How to Efficiently Evaluate Potential Real Estate Leads

[Nicholas Osweiler]

Hi BP Community-

I'm wondering if anyone has advice for how to quickly decide if a potential lead is worth conducting a full numbers analysis. Let me break this down some more. I feel like I'm getting overwhelmed with the number of potential leads that I am finding (I know this really shouldn't be a problem but a great place to be in). However, the key word here is "potential", and more specifically, ones I find where the potential seller has not contacted me, e.g. driving for dollars, MLS search, county public record search, etc. I want to be as efficient with my time as possible, but I'm having trouble coming up with some criteria for what I should further investigate and what I should completely pass on. I know this will have to do with many factors, but if someone could point me in the right direction I would be truly grateful.

I'm big into processes and workflows, so in my head I'm thinking putting these trough several stages starting with an initial broad filter. For example, looking on the MLS and searching for 3+ beds in a certain neighborhood. From there, i'm a little lost. I find myself doing an intense financial analysis on many of the properties that come up only to find out that the numbers don't make sense. I know that a lot of times the numbers won't make sense and this commitment of time is necessary, but how do I go about this more efficiently? When do you run a thorough analysis on the numbers and when do you not?

Is it as simple as only doing it when when you have a seller lead when the seller has made contact? The MLS is a little different in that we already know these people want to sell but most are expecting full retail, not selling to an investor at a discount. Is it worth running and in-depth analysis of the numbers before making an offer, or is there a quick and dirty method to get a start?

I appreciate the help and advice.

Thanks, 

Nick