The Best Off-Market Real Estate Deals Are Found by Driving Around & Putting Notes on Eyesore Properties

But can it scale?

Oh yes! For both residential & commercial.

I cracked the code. 

Here's exactly how you can copy.

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You'll need a few tools:

- Craigslist

- Google Forms

- Some petty cash

- Some faith & patience

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We start by writing the note. Take a sheet of paper and write:

"I want to buy this property. I can pay cash and close fast. Please call/text ASAP."

- First name

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Now what?

Take a pic of the note and save to your computer as a PDF.

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Go to Craigslist and post a job in the "Labor Gigs" category in the target city(ies) - It should say:

"Get paid $10/door to put notes on properties in (city name). Must have reliable transportation"

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CL charges $10/post.

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Now create a Google form for your gig workers to upload pics.

They need to prove they did what you asked.

You need them to upload 2 pics per property + the address.

1 pic of the entire building and 1 pic of the door with the note taped on it.

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Here's what to ask the applicants:

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Can you send a pic of your vehicle? or FaceTime.

Many will apply without a car. No bueno.

Tell them you'll need them to go to a FedEx store & print copies of the note you'll email them.

Reimburse them upfront for this.

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Describe EXACTLY the types of properties you're targeting.

They need to document all of this so you don't get swindled.

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Describe the picture-taking and upload process. Have them test it w/ a couple of pics.

Be VERY clear about what parts of town to look. Don't let them guess.

Start w/ only 1 person in 1 city. Document it all on Google drive.

Have them knock before taping the note to the door. 

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If someone answers, have them hand them the note and tell them they work for you and to call with any questions. 

That's it.

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Now you need to start sorting through these pictures.

Look at each one closely at first.

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The most likely times a gig worker will try to scam you are:

1. In the very beginning.

2. After you're complacent & checking the pics less.

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You may go through a couple before finding a rockstar.

Give them feedback along the way so they know if they're on the right track.

Once the first pics/addresses are uploaded do some research on the property.

Tax Records & Facebook

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Call the owner yourself & reference the note. If you don't they think there's more demand than there is. No bueno.

Conversion rates go nuts if you do outreach via multiple angles.

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This strategy works best with:

1. Abandoned residential

2. More dense areas

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But it can work anywhere. Some of the best commercial properties we've found have been in rural, overlooked areas

With this strategy you're only competing with local investors. Unlike listed properties

Just because it's abandoned doesn't mean no one ever goes there. 

This is why you need to be patient.

Almost no one else does this because it's hard, tedious, and is thought to not scale.

This is exactly how the best deals are found. And it CAN scale!

Once this works, scale it!

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If the city is big enough, have this person lead a small team of others to do the same thing. Give him a raise.

Since you aren't paying hourly, it can be done on any schedule.

Yes, it'll cost money, but the ROI is outrageous.

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Here's how we've done:

18% of notes lead to a call (eventually!)

14% of calls lead to a deal

38% of deals lead to a closing

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This was residential. So 1 great deal per ~$1,000 spent.

We saved 10s of thousands on these deals than via other traditional sourcing methods.

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What about commercial?

Storage, industrial, MHPs & MF are different, but the same principles apply.

Notes instead get handed to managers.

Lower quantity & more driving so the gig worker should be paid more

The key is PATIENCE. We routinely get calls 6-8+ months later.

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Hope this helps someone!