Wholesalers: would this lead generating technology be helpful?

Question

To anyone who engages in wholesaling,

I spoke with a real estate group recently that knew that I work in the data field. They gave me an open offer, saying that they would be interested in hiring me to mine data on the "three D's" (death, divorce, distress) to help them find motivated sellers before other wholesalers. At the time, I didn't have any projects that could help them, and wasn't in a position to start anything new.

Recently, I believe I have an idea for some technology that I could produce in a month or two that once completed could provide a daily list of every property owner in a given state (or area) who died in the last 24 hours as well as contact information for their next of kin. Would anyone be interested in this technology? I'm not trying to sell anything (yet), but I'm trying to gauge if it's worth my time to develop. To me, it seems like an exclusive contract for such tech to get this information before anyone else in your area is a gold mine, but then again, I'm not a wholesaler.

Thanks for the input.

Chloey M. · Answer

Did you write all that just to say “get an SEO-optimized website?

Jerryll Noorden · Answer

No, DMM has its place.

If you are targeting a very specific type of group that IS motivated you can absolutely send them a mailer. I would go for the professional type mailer however, not some weird yellow letter.

Go for a letter that shows you are an actual company  (or individual) serious about being able to buy in cash.

Alexander V. · Answer

I was thinking the same thing, what an odd and impassioned response to a simple question. I'm fully supportive of SEO, but I have to assume that the massive number of veteran wholesalers who continue to use cold calling and DMM to try to make a connection before Google gets consulted have some reason for expending all that effort. I'm just wondering if people already have the data that I could get and whether they'd want it.

I've purchased leads in a different industry before (not real estate), and they were trash. Old data, missing info... I ended up digging for my own leads, because so many that I bought were duds that it wasn't worth wasting time trying to sort the good from the bad. Any time you're the one making first contact, your conversions will be low. But it's a game of statistics, and if you can tap into a group with a relatively high conversion rate before any of your competitors, then you'll probably do relatively well. That was my train of thought... and as I said, the local real estate group I spoke to (which is the best in my city and highly professional) were the one's that said the "three D's" are the best target market for proactive wholesaling.

Jerryll Noorden · Answer

BTW, don't have too much faith what Google says about search volume. That data is so crypted it is very hard to guage accuracy. There are plenty of people doing these searches and it is definitely worth targeting these keywords through SEO.

The biggest reason I said that DMM is OK to use in this case is NOT because of keyword search volume, but more for reasons like, why wait for a lead to find you? Go get them now by making them aware you exist an doffer solutions to the kind of problems they are having, but keep in mind, DMM is always just a temporary solution. It is just a Bandaide fix. If you forever keep that bandade on, the wound won't heal.

While you do DMM you need to keep working on SEO so that people find yo online.

Keep this in mind.. if no one searches for probates online, it simply means there are not many probate leads out here. Why? Well simple... when people have a problem they are going to Google to find solutions, advise, and info on how to solve it. They are not going to sit outside next to their mail box waiting/hoping someone sends them a mailer right?

So there ARE plenty of searches for this niche online. I promise you that.

Allan Smith · Answer

@Jerryll Noorden I agree that SEO is a fantastic way to generate leads for numerous reasons. However, I wonder what you would say to this. For years my main deal source has been probate houses.

If I were to try to capture these people online it (if they even go online much) would be tough because according to google there's literally only a dozen or two keyword searches per month relating to selling a probate or inherited house. I could blog for days and MAYBE only capture a lead or two a month, which even with the best conversions is not that many deals per year. Might as well keep sending letters/RVMs/Retargeting ads, etc.

Would you still say there's a way to make SEO work for that?

Jerryll Noorden · Answer

Here is why I would say a loud resounding "NO"

It doesn't matter what new gadgets come out, and pretty much everyone has the "new shiny object" syndrome.

Their lousy motivated seller harvesting strategy is not working so they get a membership with propstream or some fancy software, or a new fancy gadget that lets them send a mailer just by taking a picture of the house.

DUDE seriously... they simply do not understand how conversions work

NO friggin Gadget is going to work. It is about credibility. How you find "people" (now I said PEOPLE, not "motivated sellers" because that is exactly what all these gadgets do.. they find people that satisfy certain criteria. HOWEVER those criteria DOES NOT FILTER OUT the non-motivated sellers from the motivated sellers.).

And it is getting so frustrating watching so many people acting like dumb blind brain dead sheep following retarded logic, and actions based on which way the wind randomly blows. Its friggin NUTS!!

If your system does not filter motivated sellers, it is USELESS, and no your gadget will not filter motivated sellers. Not because there is a divorce or death or.... will it automatically mean they are going to sell their house.

Will you make money? Sure, because there are plenty of desperate investors out there that WILL run towards the latest newest most feature packed gadget out there and buy it hoping that will magically solve their problem.

Hear me now.

Finding motivated sellers is friggin EASY. Hell They find ME I don't do a damn thing and they beg me to please give them some attention.

The hard part is CONVERSIONS! THAT is hard.

The more motivated the seller, the MORE credible you need to be! People do not get this.

So here you are developing your gadget, and a ton of recently deceased family members get mailers from investors...

They see them and they go "WTF is this?!" They go online to see what the hell it is.. and who do they see?

ME, That's who.

With a website 13 BILLION  times more credible, better looking more professional than the people sending these mailers... 15 guesses which form they will fill. MINE!

You have NO IDEA how often we laugh with the seller making fun of all the letters they receive "pathetic vultures" is what they call them.

So Keep sending your mailers. You all are making me a ton of money and deals.

So listen. It is not about who reaches them first. It is about who is more thrust worthy. Who is more credible. Who is more legit and more likely they can help them out.

And that my friends, not many people can beat us, or anyone with a bit of logic that apply that logic to their sites.

My honest opinion is.. the desperate investors for new leads that have no idea how things work, will be eager to say yes...

Those that know how lead generation works will know that sure you can and probably will make a deal here and there sending mailers out, but it is so inefficient it is just not worth it.

See it this way.

Sending mailers has a 1%-3% open rate.

This is LAST in the process in a series line.

It doesn't matter HOW amazing your potential prospect finder is. Ultimately you will STILL send them a mailer and that STILL has a lousy open rate.

And if you are going to do Coldcalling? Try it with the death group. Lets see how well you will be received, ESPECIALLY when you are the first, immediately after they die, and their corpse is not even cold yet.

I feel that people need to stop looking for shortcuts and magic pills and for frogs sake just do the work and make your site credible and focus on providing actual value to your sellers. Focus on solving THEIR problems instead of making your pockets a priority. When you manage to do that BELIEVE ME you will get a TON of leads! THAT is what makes you credible!

On the flip side...

I get it. What if you do not rank #1. What then?

Well all you do is get a website make it credible, and turn on PPC. Drive motivated traffic to the website and you are done.

If I were you I would use your skills to come up with something TRULY groundbreaking in this industry.

But yes.. I do think that if you build that thing and it is done well, it would attract investors, and YOU will make money.. but you will eventually get a ton of reviews saying that  the product is cool but it is not generating any more deals than without it.

That is my prediction, because it is still limiting on the performance of DMM, and DMM has a crappy efficiency score.

Christian Barth · Answer

interested

Wholesalers: would this lead generating technology be helpful?

Most Popular Reply