Marketing to Sub2 and Lease Option Sellers

General Real Estate Investing
1

Hi,

Is anyone having any real success with email marketing for Sub2 and lease option sellers on Craigslist?

I’ve emailed to about 350 FSBOs and FRBOs on Craigslist and ForSaleByOwner with no one interested in doing lease options.

Is this not the best place to market for these type sellers?

How do you find thses type sellers that will do a Sub2 or lease option and what do you say to them to get them to agree to do it?

Thanks,
Pete

2

What is your message?

3

Hi,

I would like to know how to find these type sellers will will do these type deals (Sub2 and L/O).

1.) How do you find sellers that will do Sub2 or L/O deals?
2.) How do you market and what do you say to find Sub2 and L/O sellers?

Thanks

4

I can’t answer to L/Os as I don’t do them. As for Sub 2 the simple answer is direct mail… The more complex answer depends on which prospect group of the two Sub 2 groups that are you going after.

  1. non equity or minor equity
  2. major equity

Jump on list source, its free to search, and input your criteria for either. This will return the number of units which qualify in your market. www.listsource.com

Unless you either have a small market or an unlimited budget you’ll have to determine the area to market to. The following is a spreadsheet to help. You’ll want to convert it from a Free and Clear chart to a Sub 2 chart. The difference is what you’re willing to buy and what percentage of loan to value.

http://www.michaelquarles.com/Prospect_Chart.xls

Although you may not be interested in Short Sales, knowing the area which has the highest concentration of Shorts and Late Mortgages helps in determining the area to prospect to. Also youll need to learn the average days on market and median sales price in those areas. This will also help narrow down your prospect. The DOM wont matter if youre a buy and hold and matters a lot if youre a flipper.

Once you have that information youll then are able to figure out the area you want to spend your resource of time and money on.

5

Hi Michael,

Thanks for your response.

I am thinking of flipping the Sub2 or putting in a L/O Tenant/Buyer into the Sub2 property. Since I’ve been laid off from work, with little money and credit, I thought this strategy might be less risky than buying a Sub2 and holding the property.

Peter