In this video, Joe Homs explains why the traditional method of sourcing real‑estate deals—searching the Multiple Listing Service (MLS) and competing with other agents—has become less effective as prices rise and competition intensifies. He introduces a newer model that focuses on acquiring off‑market properties by contacting motivated sellers directly, partnering with wholesalers, and leveraging virtual assistants to handle outreach. Homs argues that a hybrid approach—maintaining MLS awareness while aggressively pursuing off‑market opportunities—offers the most reliable, evergreen pipeline. He illustrates the new model with a real‑world case study in San Clemente: a beachfront townhouse listed at $700 k dropped to $650 k, then to $600 k, and after rapid negotiation Homs secured it for $590 k, a $110 k discount. The video emphasizes systematizing these processes (crew for texting/calling, VAs, wholesaler networks) to achieve predictable results across market cycles and invites viewers to learn more about seller communication tactics.
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Today, we're going to go over the old way and the new way to source your deals and why a hybrid approach might be the answer that you're looking for. Coming up next. Smart investors are changing their model of deal sourcing. If you've been seeing prices rising and cringing at the extreme numbers, or Have been getting frustrated by trying to find deals where the numbers really work, then this is a mindset shift that you really need to consider. Here's a breakdown of the old model versus the new model of acquisitions and why the shift is so important to you. Welcome back to the channel for the new and experienced investor, those who want to create the life they've always wanted through real estate. Before we begin, make sure you hit that little like button so that I know that you're following along. The old method is literally just going onto the multiple listing service and looking up deals that are listed every day, working with other agents, seeing what's, uh, what kind of inventory is out there, and fighting with everybody else who has the same access to all that information that you do. And you can see that it starts out at a certain price and then gets bid up and gets to the point where it just doesn't make any sense to do that deal. The new model is how to acquire better deals from more motivated sellers. A different approach that you can take. And this is literally contacting the sellers directly, working with wholesalers who are doing the same thing, training a crew of people who are there to assist you to make the texting and calling for you. Virtual assistants, all this put together so that you go directly to the source instead of waiting for it to get onto the multiple listing and having to fight all your competition for that one deal. What really works for us is kind of a hybrid approach. Okay, so right now we're putting a lot of money into the wholesaling effort that is paying off, by the way. And you always, always want to stay in tune and in touch with the multiple listing, listing old way, okay? Because you never know when the deal is going to pop up. So recently I had a client reach out to me. There was a property in San Clemente, literally walking distance from the beach, about 10 minutes or so, a 3-bedroom, Townhouse, and it started out at $700,000. They dropped the price pretty quickly, and in this market, when somebody drops the price, there's usually a reason. Most of the time it's because it needs a lot of rehab. That wasn't the case here, but they dropped the price to $650,000. My client saw it, he sent me a text, Joe, please go see this property. I literally got in my car in 5 minutes. I went down, took a look at the property, didn't see anything wrong with the property. It had currently been rented, so there was really nothing wrong with the property. I called the agent because I noticed on the MLS it said motivated seller. Okay, why an agent would put that on one of her listings, I don't know. It's something that I don't train my agents to do, but motivated Seller means like, okay, they just dropped it $50,000, but obviously there must still be motivation there. So I called and then the agent, we spoke back and forth and she says, yeah, they're real motivated. They're even willing to go down to $600,000. And this is $100,000 less than what it was listed at. And it could probably sell for even more than that. And I said, okay, well, what's going on? What's the motivation? Well, they bought another property in LA. They need to close on that property. They need to basically move. This property. They need it to be a cash sale so they can transfer that money over to the property in LA, which obviously they like a little bit more. My client says, send them an offer for $590,000. And I'm thinking like every other agent, oh God, you're going to blow a deal for 10 grand? So I sent them, I sent the offer for $590,000. Called the agent, hey, the offer's $590,000. She calls me back 15 minutes later. Oh my God. Says we got a deal. Okay, $590,000, close in 15 days, no inspections, no contingencies. And that's how you have to do these deals. So we're closing here in a couple of days, $590,000 on a property that's worth $700,000, and it's literally 10 minutes away from the beach. This new model, and even the hybrid approach, is much more evergreen. It will keep you thriving and surviving in all market phases. If you systematize your processes, then the new model can deliver more predictable results by providing value and solutions to off-market owners. If you're new to sourcing your own deals and want to know how to talk to sellers, click on this video right here. As always, feel free to reach out. I'm here to help.
