How do you find your leads?

[Jonathon Martin]

Hey everyone, Hope we have all had a wonderful week and ready to keep striving towards your goals of financial freedom!

I had a general question, that I seem to be having trouble with.

Where do you find your leads?
I have used software such as REIpro, Realaquisitions, Lead source, as well as other small time software.
What is the best way for you to find your leads for distressed sellers? as a wholesaler we can do a lot, not just help people from pre foreclosures and late tax payments..
But where can you find these other leads such as Probates, Inheritance, Divorce, Etc.

I have used sources from my counties websites but they also don't seem accurate enough.

If anyone is interested in doing a JV in the Houston, San Antonio, DFW area please send me a email or text!

Thank you for your time and interest in this post!
Hope to hear soon!

[Joseph Lopez]

Hi @Jonathon Martin, its such a easy question if you really break it down.  I'm sure the answers will vary depending upon experience, tenacity, due diligence, relationships created, and someones track record.  So I'm just giving you my own personal opinion and what has worked for me in hopes that it may add value to your quest and others to benefit from.  

First of all, never assume that "everyone" is doing it so why should I? NOPE, not true.  I've talked to homeowners who had grown weeds over 6 feet tall and weed abatement notices posted on the front door, home was red-tagged or what not and when I asked the seller "how many people have approached you prior to me?" the answer is usually 0-3 persons.  

1.  Real Estate Agents/Brokers

So when it comes to finding leads on distressed properties, unless you are going out there yourself, its best to leave it up to the people that do this full time.  I'm a licensed real estate broker but many agents in my territory know that I am an investor so they call me, I buy the deal, they double end and I give them a referral fee on top of that.  Since we both hold licenses I am able to do that, but I dont know what the ramifications are in other states etc.  

2. Wholesalers / other Investors

When I wholesaled deals, I would buy more than what I intended to keep.  If I wanted 2 I bought 5, because I would wholesale 3 of them...so I would be actively looking for a quick wholesale deal and I was happy making $1-3,000 per property.  Sure sometimes I made $18,000 on a deal, but the average was about $5,000 and If I wholesaled 2 homes x $5,000 each, its no wonder I managed to put 3 daughters through college.  But the fact remains that wholesalers are important and if you have or create a relationship with a few, you will never have to find deals, you will be spending your time analyzing them instead.

3.  Bankruptcy, Divorce, and Probate Attorneys 

Yes, I love attorneys and have established multiple relationships with many in different counties.  I first introduced myself as a real estate broker, but then identified as an investor.  If I ended up with a real estate sale, that was fine, but I wanted to be on his/her roster as a buyer of properties that needed a QUICK purchase at top dollar with a discount in mind.  This one took me a few years to establish but once I received 1 lead, I ended up growing my leads exponentially from quality sources.  If you do an outstanding job, one attorney giving your name to another attorney is worth 1 million if you think about it.  Today, some of the original attorneys are now my investors.  So relationships go a long way. 

4.  Probate Court

Select your county, or neighboring county and look at probate properties that are going up for "court confirmation".  Those are public notices and thus public record.  Call the attorneys office and ask what is the price that is being confirmed at the next hearing and they will tell you XXX like $150,000.  Then do your homework, and what if its worth $300,000 but being sold to a family member or distant cousin for a rock bottom price?  Well as an investor, you can show up and overbid.  You will have to research the process more that's the nuts and bolts. 

5.  Driving for Dollars

Self explanatory - Drive your area and take note of all the homes that appear in distress and send out a letter/card.  Yes you can try and find a phone number and that's fine.  But its easier to send a letter and then it gets done, as far as phone calls, I've spent more than 30-45 mins looking for a phone number and in the same amount of time I could have written full page letters in calligraphy with embossed lettering etc...just mail out the letters. 

6.  Sphere of influence

Everyone that knows me in my circle, knows what I do.   Because I talk about it, and express that they should do it also.  Most dont, but many do come across people that need to unload a property quickly and then I get the call.  I've gotten deals from neighbors, babysitters, and even my tailor.  So let everyone you know get involved by becoming your advocates and finding you deals.  (reward them as you are able to)

There are more, but this is what i've been doing and it worked for me....