I hear this a bunch, and my usual reply is “What specifically have you done to find opportunity?” After saying that, I hear silence, the reality is the answer is that they have not done a thing.
I also hear about investors buying properties simply because “they could” or because “the seller allowed me to buy” which blows my mind.
When we focus only on “what’s for sale” we are seeing the same opportunity as everyone else. In what some refer to as a seller’s market, this creates a frenzy as the scarcity mindset kicks in as does F.O.M.O (which stands for Fear of Missing Out). Any time there is buying pressure, people simply overspend because of the fear of missing out. Overspending often leads to a foreclosure.
Instead of focusing on what’s for sale, perhaps we instead focus on finding problems. When we shift our focus to sellers with problems (or properties with problems) we then have seller motivation on our side.
What are problems? Problems are ANY situation that motivates a seller to sell their property. One of the best ways I learned to discover problems is to say less and listen more. By closing my mouth and opening my ears I discovered that problems were all around me once I learned to recognize them.
Ugly Properties – Driving for dollars is a time-tested method that does produce results over time. Walking for dollars is a much more effective solution because you can better see the details of what is happening in your area. By walking instead of driving, you can also better notice changes that would otherwise be missed while driving down the street looking ahead.
Lawyers are a great source of leads, take the time to network with several of them, specifically those that focus on elder law, probate, family law, etc. More often than not they have clients that need to liquidate their real estate in connection with some sort of legal events such as a divorce, lawsuit or probate.
Public records mining is also a great way (especially for those who are shy) to “dig for details” and uncover case history and recent filings for the legal proceedings mentioned above. Be sure to add to that those who are behind on property taxes. Reach out to people who are behind on property tax to buy the house BEFORE a tax certificate or tax deed sale happens. For many, this might be their last chance at profiting from the sale of their property.
The bottom line is that as investors, we need to spend less time buying off the shelf and more time digging for the gold, its out there! Trust me on that.