Ok, I got some leads, now what?

Financing, Hard Money Lenders, Private Money
1

Hi,
I ran a few ‘private money up to 60%LTV’ ads on newspaper, local magazines and online, got a few good leads. I asked their name, email, phone number, loan type, loan amount, and property address.

Now, I need to sell these leads to the lenders, but I am not very clear about the process. Do I just call them say ‘hey i have some leads, do you want to buy them?’ or do I just ask for an agreement and trust that they will pay me after they close the deal.

Also, I am not sure what to expect in terms of profit. The loan amounts are between 300k - 700k.

I really appreciate your help

thanks

KI

2

Hi,

I admire the fact your motivated, are taking action and have a desire to succeed!

Now if I read this right your advertising and marketing to get leads of people who are looking for “private money loans up to 60%” to finance there investment properties? And you are collecting names, email addresses, there phone numbers, the loan type, the amount they want to borrow, and the property address? Is this correct?

But then you say “I need to sell these leads to the lenders”? Now you say your “not very clear about the process”? Then you say “Do I just call them and say ‘Hey I have some leads, do you want to buy them’ or do I just ask for an agreement and trust that they will pay me after they close the deal”?

You also state “Also, I am not sure what to expect in terms of profit”? The loan amounts are between $300k - $700k!

Your are most welcome however I think your a little confused!

Selling Mortgage leads, be it residential or commercial average between $1 (One US Dollar) to about $25 (Twenty Five US Dollars) per lead, that’s it and that’s through the big companies that sell mortgage leads to lenders!

For you to sell leads to these companies you might get $0.25 (Twenty Five Cents) to maybe $5 or $6 (Five or Six US Dollars) but they buy these leads in bundles of 500, 1000, 2500 or 5000 leads at a time, for someone to buy 10 leads for $1 or $2 dollars each is so small a mortgage lender (Conventional, Private or Hard Money) is just not worth there time, I am not even sure how many lenders are in your state? Or what state your in?

But unless you can legitimately operate hundreds of web sites with squeeze pages and collect hundreds of leads a day, your not going to make any money selling residential or commercial loan leads!

This is kind of outside of real estate investing as it is actually part of the financial services sector!

But I want to encourage you to get into real estate investing and maybe take a look at assigning wholesale properties to end buyers which takes very little cash to do, and is one of the easiest methods to bring success!

Good luck to you!

                               GR
3

Thank you very much for the advice GR. I guess I should have done the research before I posted these ads. I assumed, for a 100k to 500k transaction, I can at least get 0.1 - 0.5% finders fee.

Also What do you think about providing wholesaling leads instead of secure it on my own and reassign them? Do investors pay for these leads?

Thanks

KI

4

keepinvesting

From the ad you posted it looks as if you have a quasi buyers list. Those are investors that need money to buy property or are at least interested in getting into real estate investing. What you need to find is a list of HML’s or Private Investors in your area. Then you can see if they will pay you a finders fee for the information. Or you can contact the leads and offer to sell them the contact information for all of the HML’s or Private Investors in your area for a small fee.

Think of it this way; if you are spending $1.00 to acquire a customer that will pay you $5.00 for your Lender List you are on the right track.

If you are not a licensed LO or mortgage broker in your state I would definitely not try to offer ANY financial services to any of the leads. The minute you discuss rate or fees with any of those people you could be breaking the law.

Hope this helps.