In the world of real estate investing you are only as good as the number of leads you work on. It is not a stretch to say that everything in your business revolves around your ability to generate leads. The more leads you work on the more likely you will be able to turn a lead into a deal.
With increased competition it is important that you constantly fill your pipeline with new leads. Fortunately, there are a handful of methods that can help you with this goal. You may not have the time or resources to do all of them right away, but you can certainly find one that fits you and your business. Here are five methods to help any investor find more potential sellers.
- Bandit signs. There truly are dozens of different ways to find sellers and build your pipeline. The one constant with all of them is consistency. Nothing you do one time will give you a true representation of its effectiveness. Prior to doing anything you need to commit to it for at least a handful of attempts. This is certainly the case with bandit signs. Bandit signs are the small “we buy houses” signs you probably see in your area on telephone poles and front yards. Individually they will not flood your inbox with dozens of calls, but if you spread your signs around you will see results. What makes bandit signs so attractive is the price. You can buy literally hundreds of signs for less the cost of a few lunches a week. These signs should be placed in prime locations, ideally at busy intersections. All it takes is one deal to get a return on your investment.
- FB groups/pages. If you are not taking advantage of social media, you are missing out on a prime generation opportunity. Facebook has multiple ways of promoting and expanding your business. In terms of lead generation start by joining as many local investing clubs and groups as you can find. In these groups there are often a handful of wholesalers who like to promote their deals. Not every deal will be a good fit, but you can make valuable contacts that can produce deals down the road. Send a message to the wholesaler asking if they would be open to meeting, or even just discussing how you could work together. You will also find local investors, builders and mortgage contacts that you can work for deals. Additionally, you should use Facebook to promote yourself and your business. Create a dedicated investing page where you can post your thoughts and ideas on the business. People like to work with people they know and trust. Your page may not directly generate a deal, but it can be something that proves your credibility and shows that you are serious. The reach of social media, in any platform, can help you quickly find motivated sellers.
- Direct mail. As much as things have changed in the real estate world some things remain the same. Direct mail can still be an effective lead generation method, if done right. The big drawbacks with direct mail are the competition and the cost. Direct mail campaigns are not cheap. In addition to the list you also have expenses for stamps, paper, envelopes and execution. Simply putting anything on paper and sending it out does not work. You need to have the right content, which costs money. You also need to make sure you commit to sending your letter at least thee times. That being said, with the right list and right execution you can expect a handful of calls every time your letter is sent. From there, it is up to you to convert those leads into deals. As is the case with bandit signs all it takes is one deal to make the campaign worth it.
- Attorney/mortgage broker emails. Every real estate investor should tap into their local attorneys and mortgage brokers. Both groups have direct access to borrowers that may need to sell in a pinch. With a little legwork you can find list for both groups online. Most towns have a dedicated attorney network and list all local mortgage brokers. Mortgage brokers are different than traditional lenders in that they work with borrowers in unique situations. As much as the mortgage guidelines have changed in recent years, there are still plenty of deals they cannot do. With a real estate investor contact they may be able to pass the deal along and help the borrower out. In time you can refer potential buyers back to them and create a mutually beneficial relationship for years.
- Personal contacts. It is amazing how few new investors tap into their personal relationships. Regardless of your experience or how well you know the business you should always start by reaching out to the people closest to you. A simple email to your friends, family and contacts can often have better results than you may think. There are many people who either want to invest or know someone that wants to sell. Without reaching out to them they may have no idea that you are involved in real estate.
Finding deals can be challenging but is far from impossible. If you are struggling finding sellers, use these five tips to help give your pipeline a jumpstart.