How Can I Start Generating Motivated Seller Leads??

When you are first getting started as a real estate investor getting motivated seller leads coming into your business can be difficult…..mainly because you probably don’t have any clue where to start looking for them, but also because you are likely low on cash that you can use towards your marketing budget. Fortunately there is one strategy that anyone can utilize that costs very little money and is easy to execute. You would think because of the simplicity of this strategy more people would use it effectively…..but the reality is most people who use this strategy don’t follow it all the way through, so some of the best money making leads you can get your hands on just sit on their desk collecting dust.

So what Motivated Seller strategy are we going to talk about in this post?? Well I am going to go through in detail how we drive for dollars in my business, as well as what kind of marketing system we plug all of our Driving for Dollar leads into so that we can generate actual deals from the leads. If you are new to investing then the first thing you need to do is to determine what are your target neighborhoods or “Farm Area’s”, so that you can begin driving those area’s looking for houses. In my business (since we have been at this for a while) whenever we purchase a new rehab project I always treat it as an opportunity to better learn the neighborhood that our project is in, as well as create an even stronger presence for my company in that area. So every time I go to the new project I will take 20 minutes or so and drive around the surrounding streets to try and find houses that meet our Driving for Dollar’s criteria. Again if you don’t have any projects going in area’s you want to continue to invest in, then just establish what area’s you do want to invest in and drive those streets. Below are four criteria that we use when trying to determine if a house is one that we should be writing down as a Driving for Dollar’s lead:

1. Looks Abandoned (no furniture or blinds, phone books on the front porch, flyer’s hanging from the door handle, ect.)

2. Overgrown Grass and Plants (this is best spotted in the spring when things start to grow like crazy)

3. In Terrible Condition (you probably¬† get the idea on this one….but peeling paint, dry rot, boarded up, tarps on the roof, ect)

4. Old People Houses (outdated, roller pig ramps to the front door, older model cars in the driveway) – This is a sneaky one that most people overlook!

Once you drive an entire farm area you should then have a complete list of all the properties in that area that meet your criteria…..now this is the point where a lot of people get to and then they quit! They have good intentions of continuing on researching the leads, but for whatever reason they stop at this point once all of the heavy lifting has been completed. Once you have put together a list of these hand picked properties you have just created a custom list that is as good as any you could ever buy! This is because you have personally seen and qualified every house on the list, which is definitely not the case when you purchase a list of absentee owners or free and clear properties…..in addition all of the leads are in the exact area that you would want to buy houses!

So now that you have this super targeted list of fixer or outdated houses what do you do with it? Well the first thing you need to do it make sure your title company has set you up with their online property research system. If you are working with a good title company they always make sure to take care of their customers…..and they do this by providing you access to a property research system that will allow you to look up all the information you could ever need for any given property. The best part about this system is that all of the information can be accessed online…..which means you can do all the research from the comfort of your favorite recliner (or office chair).

Once you have started to research the list of properties that you have complied, make sure to create an excel spreadsheet that includes not only the subject property address, but also the owners name and their mailing address. A lot of the houses you write down will probably be owner occupied, but when you find an abandoned or fixer house with absentee owners then you have found a potential gold mine! After you have complied all of the contact information for each property then its time to start contacting the owners by sending out letters letting them know you would be interested in buying their house! Its sounds simple doesn’t it? Well that’s because it is…..the only thing is most people won’t ever send out the letters or they will only send out 1 round of them. You need to mail these leads over and over again, that way when they are ready to sell their house they will most likely call you first! Just because the house is a giant POS it doesn’t mean they will want to sell it right away, but when they are ready you want to make sure that you are at the front of the line offering your services!

Using this strategy has increased our company revenue by 100′s of thousands of dollars this year alone, and the cost of implementing the strategy has been just a little bit of time and a small amount of postage…..so very small in comparison the profits it can generate! The key to being successful using this method is just following through on getting your letters out on a continual basis. As long as you can continually get your marketing out it will generate some of the best leads around coming into your business on a regular basis, and that will create some big pay days for you! Now get out there and put this strategy to use in your business, so you can start generating highly profitable motivated seller leads asap!

Speak Your Mind

*

Subscribe to The MIM Newsletter And Receive The First Chapter of The REO Blueprint Absolutely Free!!