There are many ways to obtain deals in property, You can use Estate Agents, Lettings Agents, Deal Sourcing Agents, Deal Packagers and even Social Media. Plenty of deals and properties are on Facebook and many people advertise in the local paper or use leaflets at the local take away.
But what about word of mouth and off market deals instead? What about people just telling you about deals before they even get to the market? How cool is that!
Let’s be clear on a couple of things though before we go in depth.
As with many things in property this can take time to achieve. You will not be a property investor and on day 1 and then receive an off market deal. It takes time to build up that reputation with others first before you will start to receive these deals and opportunities.
Off market and word of mouth are the same. 9 times out of 10 if you get a ‘heads up’ about a potential deal from an agent or a friend then it is very, very likely that the property is off market and that you will be the first person to have been told about it.
Not all properties that you will view will turn into deals. You will view a lot of properties that do not work for you. However, that is a completely different blog topic in itself as once people know what you are doing and what type of properties you are after then they will only bring you what you are after and not irrelevant opportunities.
Word of mouth can come from Estate Agents, Lettings Agents, Social Media, Deal Sourcers or even your mate Dave from down the road.
This is about building up systems and processes over time and then acting swiftly and decisively when given the opportunity to do so. There is no point putting all this hard work into building your network of key people to then NOT take opportunities when they arise.
Nothing like listening to a monk!!
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Why is word of mouth the best way to secure deals?
Simply because you get given the opportunity to act before anyone else does. As long as you are quick at making decisions then this really does put you in good stead.
It is important to remember that you want to be in the situation where you get a phonecall before anyone else does and that you get that message on social media or from the estate agent before anyone else does.
You need and want to be top of the tree, the number 1 go to person.
That would make you feel pretty good, right?
It is important to let people know where you invest as well.
For example, on Social Media you will normally see my posts containing hashtag Hull (#Hull). This is because it is important to let people know what you do and where you do it. It is just another way of making people aware.
Unbeknown to me someone had a portfolio for sale and contacted a friend of mine a while ago on Facebook and asked if she wanted to take it on. She stated that the property was not in her investment area and instead recommended that the guy spoke to me as it portfolio was in #Hull (see what I did there?)
The guy got in contact with me, swift and decisive action was taken and at the time of writing we are edging closer to agreeing this deal.
I asked my friend why she had recommended that the guy speak to me and why I was the first person on the list.
‘’I know what you do and where you do it and you’re very active on social media’’
Regular posting online, letting people know what you do and where you do it is fundamental.
At the end of the day you just never know what will happen, when it will happen and where it will happen.
With estate agents you may have to buy a property through them first in order to demonstrate that you have the ability to act quickly and efficiently. Getting a purchase completed in a quick and professional manner will boost the agents’ thoughts of you.
When you act fast and decisively you become more respected and known as someone that takes action and can make good investment decisions quickly. Over time as that agents comes to trust you then when that agent gets another good deal come through you may be first in line to get a call and a ‘heads up’ about the deal.
This is word of mouth. These are how to get off market deals via agents. Yes, you can argue that you have had to put in leg work first in order to get to this situation and yes you can argue that this has taken time.
This is the situation that you want to be in though, right?
Another way of obtaining deals is through leaflets, advertising and by you initially having conversations and telling people what you do and where you do it.
Leaflets and advertising in the local paper are superb ways of getting off market deals because you will more than likely be contacted by the vendor themselves. This means that you can deal directly with the vendor. If you agree a deal with the vendor then you have an off market deal.
This has a big advantage because most people will view properties through estate agents and estate agents are not always the best at negotiating with vendors on your behalf. After all, estate agents are there primarily to get the best possible price for their vendor.
You can speak to friends and family and tell them what you do and give them a business card. Tell your friends and family or people that you meet to pass on your details to other people as well.
Then when you then get that phone call from someone because your number has been passed on them and they need your help, take action! That is the situation that you want to be in. At that point it is key to realise that your hard work has paid off and that you have a potential off market deal at your hands.
In general, it takes time to get to the stage where you will get word of mouth deals You will have to do a lot of networking and take a lot of action. Just remember though that taking swift and decisive action when given the opportunity to do so will make you stand out and give you a great chance of getting these word of mouth deals before anyone else does.
The 3 top reasons why word of mouth is the best way to secure deals
- You get to view opportunities before anyone else
- Less competition
- Deals are usually better
The deal that came to me via Facebook?
It will provide me with my basic financial freedom once completed.