29 Nov Lead Generation for Real Estate Investors
Before you can start building your real estate business, you need to find homeowners looking to sell their homes. Unfortunately, it’s not as easy as putting up a sign and having tons of people calling you asking you to buy their property.
Instead, you’ll have to test out a few different methods of lead generation and that's what we'll cover in this blog
These tips are a great starting point and we delve deeper into lead generation for real estate investors in our Seller Specialist Program within our Wicked Smart Academy (members: Click here to access it)
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Where Can I Find Leads?
For Sale by Owners (FSBOs)
Properties that are for sale by owner are those where someone is looking to sell their property on their own. They are not signed with a real estate agent and believe that they can sell their property on their own. Many times, these types of properties do not sell quickly. Because of this, these sellers may be more likely to work with you to get their homes sold. Keep in mind that it may take them some time to realize that they will not be able to sell their home independently, so you will need to follow up every so often.
To find for sale by owner listings, you can search on real estate websites like Zillow or source them from an outside company. Keep an eye out for “for sale by owner” signs on lawns for the best results. These properties will likely not be listed online and will therefore be receiving fewer offers.
Expired listings are properties that initially went on the market with an agent but never sold. These are good opportunities for you since taking the traditional route with a real estate agent proved unsuccessful. Because they were unsuccessful with their agent, sellers will be more likely to accept calls or meetings with you, which will lead to a faster deal than through FSBOs.
For Rent by Owner (FRBOs)
For rent by owners are properties rented by the owner and not through a property management or real estate team. Since these people are already open to renting their properties, they are an excellent lead to pursue.
You’ll likely run into two types of FRBOs: professional landlords or accidental landlords. Professional landlords rent property to make a consistent profit. Accidental landlords tried to sell their property but were unsuccessful and turned to renting it instead. While accidental landlords will be your easiest sell, professional landlords can also turn into promising leads.
Direct mail campaigns can be an easy way for lead generation for real estate investors. You can utilize tools like popstream.com or melissadata.com to get curated mailing lists. These lists can be used to target specific audiences to gain promising leads. It’s best to test out a few different lists to see what works best for you and your business. Both companies create, print, and send out the campaigns. The following are specific lists of properties that you can target:
- Expired listings – as mentioned above, these are great lead sources
- Out of town and absentee owners – these are targeted by zip code and can be customized
- Inherited – these are properties that were left to an individual or estate after a family member has passed. Many times families prefer to sell these homes to make it easier to split amongst each other.
- Debt-free homes
- Equity-free homes
Real Estate Agents
Don’t underestimate the benefit of creating a partnership with agents. Not all of them will want to work with you, but the ones who do will be great resources for you. For example, if an agent has a listing that isn’t getting interest and won’t sell, they may turn to you. Instead of making nothing from the listing, they can make a commission from the initial deposit you get your buyer. The following are instances where you could partner with a real estate agent:
- A listing is going to expire
- A house is over-leveraged
- The property has a functionality problem
- The seller does not want to pay a commission to the agent
To start, find one who can get you set up with an MLS search. Make sure to have them set parameters like price range and zip codes. You’ll also want to ensure they set you up to be notified via email for keywords like rent to own, lease to own, lease purchase, and owner financing. When listings go live with these keywords, you will immediately know about them and can act quickly.
Don’t be afraid to utilize free classified sites and Craigslist to promote that you buy houses. It’s an easy way to increase your leads with minimal effort. You can always pay for more targeted ads on Facebook or through a geofencing campaign where you target houses for sale. Although, free online ad resources are also a great way to get started.
Having a trustworthy web presence can help close potential leads by allowing them to trust you more. This can be done through a well-established social media presence and a high-quality website that ranks well on Google. Make sure to be consistent with your social media and post often. Respond to comments, questions, and private messages as they may turn into leads. For your website, make sure you optimize your SEO (search engine optimization) to ensure you appear well when someone searches for your services. If you do not have expertise in this, consider hiring a specialist. It’ll be well worth your money.
Referrals are the easiest and most cost-effective way to gain promising leads. If you have worked with a seller and had a positive experience, they may send a friend or family member your way. Since they already trust the opinion of the person who referred them and are ready to sell, they make for a very high-quality lead.
Learn More About Lead Generation for Real Estate Investors
Though these tips are a great starting point, you might want to learn more about lead generation for real estate investors. If you found these tips for finding leads helpful, we’d love to provide you with more great resources! Head over to https://smartrealestatecoach.com/academy to enroll now.