Many people are overwhelmed when they look into real estate as a possible income stream. Aside from the nervousness hesitation to put out legal contracts constantly, there is an obstacle before they are even able to make an offer on a single property. That obstacle is in the pursuit of actually finding motivated sellers.
Leads are the bread and butter of any successful real estate wholesaler. Without leads, the wannabe investor will spin their wheels. You will find that cash buyers are pretty easy to find when compared to getting motivated sellers to contact you.
Lead generation is your answer. For the next few minutes, you will discover some incredible ways to pull in those motivated seller leads. You will discover the trade secrets of a 20+ year internet marketing veteran that just so happens to be a real estate wholesaler. Let’s get started!
Do you find sellers, or do sellers find you?
There are many methods wholesalers use to reach motivated sellers. Many of them require you to reach out to them. Others will allow them to reach out to you. I am a huge fan of having the motivated seller contact me. Why? Because if they are contacting me, then I know they are more likely to be motivated in the traditional sense. They will be much more open to a discount offer, or even creative financing terms, or subject 2 if there is little to no equity on the property.
While I prefer that the seller contacts me, I am not one to close a door on a gift horse. Every lead is a good lead, and a potential assignment fee. This is why I am going to recommend that you employ as many of these techniques as your time, budget, and determination will allow.
Before you begin, you will want to follow a standard format for your ads. Here is an example…
We Buy Houses
ANY Area, ANY Condition.
Zero Closing Costs, “AS-IS”
Call Now! (555)-555-5555
This will not necessarily be the case for post cards and letters however. You can find that format by searching Google for “yellow letter”.
- Yellow letters and post cards
The “yellow letter” or post card are excellent sources of done deals. The problem is that a mass mailing can be expensive, even at a single piece cost of $.40 cents per post card. You will need to send between 1,000 and 2,000 to secure a couple of deals. On top of it, the best method is to send it 6 times to the same people before moving on to the next list. That’s about $400 to $800 per mailing times 6. When you are already established in the wholesale game, that cost is easy to absorb thanks to the many assignment fees you’ve collected. When first starting out however, you may not be able to manage that.
The yellow letter is targeted towards a direct mailing list of homeowners with equity and other factors. ListSource is a popular provider of such lists. I have obtained ‘small lists’ of about 180 addresses and names for about $50 or so. You can import the list into a yellow letter or post card mailer service such as BigYellowLetter or any of the various others.
- Lead websites
As someone who started in the website design and internet marketing business way back in the teenage years, I am always creating websites whenever I get an itch to start a business or collect leads. One of my favorite website backbones is WordPress due to it’s ease of use, ability to optimize for search engines, and the mere fact that I can create multiple variations of lead pages targeting different campaigns.
A wholesaler without a lead website isn’t a wholesaler at all. Not everyone wants to, or has the option to call you. Just providing a phone number on your ad materials isn’t enough. A URL should always be provided as an option, and the visitor should be able to reach you through an intricate contact form that collects information about the house they want to sell you.
When creating your lead site, make sure that you ask all of the appropriate questions so you can analyze the deal ahead of any discussions with the seller. I have an example down below. I like to collect the address, contact info, property type and info, description of needed repairs, etc. I even include an option for them to tell me whether or not they would be willing to hold a note for all, or a portion of their equity. This leaves the option for creative financing in the event that the property is not ideal for a cash offer (low to no equity).
- Social media
I spend hours every day on Facebook, Twitter, and other social media websites interacting with others, promoting, and just trying to drum up traffic to my website and lead conversions.
Be careful to provide the right ratio of content vs ads however. Over posting ads can be annoying to followers and friends. It would be a good idea to provide fresh articles, resources, ideas, quotes, and other goodies to keep a follower interested long enough to convert them down the road.
As an internet marketer, I know the value of building a list. But who is going to want to just hand over their name and email address to a stranger? Someone who is getting something for free of course!
To build a newsletter, you first need to offer something of value for free in exchange for their name and email address. This is often an eBook, or even something smaller such as a 10 page ‘report’. Your report would contain some simple information that teaches them something that they want to know. In order to get access to the report, they must first submit their name and email address. They can then download the report via a confirmation email you send them automatically afterwards. This is email list building 101. Follow this blueprint, and you can have a massive list in 30 days or less.
Don’t just have a lead site. Blog on it regularly. You can write articles ahead of time, and schedule them to publish week after week. This way, they are getting new content on a regular basis.
In addition to value for your readers, blogs are great for search engine traffic. Content is king. This means that every time you publish a new article, you run the risk of showing up on the first page of Google or another search engine for your target search terms. This will bring in motivated sellers to your lead site (if you convert them), and it can also attract cash buyers if you are targeting them as well.
As before with social media, I have to warn you not to spam forums either. But forums can be excellent sources of leads if you are smart about it and actually contribute. Forums provide a place for you to add your URL and contact information in a signature. This signature would show up whenever you post on the forum, and interested parties can follow you.
I like to join credit repair forums, bankruptcy and back tax forums, and give advice. You can get motivated sellers who are in preforeclosure this way. Just avoid posting urls while giving your advice, as that is considered spammy. Rely wholly on the signature you be your golden goose, and you can’t fail!
You can also join real estate investment forums like EquityPaper or BiggerPockets, and interact with other investors. This can be a chance to co-wholesale deals with other wholesalers who may not have a cash buyer for a certain property. You may be able to help them, and share in the assignment fee.
I’m sure you have seen a newspaper before. They still exist, and many people read them. In the classifieds section, you will see other ads just like the one I mentioned earlier. Give it a shot, and see how fast you get calls or leads through your website.
Newspapers can be expensive, but there are some smaller ones with more manageable fees.
I have gotten quite a few commercials done and played on live and recorded podcasts. They were bought and paid for through Fiverr, and certainly affordable. You can get an ad played for $5, or a little more for larger podcasts. You can get gig extras which also have your ad mentioned on the podcast’s social media accounts, permanent links on their podcast website, and other goodies.
You can also create your own real estate podcast, and gain a bunch of new listeners to promote to here and there.
YouTube channels have to be one of the greatest methods of generating a following, and converting to leads. You can manage to do a simple 15 minute video every week, and publish it can’t you?
It can take some time to build a following, but soon enough you will see thousands of new followers ready to absorb what you are putting out there. They will share your content and spread the word. Do not fall asleep on YouTube marketing. It truly is a heavy hitter.
Put your creative juices to work, and come up with some excellent lead generating ideas. You may be surprised at what you come up with!