When it comes to real estate investing, finding new leads is essential. Whether you are a first-time real estate investor or you have countless deals under your belt, you need to have access to a constant flow of properties that could potentially make bank.
Unfortunately, it is often more easily said than done. You will need to establish some consistent strategies to find the right investment property. Here are the top five ways real estate professionals get new leads.
Scout for distressed properties
Distressed properties present many opportunities for real estate investors. Although they can be a lot of work, they are also often priced below market value, which gives the buyer some leeway when it comes to putting it back on the market. Bank owned properties, buildings going to auction, or short sales are all exciting prospects for a real estate investor.
Finally, you can also try your hand at “driving for dollar” if you are targeting a specific area. Although it may take a bit of legwork to track down the owner, properties with deferred maintenance may be owned by a motivated seller. Besides, the competition will likely be smaller than for a property listed for sale.
Network with other real estate professionals
Insiders are one of the best ways for real estate investors to get access to new leads. For example, a real estate agent may know about a property that is about to go on the market. Other investors may have heard about a deal that may not be a good fit for their portfolio but would work well for you. A property manager may be aware of which properties are not performing well, or if the landlords are ready to let go. A handyman will be familiar with building suffering from deferred maintenance because the owners are short on cash. The tax assessor may tell you which properties have a tax lien against them. All these leads represent new opportunities for a real estate investor.
Make yourself known as a real estate investor
Deciding to let go of your hard-earned cash on something as fizzle as marketing is not an easy decision. However, to generate new leads, you will need to put the word out that you are looking for new investment opportunities.
Besides networking and word-of-mouth, your best bet is to put your advertising budget to good use – after all, it is a tax write-off. You can purchase billboards or put a sign on your car, pay for ads in the newspaper and on the radio, or even start a direct mail campaign. You never know who might see it.
Establish an online presence
In this day and age, there is no way around it. To make a name for yourself, you need to have a working website interested parties can access and can use to contact you. By purchasing ads on social media, like Facebook, Instagram, or LinkedIn, you can target potential sellers who may have Googled “how to get rid of my house fast.” More than an afterthought, an established presence on the Internet is an excellent way to get access to new real estate leads.
Use online tools
Technology is now catching up with the real estate investors’ need to know what is happening on the market in real-time, but also to anticipate which opportunities may present themselves tomorrow. For example, Mashvisor is a search engine that identifies the next real estate “hot spot” and allows investors to search for currently listed investment properties. HouseCanary provides in-depth data to help investors make informed decisions regarding potential acquisitions. These new websites make finding leads a lot easier for real estate professionals.
What’s your favorite way to generate new leads as a real estate investor?