What is a good way to find motivated sellers?

13 Replies

I got a new job as a Acquisition Manager for FDR Homes. And my job is to find distressed properties that we can buy, fix and flip. I'm walking around every day with a note pad taken down the addresses I think would be a good fit. Then calling them the next day from the yellow pages but I get a lot of no pick ups. Or out of service phone. Any one have any advice for this beginner?

Watch 2 youtube videos. One by Phil Pusteovsky and one by Bill Bronchik on finding motivated sellers. 

As your city inspector for a list of condemned properties and then call the list of people.  I just did this and first person I called was interested in selling

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I'll tell you what is NOT a good way.  Don't buy a high-equity mailing list.

I recently paid off the mortgage on my personal residence.  I have been bombarded with marketing pieces.  Someone took some class or read some guru book or something.

It apparently has not occurred to these people that someone who owns an expensive property free and clear is not someone who is going to have to sell at a discount.  Even if I did want to sell, I would list with the premier brokerage in my area and sell for full market value.

Also, just because I have not mortgage and COULD sell with seller financing does not mean I will.  Why would I?

I got a letter from some woman who offered to buy my house, which she has never seen, for exactly 60% of the assessed tax value (which is far below the fair market value.)  And she wanted owner financing!  At 4%!

Hey Richard, I will give you - sight unseen - 65% of assessed value and 5% on the note!  =D  (I'd really enjoy New Hampshire!)

You raise a point that we discuss all the time around here.  People who own free & clear don't have a mortgage payment, and that removes one of the biggest "motivators" which is that big payment the owner must make every month.

Christopher - consider direct mail as a core strategy tho.  Absentee owners, code violators, tax liens, divorced, etc.  You can pull lists with many criteria via a service like Listsource.com.  Use a service provider like YellowLetters.com to print and send postcards out (yes, they have really nice postcards, not just letters).  Or get someone to design a piece just for you on a site like Fiverr or Upwork if you don't have design talent in-house...

Otherwise, signs work.  And Google AdWords (if you know what you're doing)....

Multi Modal Marketing @Dev Horn , not just 1 way to get motivated sellers.

COI Marketing too.

Center of Influence, who knows alot of people?

I like Financial Planners and CPAs for terms deals (sellers).

Here is my list, old school.

1. Place a newspaper ad (major daily)
2. Place an ad in Pennysaver, Thrifty Nickel, Greensheet, etc.
3. Bandit signs
4. Drive neighborhoods looking for vacant houses and FSBO's
5. Call FSBO ads
6. Search MLS for junker properties
7. Search MLS for expired listings
8. Contact landlords who are evicting a tenant
9. Contact landlords with properties for rent
10. Pre-foreclosures
11. Foreclosure auctions
12. REO's
13. HUD & VA houses
14. Tax sales
15. Estate sales
16. Properties with outstanding building code violations
17. Properties with outstanding health code violations
18. Condemned properties
19. Fire damaged properties
20. Out of area owners
21. Network with professionals, i.e. attorney, CPA, REALTOR®.
22. Network with service people, i.e. letter carrier, pool service person, lawn service person, newspaper delivery person, carpet cleaning people, plumbers, etc.
23. Bird Dogs
24. Wholesalers
25. Magnetic car sign
26. Distribute business cards EVERYWHERE
27. Career attire (Polo shirt with embroidered "I Buy Houses" logo)
28. Fliers
29. Door hangers
30. billboards
31. radio spots
32. TV spots
33. full-page ads in the yellow pages.

Hope this helps. Best of Success!!

There have been so many podcasts on blog posts about this on bigger pockets.

Start at the learning tab on top.  Read, Read, Read.

personally I like the high equity list.   

@Dev Horn

Got my first igen4.     This baby is rated to produce 32 million postcards a month.  

Originally posted by @Michael Quarles :

@Dev Horn

Got my first igen4.     This baby is rated to produce 32 million postcards a month.  

 Everyone needs one of these hooked up to their laptop.  ;-)  Very nice.  In our business, that's like looking at a Ferrari...

It came with 2 computers that operate it.  Amazingly fast and quality is over the top.   

Btw.  My Bentley looks much better than a Ferrari.  626 HP.  201 MPH.  

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