How do you source property leads for investing?

Question

Curious to see how investors are finding deals in 2023. What ways work best and which ways are not as effective?

Let's discuss!

Marty Boardman · Answer

Being an investor looking for deals is like being a fisherman...you want to have as many lines in the water as possible.

As @Tyler Fontaine pointed out, networking is one "fishing hole", also paid ads like @William Harvey suggested is another.

That said, you'll want to have a "go-to" hole where you know you can almost always get a catch. Deciding what your go-to acquisition strategy is will depend on your skill set. @Jonathan Greene talks about fortune in the follow-up. He's right. Part of being a good investor is honing in your sales skills. You can get leads from a variety of sources, but if you don't have the motivation/negotiation skills it won't matter.

If you suck at sales/follow up you're better off networking with wholesalers/Realtors that can provide you deals. Just understand they'll be adding their commission/fee which will reduce your profit margin.

My primary acquisition strategy is pre-foreclosures and auctions (sheriff's sales in WI, trustee's sales in AZ). Pre-foreclosures require follow up, which I can't stand, so I JV out for that. For auctions I also JV, but all that requires is paying someone to bid on my behalf.

Best of luck in 2023 and beyond Nick!

Tyler VanDerzee · Answer

It depends how involved you want to be. We run motivated seller PPC campaigns for investors because they allow you to get your message in front of motivated sellers looking for exactly what you are offering - all without you having to lift a finger. You just have to pick up the phone once the lead comes in.So far in the past few months we've been seeing CPL (Cost Per Lead) dropping and investors closing about 1-in-15 to 1-in-20 leads on average. The best part of this approach is that it is low overhead and you can control most aspects of a campaign with little to no effort. Also, unlike other marketing channels, PPC can provide immediate results, with traffic to your website starting from the moment your ads go live. This is ideal for motivated sellers who are often in a hurry to sell their property.It's also a cost-effective option because you only pay when someone clicks on your ad, making it easy to control and manage your advertising budget.Overall I'd say outbound marketing tactics are no match for inbound ones. By prioritizing methods that draw motivated sellers directly to you, you'll see the best results.

William Harvey · Answer

@Nick Benjamin We have primarily used Google Ads. I agree with @Tyler Fontaine and @Eliott Elias about relationship building though. In the past we have gotten random deals just from our network and people knowing what we do. Staying top of mind is important for any relationship type of business.

But, in 2022 for our house flipping business, every deal was off-market generated from Google Ads. We spent about $20k directly on Google Ads and then $12k ($1k per month) for someone to manage the campaign, and in 2022 we generated $286k in profit from these flips. We also bought another property where the lead came from Google that we are now operating as an Airbnb.

It was definitely a long road to get there, and we still have a hot/cold relationship with Google Ads, but it is clearly profitable and has been working for us to source off market deals. Hope this helps and feel free to reach out with any questions related to this!

Tyler Fontaine · Answer

Build your real estate network. Let everyone know your criteria and what deals you're trying to buy. Most of our deals recently have been from relationships we've established.

Other than that, go to as many off market showings you can. Even if you can't buy it, you want to start building your brand so people associate you with being a part of that word. Use Social Media to your advantage on this. Show what you're doing, what you buy, and that you're lookng for more deals.

Talking about putting money behind it - you can Drive for dollars and market to those people. You can buy lists of distressed off markets that you can market to. You can build an online presence that you can try to leverage over time.

Will Clark · Answer

We use a combo of SMS and PPC. SMS is by far our best performing, but PPC is nice because it is so passive. Networking is great and will land some deals, but in hyper-competitive markets, it will be pretty hard to get access to a great deal without being direct to seller. Even if you're a wholesaler or agent's best friend, it will be hard for them to give you a 60% deal when everyone else would pay 75%. Bateman collective for PPC, Launch Control for SMS. If you use our referral code for Launch Control, we help you set it up and give you everything we do to be one of their top performers. Free zooms with our team for a month. Just for using our link.

Milton Chamberlain · Answer

A simple method that is effective is simply being on the look out for 'for rent' signs that have been up for 30+ days. I have a buddy who has bought two duplexes from mom and pop landlords using this method. For good prices.

Jonathan Greene · Answer

It's not necessarily about what works and what doesn't. People always say the fortune is in the follow-up, but with investors the failure is often in the follow-up. Most sources will generate leads. They get better the more you pay to get assistance on skip tracing, list building, etc., but none work if you aren't ready to talk real estate with the people who respond. You need a follow-up plan, CRM, phone, callers, etc. to be effective.

Eliott Elias · Answer

Cold calling and relationship building.

Jared Hottle · Answer

Networking, driving for dollars, daily consistent action and follow up until the lead is dead.

Patrick Drury · Answer

@Nick BenjaminCold calling. Smile and dial

How do you source property leads for investing?

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