When I was first starting off as a real estate investor and I really didn’t have a big marketing budget I understood what stretching that dollar truly meant, and what I want to go over with you some really cool things that we have available to us now. In 2008, I didn’t really have this. I think the main social networking platform that was really big at the time was MySpace. Facebook was just somewhat coming on to the scene. It was more or less known for much more different things than it is today. I know it’s gigantic platform but two things that I really want to give you right now, that’s YouTube and Facebook. They do not cost you anything. They are zero dollars. To go on to Facebook right now and start making posts, that doesn’t cost you any amount of money. Going on YouTube and creating videos like the videos you see on there right now, that doesn’t cost me any money for them to make. Going out making a YouTube channel or whatever it is on YouTube, it doesn’t cost you anything.
Now if you want to get paid ads or have people watching your videos, then yes, YouTube and Facebook have ad platforms for you to go out there and have people watch your videos and all that good stuff, but really what I want to help you today with taking advantage of how you can get that first deal done as quickly as possible. Now, say for instance you live in Chicago. The first thing I would tell you to do is build up a cash buyers list. That’s going to be so important because if you don’t have the cash yourself, and let’s face it if you are looking for simplistic ways on really stretching your dollar to utilize it to its maximum potential, this is going to help you out tremendously. What I mean by that is you can go on to YouTube right now and type in we buy Chicago houses, and you’re going to be able to find all of the individuals that are already investors that are buying in your particular area.
You could literally go on there and find thousands of people that you can reach out to. You could just simply type in the word we buy Chicago houses and you will find a ton of people on there that are going to want to do business with you that are actively looking for deals. Now the main thing here is you’re probably like, “Okay, well that’s great. I could find cash buyers. How am I going to get deals for them?” Well, that’s solved too. Once you get, I would say 8 to 12 cash buyers, then you’re good to go. As long as you have good quality cash buyers, you’ve vetted them in, two things that I’ll give you right now for vetting them in. Find out where they’re closing their transactions at. Find out the title rep, give the title rep a call and see when is the last time they had a transaction close there. If they didn’t have a transaction close there within the last 90 days, they’re more than likely not a real cash buyer.
Now say for instance they are a legitimate cash buyer, get a proof of funds. Proof of funds could be a letter, and not just like a letter from a transactional (i.e. same day funding) standpoint. I’m talking about a real letter, like a proof of funds that you can get from a bank, from a self-directed IRA or an IRA retirement custodian. You could find different custodians that will type up letters on behalf of their clients and say yes, they’re good for that amount. 401(k) statements are fine. Stocks, bonds, mutual funds, whatever it is, get a statement and you’re good to go.
That’s what I would recommend as far as giving you a couple different things that you could do from vetting individuals. The other thing for finding deals, Facebook, there’s over a billion users on Facebook. Say for instance again, we’re going to stick with Chicago because we’re going to be doing deals in Chicago, right? What I would do is I would go and type in real estate on Facebook and I would look for groups that have Chicago in the title. You could find Chicago real estate related groups. Go on to Facebook at this point in time and you could go on there and start siphoning out people that are doing deals in Chicago or may have deals.
Now we do a lot of things where we reach out to the individuals on Facebook and we connect with them, just like I’m connecting with you through video, but instead I’m going to connect with them through Messenger, so I just connect with them. I say, “Hey, I just saw that we’re both a part of the same group, Chicago Real Estate Investors, and I’m connecting with you because I want to see if you have any deals that may fit my criteria.” Now the criteria that we’re talking about here is the criteria that you have found by talking to cash buyers that you found on YouTube. You find out and give them some of the criteria that you already have. You let them know, “Hey, these are the types of deals that I’m looking for. I’m looking for a three bedroom, one bath properties, thousand square feet minimum. I’m looking for these kinds of properties. I want it to be year built 1992 or newer. I’m only looking for B and C class type properties.” You let them know exactly what you’re looking for and you find that information out by your cash buyers.
Then from there, it’s quite simple. You then go ahead and start having these professionals send you deals, and yes, you may have to do what’s called a JV. It’s where you split any of the profits and I’m a huge believer in using what’s called a JV agreement, and it happens when we do an A to B, B to C transaction. I get paid off on the closing statement my half and then the other part is on the closing statement to be paid off to the JV partner with the agreement that we have in place. That’s how that works. You could find your deals through connecting with people through Messenger by finding them through Facebook groups. You find these individuals in Facebook groups. There’s the member directory and you could go through and look through all of them. If there’s 5,000, 10,000, 50,000, you go through and look at all those individuals. I really like to find the people that have real estate in their job title and then I click on their profile and I start looking and doing my due diligence from there, and in YouTube, I really like to see that their YouTube channel has some videos that have been posted within the last 90 days and that will allow me to really start reaching out to them.
Most of the time, these professionals have phone numbers in the descriptions of their videos along with emails. It really gives you an opportunity just to start reaching out and connecting to these people without having to leave the comfort of your home office, a coffee shop or if you live someplace else and you’re doing business from a virtual standpoint, you could be doing this from anywhere. You don’t have to really live anywhere specifically to do this.
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