Generating & Finding Leads

[Aaron Winters]

Hi BP!

I'm trying to figure out what else I can do or subscribe to, with the purpose of generating more leads. To date, I have:

• Found my niche (BRRRR)
• Defined my market (KC metro with good schools)
• Connected with several realtors in the area
• Subscribed to MLS searches, auction searches, and Craigslist (this last one could improve some more)
• Joined a dozen or so wholesaler lists

I've ran 100+ properties through my criteria and, so far, only one has made sense by the numbers. I'm considering yellow letters/mailing campaigns as an avenue but it seems like everyone is doing this, too. What else can I be doing to find more deals? Thanks!

[Lee Ripma]

@Aaron Winters

The leads thing is tough. Would you rather spend 100 hours and $5000 doing direct marketing or relax your criteria a little? Or maybe learn to dial in the numbers a little more? If you've got a target area I think that the approach that @Anton Ivanov details is a good one. I've looked into a lot of deal finding strategies but have realized that you've got to spend considerable time and money to do it. I care more about the time than the money. The other day I called someone who's property I wanted to buy, and spent way too much time on the phone with him. In KCMO people's phone numbers are registered with the property, so you actually can call them. You can look up their names or do a bulk request from Jackson County. So you'll be able to get that list. Maybe you can outsource pulling a list of motivated sellers. 

People will say it's a numbers game for the direct marketing, you've just got to hit a TON of folks with direct mail, FB ads, SEO yourself to the top of the stack in google or buy the adwords that hit for RE motivated sellers (adwords for motivated sellers are very expensive). I tried buying leads from leadgeeks ($150 pop) and they never delivered a single one (I got a refund after 4 months of nothing). Investor carrot sells out of the box websites and will teach you how to direct traffic to them, but it's just a whole lot of work. I did it and ran FB ads. In the end I realized that if I want to do this I should pony up for a professional to do it like https://silverstreetmarketing.com/. I would rather save my time and give a realtor a list and say, any of these you get under contract I will buy and you take both sides of the commission. 

If you're BRRRR properties but you haven't done it, the first one will teach you a ton about the cost and process of rehabbing houses. I would view that first one as a learning experience. Sure, you want the numbers to work, but you're really doing it to learn. Once you learn you'll do better on the next one.

I really like the budgeting of house flipping spreadsheet for estimating repairs and the same guy is working on a new software called flipper force. Once you do it a bit you'll learn the costs and get good contractors.  

The easiest way to find a deal is to make offers on homes that are on the market. Maybe 1 in 10 is motivated and will take a lower offer. Maybe you can offer all cash, or offer something else they want. My last deal was on the MLS, I submitted a cash offer over asking the day of list (which my realtor told me about). I let the tenants stay for 90 days after close. That is what he cared about. Is it a home run deal? Perhaps, it will generate good cash flow for me. Is there a better deal out there? Maybe, but I'd rather do this one now, and then do another and another. Better done than perfect. Better learning than sitting still.

So in conclusion to my rant, if you want to be a marketer, do it. I'd rather find people who can bring my deals and leverage their time, since I want to be a real estate investor.