The very first step in the process of flipping a house is to attract sellers. Without sellers calling you, you will not be able to buy a house, renovate it, sell it and make a profit. So, in my personal oppinion, you must do at least 3 things to attract sellers. Here they are in order of importance:
- Direct mail
Dirtect mail : the most cost effective and predictable source of leads. 80% of our leads at the moment of writing this come from direct mail. A lot of people I meet say that direct mail does not work. It does not if you do it wrong. For direct mail to work you must have 3 things right: the list, the message and repetition.
First of all you need a list of people to market to – a targeted segment of people. What would be a good target to mail to? People who really need to sell their home? People behind on their mortgage payments? Someone who has recently been divorced? I think all of them are perfect candidates to receive a letter from someone offering to buy their house.
Second you must write to your list about their problem. They are not interested in how big your company is or how long you have been in business. All they care is how they can get rid of their problem. So write to the people who are behind on payment about their situation and how they can benefit by calling you.
Third thing you have to mail them multiple times. Sending one postcard to 1000 people will not do the trick. You must, I repeat, you must mail them at least 4 times. Would you like to convince 1000 people 25% of they way or 250 people 100% of the way? The choice is yours.
Referrals : do not be afraid to open your mouth and tell other people what you do. The longer you are in business the more people will know what you do and refer othes to you. Do not be afraid to ask the sellers to refer others who need to sell their house to you. This does not cost you a dime, but brings great results with time.
Signs : the best way to get a quick inflow of leads. Follow county and city ordinances -you do not want to pay fines for illegal signs. Signs work great for a very short time. Put out 20 “we buy houses” signs and you will get 20 to 100 calls depending on the weather and where your signs are. The only catch is that the leads are unpredictable: your sign may be on the north side of town and the lead will come in for a house on the south side, more then 1 hour away, or better in a different city or even state.
If you do these 3 things and do them right your phone will ring day and night with motivated sellers calling you with houses they are ready to get rid off.
So what are you doing now to attract sellers? Is it working? Are you ready to try something that does?