Property Scouts—Viable for Leads in ‘White Hot' Markets?
Hey guys, JP here.
We’re hearing more and more from people in stronger real estate arenas finding it tougher to find solid deals. And if you’re in a market that’s white hot, it can feel kinda like the wild west out there sometimes.
I recently got a call from Jeff in Seattle, wondering if the Property Scout Pipeline is a viable approach that can actually work in a “white hot” market like his… and if so, how?
Solid question, Jeff—super glad you asked. 🙂
The Quick Scoop on Scouts
In case you don’t already know…
Property Scouts are basically “bird dogs” who find deals for you. Only not really the “ask your mail carrier and trash folks for local leads” type strategy… More refined and organized into a legit Property Finder Program—systems and automation for finding and training locals on what properties you’re interested in + how to find them, and they go out and find them for you.
(For a better-yet-still-concise summary, see: 7 Ways to Legally Pay Property Scouts.)
Bottom line: Effectively done, Property Scouts are key people who make your REI biz easier and awesomer. But to Jeff’s question: Does using Property Scouts to land deals really make sense in a “nutball market” like Seattle? (his words, not mine.)
So, I hopped on the phone with the golden boy of property scouts, Dolmar Cross, to hear what he had to say this, and in a handful of minutes we discussed:
- Ways Dolmar's using his scouts to find solid, off-market deals in his new opportunity market (3+ hours away)
- How he's also leveraging Scouts for off-market deals in pricier areas.
- The $90K profit deal his property scouts just landed him.
- The real question (under the question) Jeff is asking.
- Whether or not PSP is viable in “nutball” markets.
So check out our quick chat and see what you think…
So, there you go.
A couple things you should definitely bear in mind:
First, it's not a magic robot or mythical beast…
The Property Scout Pipeline is an impressive, clear-cut system to help investors do one thing only: Make recruiting, training & managing bird dogs simple and lucrative. It’s a well-oiled system that can give your deals-getting a booster-shot, but it ain’t a magical deal-making robot. But still, it's success (and yours) ultimately depends on a few things beyond any system or tool itself.
Like, say, honing your knowledge, skills, insights and experiences in your own opportunity market of choice, for example.
With Property Scout Pipeline, you're effectively sharing the opportunity with people to make money bringing you deals, then using the back-office to monitor, teach, communicate and manage them. But property due diligence means that only you can really get to know your opportunity market. Yes, there’s some tools out there that can definitely shorten and sharpen your target market research, but that’s just not what PSP was created to do.
And Pro Tip: You don’t have to be local anymore.
I really mean it.
Don’t like the market where you live? With PSP, you can extend your reach remotely into other less-weird markets. So, consider not limiting yourself to your local market—there are plenty of opportunities to expand, and ways you can make it super easy.
Even if feel like you’re in a “nutball market” like Jeff does—if deals a viable, the using property scouts to find those deals should also be viable. But you can’t really know how good (or not) any tactic or strategy is anywhere, unless someone tries it out first. Maybe you could be the first.
What do you think?
Agree or disagree? Or, got questions? Let’s hear ‘em.
I am definitely interested in becoming a scout for real estate. It not only would be enjoyable to me but also a way to supplement my social security.
Hi Paulette! You can reach out to investors in your area and find out if they are looking for property scouts. Many investors are looking for people around town to find properties for them. Good luck!