Note Lead Generation Sources that Work for You!
Want more articles like this?
Create an account today to get BiggerPocket's best blog articles delivered to your inboxSign up for free
What we haven’t answered is:
Where you go to find the actual notes to purchase?
Here are three great sources for locating notes to purchase. Once you find the leads, be sure to follow the due diligence and management process we have discussed previously.
Seller Will Finance Ads: Here is a lead source that won’t cost you anything more than time and effort. Ever see a property in your neighborhood for sale with a “Seller Will Finance” slogan on it? How about an online classified ad that advertises “No Bank, No Problem” or something similar? You have stumbled upon an excellent lead generation source for note holders. Quite often investors sell on contract terms to make their property an easier sell to a wider buying pool. While those investors love the passive income the contracts provide, they also would like to get their investment capital freed up to do another investment, or for other needs. Contacting them with an interest in their notes could be just the solution they are looking for.
Public Records: This is another time and effort source, and one that you may have to pay for, depending on where in the country you are looking. A quick public record search for sales in your city or state of interest by a non-owner occupant with a sales type of “LC” or “Terms” can be a great source for prospective note sellers. A simple form letter to the seller expressing interest in any notes they have for sale will certainly lead to interested sellers. KEY CONCEPT: You will want to send a follow-up letter in December and March of each year. Investors may be looking to sell notes at this time to raise cash for year-end or taxes.
Networking: Social Media sites, networking groups, and BiggerPockets.com are all exceptional ways to make people aware of your interest in notes. People are willing to help you in your quest to purchase notes and can help direct you to sellers they may know of. The more you talk about note investing the closer you are to making it a reality. Other great sources for networking that can help in your search for notes is REIA groups, and of course friends and family.
What have you found to be your most effective tool for finding and securing investment notes? I would love to hear your networking tips, and as always, feel free to email me with any questions I can answer to help you in your note quest.
Much Continued Success!!
Photo courtesy: Scott Akerman