Find New Deals Without Spending A Dime
The best way to build your pipeline is to increase the number of leads you generate. If you have been in real estate for some time you have probably heard that investing is a numbers game. The more leads you generate the more chances you have of turning a lead into a deal. Real estate investment leads can come from a variety of sources. You don’t need to spend thousands on direct mail or other expensive sources to produce quality leads. In fact, some of the best leads you can get will cost nothing more than sweat equity. The key, like all marketing, is to stay consistent regardless of previous results. The more someone sees or hears from you the more likely they will want to work with you. Here are five ways to find deals without spending a dime.
- Post, Post, Post: There is no better way to get a bang for your lead generation buck than through social media. If you do not have a dedicated real estate investing page you should stop what you are doing and set one up immediately. Not only will this take you less than ten minutes, but it is free. It is not a reach to say you can reach more people through Instagram, Twitter and Facebook than any other type of marketing you will do. Even just one post in the morning will help develop a following, which will grow your business exponentially. By staying active, updated and fresh on social media you will develop important contacts which will directly help you find deals down the road. Don’t let a lack of response dissuade you from continuing to post every day. You never know when someone will see your post and refer you to someone who needs your services.
- Drive For Dollars: The real estate investing business has changed dramatically over the last fifteen years. The concepts and strategy are the same, but how we find leads is much different. In the past, if you wanted new business you would hop in your car and scour the local market. While this concept seems old school and antiquated, it can still be an effective source. By putting just a few hours a week into driving for dollars you can quickly increase your lead pool. There are two main types of properties to look for. The first are any properties with a FSBO sign on the front yard. These are homes that are being sold by the owner, without the aid of a real estate agent. Many of these sellers are frustrated by the lack of interest and would be open to a quick sale under the right circumstances. The second are abandoned, or dilapidated, properties. If a property is run-down there is a chance it is either a rental property where the owner completely lost interest or a homeowner who may be going through a short sale or foreclosure. You can find the owner through town hall and reach out to them either through mail, email or if bold enough a phone call
- Landlords: Owning a rental property is not as easy as it may seem. Issues with the tenants or the property can come out of left field and completely change everything. There are many landlords who are not making nearly as much cash flow as they anticipated. They would welcome the opportunity to walk away from the property, without taking a loss, but aren’t sure how. You can find rental listings on several real estate websites. As you did with vacant properties you can simply reach out to the owner and ask if they have ever thought about selling. A certain number will hang up on your without talking, but all it takes is one interested seller to make it worth it.
- Mortgage Brokers: It is a good idea to go to where the source is for new leads. A hidden lead generation source are local mortgage brokers. Every real estate investor should have at least one mortgage broker in their rolodex. Not only is it a good idea to stay updated on new lending programs, but you want someone who can quickly prequalify any potential buyers. They can reciprocate this by sending you any borrowers who do not qualify and may need to sell quickly. A good mortgage broker takes a dozen or more applications per week. Out of the roughly fifty every month there will be at least a handful that need the assistance of a quick sale.
- Divorce Attorneys: The final lead source you should be looking at are divorce attorneys. With a divorce it may be necessary to allocate the assets as quickly as possible. Many homeowners do not have the time, or desire, to put the home on the MLS and go through the selling process. They would much rather take a discounted, cash offer that can close in 14 days. Reach out to a handful of local divorce attorneys and let them know what you can do. They most likely have someone they call in a pinch, but it never hurts to be the backup. Constantly send emails or reach out by phone asking for a meeting. If they are impressed with what you have to say, and how you say it, you may gain a very valuable contact.
A lack of capital for lead generation should never be an excuse. These are just five of the many ways you can generate deals without spending money.