[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
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.