Real estate is one of the toughest niches to get new deals as an investor. There are many investors targeting the same lists as you, and it comes down to who can get to them first, and if there are multiple investors, who can make the most convincing deal to the homeowner. Generally, it’s known that we go after motivated or distressed sellers. Let’s tackle the various forms of finding and approaching these sellers.
There are lists that you can get from the county, generally update daily, which will give you each homeowner that is on track for foreclosure. These homeowners are distressed because they’re unable to pay their mortgage and they’re likely to lose their home with no money in their pocket. The best option out? That’s you. You can help a homeowner by buying their home, getting them out of a foreclosure situation, while allowing them to pocket a little bit of cash, assuming they have a decent amount of equity. The problem is, every other real estate investor gets the same list you do. These guys are going to have dozens of investors approaching them, knocking on their doors, calling them, and phoning them. So making it through the weeds and past their irritation is a challenge.
People die every day, and their assets still need to be dealt with. Probate lists are available for those that want to approach families who now have to deal with a home that no one lives in or wants. This is much the same as a foreclosure list. One difference is that you can pair up with probate lawyers and be their referral for families going through them for probate homes.
Door-knocking and Bandit Signs
Bandit signs are illegal in most areas, so you have to be careful with using them. You may even consider just using a bird-dog and giving them a referral fee (not a commission, as that is not allowed by the real estate association. Door-knocking means you go door to door to try and tall to homeowners who are on foreclosure or probate lists or have otherwise been identified in some fashion that they may be interested in selling their property.
Vacant or Inherited Homes
Some homes may be vacant or inherited. You’ll usually get tipped off by someone else who would like a referral fee. Sometimes you can just ask your friends or family if they know of any homes that are vacant or if they were inherited and they’d like to have the property taken off their hands. People are frequently glad to get rid of them, or they simply don’t have the time or funds to repair and sell them through traditional means. To them, an investor such as yourself is a blessing because they can avoid all of that hassle and had a property taken off their hands in mere days.
There are various forms of online marketing that can help with your lead generation. There is the proactive method, such as Facebook ads that puts an advertisement in front of a specified audience that match a criteria, in the hopes that they suddenly realize they would like to sell their home or did not know there was another option. Then there’s the reactive method, which is positioning a landing page in front of an audience that is actively searching for people like you. This seo company Houston, for example, is performing search engine optimization to position their client websites as the number on rank in Google so that people searching for options to sell their home will land on those pages first, generally becoming a pre-qualified lead.
There you have it. The most basic and fundamental ways of marketing and generating leads for real estate investment. There are plenty more advanced options out there, but check back and we’ll continue to post on those in the future.