I get asked all the time the question, “what is quickest and least expensive way to find motivated sellers”? That's a loaded question if I've ever heard one. In fact, I think it would probably take less time to explain the Theory of Relativity than to respond in short answer how to find truly motivated sellers and inexpensively. The reason is simply because those investors with creativity will find numerous techniques to get those motivated sellers calling YOU!
Here's a hot technique that I simply can not keep under wraps any longer. My next course will surely go into detail explaining this technique, but I'll summarize many of the key points right now. Let me put this in one short statement:
Finding Motivated Sellers Through “Process Servers”
Most of you may be scratching your head right now thinking, “what the heck is he talking about”? Stay with me here and when you culture and grow this technique, you'll have deal after deal brought to you on a silver platter.
When I use the phrase “Process Servers”, what I'm referring to are the individuals that serve legal documents for mainly two areas that I key into: foreclosures & evictions. It is always my advisement to apply your favorite buying technique once you get the deal, which is 2nd base, however you must round 1st, which is finding the deal or the latter will never transpire. That is why this technique that I will be going into further detail about can be used with great success whether you're an all-cash buyer or subject-to deal negotiator. Have in your arsenal all of the creative buying techniques and you will become truly lethal (and profitable!).
In EVERY county or geographic location in this country of ours there will be someone legally certified and bonded to disperse legal documents pertaining to foreclosures and evictions. Even if there is a log cabin in the middle of Wyoming wilderness that is in foreclosure, my bet is someone has posted on the door that they are in foreclosure—no pun intended for those of you in Wyoming. As a real estate investor those are the types of problems, excuse me, OPPORTUNITIES you are seeking.
The technique of networking with “Process Servers” to get your marketing message to the potential motivated seller that turns into a bona fide go get 'em deal is an art and not necessarily a science and that is where I want to start. Companies that serve these legal documents are not compelled in the least bit whatsoever to cooperate with you in finding truly great deals unless there is something of value in return. Just try me on this and call a few of them up or write them a letter asking if they will provide you with contact information for properties they serve legal papers for evictions and foreclosures. Did you get a few, “no thanks, but we don't divulge that information about our clients click!”.
Let me get to the meat of this right now with this technique: This Is All About Relationships! If you are expecting one of these companies to put you in contact with a landlord that has filed eviction on a property or the person that is receiving the first or last round of posted legal documents without anything of traded value then get real. Many of you right now may be thinking, “I can get that same information from my local foreclosure service and this is public knowledge the way I research any way”. Yes, that is true but this is a system that maximizes your time and usually gets you first in line and sometimes that early bird does in fact snatch the worm before anyone else can.
Here is what my contacts do. If there is a property in foreclosure, depending upon the company serving the documents, they will either provide me with contact information to initiate my direct mail campaign and/or even post my flyers on the door if need be. What's my up front cost of this? Absolutely ZERO! That is what makes this such a great technique since there's basically no up front costs involved (flyers printed maybe) and it reaches exactly the target market I'm seeking.
In order to start reaching my target market of potentially motivated sellers, my system is not just to ask these private individuals or companies if they will oblige me. I offer something traded of value whether it be a cut of the deal if it closes, referrals to other investors to use their service, cooperative advertising in my marketing approach, or a $500 finder's fee. It's just a matter of what you have of value to trade.
Let me give you an example of one item I traded of value to this company to get my name and number out to the target market they have access to. In my upcoming course I teach a system I refer to as The Ultimate Wholesale Communicator. My goal is when I tie up a great deal, that in 15 minutes I have mailed, faxed, and e-mailed my potential deal to my investors. For me that number is 200 and growing! I used that same marketing system to promote their services with tremendous results that we were able to track. Viola (Wa-Lah for those not French), and now my marketing message gets to the exact target market I'm seeking and I don't have to drive around posting up my flyers or mailing out them out. The motivated sellers now start calling me. Basically they start off this way when I answer the phone, “I heard from ABC Company that you can buy houses fast. Well, I've got this problem at 123 Main and here's what it is..”.
To get this technique established there is no way around it other than you simply must go to their office and speak very frankly in terms what you are trying to accomplish as a real estate investor. You need to have an operational plan together on what you expect them to do for you: post your flyers up on properties being foreclosed on, mail your flyer/contact material along with any other pertinent mail information they send out, put you in personal contact with the landlord filing eviction, etc. Lastly, you need to have a plan of action to make it worth the opportunity to become partners with you in turning problems into opportunities.
Once again, this technique is about establishing long-term relationships that will pay dividends for you month after month. Some of the “Process Servers” will not openly divulge client information and you would never want to ask someone to do something with any hint of illegality or compromising of ethics. If the marketing techniques you want to imply do not compromise these principles, then you should pursue them as an investor very diligently.
In a “nutshell” there it is. Establish relationships taking the time to talk and LISTEN to the other party to lay the groundwork for a long-term mutually beneficial relationship. Good hunting as luck as absolutely nothing to do with it!