Most Effective Deal Sourcing Strategies?

Question

There are a wide variety of ways of finding distressed sellers. I have tried a bit of DMM, yard signs, social media etc. I used to search the MLS for deals but the competition just bids the prices up far too high nowadays. What methods have you found to be the most effective for finding distressed sellers?

(I am in the Phoenix market but would love to hear about anywhere)

Rickey Miller Jr · Answer

Personally we find distressed sellers from people that have had Bankruptcy, Divorce, Code Enforcement, Expired Listings, Eviction, Fire Damage, Pre-Foreclosure, Liens, Probate, Tax Delinquent. Honestly a whole bunch and then it's always contacted proactively with Cold Calling and Text Blasting.

Ellis San Jose · Answer

Targeting very specific niches, title issues, missing owners etc.

Direct mail, phone call, door knock

Rickey Miller Jr · Answer

Hi @Alexander Kempf, so currently we have purchased lists in the pasts and continually squeezing all the information out of them as much as possible. We are still getting leads from about 20,000 records downloaded back from May. Just collecting all the juice out of the lemon as much as possible. Currently on organic reach but very present on search engines. Will be focusing on organic in December. But for the time being only text blasting and cold calling. I'm more of a proactive investor, will even go door knock on someone's home if I have too.

Cole Simpson · Answer

I think the more competitive your market, the more proactive you need to be to get results.  If you are in a market with not a ton of competition, direct mail is awesome but if there are a lot of wholesalers than cold calling and texting seem more necessary.

Ellis San Jose · Answer

A combination of purchase & organic sources. I don't do any social media yet, still learning about best ways to integrate it into my strategy.

Justin Reed · Answer

Direct mail.

Pull a list directly from an assessor county source, send a two page blind offer that includes a purchase agreement. Get back signed offers and call accepting my offer. Do due diligence and decide what I actually want to buy.

Rinse. Repeat.

Rickey Miller Jr · Answer

@John Mucilli Knowing my KPI's personally it just doesn't make sense to just cast my line out and wait for a call (Direct Mail). Direct mail has a one to two percent response rate and personally would just rather be proactive. But to answer your question that is correct I personally believe Cold Calling is more effective since you're being proactive.

Zander Kempf · Answer

My concern (untested thus far) with DM is competition in competitive markets. If everyone is buying the same lists and sending similar mailers, your response rate for mailers is going to be much lower.

John Mucilli · Answer

@Rickey Miller Jr Well, I'm actually in a position where I can't do a majority of the lead generation myself and am working on outsourcing. It's just what is going to be the best use of my marketing money. I'm thinking money spent on cold calling is much more valuable than money spent on DM. Would you agree?

Rickey Miller Jr · Answer

@John Mucilli Yes, personally just take action until you get your first deal. Have a low amount of expenses that come with the business/endeavors before you start spending to much on marketing. Just purchase a list, drive for dollars whatever is best for you. Then pick up a phone and smile and dial. In this business (Acquisitions/Wholesaling) you'll either have money or time. If you have both then great, now just learn to leverage one or the other.

Most Effective Deal Sourcing Strategies?

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