Rank your top 5 marketing techniques for finding distressed sellers

Wholesaling
16yFollow

Rank your top 5 marketing techniques for finding distressed sellers

Sage Jankowitz
Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes

There isn't a "golden rule" to finding hundreds of distressed sellers annually, but there are a handful of ways that will net you a few deals every year.

My question is, if you had to rank your top 5 MOST EFFICIENT methods, what would your list look like? Here's a list of some methods I've found through BP/networking/Ryan Webber/various readings, but please feel free to add more and rank your top 5 based on your local market.

NOTE: (I've put RW next to any marketing techniques I've found through Ryan Webber's posts on BP)

-bandit signs
-flyers
-yellow letter campaigns
-HUDs and REOs
-tons of bids on the MLS every week (RW)
-foreclosure auctions
-walk the streets
-offer referral fees to utility workers, pizza guys, and other locals in the community
-county clerks office for tax rolls/lis pendens/liens (RW)
-obituaries (RW)
-connect with divorce lawyers/bankruptcy lawyers
-postcards
-connect with burnt out landlords and out of state landlords
-bail bondsmen
-estate sales
-probate/trustees
-advertise in newspaper/local newsletters/billboards/bus stops

I have spent the last month building my buyers list as big as I can. I currently have 35 cash investors after my first month. I'm going to Israel this coming week and I look to implement 3-4 techniques in my farm area immediately upon my return...

0Reply
84 views

Most Popular Reply

Jason S.
Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
16y
Originally posted by Sage Jankowitz:


Flyers have been a waste of time and I'll never do those again.


I would be interested in what methods you utilized the flyers that did not work.. Thanks.

1Reply
See this reply in the discussion

29 Replies

Jump to latestLatest
  • Justin S.
    Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
    16y

    I define efficiency as how efficient am I using my time.

    1. Referrals
    2. Direct Mailings
    3. REO's preMLS
    4. REO's postMLS
    5. Auctions

    By the way, congrats on your 35 buyers. That is one of my goals this year to add 10 real buyers per month.

    0Reply
  • Sage Jankowitz
    OP
    Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes
    16y

    Thanks Justin and I appreciate your input.

    Kind of shocked you were the only one to respond to my post though!

    0Reply
  • Chris T.
    Wholesaler · Amarillo, TX · Member since 2008 · 369 posts · 75 votes
    16y

    Mailers
    Bandit Signs
    Webpage
    Car Magnets
    Craigslist

    Most of my deals have come from mailers,

    a couple from bandit signs.

    I've had some pretty good leads from my webpage but I haven't closed any. They tend to shop around their deal to all of the other local investors when they use the internet.

    Not many calls from car magnets. Mostly people in the parking lot who see me getting in or out of the car.

    I get calls from craigslist but they usually waste my time.

    I'm seriously considering wholesaling in a couple of different markets just by using mailers and a contact person.

    0Reply
  • James Ward
    Real Estate Investor · Ocala, FL · Member since 2008 · 742 posts · 463 votes
    16y

    Here is my list:

    1) Direct Mail
    2) Referral
    3) Website
    4) Ads on FREE website
    5) Drove by and saw the property run down, and looked it up and sent a direct mail piece.

    Please note: I am having to reevaluate our techniques. We have seen a drop in our direct mail pieces, so we are changing with the times. Also we are in the process of changing our website.

    0Reply
  • Matt Rosen
    Lender · Honolulu, HI · Member since 2008 · 166 posts · 46 votes
    16y

    My top list:

    1. Referrals from my network
    2. Drive bys
    3. Direct Mail
    4. Website/SEO
    5. Bandit Signs (Just started...well see:)

    I believe that energy should be spent building up your power team. Meet with them every once in while, and build and build. Especially the property "scouts"

    0Reply
  • Billy Nguyen
    Loss Mitigation Specialist · Irvine, CA · Member since 2009 · 25 posts · 0 votes
    16y

    Hi Sage,

    I am just getting into doing this myself, but here is what I have started doing and have gotten some good feedback from as well.

    Networking with my;

    CPAs
    Attorneys
    REO Realtors
    Loan Mod Negotiators
    FSBO listings

    Working on my list of investors as well.

    0Reply
  • Donte Mazyck
    Contractor · Charlotte, NC · Member since 2008 · 178 posts · 14 votes
    16y

    Sage have you come up with some strategies that have started to work for you?

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    16y
    Originally posted by Sage Jankowitz:
    There isn't a "golden rule" to finding hundreds of distressed sellers annually, but there are a handful of ways that will net you a few deals every year.

    My question is, if you had to rank your top 5 MOST EFFICIENT methods, what would your list look like? Here's a list of some methods I've found through BP/networking/Ryan Webber/various readings, but please feel free to add more and rank your top 5 based on your local market.

    NOTE: (I've put RW next to any marketing techniques I've found through Ryan Webber's posts on BP)

    -bandit signs
    -flyers
    -yellow letter campaigns
    -HUDs and REOs
    -tons of bids on the MLS every week (RW)
    -foreclosure auctions
    -walk the streets
    -offer referral fees to utility workers, pizza guys, and other locals in the community
    -county clerks office for tax rolls/lis pendens/liens (RW)
    -obituaries (RW)
    -connect with divorce lawyers/bankruptcy lawyers
    -postcards
    -connect with burnt out landlords and out of state landlords
    -bail bondsmen
    -estate sales
    -probate/trustees
    -advertise in newspaper/local newsletters/billboards/bus stops

    I have spent the last month building my buyers list as big as I can. I currently have 35 cash investors after my first month. I'm going to Israel this coming week and I look to implement 3-4 techniques in my farm area immediately upon my return...


    Hi Sage, great list! That should keep you busy. Chances are, you'll find a few methods that work for you and if so, you'll specialize. What really works for you should keep your inventory going. Good luck, Bill
    0Reply
  • Sage Jankowitz
    OP
    Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes
    16y

    I've been experimenting with a number of strategies. My direct marketing campaign targeting absentee owners is kicking off this week and I'll let you know how that goes.

    I have also found that my network has been my greatest source of leads thus far. I almost wholesaled 3 deals via another wholesaler who was having trouble finding a buyer. In each scenario the deal fell apart after I found a buyer.

    Flyers have been a waste of time and I'll never do those again.

    If my absentee owner list doesn't work well I'm going to shift to probates and see how those go over.

    I find walking/driving my farm areas to be a double edged sword. I do find some of my best leads this way and learn the neighborhood inside and out. On the other hand, it's a huge time drain and can be a real day killer.

    I've also cold called for rent landlords that may be burnt out. Most aren't interested because there just isn't enough equity there to make a deal happen. Still waiting to find to a landlord who really has to get out of their property, but no dice yet.

    County clerks office is an awesome resource for leads. I think it's a great place for a newbie wholesaler to start off. Totally free and tons of opportunities there if you're persistent.

    Now back to top 5 marketing techniques....

    0Reply
  • Carey Buck
    Real Estate Investor · Oxford, PA · Member since 2009 · 19 posts · 2 votes
    16y

    #1 Hands down is Bandit Signs
    #2 The MLS
    #3 We Buy Houses signage on my Car and other vehicles
    #4 My website
    #5 Direct Mail

    0Reply
  • Kristian Peter
    Investor · San Diego, CA · Member since 2008 · 160 posts · 35 votes
    16y

    The PennySaver works great for us - cheap, and the sellers that we target, read it! Also, ask Realtors if you can host an Open House in their Listing, and give the Realtor all of the buyer leads, and you take all of the distressed neighbor leads that walk in to find out how they can get out of their house, basically Short Sellers in the neighborhood... Those are 2 ideas that I didn't see... Good luck.

    Also, if you come across a great deal that you want to wholesale - we buy and close in 3 days, cash! We're happy to pay large referrals through escrow.

    0Reply
  • Michael Quarles
    Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    16y

    I have never put up a bandit sign however will buy a house a year because of one...

    Anyone who wants the secret just ask.

    Marketing is easy and complex. If you have a zero budget the there are marketing methods.. If you have money then there are those too..

    0Reply
  • Account Closed
    Real Estate Investor · Cincinnati, OH · Member since 2009 · 93 posts · 26 votes
    16y

    Sage,

    1. The MLS
    2. Referrals from "real estate people" - agents, mortgage brokers, lawyers; and from the sellers I've done business with
    3. Bandit signs
    4. Postcards to owners of properties with building code violations (the average response rate for this is a whopping 20.2%)
    5. Website combined with putting the site out in Craigslist & Backpage

    0Reply
  • Chris T.
    Wholesaler · Amarillo, TX · Member since 2008 · 369 posts · 75 votes
    16y

    Ok, I'll be the guy who asks.

    What's the secret?

    What are your money and no money methods?

    0Reply
  • NA Beauvais
    Specialist · Jacksonville, FL · Member since 2008 · 140 posts · 14 votes
    16y

    I'm asking Micheal. I have found direct mail to be the most effective for me.(If done correctly and consistently)
    I invest between $800 to a $1,000 a month on marketing.

    Also I tried to send you a colleague request but someone moved the request tab :D

    0Reply
  • Sage Jankowitz
    OP
    Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes
    16y

    Trace, I must have misread that. You obviously meant 2.02%!!! lol....But seriously, are you KIDDING ME!!! I'm about to send out a 500+ absentee owner list, but maybe I'm doing this all wrong...

    My question is, your response rate is 20%, but what is your deals closed rate on that?? And where are you finding this list? Courthouse? Listsource? Elsewhere? Please share!!

    0Reply
  • Account Closed
    Real Estate Investor · Cincinnati, OH · Member since 2009 · 93 posts · 26 votes
    16y

    Sage,

    Nope. You've read it right. 20.2%. I couldn't believe it at first. I stopped sending letters to people in foreclosure (my response rate was a pathetic 1% with pre-foreclosure leads because of competition in my market) when I discovered this niche - called building code violations. The reason why the response rate is phenomenal is because the sellers are desperate and I'm the only one doing this in my city.

    The list is difficult to get (which is one of the reasons my competition does not want to do this) but worth it. You can check with your city's building department and ask for the list of properties with building code violations.

    The other cool thing about code violations is that the property owners are usually landlords with multiple properties. For example, I bought 10 properties from one seller. Amazing.

    Conversion is pretty high too. As you can imagine, I am the only one getting in touch with them and providing them a solution. I get remarks from owners like "Thank God you sent me this postcard!" There was one instance a seller was angry telling me the house is not for sale but other than that, the owners of properties with building code violations are very easy to work with.

    I can send you the postcard that I use if you want. I want to see how well it works in your market too.

    1Reply
  • David Lee
    PA · Member since 2008 · 31 posts · 6 votes
    16y
    Originally posted by Trace Trajano:

    The list is difficult to get (which is one of the reasons my competition does not want to do this) but worth it. You can check with your city's building department and ask for the list of properties with building code violations.

    Conversion is pretty high too. As you can imagine, I am the only one getting in touch with them and providing them a solution. I get remarks from owners like "Thank God you sent me this postcard!" There was one instance a seller was angry telling me the house is not for sale but other than that, the owners of properties with building code violations are very easy to work with.

    I can send you the postcard that I use if you want. I want to see how well it works in your market too.


    Trace,
    I wanted to get the code violations list for my city, but it does not seem to exist online. I will try your method now, trying to contact building department. 20% response rate is crazy!!

    If you can, can you send me a sample postcard as well?

    0Reply
  • Jason S.
    Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
    16y
    Originally posted by Sage Jankowitz:


    Flyers have been a waste of time and I'll never do those again.


    I would be interested in what methods you utilized the flyers that did not work.. Thanks.

    1Reply
  • Sage Jankowitz
    OP
    Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes
    16y

    I posted them all over my target farm area and received not a single call. It's possible they were taken down, but I put a ton up. Even if I did receive a couple calls it wouldn't have been worth it. Too much time invested and very few leads. I'd rather spend my time researching leads at the courthouse or on direct mailings or a website or a billion other ways...

    0Reply
  • Larry Lee
    Real Estate Investor · high point, NC · Member since 2010 · 59 posts · 11 votes
    16y

    Trace,

    I'd like to test that postcard out in my area as well. When you get the time shoot me a copy and ill update the results as they come in. My emails below. Thanks

    0Reply
  • Michael Quarles
    Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    16y

    I wrote a book on this topic... Here are a method that you may not have heard of..

    36- Caller I.D. and white page advertising
    I know what you’re thinking right now. “Michael you’re crazy, caller ID isn’t an advertising method†To that I would have a differing opinion. Caller ID is an advertising method and it is free. Think back to the time someone called you and you didn’t know their telephone number so you searched your telephones’ display pad for the recent callers looking for their telephone and then you hit the call button and called them back, right?

    If I had called you then my name and number would be on your key pad. It would read “I Buy Houses and my telephone number. Every time you searched your telephone display pad you would see my telephone number. Folks it is all about touches, and if I can touch you two to eight times then I win. I have then branded my name and placed it into your memory bank for retrieval when you need it.

    To get your name to show up on caller ID you have to call the local telephone provider and ask them to list your number under information. It is as simple as that.

    This listing should also be input into the white page advertising. The two most popular bandit sign phrases are “We buy houses and I buy houses†I don’t care if you named your business Joe Nichols Investment Company make certain that if people look in the telephone book under “I Buy Houses†or “We Buy Houses†they see your telephone number.

    Like the famous tennis shoe company slogan says “Just do Itâ€. I know I buy a house a year because someone looks up “I Buy Houses†in the telephone book.

    By the way this is free!

    Happy House Hunting

    PS... People drive way too fast and don’t have the time to write down telephone numbers off bandit signs… So they go to the phone book or 411 and ask for the number… They will get your number… When they call they will tell you that they see your signs all over town… lol

    0Reply
  • Larry Lee
    Real Estate Investor · high point, NC · Member since 2010 · 59 posts · 11 votes
    16y

    I was just about to start a forum on this topic, glad I looked first. Anywa I've been reading about people placing bandit signs to find sellers but the best place I hear to put them is at the exit of walmart. Any truth to this from anyone thats tried it?

    Also I've noticed some pretty good deals from other local wholesalers in my area. If their selling a house with a $140,000 ARV for $60,000 is it possible for me to put that property under contract with the wholesaler and market it to my buyers for $65,000 an I sell to one of my buyers and we all just get paid at closing. Wont make as much but alot less work also. Anyone done this?

    Dont know if I saw bird dogs anywhere in this forum but I plan on printing out a couple hundred advertisements stating that I buy houses and I'm looking for homes not listed in the mls and whatever other criteria I may have and that I'll pay a $500 referrer fee for each lead that ends in a sale, including individuals that refer their own property. I'll pay someone $50 to go neighborhood to neighborhood placing them in mailboxes. Not really sure if thats legal or not but I'll check before I try it. at the bottom of the ad page will be a place that says referrer and the individual can place his name and number there and make copies and give them out to people they know who could use my help. When they call ill ask who referred them, they'll look at the bottom of the page and give me the persons name and number. If I buy ill be happy to pay the $500. If this works ok I'd do the same with postcards and just mail them to a larger area with the same instructions. Write your info, make copies. pass them out to people who I can help.

    There's a pretty busy auto repair shop in my area and I plan on using a similar advertisement. I'll just ask the owner If I can place a stack of them in the waiting area and say he'll get the referral fee if any of his clients sell me their property. Cant see why he'd say no and im sure I could do the same with other businesses in my area.

    Again I havent tried any of these, be nice to get some feedback from those who have tho.

    0Reply
  • Sage Jankowitz
    OP
    Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes
    16y

    And now back to the topic at hand...Rank your top 5 marketing techniques for finding distressed sellers!

    0Reply
  • Andrew R
    Real Estate Investor · CA · Member since 2009 · 138 posts · 19 votes
    16y

    Personally Here is my list of getting distressed sellers

    DirectMailing is 1st.
    - Reason why this fails in our industry is because its not done properly, I have the copy professionally written, and well designed & layed out by a graphic deisgner.

    Also I do not just postcards but as well as letters with handwritten envelopes. ( I dont know if I should do the letter in a handwritten font but thats another story)

    2d. Internet Marketing - With a well designed and SEO friendly website/Blog prospects can find me by doing their search on google as well as craigslist ads (not sure if those even work but worth a shot)

    3. Door knocking - Yes we are taking it back. In the office I'm working at we have 2 closers that could sell you on why a shortsale is your best option. So we are compiling a list of 90 day lates,freshly recorded NOD's along with a report of their home status and going from there.

    4. Refferals - Clients reffer other people to us along with other Real Estate professionals who know we get it done.

    5. <--- Good Question, I personally believe if you do the the 4 I mentioned above, very well thought out and executed you will have enough work to not even worry about the 5th Option.

    P.S you might need to hire more people as the 5th option :P

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free