Most real estate investors start out with very little money. I know I did. And of course, we all become real estate investors so that we can acquire money and stop living paycheck to paycheck and don’t end up working 40 years in a job we can’t stand.
However, the problem becomes that in order to become a successful real estate investor you have to do some form of marketing. Many of the best marketing methods aren’t cheap either. Even though direct mail is by far the best marketing method in my opinion, you still have to be able to afford envelopes and stamps.
The same thing goes with bandit signs, which I also love. Purchasing several hundred bandit signs will set you back several hundred dollars. But remember, you will only have this outlay of cash in the beginning. After you start doing deals you will fund your future marketing with a percentage of the profits of the deals you do.
But let’s get back to what to do if you’re broke right now…
Well, there is a marketing method that’s my favorite if you truly have zero cash to spare. It’s also one of the best ways to get deals. In fact, if someone told me that I had 30 days to buy a house or I would be killed, I would immediately start off doing this method.
So what is it? It’s not talked about often, because most people hate it and refuse to do it. I’m talking about door knocking. But before you cringe, I’m going to share with you a way that will make door knocking 100% non-confrontational and will get you a lot of deals yourself. I’ve personally used this method for years and never had a negative reaction to it.
Here’s how it works: First, you have to choose the neighborhood you want to invest in. I prefer 3 bedroom, 2 bath, bread and butter areas. Once you’ve picked a neighborhood, you need to dress appropriately to go out. I wear khakis and a button-up shirt. You don’t want to overdress, but you don’t want to look like a slob either.
Next, you have to choose the time to go knock on doors.
I’ve found that 6:00 to 8:00 on the weeknights is the best time to go.
Now, here’s the “million dollar script” you’ll say when you knock on someone’s door. “Hi, my name is John and I was wondering if you might know if any of your neighbors are looking to sell their house. I’m a real estate investor and am interested in picking up some properties in this area.”
Do you see what that script does? It takes away any “pressure” on the homeowner and they’ll be more than happy to gossip about their neighbors. Of course, if they want to sell their house, they’ll tell you that too.
This is truly a failsafe way to go door knocking. The only problem you’ll run into is that sometimes people gossip so much you’ll have to figure out a way to end the conversation so you can move on to the next door.