In the ever-evolving landscape of real estate investing, staying ahead of the curve is crucial. To help aspiring investors, David Lecko shares his insights on the top five ways to find your first real estate deal in 2024. This blog will cover essential strategies for identifying lucrative opportunities.
"Driving for dollars" is a term that resonates well within the real estate investing community. It involves driving through neighborhoods and scouting for properties that show signs of distress—such as overgrown lawns, broken windows, or foreclosure notices.
David emphasized the effectiveness of this method, particularly for beginners. He mentioned an example where he transitioned from using multiple tools to employing DealMachine, an app that streamlines the entire process. He also noted how DealMachine allowed him to send targeted postcards to property owners, boosting response rates and efficiency.
Properties with delinquent taxes are often a goldmine for investors. Owners may be motivated to sell to resolve their financial woes, presenting an opportunity to purchase at a discount.
David shared a success story where he acquired a property in Indianapolis that the owner, an orthodontist from Utah, was willing to sell at a loss to get it off his plate. This owner was behind on taxes, which made him more open to negotiation.
Code violations can be a clear indicator of a distressed property. These include issues like excessive grass growth, missing permits for work done, or accumulated trash and debris.
Properties with code violations are typically owned by landlords or homeowners who can't or won't maintain them. These owners may be more motivated to sell.
David recommended coupling code violation data with the "driving for dollars" method for better results. This dual approach helps in identifying and validating potential deals.
Pre-foreclosures are properties where the owners have received a notice of default but haven't yet been auctioned. These owners might prefer selling quickly to save their credit.
Foreclosed properties are sold at auctions, and while they present opportunities, the process can be daunting for beginners due to the need for immediate cashier's checks.
David suggested a method called "reverse driving for dollars," where you drive to these properties and knock on doors, offering help and exploring prospects for a sale.
These are properties that didn't sell within their initial listing period. Owners might be willing to accept lower offers after the listing expires.
Owners who've held their properties for decades may be ready to sell, often due to management fatigue or the need for extensive renovations.
David's journey from a regular nine-to-five job to owning multiple profitable rental properties provides key insights:
Many aspiring investors give up too soon. David emphasized the importance of persistence and gradually increasing your efforts rather than diving into everything at once.
Leverage technology to streamline processes. From GIS mapping tools to apps like DealMachine, these tools save time and enhance efficiency.
Building a relationship with potential sellers and understanding their pain points is crucial. David’s experiences underline the importance of being genuine and offering multiple solutions, including traditional listings or buying for cash.
Finding your first deal in real estate might seem daunting, but employing the right strategies can make a significant difference. From driving for dollars to exploring tax delinquent properties, the actionable insights shared by David offer a robust starting point. Remember, persistence, leveraging technology, and building genuine connections are key to success in wholesale real estate investing.