So I’m exploring strategies on how to identify leads. I’ve started playing around with listsource. I’ve put down the cities I’m looking for, narrows the criteria (obviously not enough), and ended up with a report that was quoted at $1.6mil. Heh, I’m obviously doing something wrong. Can anyone help me with some pointers on criteria?
Updated 2 months ago
I did some additional research and I just now realize how loaded a question that is. Can we discuss general strategies and approaches for base criteria?
Base criteria is all over the podcasts and forums. The standard list would be Absentee owner, high equity, owned for at least a few years, possibly tax appraised value below median price point for your area. So yes this is a loaded question as the list is where it all begins! The more creative you can get with your lists the less competition and theoretically the more profitable. Here is a post that had an astounding number of ideas for building lists.
And $1.6m is crazy talk, so you need to start with a zip code or neighborhood. That must have been for the whole county or something!
Thanks @Allan Smith . I managed to tone down these numbers into the $50 range. Now I just have define s good case scenario of a likely motivated seller. I’ll look at the attached link.
@Dori Arazi - the suggestion above from @Allan Smith regarding appraised value vs estimated value won't work in CA because of Prop 13. The rest is solid.
More important than the list, in my opinion, is the message. Lots of people mail to absentee owners who have equity, and most of them do it with the same messages you see posted all over bigger pockets. Should be no surprise that they typically get a terrible response rate. You can get far better results with a unique message. For example if you targeted that same absentee, high equity, list, but narrowed it to folks who purchased from 2008-2012, your message could focus on how they can now cash in on their amazing market timing, and how you can help them do that quickly and easily without having to evict tenants, clean the property, hire an agent, etc. This is but one of unlimited possibilities.
Bottom line, start with the a message that offers a clear differentiator, and then build your list to best deliver that message to the right people.
@Sean OToole, you raise an excellent point.
I was reading a lot of verbiage examples in books and postings and asked myself how I'd feel getting them in the mail.
The last thing I want to do is come off like an excitable infomercial. I agree that a more personalized approach should yield better results. These are large scale financial assets, many time with emotional attachments. They cant be approached with the same messaging you'd use on "3 for $19.99".
As I mentioned, what I'm currently lacking is that intuitive (from experience) understanding of what would make someone motivated. Like having bough right after the crash as you mentioned (thanks for that thought :) ). Once I hone in on some good market slices, I can then design a more targeted strategy.
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