Hi BP Fam,
I am new to real estate but ready to get started wholesaling . I registered my business and did some research. Is there a good target list to start with other than FSBO? I am really looking for a combination list targeting motivated sellers with more than one motivation to sell. I have a little money to spend on the list. Also, is there a good website to get leads from other than listsource?
@Kay Dyer Welcome to the exciting world of off-market lead generation!
For starters, the tried and true direct-mail lead is probate and estates. Yes - it's competitive. However, I would say nearly 50% of the deals I've ever worked were somehow connected to probate scenario.
The beauty of probate is that the houses often have other problems - and you know most of the sellers are motivated sellers - they didn't choose the house. Now are they motivated at your offer? That's a different question - but certainly they are in the market to sell more often than not.
I actually don't think FSBO is a good list. It might be worth a phone call (as usually its available for free on the listing) - but in my experience FSBO prices are drastically over priced and the seller's have an abnormal understanding of what their house will sell for.
Next, I'd hit up back taxes. There's a real problem there. However - I would look more narrowly a 2 years of back taxes. Anyone can fall behind 1 year (might just be they haven't gotten around to it). Once a couple tax certs are issued - it's a better sign.
For combining factors, it's a bit tricky. I think "out-of-state" + back taxes, probate, violations is a good way to do that. But one thing to keep in mind is that DMM is about volume. Sending 100 letters isn't really going to get you anywhere without some stroke of luck . . .
If you're in it for the long game, you are better off with a website than direct-mail. You can leverage your time to work on SEO - but in DMM - you're capped by your financials.
@Lucas Machado I really appreciate you taking the time to explain that to me. This is all so much valuable information. It's definitely hard when you are new, have limited capital, and trying to get your first deal.
I am just learning more about SEO bit that seems way out of budget right now so I was going to invest into it when I got my first deal but I may just have to make a small budget for it now.
Where would you suggest I go to start my website? And how big of a DMM list you think is good to start with to increase my probability of a getting a response and getting quality leads?
If budget is an issue start with "driving for dollars" to build your own list of motivated sellers. Once you have an address of a property that appears to be in distress, you can go to the county assessor to find the owner (even online in some counties) for free (if you don't value your time), or you can use a paid service that will give you all the details right on your phone while you are standing out front, owner or non-owner occupied, value, comps, equity, vacant, even their phone number.
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