1/ Many real estate investors who want to buy more rental properties talk about 'pulling lists' or 'building lists' of homeowners who are in some sort of distress.
This way can work well, but there are others.
Here's one that works well now for buying off market properties.
This way can work well, but there are others.
Here's one that works well now for buying off market properties.
2/ I'll start with my quick definition of off-market:
A property the owner did not really intend to sell before you reached out to him.
The owner has a need to sell but did not have the intention & thanks to you contacting them they are now going to sell.
That's-off market.
A property the owner did not really intend to sell before you reached out to him.
The owner has a need to sell but did not have the intention & thanks to you contacting them they are now going to sell.
That's-off market.
3/ Identify 3 neighborhoods you want to buy in 1 market.
Each neighborhood will statistically speaking have 1,500-3,000 houses. Let's assume 2500 per neighborhood.
So in 3 neighborhoods you'll have 7500 households.
Each neighborhood will statistically speaking have 1,500-3,000 houses. Let's assume 2500 per neighborhood.
So in 3 neighborhoods you'll have 7500 households.
4/ Your goal is to build a database of ALL of them.
Not only those you hear are in distress from outside sources, but ALL of them.
Where do you start?
Not only those you hear are in distress from outside sources, but ALL of them.
Where do you start?
5/ Your city might have address information for every residential property.
You may also be able to buy GIS (geographic information system) libraries w/addresses to use with ArcGIS (Esri).
If this is unavailable, you have can use USPS to send mail to every property.
You may also be able to buy GIS (geographic information system) libraries w/addresses to use with ArcGIS (Esri).
If this is unavailable, you have can use USPS to send mail to every property.
6/ Input this information into a CRM.
Your intent is to have long-term and short-term conversations with EVERY. SINGLE. HOMEOWNER. in the 3 neighborhoods you want to buy in.
Do you really want to be chasing 'deals' like a headless chicken all over town? Right?
Your intent is to have long-term and short-term conversations with EVERY. SINGLE. HOMEOWNER. in the 3 neighborhoods you want to buy in.
Do you really want to be chasing 'deals' like a headless chicken all over town? Right?
7/ Over several steps of skiptracing, calling, texting, mailers, etc. you can verify ownership status, and fill in their name, contact information and more.
Over even more time you'll understand their goals and motivations and can offer solutions to their problems.
Over even more time you'll understand their goals and motivations and can offer solutions to their problems.
8/ In time you'll start communicating with these homeowners in a regular and organic, natural manner.
You'll offer tips, advice and data.
You'll also learn if they:
1. Need cash fast?
2. Will they ever sell?
3. Are they open to more creative options?
You'll offer tips, advice and data.
You'll also learn if they:
1. Need cash fast?
2. Will they ever sell?
3. Are they open to more creative options?
9/ Instead of trying to pressure someone to sell now, you're having several thousand ongoing long-term conversations with people in the neighborhoods you want to invest in.
Some of these conversation will yield a return quickly. Others will produce in 2-3 years. Many will not.
Some of these conversation will yield a return quickly. Others will produce in 2-3 years. Many will not.
10/ These conversation can be automated to a high degree & can happen via texting systems, mailers, emails, online video, etc.
When the homeowner is ready, she/he has trust in you, an understanding of who you are and a bond that can't be easily replicated by a competing buyer.
When the homeowner is ready, she/he has trust in you, an understanding of who you are and a bond that can't be easily replicated by a competing buyer.
11/ When you figure out what works, the next step is to make sure that your 'cost of contact' or 'cost of conversation' is sustainable to you for the long term.
If you can build an affordable system you can keep these conversations going for years.
If you can build an affordable system you can keep these conversations going for years.
12/ Imagine having an automated system that can be run by an outsourced contractor (VA) that brings you multiple warm leads a month from homeowners who need creative financing, a cash offer, hard money, a real estate listing or just want you to buy their house hassle free?
13/ So why is this better than 'pulling a list' or 'buying a list'?
As distress moves quickly in communities, especially now, many people might not be on a list today, but in 6 months they might need immediate help. Help you can offer them by buying their property.
As distress moves quickly in communities, especially now, many people might not be on a list today, but in 6 months they might need immediate help. Help you can offer them by buying their property.
14/ You'll also get first dibs on many opportunities you would have otherwise missed because instead of having to time your outreach to the exact moment when the seller needs you, you're right there having a long-term relationship with them.
No more missed opportunities.
No more missed opportunities.
15/ The point is to start with a conversation with everyone who wants to engage with you, instead of just reaching out to people who might need you in that moment.
Over time the compounding effects of this strategy are extremely powerful.
Over time the compounding effects of this strategy are extremely powerful.
16/ Test what works, automate the things that do and take a long-term approach and you'll be seeing leads you would have otherwise never had access to.
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