If you are ready to achieve financial freedom and start a career as a real estate entrepreneur, you must understand the importance of having a solid buyers list.
Regardless of which real estate exit strategy you choose to pursue, having a rolodex full of eligible and willing buyers is the key to success. Ever wonder how the best investors are consistently working on multiple deals at once? It is because they have spent their time and money networking and marketing to a broad audience.
It takes more than an off-market property and an experienced construction team to have a good deal, you need and end buyer ready to go at a moment’s notice so that you can collect your profits as quickly as possible.
Working With Motivated Sellers To Build Your Buyers List
Now, it is important to understand that there are two different types of buyers list. Once you’ve rehabbed a property or put a wholesale deal under contract, you need a buyers list full of investors to whom you can sell your property or contract to. You build this type of buyers list by attending networking events or joining your local REI club. The other type of buyers list, which we will be focusing on today, is the buyers list you need when you are marketing to find properties – A “sellers list”, if you will.
If you are running a direct mail campaign, there are certain “lists” you can market to that will give you the biggest bang for your buck. These lists consist of different kind of motivated sellers.
Unfamiliar with the term “motivated seller”? Get ready to have your marketing strategies taken to the next level. A motivated seller is an individual who needs to sell their property fast, for whatever reason. Because motivated sellers are so desperate to have their properties taken off their hands, they are usually more willing to sell that property at a price far below market value. This is where an investor, like you, comes into play…
If you want to generate more leads and find more properties, use these three motivated seller lists to build the ultimate buyers list:
Probate Lists. A probate property is a property owned by a deceased individual. While this sounds a bit morbid, probate properties are great for investors looking for great deals. (And often times, an investor can help ease the pain of the deceased individual’s relatives by dealing with the legalities of the property). So how do probate properties work? There are usually 2 different scenarios:
- No heir or will – If the deceased individual possesses no will or has no living family members, the property goes to the state and the state is in charge of selling the home at auction.
- Handed down to family members – If the deceased individual has a clearly written will that bestows their property to an eligible family member, an investor still has the chance to purchase the property. How? Because often times, the family member does not want to have to deal with a piece of real estate and will therefore be willing to sell the home below market value.
Because an investor is always looking for a well priced property, probate homes are an ideal lead generation source. To find probate properties in your market, ready your local newspaper’s obituaries. Additionally, wills are public record and can be accessed easily by visiting your local attorney general office. If you are willing to spend a bit of cash, you can also purchase a probate list online through private companies.
Tax Delinquent/Default Lists. As I am sure you already know, every homeowner in the United States is required to pay property tax. If they fail to pay this tax, they are threatened by the state to pay what they owe. How does this benefit investors? Because, someone who cannot afford to pay his or her taxes is likely highly motivated to rid themselves of the burden of a property. This means, an investor can come in and purchase the motivated seller’s property at a significantly lower price than if the home was listed on the MLS. Every city or county keeps careful track of which of its citizens are tax delinquents. These records are public and can usually be found for free (or for a small fee) online. Keep in mind, the tax foreclosure process is different in every state; so be sure to read up on your county’s specific rules and regulations.
Absentee Owner Lists. One way to find absentee owners is by driving through your local market searching for vacant properties. Will you find absentee owners? Yes. Is it the best use of your time and money? No. There are a number of online services that will sell you absentee owner lists for a fee. You also have the option of visiting your local tax assessor’s office to physically search for the same information. While there tends to be some inaccuracies with names and addresses, a big enough list will still produce results. When you purchase an absentee owner list through an online private company, you can create specific parameters and set certain guidelines. So if you want properties in a certain zip code or with particular features, you have the ability to filter your list however you please. Always remember, the key to marketing to absentee owners is consistency. Keep up your direct mail efforts and eventually the leads will generate.
Alter your marketing efforts to abide by these buyers lists and your business will begin to reap the rewards.