An Oft-Forgotten Prospect: Absentee Owners
BATTLECALL GUEST EXPERT: Walter Sanford, National Real Estate Trainer
When targeting prospects, it makes sense to generate leads with a group that appreciates your help, a group that needs you, and a group that has a high propensity to sell real estate. In my market area, out-of-town property owners meet this description and represent an ignored opportunity. It is one of my favorite demographics. However, it falls outside my normal marketing and geographical presence, and it is also far away from the reach of the competition's local marketing presence.
Sometimes it is difficult to obtain a phone number or e-mail address for these prospects; therefore, direct mail is your best initial contact option. You can use tax billing records to track down these prospects' addresses. Visit your local assessor's office or search online to find these public records. Look for local geographic tax bills sent to addresses outside your city limits. The tax records can also tell you a property's type. You can then focus on the type of property and the types with which you have the most experience.
Your goal with direct mail is to create offers so irresistible that you to generate a response. Yet what can you do that's so irresistible? I have found the following services to be effective, yet an inexpensive way, to acquire these potential clients:
1. Free 15-minute phone consultation with my CPA regarding 1031 Tax Deferred Exchanges -- my future clients' most likely mode of sale.
2. Free digitized photographs of the owner's properties e-mailed to them as often as they request.
3. A free list of vendors that I have personally used or that come highly recommended. You might offer contact information for roofers, plumbers, electricians, lenders, or property inspectors.
4. Free rental management forms, including applications, pet agreements, delinquency notices, or other forms available through local or state apartment house associations. (Forms may vary by area.)
5. A free consultation with a local management company on accounting practices, management and maintenance techniques.
6. A free phone CMA within 24 hours of request, provided for clients who answer some simple questions by phone or online.
7. A free list of properties fitting their investment parameters within the same geographic area as their current properties. Since they own in the area and have already addressed any management challenges, maybe it's time to acquire additional rental properties.
8. Free investment index analysis. Internal rates of return, gross rent multipliers, capital return indexes, appreciation rates, and other indices can be calculated with standard real estate investment software. Clients especially appreciate comparing the indices on competing properties.
9. Free 1031 deferred exchange analysis, analyzing available options for potential up-leg purchases. I stress with potential buyers that up-leg requirements are meant to increase their depreciable base, cash flow, appreciation potential, and ease of management.
10. My own consultation on how to increase income and decrease expenses in running any real estate investment.
Including these offers in my lead generation direct mail resulted in my controlling more than my share of out-of-town business. Offering these services before I ask for business gives me a leg up on my competition and establishes career-long relationships with owners. For me, these relationships result in many referrals, repeat business, and kudos that were very profitable. This made me feel that I was offering a greatly needed service.
Walter Sanford was one of the top real estate agents in North America for nearly thirty years, and now, he is one of the most requested speakers, trainers, and coaches. He has authored twelve systems and books on checklists, pro-active lead generation, affiliate lead generation, plus others mentioned in this article. You can hire Walter or buy his products by visiting his website for more details at waltersanford.com.
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