How I land amazing real estate deals using a simple 3-step process

Estimated read time 5 min read

The topic has been discussed on the forums by many investors and covered on the blogs by the contributors. I don’t like to miss out on anything so I decided to “crash” the party with my own simple and quick process for buying deals.

Most of you know that I am the owner of a real estate investment firm. In just two years, it has grown from one desk in an office hallway to two offices with 1,000 square feet, twelve full-time staff and operations in four cities. It would be an understatement to say that I am feeling humbled today.

The journey is always better than the destination

This is not to impress you, but to let you understand that I have been so busy with other investors’ demands that I haven’t had time to grow my portfolio. Every day, I talk to investors all over the globe, and they ask me, “How many property do you have in your portfolio?”

What a great question! How can you sell something you don’t even own? When these questions were posed, my portfolio consisted of only three “measly properties”. This could have been seen as a warning by many but I explained honestly that I was too busy helping other people with their portfolios to concentrate on mine.

I have a new goal. My personal portfolio for this year will include 25+ turnkey buy-and-hold properties. They must all be in the same area where we purchase, fix, rent, and sell. To the dismay of many investors, I’ve already purchased three properties that I will be keeping. Below you can find out how I found and negotiated these deals .

How I land great real estate deals using a simple 3-step process

Step 1: Locate the property

It’s easy to do these days, since my inbox is flooded daily with offers. People will send you deals every day if they know that you are a true CIA in real estate. You all who are just starting out should network as much as possible. Your network equals your net worth. Attend seminars, expos and conventions. Ask your grandmother at Walmart for any contacts she may have.

I met a company at a recent expo that sent me 1,400 Ohio properties that they will be foreclosing in April. These properties will then be for sale. You should also be on Craigslist every day (I purchased 30+ properties through Craigslist last year), Auction.com Hubzu.com. HudHomeStore.com as well as the MLS.

Step 2: Negotiate

For more information on this step, you can read my previous blog about negotiating the best possible purchase price. It’s my favorite part about real estate investing, and in business, because I was told by an old mentor, “the more you throw mud on the wall, then the more it will stick.” I used to love playing with mud when I was a child. Negotiating can be a very emotional and nerve-racking experience at times. However, you should never show emotion.

Commit yourself to submitting daily offers and to sticking to your numbers. I submitted hundreds of offers each week and was able to snag just two bargains off the MLS. The MLS. You’re kidding me? I can’t believe it. I bought both properties for 60% less than the asking prices.

Negotiating is a game of “in it-to-win it” and you must always be willing to leave at any time if you don’t get your desired outcome. Real estate investing is not about buying a house you like, but rather making money.

Step 3: Evaluate

Once you’ve found a bargain, it’s time to evaluate and crunch numbers. Make sure that the property is a good match for your portfolio. Since I am so awesome, I have already written a post about and how to crunch numbers for real estate using a simple rule. You MUST ensure that after you have crunched the numbers as I described in the article, the net return will help you achieve your goal.

Do not make the same mistakes I did when I started. I invested for bragging rights and quantity, like “I am a real-estate investor” or “I am an entrepreneur”. This cost me money and time, as I had properties in my portfolio that were doing nothing but costing me. Each property you purchase should help you achieve your goal. Don’t forget to base your decisions on the numbers of the deal TODAY, not future predictions. You shouldn’t focus on these metrics because no one has a magic crystal ball.

How do you plan to achieve your goal in real estate investment? What monthly cash flow is required to live life according to your own terms? What is the timeframe for achieving your goal?

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