A quick guide on some of the best ways to generate leads in real estate as a new agent. As a new agent, you will quickly discover that you need quality leads or your business will quickly start to flop. There are a lot of lead generation companies out there but I want to show you what I believe are some of the best.
You’ve heard about lead generation for generating leads for businesses but does it work for real estate investors? Yes, it does. Real estate agents also use lead generation to get more agents from the same real estate. Real estate investors and homeowners can take advantage of the lead generation process. Real estate lead generation companies are operating to generate a steady stream of new leads for their clients. This process is a win-win situation for both clients and agents.
Did you know that over 90% of real estate investors are not making decisions based on data? Are you a real estate investor who wants to use more data as part of your decision-making process? If your answer is yes to either question, then listen up. Today we’re going to dive into some interesting statistics about the real estate industry, including some stats about the value of a lead. And we’re also going to review several types of companies that offer lead generation for real estate investors including online and offline lead generation ideas.
The Real Estate Agent Lead Generation. When you first get started as a real estate agent, one of the most daunting tasks is generating business opportunities. Because you can’t just go door to door or cold call people scattered out in a sea of houses and apartments, how do you find them? How do you begin generating leads in real estate as a new agent? Real estate lead generation has been around for some time. Using the power of the internet, you can find almost anyone if they have an email address. And the best part is it’s virtually free. Check out this guide on how to generate leads in real estate as a new agent!
THE BEST LEAD GENERATION METHODS FOR REAL ESTATE INVESTORS
There are a lot of different ways that you can try to find great investment property. Some are a little iffy, even unethical. Others may be more principled, but might only yield the occasional lead that converts to a sale. So, what I’m interested in specifically sharing is how you can ethically, and consistently, find discounted properties to renovate and sell for potentially good returns.
Here are the top seven real estate investing lead generation methods that I’ve used along with a few details for each about why they can work and, for some, the reasons why they often don’t.
1) BUY LEAD LISTS
The use of lead lists is a very common strategy to find distressed homeowners. Part of the reason they’re so popular is that they can be customized to filter for specific circumstances, like expired listings and foreclosure starts. But, they can also be expanded to include everything from abandoned properties to homes with unpaid taxes and other liens. There are a variety of reasons a homeowner may be motivated to sell and by purchasing one or more of these lists, you can have your pick of the litter.
Unfortunately, since lead lists are used so often, they’re probably not the best angle to take. The homeowners on these lists tend to get inundated with investor interest, which isn’t going to endear them to your sales pitch when you call. You’ll find this is especially true if the information is outdated—which it usually is—and they’re no longer selling the property or have already sold it. So, it might be in your best interest to go against the grain and find a more effective, and less popular, way to source real estate investing leads.
2) CHECK LEGAL NOTICES
A more accurate way to get a list of homeowners who are struggling to make their mortgage payments is to check online for legal notices. Many local government offices, as well as national agencies like the U.S. Department of Housing and Urban Development (HUD), are required to post these public notices when a home enters pre-foreclosure. So, the lists will include homeowners who’ve been served a Notice of Default or Lis Pendens, but they’ll also contain information on individuals and families who have simply fallen behind on their loans. If it sounds a little invasive, that’s because it is. Still, it’s not a bad way to find motivated sellers who don’t want to lose their home, or the equity they’ve put in it, to a lender.
But, a homeowner feeling intruded upon after getting contacted out-of-the-blue from a stranger about their mortgage isn’t the only problem you’ll run into. In fact, you’re likely to get frustrated yourself. Hunting down these legal notices in the first place can be a chore, and not every office lists them in the same place or with the same detail. Once you find the notices, you’ll have to check back regularly for updates on the foreclosure proceedings to make sure any given property is still available. Sometimes, homeowners get current on the loan or are granted an automatic stay to buy some time. So, when all is said and done, you could also end up feeling like you’ve wasted yours.
3) ATTEND REAL PROPERTY AUCTIONS
If you have cash in hand and are comfortable absorbing more risk, real property auctions sometimes yield great deals on distressed houses. Typically run by local city and county offices, most of the homes that end up at an auction are in the last stage of foreclosure. So, they’re frequently fixers that are priced cheaply in an effort to help lenders recoup some costs. But, private organizations, like the Cook County Judicial Sales Corporation in Chicago, hold real property auctions, too. Just checking ads in your town’s newspaper or running a simple online search should point you in the right direction for bidding on and, hopefully, buying a foreclosure auction home.
The risks associated with foreclosure auctions are real, however, and can make investing in property an expensive endeavor. Competition is strong from other investors and even from the lenders themselves. So, homes can get bid up to a price that doesn’t make sense to pay if your goal is to see potentially good returns after doing repairs. Also, full payment in cash is usually due within a few days, or hours, of winning the bid, giving you very little time to perform an inspection—if you’re even allowed to. That makes ending up with a money pit that eats into your ROI more likely to happen than scoring a real deal.
4) POUND THE PAVEMENT
It’s a little old school, to be sure, but pounding the proverbial pavement in the areas where you’d like to buy and sell investment property is still pretty common. By staying on the lookout for older, smaller, or rundown houses in otherwise nice or up-and-coming neighborhoods, you might happen upon a property whose owner is in financial distress. For the right price, that property could become yours.
The biggest issue with this method, however, is the amount of pounding you’ll have to do. On the off chance you find the ideal house, you’ll still have to locate the owner if the property is vacant, abandoned, or tenant-occupied. Even then, you’ll have to convince them to sell. This may prove more difficult than you think if the house has ended up on a lead list. You’ll also have to repeat these steps many times over if you want to make buying and renovating properties to resell a worthwhile living. I don’t know about you, but that sounds pretty exhausting to me.
5) UTILIZE SOCIAL MEDIA
Once considered an uncommon marketing idea for real estate investing, using social media to find leads has become more routine. Platforms like Facebook, Instagram, and Twitter provide you an opportunity to reach a high volume of people almost on demand. You can buy strategically-placed ads to create inbound sales, but posting informative content can generate followers. The combination of both lets people know you exist and, with enough time and the right hashtags, connecting with distressed homeowners is possible.
Utilizing social media won’t be enough to help you quickly build a business around investing in homes, though. It takes a lot of time and energy to create a strong presence, particularly on social media platforms which tend to be flooded with users. Even then, only a handful of distressed homeowners take to social media to discuss their inability to care for their houses. It’s an embarrassing topic that most people don’t want to make public. So, though you may occasionally connect with a homeowner willing to sell you their house, the effort you spent making contact may be more than it’s worth.
Unique Real Estate Lead Generation Tips
- Bandit signs: Although highly debated, bandit signs continue to serve as excellent tool for real estate investors. These marketing signs, which are similar in nature to a billboard, are useful in generating a wide array of exposure, as well as potential customers.
- Start a partnership: A real estate business partner can provide an exceptional opportunity to generate real estate leads. In addition to providing a wider pool of knowledge, skills and contacts, a real estate partnership can also provide moral support, including tax benefits and access to more working capital.
- Real estate auctions: Take control of distressed sellers by generating leads through a real estate auction. Along with networking benefits, real estate auctions provide the ultimate source for connecting buyers and sellers.
- Make “self-help” videos: Buyers are always looking for new ways to improve their home. On the other hand, sellers are looking for lucrative strategies to better sell their home. Making a “self-help” video is a great way to not only assist in answering a question, but doing so in a way that will ultimately benefits you.
- Partner with local handymen: In terms of real estate lead generation ideas, partnering with local handymen can provide an invaluable resource to investors. These individuals are generally the first to respond to home sellers, helping to make repairs and upgrades.
- Advertise in the newspaper: A significant portion of traffic can be capture from a newspaper, whether local, regional or national. Lead generation through newspaper advertisement has the ability to induce a wildfire of attention.
- Throw a party: What better way to garner attention than by throwing a lavish party? This strategy not only strives to network with like-minded individuals, but convince future buyers and sellers to work with you.
- Speak at an event: Looking to build credibility? Speaking at a local real estate or investor event has the ability to not only propel one’s real estate reputation, but their online reputation as well.
- Advertise in local newsletters: One of the more efficient ways to produce local interest is through the local newsletter. While not as glossy as, let’s say The New York Times, this real estate lead generation strategy continues to turn out positive results.
- Form a partnership with an attorney: As I’m sure everyone is aware, an attorney has insight into special affairs. As a real estate investor, starting a business partnership with a local attorney has the ability to leverage that insight into finding potential deals that could be coming up.
- Sponsor a local program: No marketing tactic is too small in the quest for leads. As a new real estate investor, be prepared to utilize a collection of marketing strategies.
- Advertise on the radio: Think about it: a radio advertisement has the ability to sway the mindset of potential homebuyers and sellers on a daily basis. Why not use it?
- Follow up on old leads: Hey — at one point these people were interested in your services. Shoot them an email and give it a whirl.
What to do after new leads come in from a lead source
It may sound simple, but you need to follow up with any new leads that come in from your lead source. Forming a connection is, after all, the first step in turning a potential client into an active homebuyer. Once you’ve followed up with them via phone or email, you will have a better idea of whether they’re quality leads that are worth putting forth more effort to build a relationship.
After following up, track the interaction in some type of lead management system. Make note of when you made contact with the lead, how the conversation went, and what the next step is in your relationship. This process is key, regardless of whether the lead is interested in learning more about your services. Over time, this data will help you refine your lead generation strategy.
Conclusion
If you are looking for best lead generation companies, then the results of the action you take today will determine the levels of success you will achieve tomorrow. This is why it is important to know what real estate lead generation ideas are optimal to your intended purpose. There are lots of concepts and ideas being introduced in the real estate niche these days but most of them are geared only towards generating targeted traffic that could eventually convert into sales.
The real estate industry has been around for ages. There are various agents who work in this area, but the main thing that they all have in common is lead generation – it is the key to success. If the agents want to continue working they need leads into their business and of course consumers should also be able to buy because there are many interested buyers.