Today, Coach Collard shares a few tips of where to find properties at a discounts, including looking up properties that are vacant or have code violations.
When looking at properties with motivated sellers, focus on their story and how you can be their solution, instead of the real estate itself.
Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Coach: Hi, everybody. This is Coach Collard. Thank you for being here today. I happen to be the host for FlipNerd’s REI classroom and I’m thrilled and excited to bring you guys another short lesson here. So bare with me. We’re going to have a lot of fun and I want to make sure you guys get tons of value. It’s really, really important. So today, we’re going to talk about the ultimate way to find niches or to find success, which is through finding a niche.
Mike: This show is sponsored by PassiveRental.com.
Coach: And basically, when you find your niche, it finds your discount, and it’s really important. Discounts don’t exist on the street, normally speaking. Let’s project for a second and let’s think out to the realtor world, the MLS world, which is traditional real estate. I personally would say about 98% of all people, including real estate investors and realtors, play on the MSL and play in the realtor world. By nature, it’s a retail world and that’s okay. It makes trillions and trillions of dollars worldwide.
But, as investors, we don’t want to speculate and buy real estate and wait for it to go up in value. We want to buy it out of the gates with value. So we want to buy at discount and it’s really important. Through the years, I happen to have been doing this since May 7, 1999, and don’t ask me how I remember that date, but I knew I was stepping into something big.
So the idea behind it is that discounts aren’t really about the real estate. So a lot of us go in and we start talking to a seller and we start making it about the real estate. “Hey, I’m interested in your property. Yeah, I could do this, I could do this and I could do this.” And that makes them think it’s full of value.
What we want to do is just the opposite. We want to establish the relationship with them and make it about the person and the rapport that we build with them. Are you with me? So we don’t want to make it about the real estate, we want to make it about the person. Find out their needs. Find out what their motivations are. Dig in a little bit and I’ll get to that here in just a second.
But what I’ve found is that, referencing back to the MLS, those discounts don’t exist naturally on the MLS. What I think you’re going to find out there, and it’s what I’ve found, and all of our students out here in Las Vegas have found, that the discounts live in different niches. Things like code violations. Things like the Notice of Default List, where people are already in a distressed situation.
And I know there’s energy from different people, depending on who you are, that, you know, “Oh, you’re a shark. You’re taking from people.” No, I’m actually going in to help somebody that’s in a difficult situation. And they got there, in that situation, long before I was available around them. So I’m actually not the problem. I’m the solution. Are you with me?
So, guys, code violations, you might go build the relationship with the Code Violation Department and have them call you or text you. Vacant properties is a great way to find potential properties with discounts. I actually call on the craigslist, I know we did a lesson before where I talked about how I call on craigslist, and I root out those motivations, and I don’t really make it about the property.
So, real quick, here’s one thing that you need to do as well that I’m going to encourage you guys to do. I got this from another guy. It’s called “the three Rs.” And within the three Rs of rapport building, you’re going to identify what the reason is that they’re selling. You’re going to ask the seller, “So, Mr. Seller, what’s your reason? Why are you looking to sell the property?”
Then you’re going to find a resolve on top of that. “So, well, you know, there’s a change in my life. I’ve got to move, and I’m committed to it.” There’s a resolve. They’re really looking to make that happen.
And then the third “R” is rush. What kind of time frame is amplifying their circumstances? Because when people have time needs in their life, there’s a discount right behind it because that time need drives all their decision-making.
So, guys, just to sum this up, the ultimate way to find discounts. It’s through DMF and through niches. DMF is distress, motivation, and flexibility. I may not have referenced that like I should have. But it’s through niches as well so you want to find your own lane, get deep into that lane, and make it happen. So, guys, I appreciate y’all being with me today on FlipNerd’s REI Classroom. I hope you got a lot of value.
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