For real estate investors, leads are the name of the game. In order to make savvy investments, you need a constant influx of new opportunities. And if you consider that only one or two deals out of a hundred will ever come to fruition, you need a well-lubricated funnel that continues to provide lead after lead after lead – indefinitely.
The more sources of leads you have entering into your funnel, the more likely it is that you’ll find good opportunities. Here are some of the top lead sources to consider:
Personal Network
Start with your own personal network. If you’ve been in the real estate investing game for a while, most of your friends and family members likely already know what you do. However, if this is a new venture for you, be sure to keep people informed. You don’t have to send out any official announcement or anything. Just drop it casually into conversation when you see people. This increases the chances they’ll send leads your way if they hear of anything.
Real Estate Agents
It’s helpful to have a handful of real estate agents in your corner. They know the market better than most and can help you identify opportunities before they enter the MLS. They’re also great resources for valuating properties, running comps, and getting a feel for which areas are worth investing in.
Property Managers
In addition to real estate agents, you may find it helpful to have a property manager on speed dial. They typically know when investors are getting ready to unload properties and can help get you in touch with their clients who may be looking to sell. If nothing else, they have a wealth of information on specific real estate investments in your area.
Investment Groups
You’ve seen them advertised before, but what exactly are investment clubs?
“Real Estate Investment Clubs bring together real estate investors to network, and learn about industry trends,” insider Kathy Fettke explains. “You don’t have to be an experienced real estate investor to join a real estate investment club. You just have to be eager to learn. You can expect to meet plenty of seasoned investors who have been in your shoes, and are excited to show you the ropes.”
If you rub shoulders with the right people in an investment club, you may even gain access to leftover leads. There’s also the potential for pooling money together with other savvy investors so that you can go in on larger deals together.
Driving for Dollars
Driving for Dollars is a concept that’s become incredibly popular over the last decade. It involves getting in your car, driving around town, and looking for houses that appear to be distressed and/or uninhabited. (Both of which are indicators that someone may be willing to sell the property at a discounted rate.) Any house that fits your criteria goes into a spreadsheet, which is then researched via tax records.
Driving for dollars requires a lot of time – and following up with these leads can be challenging – but the results can be fruitful. Here’s a guide on how to do it well.
Off-Market Portals
While the MLS and websites like Zillow will help you find houses that are already for sale, some of the best real estate investments involve off-market properties. You can keep an eye on these properties by using off-market portals like Roofstock, HomePath, Auction.com, and the BiggerPockets Marketplace.
Expired Listing Services
When a property is listed on the MLS and it expires, this is a pretty good indicator that it was overpriced. It’s also likely that the seller is sick and tired of dealing with the property. This is where you come in. You offer a discounted purchase price and close the deal. There are a number of services that sell expired listings. Find one you’re comfortable with and use it for an extra flow of leads.
Social Media
Create a social media presence and let people know that you’re a real estate investor in the area. Share content, post listings, and interact with your followers. You never know when someone will see your name and give you a call.
Direct Mail
Even in the age of social media and digital advertising, direct mail still works. If you see a property that you’re interested in, consider sending a letter to the owner to let them know that you’d love to purchase their property. If you’ve already run your numbers, you might even give them a purchase price that you’re comfortable with.
Print Advertisements
You’ve probably seen those simple little signs around town that read, “We Buy Houses!” And while they might seem basic and ineffective, they really do work. Consider doing some print advertising to facilitate some offline lead traffic.
Are you familiar with the Pareto principle? It states that approximately 80 percent of results stem from 20 percent of the efforts. This phenomenon seems to be true regardless of the subject matter at hand. Whether it’s studying for a test, detailing a car, or generating real estate leads, 20 percent of your energy and effort will produce 80 percent of the results. As a real estate investor, your key to success is to find out which 20 percent is worth your time.
Another way of looking at the 80-20 rule is that you should be spending 20 percent of your time generating leads and 80 percent of your time converting them.
Either way, be mindful of how much energy you’re spending on lead generation and optimize in order to maximize efficiency and get better results.
At Green Residential, we take care of the time-consuming details and grunt work that prevent you from spending your time wisely. In other words, we deal with tenant screening, rent collection, repair coordination, property marketing, and all of the other administrative details so that you can focus on generating more profitable leads.
Sound good? Contact us today and we’ll be happy to walk you through the process of getting started.
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