Marketing to your own tenants to find motivated sellers.

[Account Closed]

Ok, So I have looked to see if anyone has brought this idea up and I have yet to find it mentioned. I am a SFR buy and hold investor. I was buying off the MLS because the numbers were working. The numbers stopped working so I have to now market to motivated sellers. I am doing drive for dollars with letters to the distressed properties owners.

Another Idea I had is use my own renters as acquisition agents on the ground to go find me deals. I was thinking that if I CLOSED a deal refereed to me through a tenant that tenant will receive one months rent free. My average rent is $925.00. Is this a high referral fee? I have no idea what a normal finders or referral fee would look like. I just know one months free rent will get a lot of people working hard to get a house in my hands. 

One disadvantage I see to this is tenants will realize the low prices I buy houses for. Houses just like the one they live in themselves and pay a not so low rent( in their mind). Even with this Im thinking this may be a creative marketing strategy that could pay off. 

I will still need to look over the numbers and decide if this is financially wise for my business.

If anyone has attempted this or would like to speculate on if it would work I am open to your thoughts. 

Thanks much!

Jered