If you have tried to market to pre-foreclosure leads, then you know they are over-shopped. Everyone tries to convince these people to sell their house. In my state, foreclosure happens only 3 weeks after pre-foreclosure. This means you barely have enough time to get the deals done.
As a result, you could end up wasting so much time chasing leads that will never get you deals. In this article, we look at some effective leads that have little competition.
While we cannot exhaust all sources of leads, I will only concentrate on the most effective in this article:
1) People in legal trouble
People going through legal troubles who own real estate are motivated sellers. People going though divorce, bankruptcy, people who have liens, are being sued, etc are highly motivated to sell their houses.
2) Probates
Once people inherit properties, they are usually looking to get rid of them. This happens to be one of the most lucrative sources of good deals. These properties usually need repairs and are not easy to sell.
Secondly, a lot of them are paid off meaning you have room for negotiation. If they get stuck with mortgage payments they cannot afford, they become very motivated.
Most beneficiaries just want their money and move on, so you come in as a simple solution they really need.
This is a niche where you can find very profitable deals.
3) Absentee owners
Most absentee owners are landlords. Lots of landlords get burned, meaning you have motivated sellers who are not attached to these properties. When looking for absentee owners, target middle income neighborhoods. In my market, I target $100,000 to $150,000 range.
I always make sure they have owned those properties at least 10 years, meaning they have some equity. I always make sure they are at least 3 bedrooms, 2 bathrooms, single family houses.
4) Expired listings
Today there are so many houses on sale that you need to filter these aggressively. We already know these people are trying to sell their houses unsuccessfully. Some of them have been trying to sell for months, sometimes more than one year. You come as an excellent solution provider for them. Like the absentee owners, I always target specific price ranges and neighborhoods.
I also make sure they have owned the properties for at least 10 years. I always make sure I find out when the mortgage was recorded. If they have recently refinanced, the lead is no good. You must work with properties with equity.
Properties with second mortgages are good as short sale candidates. I always avoid properties with negative equity. The market is full of better properties..
