Which leads are the best to call on?

Question

As a new investor, I am looking to find my niche and decide which lead would be the right fit for my business. I have heard that absentee, though you can find success, is the most popular therefore the most competitive. It may also be difficult to get the seller on the phone. I am using a software that I purchase, Property Farm, to generate leads. The software often provides contact information, so I am wondering what the best lead to call on would be. I have thought about divorce and estate sales. Any thoughts???

I think it is also good to mention that though I plan on doing a direct mail campaign soon, my strategy right now is to make call sheets based on my findings on property farm.

Dev Horn · Answer

There are 3 characteristics of a good motivated seller lead:1) TIME - they are in a hurry for some reason2) CONDITION - their house has a ton of "deferred maintenance" so it's not retail-ready.3) CASH - they need money

Absentees work because there are tired landlords and inherited properties in that list.  It's the best list regardless of how many others you might think are mailing to it.

The other things that work for larger investors are:- Google AdWords- Signage (billboards, electronic billboards, bandit signs)- Broadcast (TV, radio)

You can create an AdWords account, put out signs, make YouTube videos, do Facebook posts, create a Trulia blog, etc. etc.

You don't want a NICHE - you want DEALS - i.e., motivated sellers willing to sell at a discount.  Those are people that meet 1, 2, or 3 of those criteria above.  THAT is your niche, if you're a looking to flip houses for a profit.

Mat Trenchard · Answer

First off, Congrats on taking some friggin ACTION! That is the biggest thing I have seen that separates the people who succeed in this business, and those that don't.

Secondly, I 100% agree with @Dev Horn. Get in front of more people. The answer to your question "absentee, divorce, estates, etc." is all of them. Get your name in front of as many people as you can. This is a numbers game pure and simple. The more people you can get in front of, the more deals you can find. Another thing is since you are new, you need to practice practice practice. If they aren't motivated, so what? Run through your pitch anyways. Get told no, get told to leave, get told you're crazy. It will all be so worth it when you actually get a motivated seller on the line. Good luck and happy hunting!

Jarrod Weaver · Answer

You can also look at your local court records to find evictions. Find a seller with a fresh wound and it's likely they will be highly motivated.

Rick H. · Answer

I'm not a big fan of tattoos however newer investors and wholesales should copy @Dev Horn's post above and have it permanently inked somewhere in there body that they see a lot of, whether belly, butt or forearm.

Great message, Dev.

Account Closed · Answer

@Samantha VanNorman

I have done all the ways you have mentioned. Its going to be a little of everything. The best thing to do is pick one go after it and get your phone ringing. Every phone call is going to be a different situation and you will gain something different by each one of those conversations. Just like every post on here you will learn something you may not have known before. Besides what @Dev Horn said which is great, having confidence through what you learned over the phone or in person will only make the seller feel more comfortable.

Dev Horn · Answer

LOVE THIS!

John Thedford · Answer

Right on. We just closed on one last week that was all three: they wanted out fast, the house was in severe need of rehab, and they wanted fast fast money. Another house I am closing on next week is due to absentee ownership. Bottom line: solving their problem. Do that, and they will love you!

Samantha VanNorman · Answer

Thank you everyone for the advice! I completely agree that it is important to get involved with all kinds of motivated sellers. I was just looking to create more of a strategy. As much as I wish I could call every single lead type in the Orlando, area, we have to narrow our focus somehow. Any thoughts?

Raphael Cuthbertson · Answer

Awesome thread.

I have been test marketing.  Have done Absentee and Code Violations.  Well, code violations SUCK in the Charlotte NC area.  But, I'm thinking about trying a Vacant House list . Has anyone had any success with those?

Mark Nelson · Answer

Divorce is usually a good lead, if you have phone numbers for them I would give them a call. Even if it is the smoothest divorce ever we find that they almost always need to sell them home.

Absentee owners are also good but the majority of the people in your area are also probably looking at them as well. I like to narrow it down with high equity and I also like to look for older owners. I find that people over the age of 65 are more apt to sell because they don't want to deal with renters anymore.

Hope this helps, keep us posted on your success!

Which leads are the best to call on?

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