hear Driving for dollars? Wondering if it’s worth pursuing? We say yes!
But don’t do it all yourself. Instead, build a high-quality team of proactive, dedicated deal finders. You’ll enhance your real estate sourcing capabilities and potentially gain leads you can’t find elsewhere.
Where can you find Deal Finder? It’s simple: they’re already near you. Here, we’ll discuss the benefits and methods of recruiting local drivers and scouts to identify high-potential real estate opportunities in different markets.
1. Build a team of deal finders
Chasing the dollar has been around for years, but in the current real estate environment, some investors view the strategy as controversial, arguing that it isn’t necessarily very profitable. However, real estate veterans still view the push dollar as a great tool for investors, especially beginners. Who is right?
For those new to the concept, “driving for money” involves driving around a neighborhood looking for potential leads. The idea is that a property that appears to be in distress might be brilliantly There are motivated sellers, but these properties may not (yet) be available through traditional channels such as the MLS. Therefore, the ideal situation is to find the right property and close the deal with little competition. exposed to Direct owner.
Now, The counterargument many people offer is that finding a large number of properties among these seemingly suitable ones is like looking for a needle in a haystack. It’s also time consuming. For example, if you are a busy investor who wears multiple hats, you are unlikely or unwilling to drive several hours try Find one or two properties that might be good leads. Some investors also believe that finding vacant properties with motivated sellers is a wise choice. tougher now than beforeexplain, In the post-2008 era, a large number of hastily abandoned homes have appeared across the country.
does this mean and you Give up chasing dollars as a real estate investment strategy? not at all. you only Need to update how you use this strategy. Most importantly, you need to benefit from real estate technology innovationHour-oneND you need to Build a team of deal finders who know what they’re looking for.
Think about it: If you have 5 to 10 people sourcing potential leads for you, your chances of closing a deal increase exponentially. If those people equipped With an app that helps them better source quality leads, those opportunities increase even more.
2. Recruit the right talent
Here’s what you should do Go to recruitment Your deal finder—and training and equipment They succeed.
First: Where do you find your deal finders? it is actually Much easier than you think. With the right approach and the ability to motivate people, You can easily find multiple deal hunters near you. Of course, you can place an ad on Craigslist or Facebook, or you can join a local real estate investing networking group (these groups are often very active on Facebook).
But you probably don’t even need to do that. Your best bet is usually someone who already drives or walks around your neighborhood regularly: your mail carrier or local delivery driver. You might also be surprised how it works your local A contractor or property manager can look for clues.
These are often a perfect match because they don’t have to change what they do during the day in terms of the extra effort – they only Need to be aware of distressed properties and be able to document them. Getting a little extra pay while getting the job done can be a great motivator, and if they’re interested in real estate investing or you can get them passionate about it, all the better.
Enthusiasm and cooperation are key When looking for the right talent. You also want to hire someone who can easily learn new technologies and who can work with people, as they may need to contact potential sellers on your behalf. this Doesn’t necessarily mean you only hire young people (no age discrimination here), but if someone thorough say they don’t use their cell phones often or they are Not keen on talking to people, you may want to consider other people.
While an interest in real estate investing is not required, it is a huge advantage. Many people start their own The investment journey to becoming a deal finder; if your potential deal finder shows they are ambitious or at least potential Interested in becoming an investor themselves One day, you’ll find the perfect candidate. That’s because they’ll be more involved during this process and willing to learn.
3. Train and equip your team
Now, even with the best team in the world, you’re not going to get very far if they don’t know what to look for. Training your deal finders to identify valuable distressed assets is the first and critical step for them to start generating quality leads for you.
However, some of your deal finders, especially your postman or delivery person, may have high Experienced in spotting the more subtle signs of distressed properties. Boarded up windows and unmown lawn obviousbut they are also able to identify other clues, such as a full mailbox or a notice placed on the door, that may be less obvious.
The next and crucial step is to train your team to find details about properties online. this This is easily done using the DealMachine app, which tells you whether the property you find is vacant or in pre-foreclosure status and who the owner is.
The second component is that of quality leadership. Without this information, your deal finder will only find an empty house, but with key information, they will find you a property that may have a motivated seller. Understanding Deal Finder Check how important each property and mark is Having it off in the app will make them feel more a part of the process and improve their skills over time.
DealMachine Technology beneficial to Your deal finder makes their jobs easier and more efficient. but also very high favorable For you, the investor, because you will be able to better manage your deal finders and track their performance.
Another useful CRM feature is the ability to build leaderboards for your deal finders, which can increase accountability and motivate your deal finders to perform better.
4. Motivate and retain good employees
it is known greatest The incentive for your deal finders will be income they earn Provide you with high-quality sales leads. There Essentially There are two schools of thought on how to best compensate your deal finders. Think carefully about which one you will choose.
One approach is to pay a deal finder based on a lead, whether or not it turns into a deal for you. real estate investor aaron anderson Posted on BiggerPockets Forum He pays all deal finders $10 per lead regardless of the outcome.
“The reason for this is that if you’re only paying per transaction, they won’t be sure if they’re going to get paid because their payday depends on your performance,” Aaron explains. “If you think you can escape only By paying per transaction, you’re telling the world that you can’t afford the business, or it’s just cheap.
Another way is just pay if you get close to it but pay If this happens, then more (for example, $500 per transaction). This is great for deal finders Not in urgent need of cash and have a longer term Be interested in investing in yourself.
However, if you Do Going down this path, be careful to list the sources from Very First, explain that your deal finder doesn’t complete any deals on its own. Technically, doing so would make them a wholesaler and could cause them to charge you fees; in some states, it could also technically mean they are involved in a brokerage business, which could be illegal.
if you draw one very clear Outlined Contract What will your deal finders do and when can you avoid these problems. It’s best to have an honest conversation with your deal finder ahead of time to understand your expectations and which compensation model will work best for both parties. it is very important Build trust and keep your deal finders engaged; they’ll stick around longer.
5. Case studies and success stories
When the relationship between you and your deal finder is strong, you’ll often find that they will further your dollar business without your involvement. Aaron Anderson Start building his team of deal finders in a very organized Wayeven developed a training manual that “covered what I was looking for, how to find it and how to market it.”
The last part is huge Dividends for Real Estate Investors: Really Savvy Deal Finders Take Charge of Marketing role and discoverer role. It can be something as simple as putting a logo on their car or wearing an attractive branded T-shirt while they drive. go out nearby.
Powerful marketing is possible actually Start taking You lead passively, purely through people’s attention There are Cash buyers in the area. As Aaron proudly says, “You’ll have 5-10 active scouts looking for deals for you, and you’ll get more quality leads than you know what to do with.”
and Using DealMachine’s technology, your trained deal finders can find these great deals for you Hournot heaven. only watch Real estate investor Quentin Flores Ended up trying out DealMachine for the first time. Imagine being a deal finder they have the ability arrive Effortlessly bring you quality leads.
6. Expand real estate investment
A question many real estate investors face is: Can I scale my business by having multiple deal sourcing teams work for me remotely? You absolutely can.
This is where having a powerful management system like DealMachine is crucial. you can have Various The team works on Various community, even if they’re out of town or out of state. With DealMachine’s drive tracking and property recording features, it doesn’t matter where your deal finder is lie in. you can still Track their progress and communicate with each team member quickly and efficiently.
Actually, This is a smart strategy for anyone considering a drive-dollar strategy. Your neighborhood will only bring you so many great deals. To truly benefit from this concept, you need to expand your geographic reach.
Remember: You are looking for something that some people think become Looking for a needle in a haystack. The more haystacks you look at, the better your chances of landing a great deal.
final thoughts
Building a professional team of highly trained deal finders is the first step to making money work for you. But the second and more important step is to manage their work effectively. A management system like DealMachine can make your deal finder’s job easier and your job easier too. You’ll know how your deal hunters are performing and be able to motivate them by involving them in the process.
Ultimately, you can close those coveted off-market deals faster, thanks to your deal finder’s ability to connect with property owners immediately. With the right people and technology, you can get a return on your money, even in a challenging real estate environment.
This article is provided by DealMachine
DealMachine makes it easy for real estate professionals to discover and invest in off-market properties, with comprehensive apps to guide you every step of the way. From identifying potential investments to instantly accessing high-quality homeowner profiles to make informed decisions, we make investing simple and effective. Click to start growing your portfolio today!
Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.
