How To Get Responsive Real Estate Investing Leads
If you have tried to market to pre-foreclosure leads, then you know they are over-shopped. Everyone tries to contact these people. In Texas, they foreclose within 3 weeks of being in pre-foreclosure. This means you barely have enough time to get the deals done.
You could waste a lot of time chasing deals you will never close. In this article, we look at some alternatives that have little competition and are very effective. Anyone who has tried to market to foreclosure leads knows that they are over-shopped. Everyone tries to convince these people to sell their house. In Texas, they foreclose within 3 weeks of being in pre-foreclosure. There is therefore no time to get these deals done.
You could end chasing deals you will never close. In this article, we look at some effective leads that have little competition.
Even though there are many sources of leads, we will look at the most effective.
1) People in legal trouble
People who have legal issues and own real estate are usually very motivated sellers. People going though divorce, bankruptcy, people who have liens, are being sued, etc are highly motivated to sell their houses.
2) Probates
Once people inherit properties, they are usually looking to get rid of them. This happens to be one of the most lucrative sources of good deals. These properties usually need repairs and are not easy to sell.
Secondly, a lot of them are paid off meaning you have room for negotiation. Sometimes, they may be stuck with mortgage payments they cannot afford, which makes them very motivated to sell.
Most beneficiaries just want their money and move on, so you come in as a simple solution they really need.
If you concentrate on probates, you are likely to have very profitable deals.
3) Absentee owners
Most absentee owners are landlords. Most landlords get burned, making them very motivated; they are also not attached to their properties. When looking for absentee owners, target middle income neighborhoods. In my market, I target $100,000 to $150,000 range.
Target those who have owned the properties more than 10 years, meaning they have equity. I always make sure they are at least 3 bedrooms, 2 bathrooms, single family houses.
4) Expired listings
There are so many listed or expired houses that you must filter them aggressively. These are people already trying to sell their houses unsuccessfully. Some of them have been trying to sell for months, sometimes more than one year. You come as an excellent solution provider for them. Like the absentee owners, I always target specific price ranges and neighborhoods.
I also make sure they have owned the properties for at least 10 years. Whenever possible, I also check when the mortgage was recorded. If they have recently refinanced their properties, the leads are no good. You must work with properties with equity.
Properties with second mortgages are good as short sale candidates. Always try to avoid over-encumbered properties. There are too many better properties out there.
You can have more leads than you can handle once you send out your mailings. This can start happening within just a few days.
If you concentrate on these four sources of leads, you are likely to close more deals. Learn how you can pre-screen your motivated sellers and pre-negotiate with them using a direct response, automated and interactive real estate investor website that helps you close more deals using less time, money and effort.
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