Legacy Wealth Holdings

12 People In Your Network Who Can Increase Leads Right Now

There are already people in your network – people that you do business with on a regular basis – who have access to deals, opportunities, money, and deal flow. These people could greatly increase your leads right now.

The only problem is…they don’t know that you’re looking for it.

That’s the most important thing here. You’ve got to be willing to have the conversations and reach out to people.

Life and sales and success is all about prospecting: prospecting for a spouse, prospecting for money, prospecting for deal flow, prospecting for a job. All of those come from being willing to get out of your comfort zone a little bit in order to have those conversations and see where they lead.

So I’m going to give you about a dozen different people that are in your real estate network already that you should be having conversations with on a daily, weekly, monthly basis to ensure that they know exactly what you’re looking for as far as deal flow and money flow.

#1 Title Companies

They have deals coming through all day, every day. They’re seeing deals that get closed. They know the sellers who just put a bunch of money in their pocket. They also see deals that don’t get closed, and they see sellers who didn’t get to sell their property and now are very motivated because they’ve already mentally spent the cash from that deal.

So reaching out to title companies and letting them know that you are a buyer of real estate allows you to stay in their network. Ask them for referrals in exchange for putting all your title insurance through them and making sure that they get the transactions when you buy.

That’s a great value-add to title companies and they can offer great value to you in return.

#2 Commercial Mortgage Broker

My mortgage broker has signed up deals for other clients of his that couldn’t get to the finish line.

For example, one time he was handling an acquisition for two partners who were the loan sponsors on the deal. He sized up the loan, got the lender ready to go, everything was great with the property.

But then the two partners got into a quarrel and a lawsuit, so the lender’s like: “We’re not going to loan to those guys.”

The deal went south with those two buyers, but my mortgage broker was able to reach out to the lender and said,“Hey, you don’t have any issue with the underlying asset. What if I brought a different loan sponsor and a different operator to the deal?”

And they said, “Yeah, we’d do it.”

So he reached out to me. I came in, I liked it, I signed on the loan, and took down that deal, We repositioned it and sold it for $1.1 million less than 18 months later.

It’s a great win for us, a great win for our investors, and a great win for him because he got paid on it as well for all the work that he did.

Just because he was able to make that introduction.

So reach out to your mortgage broker and make sure that they know that you’re interested in stepping in on deals that might need either a loan sponsor – if you’re willing to do that – or deals that fall apart, so you can then take over those properties.

As long as it’s a good deal and a decent area and everything makes sense financially, if for any reason the buyer walks, you can step in and take their place.

#3 Management Companies

I used to own a third party management company in Cleveland, Ohio, and we managed 700 doors at the time.

But management companies kind of feel like a punching bag. The city doesn’t like you. The tenants don’t like you. The owners don’t like you. It’s nothing but a headache.

The hardest properties to manage were the ones where the landlords or the owners weren’t contributing to a capital call, or if they needed to fix something they wouldn’t send money. When that happens, all of a sudden the tenants are upset, the city’s upset, and the management company is the one taking all the heat for it.

If you reach out to management companies, the conversation I’d have with them is:

  • Who are the problematic owners that you’re dealing with?
  • What are the problem properties?
  • Who are the problem owners who aren’t contributing?

Tell them “If you refer me to those owners, I can come in and buy those problem properties and keep you as the management company. You’ll continue making the management fees on it and I’ll be a good owner who contributes. I’ll make sure that the house is clean, safe, functional, and that we’re screening the tenants and we’ve got good people in place.”

Now all of a sudden, their life is easier, and you’re making more money.

A win-win situation for everyone.

#4 Commercial Contractors / Tradespeople

These are the companies that are supporting commercial assets.

Think about landscapers. Or coin operated laundry operators. Think about the exterminators that are going out to each of the different properties.

They know who the owners are, or they know at least who the management companies are, and they have those relationships built. They know which owners might be selling a property. They also know who’s not paying their bills.

And I’ve gotten a lot of leads that way.

Some of them played out, some of them didn’t. But the beauty of it is, it was all off-market. I wasn’t competing with brokers or realtors or other buyers. I was able to go directly to the owner and have a conversation with them saying, “hey, can we make the numbers work for you? Can we make the numbers work for me?”

And that exterminator or landscaper or the laundry business owner can maintain that contract if I come in and buy that property.

So make sure that you’re reaching out to all the different tradespeople who are working on commercial properties in your area. Develop those relationships. Promise them that they’ll continue making the residual money on the work that they do at that property. And now they’re incentivized to start sending you leads.

#5 Commercial Insurance Agents

Another place that I’ve gotten deals is my commercial insurance agent. I mean, they insure all these commercial properties. When somebody’s selling, they know that the insurance is going to be canceled.

So by telling that insurance agent that you’re a buyer of commercial properties they’ll be reaching out to you and you’ll be able to make an offer.

That’s a nice, warm introduction from somebody that’s probably pretty trusted by the owner – their insurance agent they look to for advice and direction on the insurance side of things.

It can be a vulnerable subject sometimes.

Since they are intimately familiar with the property, with the condition of the property, how it’s maintained, all those kinds of things, they’re able to set you up to have a conversation with the seller.

You can get all the details like:

  • How many claims have there been in the past?
  • What’s the age of the roof?
  • What’s the age of the electric?
  • What’s the age of the plumbing?

And really understand the condition of the property without the seller being able to pull the wool over your eyes. They say buyers are liars and sellers are worse. This gives you an inside track on what that property looks like.

#6 Real Estate Agents/Brokers

This one is kind of obvious. The key there, though, is making sure that they know that you’re in buying mode all the time, right?

Reach out to them and tell them you’re looking for deals and that if they come across anything that’s on market or off market, you’ll still pay them a commission or even roll them into equity on the buy side, in whatever the buying entity is.

You can carve out a couple of points of equity for them, and now they can trade their transactional income for some long term wealth building and get out of that rat race of trading their time for money.

It lets them become a little part of an owner, right?

Then they have a taste of that. It’s a big value-add that they don’t normally have access to.

#7 Investors, Flippers and Wholesalers

You might be saying “Well, yeah, obviously I get deals from them all the time.”

When I was building up my first 400 or so doors, I got the majority of my deals from residential flippers, wholesalers or investors who didn’t know how to underwrite a commercial real estate asset. Since they were just focused on the residential side, they just kind of discarded those leads.

So if I’m staying top of mind, and staying in their inbox or on social media, and I’m always talking about buying apartment buildings, I start getting lead flow from those residential wholesalers and flippers and investors.

When I got those deals, I would kick them a wholesale fee, or some equity in the deal, whatever it needed to look like in order to make it a win for them.

They were then able to monetize leads that they weren’t even looking at before. So that’s a really good one.

#8 Real Estate Attorneys

This is an obvious one. They’re dealing with landlords every single day, whether that’s at eviction court or putting lease agreements together or dealing with zoning issues.

They know who’s a motivated seller. And you can tell them that you’re a motivated buyer.

As they’re dealing with their clients, you just let them know that if they make any referrals to you, you’ll pay them a fee.

Real estate attorneys can earn a commission in most states. So even though they’re not licensed realtors or licensed brokers, they can actually earn a fee.

So you can pay them a commission kind of the same way that you would pay a realtor. Or just promise them some additional business: I’ll let you handle all the evictions, I’ll let you handle all the contract work, or whatever that looks like.

#9 Divorce Attorneys

Another type of attorney that’s a great source of lead flow is divorce attorneys.

One of my first deals was through a divorce attorney.

He represented a couple that could not finalize their divorce until they liquidated all their assets. They had a four bedroom, two bathroom house in Mount Pleasant, South Carolina (which today doesn’t have a single home in the entire community that’s less than about a half $1 million).

I was able to buy that deal for $100 grand.

That opened me up to the fact that there’s a lot of motivated sellers out there who need to get out of their property.

Instead of trying to find who that motivated seller is directly, a lot of times finding out who can make the introduction to that motivated seller works out better.

You make a connection with a divorce attorney, then they can put you in contact with all the people that they represent who need to liquidate their assets before they finalize their divorce.

#10 Probate Attorneys

Essentially, when someone passes away, the probate attorney handles it. They help disperse all the assets and money to the heirs of the estate.

So a probate attorney knows who passed away, right? They know that there’s five kids divvying up a $1 million apartment complex, and that everybody’s going to get a $200,000 slug of cash when it sells.

The thing there is that it’s free money to the heirs of the estate. Maybe you come in and make an $800,000 offer. Now instead of everybody getting $200,000 when the property sells, everybody gets $160,000. To them, that’s not that big of a difference.

Many times the heirs just want the cash, right? And most people already have this cash spent in their head before they ever actually receive it.

So it creates a great opportunity for you to come in and say:

“Hey, I’ll move quickly on this thing. You don’t have to sit with an agent (that’ll save you 10% right there). You don’t have to take on the carrying cost of the property over the course of the next 90 or 180 days. I have a solution for you in the next 30 days to liquidate this thing, take the cash, and be on your way.”

There are definitely ways that you can create relationships with probate attorneys, too, in order to provide a solution to their clients. And that makes a probate attorney look like a rock star just by you being able to come in and provide a huge benefit to their own clients.

#11 Eviction Court

I’ve talked about eviction court before. That’s a great place to go and just network and figure out who the landlords are, who the property managers are, who the real estate attorneys are that are in that room dealing with problematic tenants and evictions all the time.

You go and start handing out business cards or just introducing yourself, pressing palms a little bit in order to let them know that you’re willing to buy problematic properties.

That’s a great place to find a lot of motivated sellers.

#12 CPAs

Your CPA knows who’s making money and who’s not making money.

But do they know that you’re out there looking to buy property from landlords who might be motivated sellers?

Make sure that they know what you do, how you do it, and that you’re willing to buy more properties. And if they know of anybody who’s ever looking to sell, they should definitely connect with you.

I’ve gotten deal flow from my CPAs.

I remember one deal specifically – it was a grand slam of a deal. I didn’t end up snagging it because they figured out a solution where they were able to keep it. But that one could have been a very, very attractive deal..

But if my CPA didn’t know that I was buying deals, he never would have brought it to me in the first place, and I would never have been able to make an offer on it.

Even though that deal didn’t go through for me, I’m thankful that I was able to make an offer because my CPA saw that, I not only said what I was going to do, but that I actually did what said I was going to do and made an offer on that property.

That made them look like a great resource to their client who was looking to sell that property.

Action Plan

So I just gave you about a dozen different ideas, a dozen different people in your network to reach out to to increase leads.

Now, here’s where the work comes in.

This is the action plan: actually reach out to them.

I would be very intentional. Over the next two weeks, reach out to a minimum of three people that fall in each one of those categories. Go down the list and reach out to three each day.

That means you will have reached out to almost 40 different groups or businesses that could be lead sources and lead generators for you in your real estate business.

Do that over the next two weeks and see how things compound over the next several months. Start planting those seeds and cultivating those relationships, and eventually the harvest will come.

I’d love to hear what some of your favorite connections are. Where are some other places that you’ve generated lead flow through your existing network?

I appreciate you reading this. Until next time, be your best.

We did a video version of this! Check it out on our YouTube channel here: https://www.youtube.com/watch?v=hxvThiF5fIs&t=274s