Finding Motivated Sellers & Distressed Homes

Links: Investor Tools, US BuyersList

Another important topic that there is a multitude of information on is the process of “Marketing to Find Distressed Homeowners”. There are many techniques that are used to attract leads. I will focus on some of the more common methods used. These are methods used day in and day out to generate a steady flow of potential deals. Methods that seem to be most effective are

1. Direct mail Campaigns
2. Print and Online Ads
3. Websites

There are many, many ways to market for deals. That is the problem, so I will focus what I have learned about the three listed above.

Even focusing on these three, I cannot cover all of the detail or methods that are involved. Another case of information overload, so I will do my best to be concise and informative.

Direct mail Campaign
A mail campaign can be one of the best ways to market your real estate investing business. It's fairly easy and cost effective. Besides the cost of acquiring the names, you will only have to pay for copies, envelopes and stamps. It is important to determine who your target audience is. Are you focusing on individuals who are in foreclosure, filing divorce, probate, or non-owner occupied. You do not want to do blast mailings to specific areas or zip codes. This is inefficient and a waste of money. Whatever you decide, stay focused and be consistent.

Here are a few things to remember when starting a mail campaign:
· When starting a mailing campaign, consistency is the key to success. It will take several exposures (at least 3-5) before your prospects start feeling comfortable with the thought of doing business with you. You cannot send out one mailing and expect to get a response. You will need to send out at least five mailings, spaced seven to fourteen days apart.
· When sending a mailing, send both postcards and letters as part of your mailing sequence.
· When addressing envelopes, make sure that you always address them by hand. You will have a better chance of getting your mail piece opened. Those that have pre-printed labels do not get opened as frequently.
· Always start your mailing off with a headline stating the benefits to the customer. Make it clear what you can do for them. For example: "Relieve your house worries today." or "Sell your home for Fast Cash."

There are many books available on the subject. Use your local library as a free resource. You can also purchase online books such as Million Dollar Mailings from Amazon. There are a lot of books available that can be a good resource on the subject.

Direct mail campaigns are a great area of your business that can be outsourced to help you be more productive. If you have ever done a mailing before, it is very tedious. The process of collecting a list, preparing a marketing piece that you think is effective, printing, stuffing, addressing, and stamping the envelopes, bringing them to the post office and then praying that the marketing piece you found online from some guru will inspire people to call, can be grueling and non-productive. And in order to get results, you need to do this on a consistent basis. This can easily discourage you and has discouraged me. I have had many days in the past going through this process and use to recruit my wife to help stuff and address the envelopes, by hand!

One solution is to hire someone to do this for you. You can easily post a help wanted ad on Craigslist and pay someone an hourly rate to do this for you. You want to be able to manage this person to insure they are being productive. Make sure to interview a few people to find the right person. This will free up your time to focus on other parts of your business.

A second solution is to hire a company that will handle all of your marketing for you. Such companies will automate the entire mailing process for you and get your phone ringing. They can provide targeted lists, use proven marketing pieces developed by professionals, prepare and send out your mailing on a consistent basis. This completely automates your entire direct mail campaign. The one company I am investigating is Sales Team Live. I learned about this company recently from my local REIA meeting. It is a company used by many investors and was developed by an investor. So far, this seem to be the best option. I will keep you updated.

Print and Online Ads
Let’s look at placing ads both in newspapers and online. These are great ways to reach a larger audience and target your marketing to specific. Online offers a lot of free websites where you can post your ad to find motivated sellers. Two of the better websites are Craigslist and Postlets. Postlets is great because you create one ad and it will post that ad on numerous other sites, including Craigslist. That is great exposure for free. Also, search for classified websites from local newspapers. Some will post your ad for free or for a small fee. They may also be able to offer you a package deal for both newspaper print and online. Print ads may be a more expensive way of marketing, but if done correctly and consistently, you can get a lot of bang for your buck.

The main goal of any advertisement is to get the phone to ring. Bottom line is that you want to find motivated sellers. Make sure not to clutter up advertisements with too many details and graphics, when all you really need is a catchy headline and a few key details. Classified ads only need be a few sentences max, while a online ad should have a picture of a home and a few key phrases. Simplicity is the best way to go! If you can afford color, choose a bright red title that will grab the reader’s attention. The size of the ad may also have an effect on your ability to find motivated sellers. Bigger is usually better, but you will want to experiment with this as well.

Having a good understanding of the real estate market will help you plan your next move. Once you know if it’s a buyer or a sellers market, you can begin to advertise accordingly. When you place your advertisement is just as important. Generally speaking for newspapers, weekend editions have a higher readership. So if you can afford to advertise in the Saturday and Sunday paper, that is your best bet. You may also be able to find motivated sellers in the daily paper, so try out both to find out what works best for you and your city.

Just like a direct mail campaign, consistency is key. A one time advertisement isn’t likely to find many motivated sellers. The more advertisements that you place, the more likely it isthat you will get the response that you need. So place ads daily or weekly for the maximum exposure. Even if the reader isn’t looking to sell right now, they may be in the market to do so a week or a month from now. The more people that know that you are looking for properties, the more likely you are to find motivated sellers.

Website

Your website is an awesome tool that will create an air of legitimacy and credibility for you from the start. Make sure that your website looks professional and well-maintained.
Here are some things to remember when marketing your real estate investing business with a website:

-You can use your website whether you are buying or selling. If you are doing both, maintain two separate websites.
-Present information clearly. Your site should be easy to read and should not have too much information on one page. This can get confusing. Learn about creating a “Squeeze Page”.
-If you are selling, put pictures of your houses. The more information that you provide for people to look at independently, the more sales you will make.
-Make it easy for your prospects to contact you. If people are visiting your website, they are interested in the services you offer. Because people tend to be impulsive, you want to make sure they have a way to contact you immediately.

Go back and reference my last Blog about building a buyers list. The techniques you use to drive traffic to you buyers website are the same for attracting motivated sellers. The internet is very powerful and can really help your business.

Search the internet for other investors out there who are looking to wholesale deals. Join their buyers list. Websites such as http://www.usbuyerslist.com will contact you when there is a great deal available in the area you specified. The marketing medium you use and the message you accompany with it that hits the right target market turns sellers into motivated sellers. There simply is no generic marketing message and medium that is a "one-size-fits-all" approach in real estate. Experiment to see what works and make sure that you track your results.

Good Luck!