5 Ways to Find Motivated SellersSmart real estate investors know that the success of their business is directly related to the quantity and quality of leads and deals they get.
- Without leads, you don't have deals.
- Without deals, you don't have profit.
- Without profit, you don't have a business worth a crap!
The problem is if you are looking for a great deal.. good luck. So are the thousands of other investors… including the ones with much more experience than you. That's why I've always preferred to track down people that want to sell their house but just haven't taken the steps to do so yet. These people are often referred to as motivated sellers.
Here the top 5 ways we find motivated sellers:
5. Code Compliance Violations - When someone complains about a house because it needs a lot of repairs, is vacant, and/or the yard is overgrown, the city will issue a code compliance violation and tell the homeowner to fix the problem. The city will keep a list of these violations and sometimes they can be gathered online or in a print publication that is used for legal notices in your area.
4. Probates - Probate leads are leads for houses owned by estates. When someone dies and leaves a will, the executor (executrix if female) of the estate will have the will probated at the county courthouse. The county courthouse keeps these probate cases in files that are public record. Click here to read about the $50,000 wholesale deal that came from a probate lead.
3. Driving For Dollars - This is where you drive neighborhoods looking for run-down or vacant properties. The goal is to collect as many addresses as possible and then later reach out to the homeowners purchase. Download the ultimate Driving for Dollars Guide.
2. Bandit Signs - These are the plastic corrugated signs that you see nailed to telephone poles all over the place. You see them everywhere because they work. I recommend 18x24 white or yellow with black blocky bold text stating 'We Buy Houses CASH 222-2222'. Make sure to get horizontal flutes if you are going to be nailing them to telephone poles so that they don't bend in the wind, and vertical flutes if you are going to get wire stakes to stick them in the ground. Also be aware that in most places these are illegal and you can get fined - some investors just see that as a cost of doing business. Many times I notice they crack down on signs in cycles. Wait for a cycle where you see signs staying up for more than 3 days and then put some out.
1. Real Estate Investor Website - This one is my favorite. Websites establish credibility, allow people another way to find out more about you and what you do, asks the right questions of sellers in the right order so that you get all the information you need to determine whether a deal is possible… and the list goes on and on.
This graphic from my book on house flipping, Flipping Houses Exposed, shows how the majority of my leads came from my website: