What are the best ways to hone in on the most attractive distressed property leads today? What wholesaling marketing tactics should be focused on, and what are the best types of motivated sellers to connect with today anyway?
Many media outlets and Realtors have been working hard to scare investors, especially wholesalers and new buyers by highlighting low housing inventory levels and REO pools, as well as fraud at real estate auctions. However, in reality these figures are staying pretty steady thanks to new foreclosures, back logged delinquent mortgages, and the fact that rising home prices is creating equity and allowing more sellers to finally put their homes on the market without having to worry about coming out of pocket at the closing table.
However, it is also clear that there may be more opportunities for better bargains for wholesalers that engage distressed sellers earlier on, or that are motivated for other reasons than being behind on their mortgage payments.
This may include probate properties, those behind on taxes, and the large pool of recent amateur buy and hold investors and rehabbers that rushed in based on what they saw on reality TV shows or pick up online in fragmented conversations via online blogs without investing in their real estate education.
One of the biggest traps these novice investors have been falling into today is throwing all of their cash into a single deal with the hopes of being able to refinance and re-capitalize. Only many haven’t been able to refinance due to tight credit markets. Many have then run out of cash for repairs or to juggle other holding costs. They need out, need out fast, are often in a panic, and have a ton of equity. This is exactly the type of prospect that wholesalers are looking for, and buying these properties can provide an invaluable service and win-win for both sides.
So how do you connect with these sellers with your wholesaling marketing?
True wholesaling experts and real estate veterans will still recommend maintaining a well-rounded marketing mix at all times for keeping deal flow and income consistent. Today this may include using Facebook, Google+, cold calling and Google AdWords.
To specifically hone in on the above group investors may find obtaining lists of those which recently purchased properties for cash and have recently been turned down for or have at least applied for mortgages and are maxed out on credit cards a smart way to identity them. Then consider a direct mail or email campaign to reach them.