Consistent deal flow is the lifeblood of the commercial real estate investor.
Most of you will spend time building your team, taking classes, reading books, raising private money, talking to banks, or telling friends about how great life will be once you buy your first investment property. You're getting ready to invest. It's exciting.
Here's the bad news, without deal flow, you won't invest and your friends will ask you what happened to your big plans. Don't feel bad, most commercial real estate investors complain that they need more deal flow and have to answer to their friends, too. They tend to get together and talk about how bad the market is, why brokers are useless, and that the right deal that makes sense will come along one of these days.
Don't make this mistake, you have to start with finding the deal, which means taking action today!
Imagine you're flying over your target market with a parachute on your back. You jump out of the plane, float to the ground, land, and are told that you have 30 days to buy 3 commercial real estate properties.
What's the first thing you should do? Start with finding the deal.
Here's one trick for accessing instant deal flow. Contact people who want to sell their properties because they have some problem to solve – divorce, retirement, death of a partner, medical problems, family issues, they're burned out on management, or they have to sell to buy a bigger property they 've identified.
Many of these owners have already tried to sell, but have failed. Their property was poorly marketed or over priced. They have become expired sellers or listings.
Obtain a list of expired listings from the local multiple listing service. Source the owner's contact information and call them to see whether they're still interested in selling their property. Send them letters that tell them you are an investor who must purchase 3 properties in the next 30 days. You need their help!
Call area real estate brokers and ask them which properties will soon be expiring because you're purchasing properties and want to make sure they get paid for their hard work.
Once you have a list of opportunities, meet with the owners, negotiate purchase and sale agreements, and tie up the 3 buildings that fit your investment criteria. Now that you have 3 deals that everyone else is looking for, start networking, advertising, building your team, talking to lenders, calling brokers to let everyone know that you have 3 money-making commercial real estate investment opportunities available.
You're looking for partners, private financing, or other investors that want to pay you a fee for you purchase and sale agreement. If your deals are "real", word will spread quickly.
And if your deals "make sense", you'll have investors clamoring to get into or pay you for your deals.
Remember, you control 3 money making deals that they want.
Now it's up to you to put the deals together, learn, and profit from your actions.