High Equity Leads
Hey guys,
I'm looking to get absentee leads with high equity. What should I put in my search criteria specifically to find people with high equity?
If i'm looking for people that have 40-100% equity.
Should I be doing a search for LTV of 0 - 60%?
Hi Moshe,
It would help if you disclosed what it is your searching for your leads. Are you using a third-party service, searching a database of county records, etc?
But without knowing those details, I can say that you may find homeowners with lesser mortgages, if you did have a way of filtering mortgages in whatever database you have by LTV. You may also just search for homeowners who own their property "free and clear" (no mortgage at all).
Hi Justin,
Well I'm using RealQuest to do my searches via their custom search records functionality. So I was looking for the criteria needed to find high equity absentee owners. I'm trying to put together a direct mail campaign for wholesaling properties in my
area.
In these databases such as Realquest, what is the source of the current value estimate from that is used to compute equity or LTV? If unknown, does it seem to track Zillow, for example? I assume it doesn't use original purchase price.
For estimating loan balance, I assume they use the original recorded loan information and do a standard 30-year amortization of the principal to estimate the current note balance. But what about HELOCs? The recorded docs would only have the full amount of the originally available LOC.
But yes, LTV is the inverse of the equity (ETV), so 0-60 LTV must be correct.
RealQuest is a corelogic product, and I've found their data to be very reliable (not affiliated in any way, just a satisfied customer).
I used to use length of ownership as a rough filter for equity, but as David Beard suggests, that doesn't take into account HELOCs, second mortgages or liens. I was getting calls from lots of very motivated people with little equity (that's when I learned how to do sub 2 deals....).
ListSource, which also uses Corelogic, seems to take all into account and predict equity very accurately.
Jerry Puckett
Originally posted by Jerry Puckett:
ListSource, which also uses Corelogic, seems to take all into account and predict equity very accurately.
Thanks for the reply, Jerry, what is your take on the accuracy of the ListSource estimate of value?
Originally posted by David Beard:
what is your take on the accuracy of the ListSource estimate of value?
Totally unnecessary. that particular filter that they are so proud of adds something like an extra .53 cents per name.....an expense I can do without. But you have actually got to call them, and argue with customer service to get them to leave it out. That should drop your cost per name down to about .30 cents or so.
Jerry Puckett
When wholesaling subject2 properties, doesn't the property need to be in pretty good condition and in a desirable neighborhood for a homeowner to live in, in order to this type of wholesaling deal?
I ask because I got a lead off code enforcement, similar story. Owner was very motivated, but had very little equity in the property, and on top of that code was all over the door so it probably wasnt in good condition from the get go. Does that sound like a property you could do subject2?
Originally posted by Jerry Puckett:
I used to use length of ownership as a rough filter for equity, but as David Beard suggests, that doesn't take into account HELOCs, second mortgages or liens. I was getting calls from lots of very motivated people with little equity (that's when I learned how to do sub 2 deals....).
Hey friends,
Any update on this high equity lead approach? Looking to incorporate this strategy, just want to fully wrap my mind around the best way to go about it before I do. Any information or direction towards some solid resources is much appreciated!
I'm also following for updates on the marketing aspect.
I have a targeted high equity list that I purchased from yellowlist.com
It was about $75 for 500 records and price decreases with more records.
Originally posted by @Vivian Yip:
I'm also following for updates on the marketing aspect.
I have a targeted high equity list that I purchased from yellowlist.com
It was about $75 for 500 records and price decreases with more records.
Vivian- how do you plan to target now that you have the list?
@Angela Russo I have a loose plan in place. I work with a real estate marketing company and here is what they have suggested:
- I'd recommend using a tangible item of value for your campaign (something given to the prospect in exchange for their contact information) -- in your case, my thought would be a free initial meeting or consultation. Whatever this item of value turns out to be will be our proverbial carrot.
- Print campaign - initially with a jumbo postcard (unique size 12x6 to catch attention). Would recommend a recurring campaign (minimum of 2-3 mailers over 5-6 months).
- Facebook geographic campaign using a Lead Ad, Would recommend this on during mail drop and for a few weeks before and after. The Lead Ad functions similarly to a landing page but keeps the prospect within the Facebook portal and autopopulates their contact information (one less barrier for them to share their info for you).
- Door hanger - same messaging; distributed after at least 1-2 print drops to targeted households and at least 1 session of FB ads
- Regroup and reassess the effectiveness and tweak the campaign as needed.
So I guess with this info - who thinks this is a good or bad campaign? Given that the agency I work with is a specialist (and I am not) I am ok with throwing some money at this targeted campaign because it is an area that we specialize in.
@Vivian Yip looks like you have a nice broad plan- I'd definitely recommend keeping a close eye on which parts of the campaign are driving the most effective traffic. And consistency and quick follow up are essential to any of these!
I know the most about the Facebook option since that's where I specialize too, and yes, lead generation can reduce the number of hurdles between you and contact information; however you lose some of the customization ability and extra features that a full landing page can give. It can really be a toss-up which works better depending on the situation and ebbs and flows of the Facebook algorithm.
Make sure to put a lot of thought into your offer - think about it objectively like your customer, ask friends who aren't in real estate, etc: If you saw this on your phone, would you stop scrolling? Is it enticing enough to click?
Props to you for seeing the value of spending money to make money and grow your business- I hope you get lots of leads and great ROI for your marketing!
