The Best Kept Secret for Finding Off-Market Deals
Want more articles like this?
Create an account today to get BiggerPocket's best blog articles delivered to your inboxSign up for free
How to Find Off-Market Real Estate Deals
Investors Adam Johnson and Brent Moreno are masters of finding deals. In fact, they’ve achieved a 56 percent response rate when using one particular method to contact property owners. Here they describe the unique four-step process they utilize to keep their wholesaling pipeline full of deals.
Step 1: Pull lists
The first thing is good deals are created—not found. So, we have a multitude of things that we work on. We pull several lists, everything from divorce to probate to pre-foreclosures, HOA liens, tax delinquents, and water lists (every property that’s had water shut off in the last six months—a clear sign that it’s vacant).
This is how we discover distressed properties. Everything else is coming from the courthouse. If it’s not, we’re using tools like REIPro, PropStream, and ListSource to find absentee or out-of-state owners.
Other than that, we have a courthouse runner that goes down there. We’re in Mississippi. Technology is about 10 years behind; our stuff isn’t available online. So, we physically go to the courthouse to get all that information.
So, that’s the way our funnel works. We pull those lists, we throw it into a skip tracer, and it traces everything and removes all potential litigators and everyone from the DNC (do not call) list. We’re using Lead Sherpa.
Step 2: Text message
Then, it’s a text blast. But it’s not a text blast in the sense of I hit the button, so it’s actually legal. It’s legal because I’m hitting the button every single time; it just merges their information into every message. That’s our first step. We hit everybody with that.
With this, we get about a 56 percent response rate. Prior to that, we thought we were doing good with an 18 percent direct mail response rate.
Related: 27 Ways to Find Real Estate Deals
Step 3: Cold call
Some of those, we get a text or call back, and we start dealing with those right away. The callbacks go to our lead manager. She handles all the text messages, too. Our AMs in other markets are handling all their text messages. But all the calls are coming back to our lead manager, who screens them and books the appointments.
If we don’t hear back from the people we texted, they go into our cold call list. Our cold caller then hits everyone we didn’t hear from (from the text messages).
From there, we take all the people who said “do not call” or “not interested” and take them off.
Step 4: Direct mail
But if we still don’t hear from you, we mail you. The letter basically just has a few bullet points. It says, “Hey, I may be interested in purchasing your property at such and such address. I’m not a Realtor looking to list your home. I’m a local investor wanting to purchase it.”
And then the bullet points say no fees, no commissions, no hassles. We buy as-is. If you’re interested, give us a call.
What do you think of Adam and Brent’s funnel?
Leave a comment below!