Finding good deals in a hot market can be difficult, but it doesn’t have to be.
In this video, I’ll show you how to identify the best real estate deals in your area and then how to find them.
Transcript:
Chris Bounds 00:00
How do you find a good deal in this hot market?
Brant Phillips 00:02
You mark it more than you used to have to, in 2009, you could walk down the street and trip over deals. Right. And now, the same things you have to market, you probably have to market more. Okay. And you got to close better. You know, sometimes my guys got my acquisitions, guys competing, versus 10 or 15.
Other investors and we’re competing against the open door and offer pad. And it’s not fun. Right. There’s a reason I started looking at mobile, home parks and other ventures in real estate because single-family is getting so competitive. But the answer is you just do the things you used to do. You just got to work a little bit harder and probably spend a little bit more money on your marketing.
Eddie Gant 00:46
He’s 100% correct on the marketing. I agree. And we all spend a lot of money on marketing to get people to call us. What I want to add to that is that you have to get used to the most comfortable pair of Nike running shoes. You got and get those pretty red heels off and go get the neighborhood built in the 60s, 70s and 80s. And hand out flyers door to door and just get your exercise and go with it. It will pay off. But you either got to pay or you got to burn the rubber up to make it happen.
You got to do one or the other. That having said that, you know, I’ll tell you this and I’ve got a really good chart on it. The information came from atom data. That either one of y’all use that atom data, check it out. But I’ve got a chart that shows from 2000 to 2021, the total number of single-family residences sold in the United States by a year. And then along the chart, it has a little colored line that shows the number of investors about deals for the same year. And it’s 2% to 8%.
And this means your total market is always your flip distressed market is 2% to 8% of your total market, whether it’s in times like today or times in 2008. Now, having said that, I mean, it’s going ahead, say it, it’s harder to find deals today, because the general public’s not totally stupid, okay? But 2% to 8% of the market is the distressed market, you just got to go figure out how to get a piece of that 2% to 8%.
And you’re gonna get it by either marketing yourself, to get them to call you or email you or text you. You burn the rubber in these neighborhoods or have someone burn the rubber in these neighborhoods, putting out door hangers and door fliers on door to door for the people to call you. But there’s no need for you to go to how to worst you and hand these out on million-dollar homes. You’re going to waste your time you go to Hidden Valley at Gulf Bank and 45 where it was built in the 60s and 70s. And they’re all brick, and you put out a couple 100 flyers on Saturday, you will get some calls in.
Brant Phillips 03:10
And the other thing that I would say also maybe expands the type of deals you can monetize. Right. So some people coming in, I can only flip. Right. Well, maybe some deals work better as being a landlord. Some deals work better flip. Some deals work better for owner financing, you know, Airbnb now. So you got to you know, you don’t want to get too spread thin or too lack focus.
But Eddie’s got a lot of tools in his tool belt, or he can monetize these you can make him listed as an agent. Right. And that’s something that we’ve been focused on last few years. Like, hey, these days, I would never talk to anybody about listing their property. But now you know, that some of these houses are selling $500,000, $600,000 and $700,000.
That’s a nice commission, you may just look at not only an increase in your marketing but learn how to monetize leads that you may have previously said, “No, that’s not a deal because it doesn’t fit in this square peg, hole or whatever. But now when you have these other options, you can learn to monetize them in other ways.
Eddie Gant 04:20
Are you new in the business? I’m assuming. Let me tell you something, you got to trust me on this. If you stay in this business for three years or four years, and you really put the effort in, deals will find you rather than you find in deals. You just got to trust me on that one. Deals will find you.