You can never have enough pipelines to generate leads to make sure your lead funnel is full, especially in a tight market. Last week I shared with you a new spin on an old method that helps bring the cream to the top in absentee owner leads.
This week I am going to show you how I use houses that I already have to help find and generate new leads. After all, you have already put in the hard work, time, energy, and money to get these houses, so you might as well use them as free advertising to generate additional leads if you can.
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
Leveraging Deals That You Already Have
This is another rather simple method, but it works. Odds are you likely have a neighborhood or two that you really enjoy flipping houses in. Maybe it’s the great school districts that make buying and holding the property attractive—or maybe it’s the huge profit margins on the back end for a retail flip. Whatever the case these neighborhoods tend to be older and are filled with additional houses just begging for your help, but you have to let them know that you’re there.
To help announce my service to the neighborhood, I always make sure that for every house I get under contract, I put a sign in the yard—not a real estate agent sign, although I am an agent, but one for my company that buys houses. These are professional signs that I had designed, not just corrugated plastic with a black sharpie. Although you can go that route, I would recommend something a little more professional that promotes your brand and builds recognition within the area. It’s just a simple message with my company name, logo, website, and a brief message saying, “We buy houses, no repairs needed, cash.”
Works No Matter Your Exit Strategy
Even if my end goal is to flip the contract, I still put a sign in the yard advertising my company with our message: “We buy houses, as is, no repairs needed.” It’s even in a small paragraph in one of my addendums that I attach to every contract to make sure that I am permitted to do so, and I’ve never met a seller who had a problem with it.
Have Realistic Expectations
You won’t get a ton of calls like you would with bandit signs on the corner of Main Street (for the record, I do not condone the use of bandit signs), but the calls you do get tend to be of very high quality with a high likelihood of being converted into a deal. Let me explain.
There is one neighborhood that I absolutely love here in Arlington, Texas that is by the lake. These are older homes that were built in the 1960s through the 1970s. They have absolutely beautiful architecture, and seldom will you find a floor plan that’s the exactly the same from house to house. Not only that, but many of these homes are just a few minutes away from the lake. Everyone loves to flip houses here, and it’s highly desirable. Since this is one of my farm areas, I try to leverage everything I possibly can to get more deals in the area—even houses that I already have under contract.
Real Life Case Study
I currently have a contract in this area right now that’s set to close in two weeks. We are in escrow and going through a few title issues that need to be cleared up. Immediately after I had the contract executed, I put a sign in the yard like I mentioned earlier. Now, again, this is on a street in a cul-de-sac of the neighborhood, not off a busy road—so you are not going to field 50 calls in a week off this one sign. I put the sign up and… nothing happened. Nothing happened for over a week, just silence, no calls, nothing.
Then one day I received a call. An older couple who lived in the neighborhood had gone on one of their morning walks with their dogs and took note of my sign and wrote down my number. It turns out the house next door to them had been vacant for over three years. The elderly women who owned it had passed away, and the house was starting to deteriorate due to continued deferred maintenance (overgrown vegetation, said vegetation was starting to scrape off granules on the roof, etc.). They were sick of this eyesore in the neighborhood and wanted something done about it so they turned to me. They gave me a call and let me know a few details on the house, and since it was their neighbor’s at one point in time, they already had the contact information for some of the original home owner’s children who were now the executors of the estate.
I casually gave the number a call and briefly explained who I was and how their mother’s neighbor had given me their contact information. Long story short, it turns out that they were just now starting to get interested in selling. Fast forward a few weeks after meeting with them, and I had a new contract in hand.
The Domino Effect
Guess what I did once I had this new contract? I put another sign in the yard, same as last time. And now I’m playing the waiting game. I may never get a call off this sign, but you never know. Sometimes you get lucky, and this effect can domino several times (my record is three). It’s always worth it to try. Leverage your time, energy, and money and start advertising homes that you already have control over, and you never know where your next deal may come from.
What creative strategies do you use to make sure your deal funnel stays full?
Let me know with a comment!