Quick Summary
A real estate property locator, also known as a property scout or “bird dog,” finds investment properties for real estate investors, focusing on distressed or undervalued properties that investors can flip for a profit or rent out for rental income. Their role involves scouting neighborhoods, checking listings, attending auctions, and networking with real estate professionals to find deals that match an investor’s brief. Success as a property locator relies on market insight, networking skills, and the ability to spot properties with investment potential.
Being a property locator can be a realistic and profitable endeavor, especially in areas with high demand for investment properties. Earnings often come from commissions on successful deals, flat fees per lead, or a percentage of the deal’s value.
Before looking for deals, it’s crucial for locators to find investors ready to buy, as this enables them to act quickly and cater to specific buyer preferences. Locators can find investors through networking, social media, and online marketplaces, and once their network is in place, they can source deals from distressed property owners, foreclosures, online tools, public records, and targeted advertising.
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What Is A Real Estate Property Locator?
A property locator, also known as a property scout or “bird dog”, finds investment property deals for real estate investors. Property locators will often focus on finding distressed properties or undervalued properties that investors can fix up and flip for profit or rent out to generate rental income. Property locators will take the brief from their real estate investing client and drive around neighborhoods, check local listings, visit auctions or network with other property professionals to find deals that fit the brief.
A property locator role is best suited to those who are good at networking, have a keen eye for spotting good real estate deals, and have detailed insight into the local real estate market.
Is This A Realistic Way To Make Money Or Just A Pipe Dream?
Working as a property locator can be a realistic and profitable way to make money, especially in markets with high demand for investment properties, such as student towns with a constant need for rental housing. Success as a property locator largely depends on having reliable investors who are ready to buy and a steady supply of investment-worthy deals. To thrive in this role, it’s essential to understand the local market’s dynamics and focus on properties with strong profit potential for real estate investing purposes.
How Do Property Locators Get Paid?
Typically property locators will make a commission on each property that they successfully pair with an investor. In some cases, they can also get paid a flat fee, where the investor pays a fee per lead submitted, these can be anywhere between $200 and $2,000 depending on the value of property and the deal itself. Sometimes, a property finder can earn a percentage of the total deal’s value, once the investor has generated a profit from the deal, which can be between 1% and 5% of the deal’s value.
Why You Need To Find Real Estate Investors Before You Find Property Deals
Finding real estate investors to work with, before you find real estate deals is an important step because it allows you to act quickly once you’ve found good deals. Here’s why you should find real estate investors at the outset, and then we’ll outline how to find both real estate investor and real estate deals.
- Act fast on deals: If you’ve got investors lined up ahead of time, you can jump on any good property deals that you find right away, because you will be able to pass them onto the appropriate investors. Without any investors lined up, you may not be able to move quickly on real estate deals which can be detrimental to being a property locator as you’ll risk losing out on deals.
- Buyer preferences: Each buyer has specific preferences, so the easiest way to find the right property for each investor is to bring them on board before you begin searching for real estate deals. That way, you can search for the right deals and put your energy into those, rather than wasting time on deals that aren’t a good fit.
- Building trust: Investors are more likely to work with you for a longer period of time if you can build trust and rapport before you find a real estate deal. So, building trust is crucial to a property locator’s relationships with investors.
How To Find Real Estate Investors
Before you find investment properties, you’ll need to find investors. Finding real estate investors to work with, is the key to being successful in this avenue in real estate. This can be done in a variety of ways:
1. Networking
Engage in the Local Real Estate Community
Connecting with others in the real estate industry is one of the most effective ways to meet potential real estate investors who could become valuable clients. Local real estate groups and communities foster a dynamic network of professionals, including active investors. These groups provide a platform for discussing potential deals and networking, which can be an invaluable way to connect with investors interested in buying properties you’ve discovered. Look for these groups on platforms like BiggerPockets or through Facebook events. Once you find groups to join, attend meetings prepared with a portfolio or a list of properties, demonstrating your potential as a reliable source for investment opportunities.
Build Relationships at Conferences and Events
Attending real estate conferences and industry events is another key way to find investors actively seeking new deals. Target events that align with the type of investors you hope to connect with; larger gatherings, like those hosted by the National Association of Realtors (NAR), can be particularly useful. Before attending, refine your elevator pitch so you can effectively introduce yourself and the types of deals you handle, helping you match with investors whose interests align with your offerings.
2. Social Media
Social media is a powerful tool for connecting with real estate investors both locally and in broader markets. Using a variety of platforms can help you reach different audiences effectively. Join groups dedicated to real estate investing, engage with other investors, and build relationships that could lead to finding investors eager for their next opportunity. Each platform offers unique networking advantages, so exploring multiple channels can increase your chances of finding the right investor connections.
3. Online Marketplaces
Real estate-focused online marketplaces are excellent venues for connecting with investors, wholesalers, and lenders. These platforms provide forums and networking spaces where like-minded professionals share insights and investment opportunities. By actively engaging on these sites, you can establish connections with investors or industry professionals who may introduce you to others looking for quality deals.
4. Partner with Mortgage Brokers and Private Lenders
Mortgage brokers and private lenders often maintain lists of investors seeking properties and are frequently open to making introductions. Focus on brokers and lenders who specialize in investment property loans, as they typically have connections to active investors. Building relationships with these professionals can lead to long-term partnerships, giving you direct access to investors interested in properties that align with your deals.
5. Solidify Your Online Presence
Presenting a professional and credible image is essential for property locators, making a solid online presence invaluable. Building a personal website is highly advisable; it should showcase your services, a portfolio of past deals, client testimonials, and an outline of your process. A well-crafted online presence not only helps investors find you easily but also allows them to quickly assess your professionalism and experience, building trust from the first interaction.
How To Find Good Real Estate Deals
Once you’ve built a network of real estate investors, the next step is to seek out high-quality real estate deals to attract even more investors and generate income by pairing these deals with the right buyers. Successful property locators know how to uncover properties that meet investors’ criteria, from distressed homes to off-market gems. Here’s a closer look at some effective methods:
1. Appeal to Distressed Property Owners
Connecting with distressed property owners is a proven approach for reaching sellers who might be motivated to sell quickly, often below market value. Whether you’re reaching out through direct mail, driving for dollars, or other methods, focus on properties that are vacant or show signs of neglect, owned by absentee landlords or people facing financial difficulties. These sellers are often willing to offload their properties quickly, making them ideal candidates for investors.
Tip: Follow-up is crucial. A single mailer or phone call may not be enough; consider sending a series of mailers or making follow-up calls to stay on the radar of potential sellers. Deal-finding apps, like DealMachine, can streamline the process if you’re scouting neighborhoods in person by providing owner details and allowing you to tag properties easily.
2. Foreclosures and Auctions
Foreclosures and property auctions are fertile ground for finding properties with motivated sellers, often at below-market prices. Many foreclosure properties attract investors looking to renovate, sell, or rent them out. Foreclosure listings are usually available online, along with details on upcoming auctions where you can attend to spot potential deals.
Tip: Foreclosure deals move fast, so it’s best to have interested investors lined up beforehand. That way, if you find a great deal at auction, you’ll be ready to act without hesitation, giving you a competitive advantage.
3. Online Platforms and Data Tools
Online platforms like Zillow, Redfin, PropStream, and Mashvisor offer powerful tools for locating and analyzing investment-worthy properties. Zillow and Redfin allow you to filter listings by price reductions or property condition, helping you find fixer-uppers. PropStream and Mashvisor take it a step further, providing data insights to help you identify undervalued properties and predict high-yield markets. These platforms can save time and streamline your search, allowing you to focus on properties with the highest investment potential.
Tip: Many of these tools provide insights into local market trends, neighborhood data, and even property histories, giving you a comprehensive view to share with investors.
4. County and Public Records
County records and public data can help you uncover unique investment opportunities, especially with properties burdened by tax liens, probate cases, or absentee ownership. Properties with outstanding tax liens or in probate are often owned by sellers who may be more inclined to sell quickly. Publicly accessible lists from county offices offer a direct way to contact these property owners and present a solution to their burden, creating a win-win for both the owner and your investors.
Tip: Regularly check for updates on these records. Staying informed about new probate or tax lien properties in your area increases your chances of finding fresh deals before others do.
5. Paid Advertising
Investing in targeted advertising can be an effective way to attract motivated sellers and find good deals. Google Ads and social media ads allow you to zero in on individuals actively searching for solutions to sell their homes. For example, using Google Ads to target searches like “sell house fast” or “cash buyers for houses” can put your services front and center for potential sellers looking for a quick transaction.
Tip: Social media ads on platforms like Facebook or Instagram can further help you reach specific demographics and locations, maximizing your ad budget’s impact and finding sellers who are ready to make a deal.
Additional Tips For Making Money As A Property Locator
Build a Strong Reputation: The more trusted you are in your local real estate market, the easier it will be to find deals and investors. Ensure transparency, follow up with clients, and strive to meet your investors’ criteria every time. A strong reputation leads to repeat business and referrals.
Stay Organized with a CRM: Use a customer relationship management (CRM) tool to keep track of leads, follow-ups, and investor criteria. This helps you manage multiple deals and clients more efficiently, ensuring no opportunity slips through the cracks.
Offer Extras Like Rehab Estimates: If you can provide investors with an estimate of repair or rehab costs, it adds value to your service and demonstrates your understanding of investment metrics. A solid rehab estimate can make a deal more attractive and save investors time.
Establish Partnerships with Real Estate Professionals: Partner with real estate agents, contractors, and inspectors who may come across potential deals. They might refer properties your way if they know you can find buyers quickly, creating a mutually beneficial relationship.
Negotiate Finders’ Fees: Don’t hesitate to negotiate a fair finders’ fee for each successful deal. Many property locators earn a flat fee or a percentage of the transaction, but you can also arrange a sliding scale based on deal complexity or value.
