authority, attracting deals before they hit the general population. Imagine if a wholesaler (someone who contracts a property well under market value and then sells it to an investor at a slight mark up, leaving enough profit in the deal for the investor to see value in it) approaches you, the founder of the networking group, and says: “Who do you think this deal would be a good fit for?” This is what happens when the club is yours. You get dibs, which is always good. If you feel overwhelmed with the amount of time, energy, and pro- motions required to launch a group, consider starting one with a group of people who can also bring value. A great starter pack would consist of a wholesaler, a lender, a realtor, an attorney, and a mortgage professional. Through their diverse expertise and industries, each brings value, deal flow, and services to the group. More important, more people translate to more promotors; more promotors should translate to more new leads. If you want to try something similar but face-to-face networking is not your thing, consider launching something like this on social media.
modifications to joint ventures to mandating a sale. Before it gets to the final, critical stage of foreclosure, every lender wants to rid its books of bad assets (nonperforming loans). One way to do so is by introducing new investors to these nonperforming loans. The drawback is there is no silver bullet strategy to acquire these assets; instead, there are many approaches (e.g., buying the note, partnering with the existing borrower, partnering with the lender, etc.). But the positives often far outweigh the drawbacks because the lender’s primary objective is receiving its principal and doing so quickly. So, get out there and meet some lenders. Always ask them: “Is there something I can take off your hands?” I assure you that once the door is opened and the conversations start flowing, you will be surprised at what will pop up. 3. BUILD YOUR LIST AND BE THE AUTHORITY Assume you now have an active real estate club and a list of lenders in your market a mile long. What next? In the days of social media and in the days of influencer marketing, one “ancient” medium remains very active and very profitable: email. Any good businessperson knows your email list is an asset because your email list is a captive audience—and people pay for captive audiences. So, my final tactic in a down market is to build your list. You meet people all the time, so why not save their email addresses and contact information? You have earned the right to communicate to them. A caveat: Though bigger lists may sound better, that is not always the case. Good, clean, vetted lists (not just large lists) are the goal. If you get
Romney Navarro is the CEO of Streamline Funding, where he focuses on the company’s long-term growth initiatives. Navarro is also a partner at Noble Capital, Streamline’s parent company, and oversees the company’s marketing initiatives. A member of the American Association of Private Lenders, Navarro has participated in the origination of more than $1 billion in nonconsumer investment loans throughout his career. In 2015, Navarro launched the Investment Real Estate RoundTable (a Texas-based investment club with over 5,000 members) and in 2018 was the host of the highly-acclaimed Firestarters Podcast, known among real estate investors and developers as a premier source for those looking to scale their businesses. Above all else, Navarro believes mastery can be achieved through repetition and continuously strives to lead his team to be masters of their respective crafts so they can provide the best possible experience for borrowers. In 2019, this philosophy earned him and the firm the prestigious Think Realty Private Lender of the Year Award. all four of those, however, you get a highly curated audience that is built for and waiting to hear from you. Now how do you capitalize on it? Let’s start with what not to do. Do not spam! Conversely, all of us have had an email hit our inboxes that we not only appreciated but often looked for- ward to. So why not mirror that? Your key to getting your recipients to look forward to and open your email is content. Make your content unique. Don’t expect to get a high open rate on an email that is the same old mumble jumble that everyone is putting out. Stand apart from the rest. People love to know you; they love unique perspec- tives. As you market to your email list, don’t be afraid to be the most highly concentrated version of you. Like all good things, these strategies require work. But, these strategies also “work” if you put in the time and focus. The upcoming real estate cycle could be the start of your next big push. This real estate cycle will be ripe with opportunity—some of the biggest gains are created in a downturn. •
2. KNOW YOUR
LOCAL LENDERS There’s an adage that suggests the best deals are distressed. One of the first places to look for distressed deals is at banks. Banks, private lenders, and mortgage professionals all have obligations to write good loans that “don’t fail”; however, in a slowing market, that’s not always the case. Before a deal goes to foreclosure, a lender will run the loan through a pre-foreclosure process that consists of many strategies, ranging from payment deferrals to loan
10 | think realty magazine :: september - october 2022
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