Are you a real estate investor looking to increase your deal flow? Finding a reliable source of motivated seller leads can be a daunting task for many. Check out some of our most successful ways to generated highly motivated seller leads. Increasing deal flow is the single most important factor in increasing your success in real estate investing, whether you are purchasing single family or multi family properties.
Drive For Dollars
“Driving For Dollars” is one of the more commonly used practices when sourcing your list of potentially motivated sellers.
The term comes from the practice of driving neighborhoods, recording addresses of properties that are noticeably distressed. That can mean anything from boarded up windows, tarps on the roof, or a yard that doesn’t look like it has been cut in 5 years.
The idea behind this is simple. If the outside of the home is visibly in poor condition, chances are the inside is just as bad or worse.
This method is great for acquiring a large number of properties that typically have a higher conversion rate than simply grabbing a bunch of random addresses.
The one downside of this method is it can be rather time consuming. Not only must you spend time driving neighborhoods, writing down addresses and fighting off the nasty stares from curious homeowners, you also will need to manually look up every address in the county assessor to find the owners name and mailing address.
Build A Website and Focus on SEO
Building a website for your home buying company is extremely valuable for a number of reasons. First, it gives you credibility as a buyer. It allows sellers to research you and gain trust by seeing that you are indeed a home buyer. Trust is big these days due to the increase in scams and shady business.
Second, a website allows you to attract motivated seller traffic to your website. Your Google “My Business” page as an option to create a free website if you do not want to develop your own. If someone is typing in “sell my house fast”, they are looking for answers or a way to sell their property. Clearly they are at least slightly interested in selling their home. This is where SEO comes into play.
SEO, or Search Engine Optimization, is a method used to optimize the information on your website to rank for specific keywords on search engines. For example: If someone searches “Sell My House For Cash in Omaha” on Google, the results appear as below. SEO allows you to rank near the top (If done well). This attracts highly target traffic to your website.
SEO is a long game. It takes time to build domain authority and to come off as credible to search engines. General rule of thumb: Make your traffic happy and you will do well. Some great SEO tips can be found here.
Facebook, Craigslist, For Sale By Owner
This method is not as productive as the ones mentioned above, however, there are deals to be found here. In fact, we recently purchased a house that we found on a Facebook Buy-Sell-Trade group and did quite well on it.
This step is pretty simple and straight forward. Check Facebook groups, marketplace, and make posts to groups mentioning that you are looking for a fixer upper in your market.
Check your local Craigslist marketplace daily for new properties for sale. Craigslist seems to be a fairly competitive, at least in our market, so checking frequently and contact sellers quickly will be a practice you need to make habit.
For Sale By Owner properties can also be lucrative, depending on the status of your market. Focus in on properties that have been listed FSBO for longer than the market average in your area. Whether it is lack of exposure, unrealistic expectations, or other factors at play, a property that sits for an extended period of time typically will lead to a more motivated owner. This is especially true if they were expecting a quick sale.
Check Your Local Public Records
Similar to Drive For Dollars, pulling public records will typically give you a larger amount of properties in a short period of time. This process can be slightly more complicated depending on your local market’s public record availability.
Similar to Driving For Dollars, you will need to manually pull mailing addresses and property addresses of these records.