What to do with database of Industry Contacts (potential lead sources)

Question

Hi Everyone,

I have kicked off a mailing campaign, website, business cards and bandit signs are ordered all geared toward looking for motivated sellers.  I am trying a multi faceted approach to determine which has the best return in my area.

I paid a few VA's to compile a list of the contact information of all the CPAs, real estate agents, real estate attorneys, probate attorneys, divorce attorneys, title companies and a few others in my targeted area.  The real estate agents alone number in the 300s and the rest combined are about 300.

My questions is what is the most efficient thing to do with them?  I could send out a somewhat personal email to all of them or specifically target the type stating my exact intentions of locating motivated sellers and that I will pay for the lead so it would be a win win.  I could pay a VA to call each one up and chat, (might be expensive and would have to train).

Any other thoughts in making the most out of this list?

Thanks

Rick

Rick H. · Answer

I agree with Dev.

Many people put up a website, get business cards printed, litter off ramps with bandit signs and contact me with their new, unbridled enthusiasm. They're typically met by the professional world (called so because they make their living full time and pay their bills by becoming career people) with the sound of chirping crickets.

This is a problem solving business. If you want to make money, go find the problems.

Professionals see you like a fireman with a crowd control problem. In their mind, you are impeding their ability to performs their work!

Your best bet is to jump into the fire before anyone else gets there and pull people out of harms way. I started with foreclosures. You might start somewhere else.

Be a first responder and prove that you add value to the lives of the people you help.

But don't expect firemen to get excited when you show up ten minutes late with a garden hose.

Dev Horn · Answer

You will find that none of those people will care about your email or postcard or letter.  I'm not trying to rain on your parade - but we've done that kind of thing and it was a waste of time and energy.

The relationships that will actually work for you, people that will think about you and do things for you, those are developed by meeting people individually and connected with them on a personal level.

If I'm an agent or title company and I get an email from a "real estate investor" I'm just gonna toss it.  Bring me some business and I'll get excited.  Just telling me your out there doing your thing, that's a low to no value to me as a RE professional.

Just my 2 cents.  Spend your time on building your TEAM and your BUYERS LIST, and of course, on the search for MOTIVATED SELLERS.

Doug Pretorius · Answer

Rick H. made a good point about being first into the fire, I like that illustration. On the flip side don't underestimate being last. That's where I operate. I like being people's last resort, there's no competition because they've already exhausted their other options. I learned this from a real estate broker, he would take a listing and put it on the MLS, if it didn't sell and the price came down enough he'd offer it to his investor list, if they still weren't interested and the seller got really desperate, he'd take over their payments and sell it on a wrap.

I have to echo the sentiment here though, mass emailing a list of professionals is a waste of time. The only thing that really gets you anywhere in this business is making offers to owners.

Rick Jones · Answer

Rick H.

Rick Jones · Answer

@Dev Horn

Thanks for the tip that is not a bad idea about the real estate investors.  My message would try to be more personal and I don't consider myself a wholesaler although I would wholesale deals away that do not fit my plan.  I even remember reading about selling all the leads that get screen out to a real estate agent.

Rick H.

I appreciate the feedback but I think your assumptions may be a little off about me.  I am not new to real estate investing nor a wholesaler.  I did crack a smile reading Mr. Harmon's comments envisioning a young eager beaver, fresh off a $5000 seminar, spinning his wheels, so thanks for that.  I do enjoy the discussion on this forum and have received a wealth of information from it.

Also, I am surprised bandit signs are listed as a negative.  I know they are not fashionable, especially on this board, but they get results.  I think it is absurd to eschew bandit signs on the basis of littering the area, when all the areas they would go are littered with political, we buy cars, yard sale and everything else.  If if they are illegal, it is akin to driving 3 miles over the speed limit.  I do not view that as criminal

Again, thanks everyone for the comments, I really appreciate it!

Rick

Rick H. · Answer

Ok. So you're not new. Why not position yourself as a "go-to" expert in some niche?

Or start an association or, heaven forbid, a real estate investing club? Or a newsletter for the professional community that puts you in the center of the info flow? Or a clearinghouse for a certain type of scenario?

Do you know my friend Ellis San Jose? He's the co-founder of the hugely successful FIBI groups (for investors, by investors). He occasionally posts on this board and may have more ideas.

I guess the reason I erroneously assumed you were new was that you were struggling (perhaps the wrong word) trying to monetize this list.

If I can't see any current or future use of a name, business card or record, it get no more attention that a name in the white pages.

I think my last white pages got recycled along with my other paper goods. (That's for my fellow Midnight Mission supporter buddy, Ed Begley, Jr.)

Joseph Ball · Answer

I fully agree with Dev. In my opinion, your money is better spent mailing to out of town owners, evictions, similar.

And fee referrals: Other Professionals do what they do. That is how they earn their money. A referral fee may not be very important to them.

I suggest direct your good efforts to motivated sellers.

That will be two cents, please...LOL

Dev Horn · Answer

Fair enough.  One approach I have seen work was done by a large investor/agent in LA.  They bombed RE agents with the message "I will buy your problem listings" -- and they've definitely scored some deals with that.  They are cash buyers & rehabbers though, not wholesalers.

Many real estate agents are wise to wholesalers and don't like to see or hear about their listings getting shopped around off-market before closing.  When you do work with agents, be prepared to show Proof of Funds if you want to be considered a legitimate buyer.

Rick Jones · Answer

Hey Dev,

I would agree but the same could be said for direct mail.  As in i throw away all non bill mail myself.  But this is a numbers game.  And I feel like it would be easy to mass email out everyone except the real estate agents ask them to keep me in mind and if they bring me a motivated seller I will compensate them fairly.

Thanks for the feedback

Rick

What to do with database of Industry Contacts (potential lead sources)

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