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In this episode, I discuss several ways to obtain leads for your next real estate deals. Let’s call it like it is, the market is hot, and good deals are not going to knock on your door, you need to think outside the box to go find them. Before we begin, don’t forget to sign up for the MailBoxMoneyMastermind.com. This will be the LAST time I am hosting this live 12 week program so be sure you don’t miss out.
Let’s get started, shall we?
Active vs Passive Lead Generation:
I consider “active” lead generation to be actually getting in front of people, face to face to earn their business. Passive lead generation is more along the lines of the “spray and pray” method or marketing, that is, sending out a message hoping someone will respond.
Before I begin, there is nothing wrong with direct mail as a marketing strategy, however for it to be effective you must keep consistent with it. The “Rule of 7’s” states that for a lead to respond effectively, it usually takes at least seven “touches” or means of contact with them in order to stimulate a response. Any less than that often results in you being forgotten, thus the marketing dollars are wasted. To be successful with direct mail, be prepared to send at least 7-10 mailings to properly gauge the quality of your message and mail piece.
As I am sure you can see, this can get expensive for most folks. I am not saying that direct mail is bad, or does not work, but let’s be honest, it's expensive!
Bandit signs are my next form of “passive” marketing. Simply put, you stick a sign in the ground and wait for a response. Sometimes the response is a stolen sign, other times it’s a nastygram from your local code enforcement officer and sometimes even a fine included.
Active lead generation involves a more personal touch and is based on an in-person type relationship. This means actually stepping away from the computer, putting down the cell phone and having a conversation (imagine that).
Ask yourself this question; who knows what you are specifically looking for in a “deal”? We both know that “deals” will not come to your front door on a silver platter, thus we must educate to dominate our market.
These departments in your local government can be a wealth of information and a great lead source. I don’t suggest calling or emailing, instead, go in person (yes, in person). Shake hands with them and have a conversation on how you can help them solve the issues around town one by one. Be realistic with them and don’t overpromise what you can accomplish. The conversation cannot be all about you making money, it needs to also be about problem-solving and how you can help these people on a daily basis.
Tear down lists are also a great help to a savvy Realtor or investor, as the saying goes, one man’s trash is another man’s treasure. In most cases, the people on those lists may not even realize that there is any value in their properties. It is not uncommon for people to curl up into a ball and hide from problems that appear to be beyond what they can handle.
In many cities, counties, and towns across America, the local Health Department is charged with the responsibility of checking on shut-ins, the disabled and other situations that relate to poor health and unfortunate situations. These workers can be a treasure trove of lead generation. Like code enforcement officers, their job is to solve problems, often the sale of a property and the subsequent influx of cash to the homeowner can go along way towards solving those problems.