Cold calls?Mailers?How should I be reaching out to off-market distressed properties?
Im curious to hear what others have experienced to be more successful in terms of initiating contact on distressed property owners. Cold calls, mailers, door knocking, etc. I know most people don’t like to be bothered and will literally and/or figuratively slam the door in your face. I suppose this is just part of the game where volume matters most to find the ONE right deal. Any input would be appreciated. Interested to hear what's worked best for others.
#2 Rehabbing & House Flipping Contributor
- Real Estate Investor
- Tennessee
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#2 Rehabbing & House Flipping Contributor
- Real Estate Investor
- Tennessee
Ryan,
What has worked the best for me over the years is to tell as many people as possible that I buy houses and what type of property I'm looking for. In addition, I pay a 1,000 finders fee to anyone who tells me about an unlisted house that I buy. After you do this a few times you will have several people always looking for properties for you that you don't have to pay unless they get results.
I have also sent personal hand written letters to people who are listed on the tax records of properties that are vacant. I did this on a commercial building a few months back and the owner called me. She was not ready to sell at that time, but she now knows who I am and that I may be interested in buying when she is ready.
Another method I gain unlisted leads is by talking to the neighbors of every house I rehab. Who better to know what you buy and what you do with properties than the neighbors of a distressed property that you have rehabbed. Everyone knows someone and you never know when one of those neighbors will find out about another property. Make sure you have business cards that you can give out.
I have also knocked on a lot of doors of houses next to a property I'm interested in to find out who owns it and any other details about the property. If the house is distressed and you are looking to remodel the place and make the neighborhood better I usually get some great information.
One final source I will give you is signs. I have a property for sale right now and have my sign out front with my contact information. I just received a call last week from someone not interested in buying my house, but asking me if I might be interested in buying his. It is not listed and only about a 1/2 mile from the one I'm selling. I'm going to look at it next week. Hopefully, something I said may help you. Good luck.
#3 Wholesaling Contributor
- Lender
- Winter Park, FL
It's all about sales and marketing. Cold calling enables you to reach a broader audience, but success often hinges on sheer volume and taking a lot of no's. The PPC landscape is highly competitive, mastering it can bring excellent results if it aligns with your budget and closing capabilities. I'd Consider leveraging VA services and ensuring thorough training for effective cold calling, or opt to hire a professional cold calling service. GL!
Quote from @Ryan Sage:
Im curious to hear what others have experienced to be more successful in terms of initiating contact on distressed property owners. Cold calls, mailers, door knocking, etc. I know most people don’t like to be bothered and will literally and/or figuratively slam the door in your face. I suppose this is just part of the game where volume matters most to find the ONE right deal. Any input would be appreciated. Interested to hear what's worked best for others.
If you have a SOI, use that on buying homes. the best deals that I have gotten are from my SOI and people who know that I buy off and on market properties.. Or list off and on market properties
Both of those methods work (mailers and cold calls), so does driving for dollars and networking with other investors/wholesalers. Cold calling gets you talking to sellers much faster but there will be a lot of rejection (like 99%), its part of the game. Once you gain traction and get some deals the good news is you can hire a VA to at least to the initial calls for you (less no's) and you only talk to the ones interested in your offer (I know it because I run a call center for Real Estate).
Mailers can also work, in that case interested sellers reach out to you, mailers can be expensive though so its also a numbers game.