a mistake he learned from. Expanding your reach and talking to multiple property owners increases the chances of closing a deal.

Understanding Market Dynamics

The market is a dynamic entity, and property owners won't always be ready to sell right away. Regular follow-ups ensure that when they're ready to sell, your offer is the one they consider.

Time vs. Money: The Underdog Tactics

More Money Than Time?

If you have more money than time, buying lists of potential properties could be an effective strategy. This allows you to reach out to property owners without spending countless hours driving around neighborhoods.

Driving for Dollars

Driving for Dollars is often cited as one of the best ways to find distressed properties. By physically inspecting properties, you get a more accurate picture of their condition. However, this can be time-consuming. David mentions that in cheaper markets, you might need to add around 500 rundown properties to your list and mail them six times to secure a deal.

“In higher-priced markets, you might need to add 1,500 to 2,000 rundown properties to see success.” - David

Leveraging Technology: DealMachine Software

DealMachine has become a critical tool for real estate investors. It allows users to systematically track properties, manage outreach, and even hire others to drive for dollars on their behalf.

Route Tracking

The route tracking feature ensures that hired drivers are efficiently scouting properties without wasting time. This is crucial for monitoring productivity and ensuring your investments in time and money are yielding results.

Hiring Drivers

Hiring drivers can free up your time to focus on higher-level tasks. DealMachine provides a seamless way to onboard new drivers, ensuring they are tech-savvy and serious about the job.

Success Stories and Lessons Learned

David shares numerous success stories of investors who persevered despite initial setbacks:

Case Study: The New York Wholesaler

A New Yorker, who started wholesaling during the COVID-19 pandemic, faced numerous challenges but persisted by cold calling. Through continuous effort, he transitioned from despair to remarkable success, showcasing the power of perseverance.

“When it gets hard, most people quit. That's when you have to persevere to achieve what others can’t.” - David

The Importance of Passive Income

Rentals play a significant role in building long-term wealth and financial stability. However, they aren't a quick route to riches. David suggests that new investors initially focus on building active income through wholesales and flips before investing in rental properties.

Smart Strategies for Screening Tenants

David recommends a structured screening process for tenants to avoid future issues. This includes checking credit scores and ensuring the tenant's income is at least three times the rent. His approach has helped maintain high standards and avoid problematic tenants.

The Path Ahead

The future for DealMachine looks bright, with plans to expand its impact on the real estate market. David envisions more investors leveraging DealMachine to maximize their deals and eventually considers selling the company to a title company.

“We’re going to get every investor to use DealMachine and help them do more deals than they ever imagined.” - David

David's personal goal is to build a rental portfolio of 20 properties before considering external management. His journey underscores the importance of consistent effort, leveraging technology, and learning from each experience.

Consistency + Strategy = Real Estate Success: Are You Ready?

As David Lecko’s journey shows, success in real estate comes from persistent effort, smart marketing, and leveraging the right tools. With DealMachine, countless investors have transformed their ambitions into reality, like Krystal and Dedric Polite’s $500K win. The key? Stick with it, expand your reach, and let DealMachine do the heavy lifting. Start now, and watch your success story unfold!