Presentation on theme: "REI ETUTOR Finding Motivated Sellers. What is a Motivated Seller? REI eTutor What is a motivated seller? There are several different definitions available."— Presentation transcript:
REI ETUTOR Finding Motivated Sellers
What is a Motivated Seller? REI eTutor What is a motivated seller? There are several different definitions available online but simply put a motivated seller is just that, a motivated seller. The question is WHY are they motivated? They just want out of the property Behind on payments Inconvenient Repairs Divorce Death Immediate need to downsize or upsize
Finding Motivated Sellers REI eTutor Is it difficult to find a motivated seller? It is not difficult if you put in the effort Hundreds of motivated sellers are not going to be calling off of a single Craigslist ad. The secret is to do a little of everything and track your response rate. What works today may not work tomorrow.
Different Methods to Find Motivated Sellers REI eTutor Public Records is the #1 Free Resource for Investors of any level Bankruptcy filings Code enforcement violations Delinquent Taxes Non owner occupied properties Pre-foreclosures Probate Section 8 Landlords
Public Records REI eTutor Are these records available online or down at city hall? Call your local city/county to find out. Many cities have this information available online. Can you demonstrate how to access this information? Every city/county has their own website. Tip: Spend a couple of hours on the site trying to navigate the different search features available. The harder it is to obtain the information the better chance you have as an investor. Why? Most investors are lazy!
Realtors/MLS REI eTutor Do not underestimate the value of a good realtor. Why? Realtors can provide you with Expired listings MLS keyword searches Handyman special Foreclosure Short sale Motivated seller Leads Sample contracts Plus good realtors have an established network of attorneys, title companies, potential buyers, etc.
Online Resources REI eTutor Craigslist Backpage Local online classifieds For Sale By Owner Websites For Rent By Owner Websites Real estate message boards
Craigslist REI eTutor Benefits of Craigslist Incredible Free Resource Ability to Post Ads and Reply to Ads Nationwide Access Endless search possibilities Disadvantages of Craigslist Every investor is also using Craigslist Limited to a text headline Over posting Flagged Ads
Craigslist REI eTutor Replying to Ads For Sale by Owner every single ad showing interest in purchasing the property Check out our sample letters as a guide For Rent by Owner every single ad asking if they would have an interest in selling the property Check out our sample letters as a guide
Craigslist REI eTutor Replying to Ads Why every single ad? Even if the property does not fit your search criteria, it could still result in a good deal. We have found a number of sellers/landlords who had properties in addition to the one being listed. What are we looking for? Motivated sellers or burnt out landlords Should I disclose that I am an investor? Personal preference – our experience shows you get a better response by NOT mentioning you are an investor but this usually does not lead to more deals.
Keyword Searches REI eTutor Can perform keyword searches in all of your online resources Motivated Must Sell Serious Serious Offers No Agent Needs Repairs Handyman
T.V. & Radio Advertising REI eTutor T.V. Advertising Have a 30 second spot advertising “We Buy Houses” Host a Real Estate Q & A on a Public Access Channel Radio Advertising Have a 30 second spot advertising “We Buy Houses” Be a “special guest” for a talk radio show
T.V. & Radio Advertising REI eTutor Benefits of T.V. and Radio Advertising Can select channels/stations geared towards your target market Reach a very large audience Helps to create credibility Disadvantages High cost Development time
PMCs/Title Companies/Accountants/CPA Firms REI eTutor Property Management Companies Focus on companies dealing with single family and small multi-family properties PICK UP THE PHONE Ask if they have any clients looking to sell their home Title Companies/Accountants/CPA Firms PICK UP THE PHONE May have clients who are burned out investors May have clients who need the tax benefits of selling a home May have clients interested in buying *Add to Buyer’s List*
Social Media REI eTutor Three Most Important Social Media Sites Facebook LinkedIn YouTube Why? Facebook is the most popular social media site. LinkedIn is a great resource for networking with other investors and realtors. YouTube allows you to post free videos to share with the world.
Facebook REI eTutor Take advantage of social media Create a page dedicated to your real estate investment company. Highlight properties you are selling or how your deals help people Provide useful information that sellers might be interested in. Marketing tips Average marketing time Information about the short-sale process Build a relationship based on information rather than marketing.
LinkedIn REI eTutor LinkedIn can help you find buyers and SELLERS People in all walks of life sell properties The average person would trust someone they have networked with rather than a complete stranger. Exception being in cases of pre-foreclosure, short sale, etc. Your connection today can help you tomorrow.
LinkedIn REI eTutor LinkedIn Tips Add a professional profile photo No pets, kids, group shots, etc. Do Not Over exaggerate Keep employment history accurate If only a part-time investor don’t act like you are full-time Take advantage of key words Your profile should contain words like “real estate investor”, “wholesaler”, etc. Network with people in all types of industries. Sellers are from all walks of life
YouTube REI eTutor Commercials, Property Highlights, and More YouTube is completely free. Can create commercials to share with people through social media and . Showcase properties you have purchased and are currently for sale or have sold. Private training videos for Bird Dogs Goal with Facebook, LinkedIn, and YouTube is to build a reputation as at trustworthy individual that provides solutions to sellers.
Direct Mailing REI eTutor The two most popular forms of direct mailing are: Yellow Letters Postcards Use direct mailing for Pre-Foreclosures Probate Non-owner occupied Bankruptcies Divorce Tax Issues
Direct Mailing REI eTutor Yellow Letters A yellow letter is a handwritten letter of interest mailed to a property owner. The idea behind a yellow letter is that it is more personal that a generic computer printed letter of interest. Most companies offer a yellow letter that is computer printed but appears to be handwritten. What is the cost? The average price for a yellow letter is $1 to $2 per letter. This price usually includes the lead, letter, envelope, and stamp Price is usually dependent on the size of the order and the type of stamp (standard or first class)
Direct Mailing REI eTutor Do They Work? Response rate averages around 10% to 15%. We have seen mailings with as high as a 30% response rate. Yellow Letter Tips If possible, include a physical return address on your envelope rather than a P.O. Box. Sign the letter with your full name. Customize one of our sample letters or a supplier’s sample letter so it does not seem generic. Remember – You are probably not the first yellow letter they received and will probably not be the last. Creativity Counts!
Direct Mailing REI eTutor Postcards Many investors use when targeting a larger market (neighborhood, community) rather than a specific segment (pre-foreclosure, probate) Response rate 2% to 5% Benefits are lower cost Postcard Tips Have your postcard standout Bright Colors Eye Catching Graphics
Drive the Neighborhood REI eTutor Vacant properties Damaged/Distressed Properties Blue tarps Overgrown yards Boarded up windows Appear to be rental properties No apparent pride of ownership Don’t believe what other “gurus” may say. There are some things you just can’t tell from looking at a computer screen.
Door to Door REI eTutor Aggressive Approach Door Knocking Knock on each door explaining what you do, offering to buy their house or pay a finders fee for any houses you buy from one of their referrals. Passive Approach Door Hangers Blanket neighborhoods you would like to buy in. One side your ad, one side bird dog
Business Cards REI eTutor Never underestimate the power of a business card Pass out to friends and family Distribute to local realtors Pin up to bulletin boards at your local gym, takeout spot, college, etc. Generic Cards are boring. Professionally liven up your card with a unique design. Your local printing shop can design a custom card for a small fee. Hire a freelancer at sites like Fiverr.com to design a custom card design.
Bird Dogs REI eTutor A bird dog is an individual who provides potential real estate investment leads to you for a finder’s fee. How to find bird dogs Craigslist Word of Mouth Bandit Signs Tip: Provide a respectable finder’s fee so they don’t go elsewhere with the next lead.
Car Repos/Magnetic Signs/Car Wraps REI eTutor Car Repos Car repossession is a sign of money problems Call all towing/repo companies offering a finder’s fee for referrals Magnetic Signs/Car Wraps We Buy Houses Great advertising when driving neighborhoods. Idea with magnetic signs/car wraps is to get your name out there.
Conclusion REI eTutor REMEMBER Every Offer Does Not Result In A Deal But Every Deal Is The Result Of An Offer