I had purchased a number of pre-foreclosure leads and I'm receiving a number of them every day; my budget is limited and I'm trying to decide which ones to work with in order to get better results. I'm also receiving probate and had decided not to touch them, because I think the more motivated sellers will be the ones about to face foreclosure.
I need some advice deciding how to work this leads; my budget wont allow me to send 4 or 5 letters to every potential seller.
Should I pick the leads in a particular price range, like 100k to 200k? Would that be a good price range in Houston?
Wow. A quality problem.
Not to get nosey but your budget doesn't permit you to pay postage and stationary and send a follow up letter? That under a buck. Oh is iit because you don't want to budget the time and willing to delegate and pay someone one else? These are important questions to resolve right now?
You're looking for a way to segment and vet leads prior to response, correct?
I started working Foreclosures by mailing in 1978. The names and addresses came via paper lists that had to be transferred to your letter. We had no database or computers to capture and manage the info. So, much of this was flying from the seat of my pants.
Since you are either chasing equity (or potential cashflow) at a discount, you ought to divide your data by potential for profit. Learn to focus in deals that you can work yourself in close proximity to you. Later, as you gain experience, expand your geographic coverage.
I prioritize leads based on multiple factors. If all loans total more than 50%, it drops from my list. If a pre-probate with a Notice of Trustee Sale (last stage before foreclosure in CA) then I treat very differently than earlier stage.
It may also help you to think of the lead in terms of what stage of process they are in.
Also, I would focus on a smaller, quality list that you are more familiar with the neighborhoods and even the specific properties. This will be much more manageable. I also find it satisfying when prospects call a long time later (or return to me) to reconsider my previous suggestions.
You also need a paper lead "intake" or "lead sheet" to help you keep organized. This should include all information that you'll need on first response contact from your prospect.
I'd focus on what makes a deal and go for quality, not quantity.
Thank you for your response Rick. The cost to send each letter is only 70 cents because I will be doing it myself; I received 49 foreclosure leads yesterday and if I want to touch each potential seller at least 4 times, it will cost me $137, I know it's not much, but if I do it every day it will cost me around $3,500 per month and I don't have a budget to spend that kind of money now.
I am very new to working with leads and I value your recommendations and experience. I only have a window of about 4 to 5 weeks to work with the seller before the property goes to auction; in Texas the foreclosure process moves quickly.
I will pick the leads for the properties that are closer to me first.
Thank you for your advise.
You are only going to want to send out 1 or maybe 2 pieces of mail to each person. The timeframe is too short in Texas. I do this every month. We have over 400 people going to foreclosure in SA. I look through every one of them. There are only about 10% of them that meet my criteria. I send to them once, maybe twice. Most of the people going to foreclosure dont read their mail anyway. Postcard is the way to go.
I end up getting several deals every year from this method. This is only one of the many ways to find distressed properties.
Thank you so much for your advice Rick, it makes a lot of sense since I get the lead once the trustee has been appointed. How do you look at them to pick the ones that will work for you?
Hi, new to this... is there anywhere in particular I can find templates of what the postcard should be?
I have changed my postcards over the years a number of times. They just need to say that you buy houses and that you can help them with their situation. Try to keep it simple. For the longest time I typed up a message on half a sheet of cardstock, copied it so that there were 2 per page. I printed it and cut them in half and had 2 postcards. Now I have them printed, but I change them about once a year.
Try something and see how it goes.
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