Leads are what every real estate investing business needs to be successful. That’s why within your DealAutomator account we deposit leads from the top data providers. The lists of leads that we provide are a great way for investors to target specific sellers, buyers, and other investors.
With various different filters to choose from, you can now refine your search to a broad or narrow scope with the ability to export your list into your Contacts and Properties as well as start a direct mail campaign through DealAutomator.
Below is the list of different Leads we provide with a quick explanation:
Standard Leadpipes:
1. Absentee Owners- Property owners who do not live in the property.
How is this identified? The tax mailing address of the property owner is different than the subject property address.
Why should I market to these leads? Absentee Owners or Landlords are great potential seller leads as they often do not have the same type of emotional attachment to a home as owners who live in the property that they own. Your marketing efforts could serve as a ‘trigger’ for them to cash out and move on from the property.
2. Free and Clear- An equity based lead, these properties are owned without any mortgage and are thus ‘Free & Clear’ of any debt.
How is this identified? There is no open lien or mortgage associated with the property.
Why should I market to these leads? These property owners do not have to concern themselves with ensuring that they receive full market value for their home to pay off their mortgage. An opportunity for an easy, quick sale without having to worry about bringing their home to ‘retail’ condition may be appealing to these owners.
3. High Equity- An equity based lead, these properties are owned with a mortgage on the property and the loan-to-value is less than 60%.
How is this identified? We find all the open liens and mortgages associated with a property and add up the total debt at the time of purchase. This value (the loan) is then compared with the AVM (Automated Valuation Model) price of the home. If the loan-to-value is less than 60%, that means the property owner has a high probability of high equity in the property. For example, a $20,000 mortgage on a property valued at $100,000 has a 20% LTV, and is, therefore, a high equity lead.
Why should I market to these leads? A homeowner with a large amount of equity in their home does not have to worry as much about ensuring that the purchase price covers the cost of their mortgage. Any offer over their current debt is money in their pocket. High equity homes also tend to be longer term owners and may be open to the possibility of an easy exit while cashing in on their home’s equity.
4. Low Equity- An equity based lead, these properties are owned with a mortgage on the property and the loan-to-value is greater than 80%.
How is this identified? We find all the open liens and mortgages associated with a property and add up the total debt at the time of purchase. We then compare this value (the loan) with the AVM (Automated Valuation Model) price of the home. If the loan-to-value is greater than 50%, that means the property owner has a high probability of low equity in the property. For example, a $90,000 mortgage on a property valued at $100,000 has a 90% LTV, and is, therefore, a low equity lead.
Why should I market to these leads? Low equity homeowners are often constrained by the debt on their home. With little equity, they need to make sure that the purchase price covers their existing debt. Adding on broker/agent fees of 6% to 7%, it may become impossible for them to sell their home without bringing cash to closing, something that most homeowners are not interested in doing. In a situation where they need or want to exit the property, there are few options for these sellers. Investors who offer solutions, whether a short-sale or a sale without an agent, may be the answer these homeowners are looking for.
5. Upside Down- An equity based lead, these properties are owned with a mortgage on the property and the loan-to-value is greater than 100%.
How is this identified? We find all the open liens and mortgages associated with a property and add up the total debt at the time of purchase. We then compare this value (the loan) with the AVM (Automated Valuation Model) price of the home. If the loan-to-value is greater than 100%, that means the property owner has a high probability of being upside down or ‘underwater.’ For example, a $120,000 mortgage on a property valued at $100,000 has a 120% LTV, and is, therefore, an upside down equity lead.
Why should I market to these leads? This scenario is one that every homeowner is fearful of - owing more on your house than what it’s worth. A sense of hopelessness can occur as the possibility of a retail sale is difficult as BPOs will often prevent new financing to be put in place for a potential buyer. The home may also be in need of repairs that cannot be afforded. These make great short-sale leads where you can work with the seller and the bank to negotiate a win-win-win.
6. Cash Buyers- Owners who have likely paid cash for their property.
How is this identified? Cash Buyers do not have a mortgage associated with the property at the time of purchase.
Why should I market to these leads? Cash Buyers often have the liquid capital to help fund your deals. They are often in the real estate investing business and can also be used as investor leads for wholesale transactions
7. Private Lenders- Private lenders are identified as having significant capital holdings which can be used as a funding source for your deals.
How is this identified? Our Private Lender leads are individuals who have been identified as having $1,000,000+ of income producing assets.
Why should I market to these leads? Without question, the number one issue facing investors is access to capital. Having multiple sources of financing available will allow you to quickly close deals before other investors.
Important Disclosure: There are certain disclosures that must be made when negotiating with and marketing to Private Lenders. While we try to ensure that these disclosures are made in our marketing pieces where applicable, it is important that you consult with a real estate attorney in your state when you are soliciting Private Lenders
8. *Probates- A probate lead contains the probate contact or Personal Representative who is the Executor of the deceased’s estate.
How is this identified? We receive probate leads for a significant portion of the country. These leads have been sourced by individual counties and provided by the probate court.
Why should I market to these leads? Properties that are coming out of the probate process are generally well cared for. The recipient or heir of these properties are often looking for a way to relieve themselves of the pressure of owning and being responsible for a home they did not want. It is important to understand that every probate situation is different - some individuals make decisions quickly, while others need time to grieve and collect themselves for difficult decisions. Sensitivity is key to dealing with these leads.
Important Disclosure: It is important to understand that while a deceased person’s estate may be in probate, it does not necessarily mean that they have real estate holdings. It is also very important to understand how to tactfully and thoughtfully market to these individuals, who may be under emotional distress due to the passing of a loved one.
***Probate leads are first come, first serve. They is an additional fee to unlock these leads
Josh Tobias
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