Private Lender Lead Generation With Leadpipes

[box] Welcome to the fourth post in our “Featured Tool of the Month” series! Follow us as we break down our software, pixel by pixel. Today’s post focuses on Private Lenders.[/box]

Last week’s blog post covered the value of Bankruptcy, Tax Lien, Upside Down, and Low Equity leads.

When looking for motivated sellers, targeting these lead-types can create great investing opportunities. Mediocre deals become killer deals when you negotiate with motivated sellers under the right set of circumstances.

This week’s post focuses on one of the most valuable lead types in real estate investing…

 Private Lenders

Anyone who is in a position to lend money to a company or an individual is considered a Private Lender. Private Lenders are out there, and they’re eager to make a large return on their money, more than they would by letting it sit in a savings account.

Private lenders are valuable for young real estate investors, and are oftentimes the big push that gets their business up and running.

Why is raising Private Money so important?

Access to private money allows you to move quickly and negotiate great deals that you wouldn’t otherwise be able to do if you had to rely on traditional bank financing.

Access to private money gives you the flexibility and speed to get the best deals done more quickly. You gain the control that your business was lacking and you avoid paying unnecessary fees. Working with Private Lenders will eliminate the burden of a financial obstacle and allow you to focus on the next course of action once you’ve secured a piece of real estate.

It also gives you the flexibility to decide with your Private Lender what the return will be on the money that they invest with you. As you develop relationships with your Private Lenders, they will become more enthusiastic about lending you money with every deal, assuming that you pay them back in the terms and time frame that was agreed upon.

Unlike the stock market, CD’s, and typical savings accounts, a Private Lender’s investment is backed by real estate and can return a much higher rate on their money. Private Lenders can even use retirement accounts for lending private money.

You should provide Private Lenders with the following to protect their interests:

  1. Promissory Note – a contract that outlines the terms that you agree on.
  2. Deed of Trust – A deed secures the private lender’s investment to the property and will allow them to foreclose if payments are not made on the property.
  3. Hazard Insurance – This gives your lender an added layer of security by adding them as additional insured.

Private Lenders are out there and are more than willing to provide that financial cushion to assist with your investing.

Why do Private Lenders want to lend their money to you?

Private Lenders are interested in building their wealth and a real estate investor can typically offer a return on a Private Lender’s money that is larger than what they’re getting in CD’s, stocks, mutual funds, bonds, and savings accounts.

It’s also a more secure way to build wealth more quickly, whereas investing in the stock market, CD’s, or a savings account can be slow and can result in breaking even or even losing money – a lot of money.

If you want to download a list of potential Private Lenders in your area, make sure you should check out Realeflow’s Leadpipes Feature.

In seconds, you can target and download hundreds of Private Lenders and drop them into a marketing campaign with just a few clicks.

Try it for FREE today!

Be sure to let me know what you think by leaving a comment below!




Distressed Seller Lead Generation With Leadpipes

[box] Welcome to the third post in our “Featured Tool of the Month” series! Follow us as we break down our software, pixel by pixel. Today’s post focuses on Distressed Seller Lead Generation using Leadpipes.[/box]

Last week we covered the value of Absentee Owners, Free & Clear, and High Equity leads.

As we mentioned before, seller leads are vital for business growth. Some of the best deals are made from finding the right seller at the right time.

This week’s post focuses on the other 4 types of seller leads that we provide including Bankruptcy, Tax Lien, Upside Down and Low Equity leads.

These leads include homeowners in financially distressed situations who are highly motivated to sell their properties, oftentimes for  considerably lower than market value.

That’s not to say that every single distressed-seller lead will turn into a deal, however, the more leads you have, the better your chances are of finding good deals that will net you a nice profit.

Oh, and since we’re on the topic…

If you’re interested in downloading hundreds of leads without ever having to leave your couch, click here.

Bankruptcy Leads

Bankruptcy leads are in a distressed financial situation, generally making them very motivated sellers.

A lot of investors shy away from these leads because they aren’t familiar with the bankruptcy process and aren’t sure how they can benefit from working with these leads.

Less competition makes bankruptcy leads great investing opportunities for those willing to take just a little time to understand the bankruptcy process and lingo. Not only are bankruptcy sellers motivated, but often so are the mortgage holders giving investors plenty of room to negotiate great deals.

Tax Liens

These are great leads to target because they are early indicators of financial distress. I know countless investors who’ve built their entire business around marketing to delinquent tax liens alone!

If a homeowner cannot pay their local or county taxes, taxing authorities have the right to place a tax lien on their property. After a property has been issued a lien, a tax-lien certificate is produced which can be auctioned off.  Those who win the bid on a tax-lien certificate can then collect on the amount owed and have the right to foreclose on the property if the tax lien is not paid within a certain amount of time.

Real estate investors who deal in tax liens have been known to acquire properties for pennies on the dollar using this investing method.

Tax Liens are an extremely valuable lead because they will show up first, even before homeowners have filed for bankruptcy, and long before foreclosure.

Upside Down Leads

Anyone who owes more on their property than its actually worth is considered in an upside down situation. Upside Down leads are common after homeowners take on a second mortgage or additional loans that outweigh the current value of their home.

A majority of the time, property owners in this situation are left with no other option than to try to sell their property to an investor who attempts to negotiate a short sale with the lender.

A short sale is when a real estate investor negotiates with the bank to buy a property for less than what is owed on the existing mortgage.

Not sure why banks agree to this? It’s simple.

Banks are in the business of lending money, not owning property. They can only have so many non-performing assets (such as foreclosures) on their books at one time. A lender will typically make more money when they negotiate a short sale than they would if they foreclosed on a property, so it has become common practice for banks to negotiate these types of deals and cut their losses early on.

When I first started out in real estate investing, short sales were very new. Not many investors were doing them and even fewer banks knew how to handle them. Now short sales are so popular that banks have entire departments dedicated to just negotiating short sale deals. This department is typically called the Loss Mitigation Department.

Low Equity

In real estate, home equity is the difference between what a property is worth and how much is owed on it.

Homeowners with Low-Equity might be in a situation where they have just moved into a new property with a new mortgage. It may also be a situation where the homeowner has taken out home equity lines of credit to pay off other debt and is closing in on the amount of equity available in their property.

Low equity leads may be nearing financial distress and could soon become an upside down lead. Keep an eye on these as they may be willing to sell to get rid of the headache of owning the property. 

If you’re looking for motivated sellers, targeting these lead-types can create great investing opportunities. Dealing with motivated sellers creates the right set of circumstances where you can negotiate mediocre deals into killer deals.

Not every lead that comes your way is going to be a great deal, but having more leads to work with will always work towards your advantage.

Realeflow’s Leadpipes feature gives you the power to download hundreds of leads in seconds. Leadpipes also lets you pick and choose the leads that you want to market to.

Simply select the lead type that you’re targeting and filter your search by state, city, county, loan, tax information, and more.

Sound too good to be true? Go ahead and try it out for free.

I’d love to hear what you think. Leave me a comment below!

For next week’s post I’ll be covering the value of Private Lender leads. Be sure to check it out!

Seller Lead Generation With Leadpipes

[box] Welcome to the second post in our “Featured Tool of the Month” series! Follow us as we breakdown our software, pixel by pixel. Today’s post focuses on Seller Lead Generation using Leadpipes.[/box]

Last week’s post focused on the buyer leads that Leadpipes offers and why they’re so important to your business.

As we mentioned before, real estate investing becomes exponentially easier when you have a buyers list to draw from every time you have a property to sell.

This week’s post focuses on the importance of seller leads. In particular, we will be talking about Absentee Owners, Free & Clear, and High Equity Leads.

Maybe you’ve heard it before… “seller leads are vital for business growth…”

We agree, especially if you’re a newbie to real estate investing. Real estate investing is all a numbers game. Not every lead will turn into a deal, but every lead is valuable because the more leads you have, the better your chances are for finding your next deal. The more leads you have, the more opportunities you have to find the right motivated seller at the right time.

And because every seller is in a unique situation, having an abundance of these leads will only give you more options for negotiating offers that fit your plan.

Leadpipes provides 6 different kinds of seller leads. Populate hundreds of leads without ever having to leave your couch with a few clicks of our mouse.

You can even select specific leads from your lists and immediately drop them into customized Direct Mail Campaigns with a single click.

If you’re familiar with these leads already, great. If not, keep reading.

First, let’s talk about Absentee Owners.

Absentee Owners are people who own a property but don’t live in it. These leads are a goldmine because they most likely have very little emotional, and possibly financial, attachment to the property. Absentee owner deals often end up being a pretty easy purchase because they simply want, or need, to unload the property.

There are many reasons why a property owner may be looking to sell a piece of real estate they don’t occupy, some of the most common are due to:

  • Job Relocation
  • Divorce
  • Retirement
  • Death

The bottom line is, these owners are trying to avoid juggling two house payments at once. They are typically highly motivated to sell and willing to negotiate a price that makes everybody happy.

Let’s move on to Free & Clear leads.

Free & Clear leads are property owners who don’t owe anything on their real estate. They own their property “free and clear” of any mortgages.

Finding these leads is like striking gold! Sellers who own a property free and clear are typically in retirement situations, looking to relocate without having to be an out-of-state or absentee owner.

Free and clear leads offer no baggage and can be more flexible when negotiating a deal. There’s no mortgage that needs to be paid off from the sale, so anything they get is money in the bank.

Some investors tend to shy away from these types of sellers thinking that there’s not much negotiating room, but it’s actually just the opposite. You, as a real estate investor, have a lot of negotiating power with these leads since there are no existing mortgages to pay off.

Finally, let’s talk about High Equity leads.

High Equity sellers are people with small mortgages on their properties. The equity on a property is simply the difference between the value of the home and how much is owed towards the mortgage.

Let’s say my home is worth $400,000 and I owe $100,000…

My equity would be the difference, in this case: $300,000.

As a high equity seller reduces the amount that is owed on their home, the equity in their property increases.

This is a great lead for people who are looking to acquire properties via seller financing or lease option. Keep these leads in mind if you have buyers looking for this type of opportunity. They may be the perfect match.

No two seller leads are the same and, when given a large list, it can be time-consuming to cherry pick the leads that are most valuable to you.

Realeflow’s Leadpipes feature gives you the power to target a specific audience and populate a list of leads in seconds. It also gives you the option to cherry pick certain leads if you want to market only to certain leads.

We also give you options to filter leads based on owner, property, geography, loan, and tax information to make lead generation and marketing easier and more productive.

But don’t take our word for it, you can try it for free and see for yourself.

My next post will cover the remaining types of Seller leads available in Leadpipes. Stop back to check it out!

Please leave a comment below if there are lead types that you’re interested in hearing more about.