Has anyone had success with this site?
Yep, I think it's credible but I have only used it once.
There are a ton of other posts here on BP about it.
Thank you @Nick, now when you used it did you accrue any leads?
I heard about list source through a podcast and other forums here. Decided to give it a go and purchase a list. From the 500 leads I mailed or contacted 125 so far, ones where I focused on absentee out of state owners. I received back 12 responses, only one of which wasn't happy about it. I've since purchased another 1000 and will be sending out letters in a few days.
The price does get expensive the more you buy, so set a budget and parameters of your target market. I think you'll be pleased.
@Wes of the 12 leads that you gained how many deals were made from those? I want to know your percentage of success. Thank you
@Andrew LeBaron , none unfortunately. Most were not really motivated to sell, two were but there wasn't enough equity in the homes for me to wholesale. Being new at this, this was the first method I studied and was comfortable in persuing. After the leads came, I was excited to get them and "run the numbers". I realized I needed more understanding of different methods to acquire properties, so now I'm looking at Sub2 deals. The experts @Joshua Dorkin @Jerry Puckett @J Scott
and others are correct, you need more tools under your belt in order to help out the seller. "Find a solution, to solve their problem". I'm not discouraged I haven't closed on one yet, because I know that when I do, it will be the first of many. Just keep plugging along, it'll happen.
Most of everything in real estate is a numbers game.
For yellow letter campaigns, its largely a function of numbers, but you can increase your odds through multiple exit strategies, such as straight cash purchase, wholesale buyers list, Sub2, etc as mentioned. The more strategies available the higher the potential success rate. It takes quite a bit of time and solid due diligence skills to be profitable.
Other things in real estate are no different. I go to 20 houses to find one good deal. I place 4-8 offers to get one contract for a client. I show 20 prospects a rental before I find the right tenant. Understanding that its a numbers game helps keep from getting discouraged, it also is important in understanding that not all "leads" are viable leads.
12 calls on 500 letters is a solid return. Ive found that these letters can go drum up all types of calls from owners and it takes skin to get through a few. Stay consistent and understand your expectations in advance will help prevent being discouraged.
Originally posted by @Andrew LeBaron :
Thank you @Nick, now when you used it did you accrue any leads?
My targeted list was very small so out of only about 20 letters, I received three leads. Those leads didn't turn into deals because the sellers were unmotivated and the properties turned out to be not what I was interested in. (I searched for small multifamily deals and two owners that contacted me had old farmhouses that had shared living arrangements upstairs and were technically considered multifamily but nothing I was interested in.)
The only problem I had with my list was they included multi-unit commercial buildings so I got things like doctors offices, car repair shops, etc...
I clearly put in my qualifications for my search yet they still gave me those.
thank you all for the golden bit of advice. I will need to make some decisions as to what sources how many mailing and the type of millings I will send. I know it takes 5 to 7 rounds for some sort of response sometimes, but I'm willing to do all I can for that first hole sell, lease option, subject 2, when contract, e.t.c deal
Hooking in the main man here on BP re yellow letter campaigns. Michael Q to respond re where to buy the all important lead list. What type of leads, age of note, equity, no equity. It's extremely important to choose your criteria to match what your real estate deal style is.
IE flipping high end pretty houses: better target those good school zips and narrow the list to the price range that meets your criteria.
Doing only subject to's, then target good school zips $125k-$250k with near zero equity. Another way at near zero equity is to target a range of last sale dates near the top: 2006-2009 (sub-to deals).
Good list sources can fine tune every aspect of the data you are buying.
As for ListSource From a property characteristic perspective, things like length of ownership, equity, absentee, junior notes, etc. they're king...
If you're wanting data concerning items like credit reporting, Probate, Inherited, Divorce, Expired, Code Violations, Active For rents, FSBOers, Unlawful Detainers, NOD, Trustee Sale, Tax Liens, bankruptcy, or the like then they are not your go to list provider.
I hate saying it but the ability of the investor is more important than the list. I can make the phone ring however if you don't know how to buy, don't have the ability to buy, or are marketing to a group that doesn't fit your business model it really doesn't matter who you buy the list from.
A lot of investors get caught up in the keywords like absentee and don't look deeper than the word. There are a lot of absentees I would never market to. So once you decide on a model learn the differences between the filters available and how they affect the goal then build it.
@William Robison that was 12 leads on 125 mailers. Sorry for the confusion.
"A lot of investors get caught up in the keywords like absentee and don't look deeper than the word. There are a lot of absentees I would never market to. So once you decide on a model learn the differences between the filters available and how they affect the goal then build it."
So true!!! Same goes for probates. Some say they are their best source of deals, but I've never gotten one deal. Some because I'm rotten at negotiating with the type of sellers that end up calling me. But also I found that when you buy lists, especially the popular tactics like probate you will be 1 of 10 investors and 5 agents all mailing their cards to the SAME FOLKS. Guess what that trains the seller to be picky and figure out zestimate and your 60% of ARV offer is laughed at. For me anyway.
This is why we have moved to distant, rural counties and not the core counties in my city. Everyone mailes the best zips of the best counties. Do you think you are the only genius who wants to mail the top school zips?? LOL!!! Nope. Mail the rural zips instead is what we now do.
Going directly to the county and getting a list of code violations, eviction notices, back taxes. IE any list that the investor has to work for vs press a button and just buy the list will mean that you will have less competition. Lets be honest. Humans are lazy. If food will jump into our mouth will we get the spear and chase live food down? Nope. Same with clicking for lists. :) Some will lick and get poor results some will be very smart / strategic and get ok results. Regardless I hear a deal will cost around $400 in yellow letter costs. IE buy 1000 names, mail 5 times is around $5k in total expenses. You might get 5-10 deals out of that mailing drip over 5 months. You get more deals from the 4th and 5th mailing and probably zero deals from the 1st and 2nd mailings.
I hear some lists do work in some cities for some strategies. There's not enough success data out there to say for sure what filter for what data for a given city works best. Michael summed it up in a nutshell, know your business model and how that target can be found with the list provider filters. Then add the hard to get lists that you might have to go to the court house and the tax office to get...
One of the best things that ever happened to me was getting fired from my cushy corporate job many, many years ago. I knew I wanted to "do" real estate however at the time I wasn't even sure what aspect that I'd focus on.
What the lack of employment gave me was the gift of desperation and all the clarity that a drowning man has when he see's the beach is within reach. This helped me recognize that I had much work to do if I was going to survive and thrive in real estate, whether I was providing services or as an investor. For me, the solution was to identify niches and sub-niches and become a major contender by focusing and taking all necessary actions required to achieve my goals, especial in the education and skill-improvement areas.
The luke-warm idea that you can be successful by purchasing someone else's list, mailing someone else's postcard or letter and use someone else's script (or just "winging it") -if and when- someone calls has to be tempered by reality.
Lead generation is only the part of it, granted it is probably the hardest part when starting out. Qualifying, converting and closing requires more skills and finesse than most of us possess in the beginning so there's a big education curve required that often takes years to master.
This thread started with a simple question about a particular data provider. I suggest that folks new to real estate investing who wish to find super-bargains buying directly from principals recognize better lists are only a partial solution to the deal-making puzzle and that the learning ought never stop.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!