3 Steps to a Deal Flow Machine

By: Dike Drummond MD


Real Estate Investing is like fishing in some ways. You have to learn how to find the Big Ones without working too hard.

I am a fly fisherman from way back. Even tie my own flies on occasion.

Standing by the stream you will soon notice that the biggest fish are not the ones eating the flies on the surface of the water.

The biggest fish don't spend that much energy. They like to be served their dinner in a more quiet fashion.

Put on your sunglasses and you can see the big ones finning slowly behind each of the bigger rocks.

They park themselves behind the obstructions waiting for dinner to come to them. When a bug floats by it just takes a little turn of the head to grab their dinner and settle back in.

When you want to be a Big Fish Real Estate Investor, the secret is to get profitable projects to flow right across your desk.

The term most experienced investors will use for this is Deal Flow. It's when properties come your way every day in a continuous stream.

Like the Big Fish you grab the meatiest deals as they flow by and you can set this up so it happens on autopilot in three simple steps.

Step 1) Clarity on Your Goals

Take a moment and decide ... what are your goals for your Investments and Net Worth for the next year.

- How many properties do you want to buy?

- What dollar value and how many projects will you take on?

- What amount do you want to add to your Net Worth?

Once you have the answers and you are absolutely clear on what you are looking for move on to step two.

Step 2) Constructing Your Network

Get the word out. Let EVERYONE you know in on your goals, especially if they have a business reason for helpin you reach them.

It is only by telling more people what you are doing that you can expect to see more deals come your way. What is cool is that people love to help. I will even guarantee you ...

If you don't have Deal Flow right now, it is simply because the number of people who know what you are looking for is too small.

The Size Of Your Network Is The Key. So Let's Power it Up

Make a conscious plan to expand your network with people who you know can help you reach your goals.

Go through your contact list and pick

- a bunch of Brokers & Agents

- Title Companies

- Your favorite Real Estate Lawyers

- Mortgage Brokers

- Some Accountants and book keepers

- Appraisers

- Property Managers

- Bankers

- 1031 Exchange Agents and more

Everyone you know and everyone in your target market who would profit from helping you on a project - and TELL THEM ALL what you are looking for in this next year.

Give them your contact information and stay in touch at least four times a year.

Here is a way to go even faster

Step 3) A Deal Flow Jump Start - Pay It Forward

As you are building your Network remember to make it work in both directions. You give time and support to the people in the Network and they will do the same for you. That's how you get the Deal Flow started.

The Secret? To get what you want you have to give other people what they want.

Every chance you get ask your Network members for their goals and then help them get there whenever you get the chance.

If your goal is buildable land and your contact wants a multifamily deal ... and you run into and great multifamily project - let them know. This act of kindness will circle back in the form of a referral from that same person for just the tract you are looking for.

These three steps are the key - it is that simple

1) Get Clear on Your Goals

3) Grow Your Network and Feed it Well

3) Help Your Network Reach Their Goals

You can be the Big Fish in the stream with your Network as the current that brings you deal after deal to snack on.

These three steps implemented every day - make it a part of your basic routine - will allow you to generate your own Deal Flow that lasts as long as you continue to feed your Network.

You will soon be able to sit back like a Big Fish and just watch the deals come across your desk grabbing only the meaty ones to take on.

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