What should I expect from a purchased list of owners?

5 Replies

Hi Everyone,

I'm looking to target owners open to selling their property with seller financing.

Has anyone had much success finding seller financing deals using the MLS? I'm a broker and have access to all the listing but I don't get the sense that the agents I'm talking to have much interest in talking to their seller about a seller finance deal.

I have also looked at doing a direct mail campaign to target potential owners willing to seller finance. I'm able to purchase a list of 6,033 owners for $1,000. My criteria used was owners with 50%-100% equity and are absentee owners.

Any idea what I should expect as a close rate? I understand its going to be low as many on the list probably don't even have an interest in selling.

If anyone has used a direct mail campaign for this purpose I would love to hear the results.

@Sam Erickson That sounds like a pretty long list. The response rate I am hearing is 1-3%. You need to be dripping on them 6-8 times. Set your keyword alert for direct mail marketing and see what is being said in the forums.

Part will depend on what terms you'd be offering. Any less than 20% down and I'd think most that are open to seller financing, won't be interested, and I couldn't blame them.

@Christopher Hunter Thanks for the comment. I'll check out what people are saying about direct mail.

@Wayne Brooks Have you done many seller financing deals? Are you seeing that they all want 20% down?

I was hoping for less money down, but I guess it will depending on the seller. In the area I'm looking I could do 20% down but probably could only get a couple properties and I would be out of funds. My hope was with seller financing that maybe I could get 4 or 5 properties. My credit isn't an issue so if sellers are requiring 20% I rather just go to the bank and get the better interest rate. I thought perhaps seller financing could streatch my funds further.

@Sam Erickson

I'm referring to MLS properties, as you mentioned. With these, they have an agent advising them to be cautious, and there will need to be a commission coming out of your down payment. There's not much security for a buyer putting only 10% down, if the loan goes south. I'm sure lower down payments are done everyday, but probably with more desperate, or less well informed, sellers which will usually be off MLS deals.

@Wayne Brooks that makes sense. Hopefully through a direct mail campaign I'll get sellers that are more in a need to sell situation that I can help out by offering a good solution.

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