All Forum Posts by: Guy S.

I'm a little biased, but we left DMM a long time ago. 1%-2% response becomes harder and cost per lead is on the rise consistently. The better alternative is PPC, but it requires big budgets for actual success.

In my opinion, Calling will be the better way to go about it and fit bootstrappers because of lower direct costs.

Start calling owners and you eventually end up in one of three results:

1. Negative - not interested / remove me from your list / don't call again - you get the idea. Say thank you politely and move on. DO NOT follow up for two reasons - first, the owner is not interested. Second, you need to cover a wide territory with minimum time so don't waste too much time on unmotivated sellers. A negative response in naturally the most common response and for the best - it saves you time.

2. Neutral - thinking about selling / not currently / call me in a few months - this is the most common type of lead to go in your pipeline. Although they are not always patient, try to get as much information as possible, and then ask for their permission to follow up. Be polite and leave them with a good memory, and you with a good feeling for your next call. Set a monthly (30 days) reminder in your CRM and work these leads. Although they are a bit of a hassle to follow up and require multiple touches they are your BEST SOURCE for consistent off-market deal flow. Because of familiarity, these calls are much more pleasant for both sides and a great source to network and get references. 

3. Positive - congratulations. Try to set an appointment ON THE SPOT. Later is doable, but harder.

In the overall, like with all marketing channels, calling is mostly a game of numbers - successful investors are the ones to cover up a lot of ground consistently and manage to follow up their leads until they are ready to sell 

 Jeff is absolutely right. Marketing via phone channels (cold calls, text) needs to be done with great care. There are many class-action lawyers that live on cases like these. 

In regards to cold calling specifically, you should always have your records scrubbed against the DNC lists on a daily basis.  

First thing you need when contacting distressed owners  (tax liens, pre-foreclosures) is the right mindset. That mindset should state that you are there to HELP them, and not take advantage. It means that you have to internalize that most of then want to KEEP the house, and not lose it or accept a lowball offer. If the owner tells you they are working on it, take a step back ask politely for their permission to follow up in a couple of weeks in case they can't pull it themselves. If you are convinced you are there to help those who want your help, everything becomes easier. 

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with regards to a script, there are no magic bullets. you could go with one of two strategies: 

1. Ignoring the tax lien altogether. It goes like this:

"Hello, my name is ________, I'm calling with regards to your property on Main St. I'm a local real estate investor looking to buy a property in your neighborhood, and wanted to know if you think about selling soon?"

The big advantage with this one is that if the owner is indeed in need of selling, he might bring up the tax lien himself. it's easier to the ear and less invasive. 

2. Present yourself as an expert with tax liens:

"Hello, my name is ________, local real estate investor that specializes in tax delinquencies. I noticed some difficulties with the property on Main St, I would be glad to help with the situation if necessary" 

Don't mention a "tax lien", "your property", "buy your house' etc. You make the first step, and leave them some room to feel comfortable and safe, to open up only if they choose to. If they choose to open up, go with your regular script. 

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It is a good idea though, to remind them that time is at the essence, as a lot of owners out of desperation choose to avoid the problem instead of taking care of it and lose their home. you could say something like:

"Ok Mr __________, it's also important to remember that time is a critical factor here, as the municipality already put a tax lien on the property, and one it starts the foreclosure process, it will be very hard to stop. This issue must be treated with great responsibility"

The most important thing to remember here is to give the homeowner the SPACE to open up, and trying to force it down their throat. 

@Javontay Tanks

Whitepages Premium is a decent skip tracing tool for its price

From my experience, the main pitfalls with PPC for investors are:

1. No knowledge - obviously you need to know how this thing works. This is not for bootstrapping because errors burn money and fast. A basic 7 hours online course is the minimum to get familiar with the terms and foundations
2. Insufficient budget / patience - You need a lot of air in your lungs. PPC is no different than DMM - you need to be consistent to succeed. Even the best funnel still needs to burn through a lot of dead clicks until it starts to convert. Most PPC agencies will only work with investors that put out a sufficient minimum marketing budget
3. Bad funnel - if you get the click you need your funnel to convert, otherwise it’s a waste of money all over again. If you target a specific type of owner (distressed) you better have a specific tool that addresses their specific needs and make them feel comfortable enough to reach out for you to help.

PPC for real estate leads is definitely a great tool, but demands persistence and budget