Who to send Yellow Letters to?
I am new to Wholesaling, and I still have tons of questions. But I figured the best way of fully learning is to start. How do you know who to send Yellow Letters to? I know you can search up tax delinquent properties, but is there any other way? Just because most of those sites are expensive, what is your best way of finding motivated sellers using the Yellow Letters?
Also, how would you know the name of the homeowner to put on the Yellow Letter?
Hey @Victor Barboza
I am here to help. First you need to recognize who are the types of motivated sellers:
- “I have a terminal illness.”
- “I’m going through a divorce.”
- “I live out-of-state.”
- “My parents passed away, and I inherited this property.”
- “This property is a mess.”
- “I can’t maintain the upkeep of the property anymore.”
- “My tenants aren’t paying rent.”
- “I can’t keep up with the taxes.”
There are literally tons of strategies out there on how to find off-market deals. Here are a couple strategies to find motivated sellers.
1. Driving for Dollars
Driving for dollars - If you’re just starting off and you don’t have much working capital, then I would highly recommend utilizing this strategy because it’s free! This is honestly one of the cheapest ways to locate motivated sellers. Simply hop in your car and drive around the city in search of distressed properties.
Look for properties that appear abandoned, that have weeds and tall grass, boarded up windows, etc., and write down the address. Once you return home from driving around the city, visit your local tax assessor’s website and locate the owner of the property. Once you have the owner’s name, you can search for their contact information using a skip-trace software called TLO.
2. Craigslist
This is an effective strategy that is absolutely free! The only thing you need is access to a computer and internet.
Wow thanks Brett! Nice and simple, that's exactly the answer I was looking for! I just posted on Craigslist, since I'm just a beginner I developed an flyer using Adobe Illustrator that gave it an eye catching look. I'm also thinking about purchasing a list, and putting up bandit signs. I have been searching all over the internet for those exact questions, but no other discussions had clarified that for me so thanks!
One last question, suppose I find a potential motivated seller. And using TLO I find their contact info, would a direct call to the potential motivated seller be a good idea? Or is there in laws that take into effect that would not make it a good idea? The reason I ask is because I talked to a real estate investor a while ago (the person who got me interested in business), and he had told that his very first deal was with a direct call to the homeowner. However, usually that is not an option that people speak about.
This is a great post!
@Victor Barboza, if you do not have a lot of money to market, I would also suggest driving for dollars to build up your list. Driving for dollars is a great strategy because it'll help you learn your market and also build a unique list.
But I totally agree. Just starting is the best step. You will find your way!
Good luck
-Jonathan
Call your county assessors office. Ask for a list of tax deliquent real estate accounts. You don't have spend hundreds of dollars to buy that list. It's public information and they will usually email it to you (sometimes for free, sometimes for a small fee). Just signed a deal from one of the houses I got on off the tax deliquent list.
Definitely drive for dollars. But just write down the addresses and take a picture of the house where you can see the house number. When you get home, look in your county or city GIS website and find the owner and address.
If you can find a phone number, call it!
@Victor Barboza Go for it! There is nothing wrong with making a direct phone call first. To my knowledge, there are no laws against this, unless you begin to hassle the owner by making multiple calls back to back. I have heard of wholesalers walking straight up to the owner's house and starting a conversation with them. I don't recommend it unless you are extremely comfortable with the idea though. I'm glad I could help.
That's a good idea I have not thought about! I'm actually really good with people and finding commonalities, and really breaking stuff down and really getting to know my guest. My previous job I was a salesman for a furniture store, and that taught me great communication skills, and just asking the right questions. I will give it a try if I get the chance!
There you go man! Good luck! @Victor Barboza