David Choi is joining us in this #TechandTacticsTuesday episode. Throughout his experiences in different platforms in real estate, David found inefficiencies in the traditional acquisitions and deal sourcing processes. So, in 2017, he began developing a proprietary deal sourcing platform, using a data-driven approach to sourcing and acquiring deals on a national level. So, in this episode, David will share where to get “clean” data and how to narrow it down to your target market.
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To successfully acquire deals, you need to keep the process simple and be consistent with your marketing strategies. David shares how to get in touch with those gold mine properties and sellers who are highly motivated to sell and follow up with them. What is his highest return on advertising dollars? What do the ratios look like, for example, in the number of connects versus the actual closes?
Key Points From This Episode:
- David gives a little background about how he started in real estate.
- He started at 19 years old.
- How did he start sourcing deals and reaching out to owners considering he didn’t have any relationships or networks?
- David shares how they gather data and narrow them down to the market they are targetting.
- He explains how they take the data and start layering it with trigger data or motivation levels to determine how motivated someone is to sell their property.
- The approach is entirely different for large deals versus single-family or smaller multifamily.
- David shares tips on how they find “clean” data for specific types of sellers and the steps they make to market to them.
- He gives tips on how to score sellers.
- How do they connect to the sellers after they have filtered them out?
- What are their follow-up strategies?
- What are his predictions for the real estate market over the next six to twelve months?
- What is his best source for meeting new investors?
- What are his daily habits that have helped him achieve success?
- How does he like to give back?
“So, I had to figure out how to reach out to owners, ideally distressed real estate owners. I started off with the One to Four Family, and that same data-driven approach, we copied and pasted into tons of different verticals and have had tons of success.” [00:09:29]
“What we do is basically take up a set of data, like if you’re going after one real estate market, I don’t really recommend going after a handful at once, focus on one. Learn that market.” [00:09:51]
“So, what you wanna do before you go all-in on spending thousands and thousands of dollars on aggregating skip tracing and sending out mailers, I spend 20-30,000 a month in marketing, before you go ahead and go crazy, it would be prudent for you to figure out what data set is most accurate in your market and take that 20 hours, 30 hours of research before going crazy.” [00:14:53]
Links Mentioned in Today’s Episode:
About David Choi
David is a seasoned real estate professional and serial entrepreneur. Before starting his fully integrated real estate company, David worked for some of the largest development and private equity companies in the country, including Hampshire and Kayne Anderson. David has been involved in the management of private equity portfolios of over $2 Billion AUM and has personally been involved in thousands of real estate transactions. David is an expert in the syndication of capital and creative financing to assemble deals with unconventional and unique capital structures.
Through his extensive experiences in real estate, on both the debt and equity platforms, he was able to find inefficiencies in the traditional acquisition and deal sourcing processes. In 2017, he began developing a proprietary deal sourcing platform, using a data-driven approach to sourcing and acquiring deals on a national level. Presently, he’s the CEO of Leverage Companies and is actively purchasing, renovating, renting, and/or selling over 100 properties a year. David is also one of the founding partners in Leverage Capital Ventures, a Private Mortgage Origination company, originating over $100+ million in real estate bridge financing in its first year.
David graduated Cum Laude with a B.S. degree in Finance and Real Estate from Rutgers University and is an alumni member of the Rutgers Center of Real Estate Studies.
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