The commercial real estate market is just like any other marketplace when you make your money buying and selling. To make that money, you need to know who is looking for properties and who is looking to unload them. Those leads do not just appear from thin air. To get them, you need to invest in one form of lead generation or another. The most successful investors have several avenues for leads of different kinds, allowing them to tap into whichever markets are most active.
What Is Lead Generation In Real Estate?
Lead generation is the process of building up those profiles of motivated buyers and sellers. It needs to be done with a focal point in mind, and the more specific your research goal, the more relevant your lead results. For example, if you are looking for deals in a specific neighborhood and you want to find motivated sellers who will accept a little below market, you need to know a lot about any potential seller:
- Ballpark income
- Late or uneven debt burdens
- Recent life changing events
- Credit score
- Contact information
When people need cash, it is easier for them to think about unloading an asset, even a home they live in. Downsizing living space and moving to an area with cheaper property options can allow the right home owners to get rid of troublesome debts while bringing down the household’s monthly overhead. For buyers, you need to know a different set of facts:
- Is the buyer shopping wholesale or retail?
- What is the buyer’s goal for the property and how can you appeal to it?
- How close to the market cap is the buyer likely to bid?
- Contact information
- Other property holdings, if any
- Credit information
Building up the right buyer portfolio means appealing to the people who are most likely to offer you the price you are looking for. Of course, it’s easy to say you need to do it. Drawing up the working plans to get your wholesale leads? That is a little tougher.
Best Strategies To Get Real Estate Leads
If you are looking for a software service that delivers results, consider consulting the custom leads list real estate marketing apps put out to demonstrate their abilities. One or two successful deals from a sample list should be all it takes for you to find something worth investing in, and the premium leads generated for your specific queries are going to be even richer and more specific. In addition to software, there are a few tried and true methods for building your own leads from the ground up:
- Network with other investors to learn about the players in the local market and the types of properties they buy
- Flyer neighborhoods with a lot of potential sellers to find the motivated members of the community by letting them find you
- Use slip tracing tactics like checking for properties with tax liens or mortgages in default to locate sellers who need out now
Slip tracing methods are frequently the ones used by top lead generation software packages. If you are considering services like Propstream vs. Batch Leads, it helps to start by identifying the points of difference in their data sets. That way, you can make an informed choice about where to put your marketing money.