It doesn’t matter if you’re new to the industry, or you’ve been investing in multifamily properties for years, there may come a point in time when you are unable to find deals.
This can happen for a variety of reasons including when the real estate market in your state has reached it’s peak and there are many other investors looking for multifamily properties at the same time.
If you’re in the position where you’re currently unable to find deals, the good news is that there are a variety of different options which you can use to find your next deal including driving for dollars, hiring bird dogs to scour the state in search of properties, and contacting owners of multifamily properties in the area via direct Mail.
Have You “Doubled Down” On Your Efforts?
Yes, you literally do you have to double down on all of your marketing efforts when you’re unable to find deals. This also includes calling owners who have listed their multifamily properties for sale on Craigslist, networking with many real estate agents, wholesalers, and sending out more direct mail campaigns.
To be successful with investing in multifamily properties you literally have to think of yourself as a “fisherman”, and be willing to cast a “bigger net” to find properties than you may have cast in the past.
By doubling down on your efforts, you’re going to be able to start putting more leads in your pipeline, especially if you advertise your services online.
Don’t keep doing the same things that you’ve been doing. Make an effort to double your efforts and you won’t be in the same position in another 30 days.
What Happens When You Still Can’t Find Deals In Your City Or State?
Let’s say that you’ve been using one or all of the strategies mentioned above, and you’re still unable to find a deal. In this case, it may be time for you to consider looking elsewhere in the United States for your next multi-family deal especially if you live on the East Coast or the West Coast of the United States where competition is the highest right now.
You may not be too excited about searching for multi-family deals outside of your city or state, but rest assured that the deals are out there if you start looking in other areas.
Where should you be looking for deals? The good news is that there are a variety of other states that are booming right now and are full of opportunity for multifamily investors including Nevada, Arizona, Texas, and the Midwest.
How To Get Started With Finding Deals Out Of State
Thanks to the internet, you can easily get started with learning more about an area before you start investing there but the reality is that your reach with the Internet is only going to go so far.
To effectively get started with finding deals in areas like Toledo Ohio or Kansas City Missouri, you’re going to need to build a team that will become your “eyes and ears” on the ground. This means that you’re going to have to recruit a team of wholesalers or “bird dogs” who will be more than willing to notify you of multifamily properties if you promise to pay them a great commission after purchasing a property in their city or state.
Besides hiring a team of bird dogs, you should also connect with a handful of trusted real estate agents who can assist you with finding multifamily properties as well.
Some other people to meet who could find you deals include people who work for the local Post Office, delivery drivers, couriers, and contractors because the reality is that they are going to be able to spot deals before anyone since they are usually the first people who are called to a multifamily property.
When investing in any new area you should also visit that area yourself so that you can have that first-hand experience and see what the city is like that you plan on investing in. Your visit should include finding out if it’s a walkable area, close to shops and stores, public transportation, and would be a desirable place for renters to live.
How To Stay Connected With Your Out Of State Teams
The great thing about investing in multifamily properties in the midwest is that you can literally visit multiple major cities in the Midwest in any state in as little as one day.
For example, you can drive from Kansas City to St Louis in under 4 hours. This means that you could establish a team of people to assist you with finding deals in Kansas City, fly into KC once a month to meet with your team then drive to St Louis to meet with your team there before flying back home.
To stay connected with your out-of-state teams, especially wholesalers and bird dogs, it’s best to utilize messaging applications like Slack because, this will enable you to have private, encrypted communication with your teams on a regular basis.
Besides utilizing a Messenger application, you can also stay in touch with your teams by using an online workspace platform like Dropbox or Google Docs because these platforms will enable you to send files to your teams and keep information about the leads that they send you organized and within your digital reach when you need them.
Tip – Don’t wait longer than two weeks to contact your out of state teams (especially bird dogs) because they are always looking for better opportunities to make money so if you don’t show that you value their hard work, and want to keep them motivated with incentives, they will find other money-making opportunities.
The biggest takeaway that we want you to get from this article is that the deals are still out there even if you’ve been searching for a while and are any of them to find them.
If you’re planning on searching for multi-family properties out of state we’ve offered you a road map that you can use for getting started with finding those deals and some ideas on where to start looking for your next multi-family property out of state