The backbone of any successful real estate investor is lead generation. Simply put, the more leads you have to work on the more likely you can turn them into actual deals. The best investors aren’t content having one or two bread and butter lead sources. They know that eventually things change and the higher number of different funnels you have the less likely you will suffer through a lead drought.
It is not a stretch to say that there are literally dozens of sources, techniques and methods available for filling your pipeline. You don’t necessarily need to try all of them, but you never know which options will strike gold. As much as competition has increased so have ways of finding leads. Here are just five of the many methods of finding new leads and filling your pipeline.
- Use the internet. Technology is moving at breakneck speed. You don’t need to live in silicone valley to take advantage of it. The internet is there for everyone to use and for real estate purposes, to help build your pipeline. There are countless real estate websites you can tap into to find deals. Old reliable such as Zillow and craigslist may be a bit outdated but can still be worth a look. You also have websites for foreclosure, HUD, divorce and probate. You will certainly need to spend some time weeding through the garbage, but there is some gold in the mix as well. You never know which website will be one of your lead pillars moving forward. Take an hour, or two, every evening to find a handful of sites you trust and see value in. Don’t stop there though. Always be on the lookout for sites that can either help produce leads or put you in a position to meet new people. As long as the internet is around there will be ways to use it to find new leads.
- Landlords. The best leads often come from motivated sellers. When most investors think of this group they immediately consider foreclosures, short sales, probate and divorce. These certainly fit the mold but there is another group that is not nearly as well known. Disgruntled landlords are a great source of leads. There are many landlords who own rental properties with one foot out the door. They are currently dealing with an eviction, excessive maintenance bills or time-consuming tenants. If presented with an offer to move on they would certainly consider it. Look at “for rent” postings you see either online or in print. You can also scroll the eviction notices on your local government website. Send the property owner a letter or email asking if they are sick of being landlords. You should be prepared to send them correspondence multiple times. You may be surprised at the response you get. Landlording is not for everyone and there are many who are not getting the return they anticipated. This is a huge niche you should be tapping into.
- Mortgage brokers/bankers. The best lead sources are generally from people in the industry. One of the best sources are mortgage brokers or local bankers. These people field numerous loan applications on a weekly basis. As to be expected, they cannot help every applicant that comes there way. There may be times when the best remedy for an applicant is a quick sale. Without a reliable contact to pass this off to they will send the applicant on their way and hope for the best. You should plan on finding at least one local mortgage broker and/or local banker you can work with. They can give you any lead that is better off selling and you can pass them any potential buyer you have. A good mortgage broker contact can often yield a half dozen or more deals a year. They are out there if you are willing to put the time into finding them.
- Social media. You have to be living under a rock if you don’t understand the power of social media. Under the umbrella of social media there are many important sites you should be tapping into for leads. Start with the most obvious, Facebook. With Facebook alone, you have multiple ways of promoting yourself, finding like minded partners and reaching distressed sellers. Start by making a dedicated investor page and get to work. Additionally, you should get accounts for twitter & Instagram. Another popular site is LinkedIn. While this may seem more for professionals it is a great way to find and meet people in the industry. Strive to make just one solid connection or relationship every week. It may not bear fruit immediately, but it will down the road.
- Networking. Social media isn’t the only way of networking in 2019. The good old face to face meeting is still a great way to find new deals. In almost every market there is a local networking group or real estate investing club. Make it a point to show up to every meeting. Pass out your business card and follow up with the cards you receive. You should also keep your ear to the ground and listen to whatever group you, or your children, is a part of. Believe it or not, you can find deals in your daughter’s dance circle or your sons’ sports team. You don’t need to be overbearing with it but inevitably, someone will bring up employment or real estate and you have your in. If you make a good impression you can bet they will reach out to you if they know someone who needs your help.
Generating leads and finding deals is mostly about persistence and repetition. Always be open to trying new things and be willing to stick with them. Use these five methods to help grow your pipeline.