Mailing list for expired MLS listings

[Roc P.]

Hello everyone, I have my friend, also realtor, emailing all the expired MLS listings in our area.

My question is what type of mailing campaign works, this being my first run at serious marketing, I was thinking of mailing a simple letter stating that I noticed that the listing has expired and that I'm a real estate investor who sells homes to buyers/investors, and that we pay cash for homes.

I will most likely gather all the info for the prospective properties and mail a letter a month for to each for 4-5 months and see what happens.

My main objective would be to wholesale/sub 2 the property, does anyone have any success with doing this or any tips because as I said this will be first major marketing campaign.
Thanks everyone

[Mike C]

Roc,

I am going to respectfully disagree with Mr. Scott and suggest that expired listings can be a source of deals for sub2 or L/O sellers and agree they won’t be good for wholesale deals. True, many are overpriced but an extra 6 months of payments someone didn’t want to make can change their motivation. But I would be calling them and maybe sending a letter/postcard, not emailing them. I don’t do a ton of deals this way because I use other methods but I have bought properties this way. Get a friendly realtor to give you the list and go from there. Decide up front how you will compensate your friend for the leads. Maybe take them to lunch every two weeks for the leads for a friend or whatever you work out. I am not a realtor and they do have rules about accepting compensation outside of a listing but I am sure you can work something out. Maybe they are happy just getting leads from the majority of FSBOs who won’t sell to you but want to try a realtor.

Like every method of buying, it is a numbers game. You may have to kiss a lot of frogs. But I consider someone who couldn’t sell his or her home during the listing period as a potential good deal. They have not been successful selling conventionally, are having to continue supporting the property and MAY be ready to accept reality. Or maybe not. But it doesn’t take long to figure out if you have a fit with a homeowner (me less than 5 minutes initially). Some questions you need to know: Do they need their equity to close on their next home or not? If they do a sub 2 or L/O is probably out unless you are willing to bring cash to close (I am not). Do they just need to move on? Debt relief? They may be open to sub 2 or L/O if they just need to move on or are soon going to be losing money monthly. Why are they selling? Were they transferred and making two payments? Do they know a layoff is coming? What is the home worth? How did they arrive at that figure? Etc.

Of course they could still be unrealistic in their expectations. That is ok too. You don’t know if you don’t talk to them. Sure, some might not want to answer these questions but most can be convinced it is in their best interest to do so. If they won’t answer the questions I need to know, I move on as they just aren’t motivated YET. People are more motivated in these current times than any time in my investing career.

If you come across as professional and understand where they are coming from, they will usually be cooperative. My first call to them will start out something like this, “Hello, this is ___. I noticed you recently had your listing expire and was wondering if you are still interested in selling or just decided to try to sell at a later date? Then shut up and see what they say. If they are still interested in selling I tell them I am not a realtor who wants to list it, I want to buy it. I tell them I am a real estate investor looking to expand my portfolio in that area and that I can tell them in 5 minutes if I think we have a potential fit and if not will wish them luck if they don’t think we have a fit. And off you go. What you say is less important as just showing them you understand the whole situation, don’t judge them and are there to help is most important to them, even if it means not buying the home.

Remember KISS. The more people you talk to, the easier it gets and the more deals you do.

Good investing

Mike C