Finding Off Market Real Estate Deals Can Lead to Untold Riches
Real Estate Investing is a transactional business. You have to have a source of deals. Better still is a source of Off Market Real Estate Deals that you can buy, renovate and make a profit. DFD Mastery founder Zack Boothe joins me on this real estate investment podcast to discuss his method of finding investment property.
Zack has a history as a long term real estate investor. His primary strategy was to buy rental property and lease to Section 8 tenants. You probably know of investors following this same strategy. He found that over time he didn’t really make much money on his portfolio. Tenants caused damage and the yearly property inspections racked up repair bills. Maybe you can relate.
Zack made the transition to becoming THE SOURCE of Real Estate Deals in his market-Salt Lake City, Utah. Since he controls the deals, he gets to set the terms and prices of his deals. Some get wholesaled to other investors and he collects a fee. Others route to fix & flip partners who step in, fund the deal, do all the work, then split the deal 50/50. Can you see how this sets you up to become rich?
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Here’s How to Find Off-Market Real Estate Deals & Get FREE Access to his unique software for Driving for Dollars
Investing in real estate can be a great way to make money. However, it’s not a simple process. Not only does it involve buying, owning, managing and renting or selling property, but you have to compete with other people to get that property in the first place.
One of the best ways to make money through real estate investing is through off-market real estate deals. These properties aren’t listed on the market, but can still be bought and renovated to earn a profit.
You might be wondering how off-market real estate investing works. DFD Mastery founder Zack Boothe joined me on this to break down the exact process and demonstrate how you can earn big bucks from it.
Real Estate Investing
To really appreciate the advantages of off-market real estate investing, it’s helpful to look at other forms of investing, such as renting properties.
Renting properties out to tenants can be a great way to make some extra money. However, it also comes with a slew of disadvantages. These include:
- Tenant problems
- Lots of involvement
Renting property out isn’t easy on the taxes. As the owner of that property, it’s up to you to pay property taxes, insurance and homeowner’s association fees.
Another problem with rentals is tenants; there’s no guarantee that a tenant will pay the rental fee on time, and missed payments can seriously cost you. Not to mention that tenants can inflict damage on your property and hide it to avoid paying costs. Finally, owning a rental property involves a lot of active involvement. You’ll need to make yourself available to tenants to address any issues that come up.
Wouldn’t you rather earn money through real estate without having to worry about these issues? Believe it or not, there’s a way you can do that.
Zack Boothe has been in the real estate investing game for years. He started by buying rental properties and leasing them. However, he soon discovered that this wasn’t the most lucrative method; the required property inspection bills and damage caused by tenants put a dent in any turned profits.
Zack transitioned from renting properties to becoming one of the top-earning Utah real estate investors. As the source of Salt Lake City real estate deals, he controls the terms of deals, including prices. If a property is wholesaled to other investors, he collects a fee. If it’s sent to fix & flip partners who perform all of the renovations, he still gets 50%. By now you’re probably wondering: how do I get started?
Driving For Dollars
Zack Boothe started making more money by transitioning to off-market real estate deals with driving for dollars, or DFD. This involves finding distressed properties, or properties that are about to be foreclosed or already owned by the bank. These properties can be bought for a low price, then repaired and sold for a profit.
The phrase “driving for dollars” comes from the method; it involves physically going out and looking for distressed properties. Since these properties aren’t listed on the market, there’s no easy database to help you find them. However, there are signs you can look out for, such as boarded windows, a messy yard and just a general lack of maintenance that indicates the home is not lived in.
If you’ve found a distressed property, the next step is to record the address and information about its condition. Once you’ve done that, you’re going to have to access public records to find out information about the property. This includes:
- Who owns the property
- If the property is set for foreclosure
- When the property was sold
- Owner’s mailing address
All of this information helps you determine how to contact the homeowner and whether or not you should even bother to reach out to them in the first place. For example, if a property was bought very recently, they’re probably not interested in selling.
Nobody said earning money through off-market real estate investing would be easy. Finding distressed properties that you can earn a profit off of can take ages, and that’s just the beginning of the work you’ll have to do. Fortunately, there are tools to help.
With typical real estate investing, you have to sort through thousands of emails and letters before striking a deal. By driving for dollars, you can get a deal after canvassing just 200 homes, making it a more efficient way to earn money. Not to mention, canvassing is cheaper than mailing.
At this point, if you’re interested in real estate investing, then trying out the driving for dollars method is a no-brainer. Who doesn’t want to make more money faster? The problem is, it’s not the simplest or most straightforward procedure when you’re starting out. DFD requires knowledge about properties and the ability to canvass properly.
On the podcast, Zack Boothe told me all about the software he uses when driving for dollars: DealMachine CRM. This special software is what Zack uses to track, manage and market his driving for dollars strategy. It’s free up to 50,000 properties and greatly facilitates the process for you.
Learn From Experts
If you’re looking to get involved in off-market real estate investing, the first thing you should do is hear what an expert has to say on the subject. Check out my podcast to hear Salt Lake City investor Zack Boothe’s insight into dollars for driving, which includes advice on what to do and what software will help you be successful in the business.
This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/
Resources Mentioned in this Episode:
Zach & I Discuss:
Finding Off Market Deals in Salt Lake City, Utah
Partnering with Flippers for a Large Piece of the Action
Prime U.S. Markets for Wholesaling OR Fix & Flip Deals
How to Get the #1 Highest R.O.I. Mailing List in YOUR Market
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