MAREI Q & A: Lead Generation

Question:  I am trying to get some lead generation going…I currently look for deals through HomePath, Hudhomestore, HomeSteps & HotPads is there a better source?

Answer:  This is actually two question . . . do you want to go to sources of deals that are ready to go or do you want to generate leads of houses you might be able to buy.

So first, what is the best place to look for available deals . . . these are properties being offered for sale from people or companies that definitely want to sell.  So places like HomePath, HudHomeStore.com, HomeSteps, HotPads, Craigslist, Realtor.com, local MLS or any place where houses are listed for sale are all good sources for ready to be purchased deal.

Here are the drawbacks from many of those sources and that is that the seller has raised their hand and said, please come buy my house.  Great if you just want to buy a house, but if you want a great deal . . . well, these listings are out there for all to see, so you are going to have competition.

So what do I think is a good source of deals?  Houses from very motivated sellers who have not yet raised their hand and said: “I want to sell my house”.  I want people who really want to sell the house and really NEED to sell their house, but have not yet really taken any steps to sell the house.

Some examples of the best deals I have had in the past year . . .

House where the home owners had inherited the house, moved in, trashed it and failed to pay home owner association dues or taxes and were slated to go to tax sale in 2 weeks.

House where the homeowners were siblings who lived in 3 different states, only one local, who had inherited mom’s house and mom’s house was a mess.  We have bought this house 4 times in the past 2 years.

A homeowner who has a rental that they just don’t want to deal with any longer and wants it gone.

So, where do I find houses . . . well, I started out buying houses from the MLS and I will keep an eye on all the bank owned properties.  But the majority of my leads are motivated sellers who find me either through my website, my craigslist ads or my direct mail marketing.

So pick your most likely seller, figure out a way to get a mailing list of that type of seller and then market to them online and offline.