I am a seasoned investor. 5 years experience with rehabs and rental. I have always just found homes the old fashioned way, by talking with realtors and hunting online. But I am trying to get into buying properties “subject to.” How are you successful investors generating good leads to buy homes this way?
I have some bandit signs, but I am wondering if there is anything else I should do?
If you’re looking to strictly market for sub2’s, send out some mailers in your newer neighborhoods. Focus on houses that are 2-8 years old, send them ALL mailers, never know. That’s just one way, some other posters here will chime in and give more ideas.
I always preferred target marketing, rather than carpet bombing. A lot cheaper, zeroes in on the more motivated, less time wasted with the just-curious.
I got the most bang for the buck mailing to expired listings, particularly vacant ones. Got a buddy with MLS access? (understand he won’t be getting a commission on expireds.) But if you can work something out…
Gerald,
Do you mail postcards or yellow letters or what?
Uncle D
My subject to investing has slowed down a great deal. What I have found is that in my market, South Florida, almost everyone that could fog a mirror has refinanced and taken out their equity. Put on top of that a decline in property values of about 30%, subject to investing has really taken a hit.
We are still finding some with our foreclosure marketing but they are really scarce.
So I guess my answer is it all depends on your market. If it is fairly stable I would suggest looking at some foreclosure deals, although you may have to bring them current, and also tired landlords.
No, postcards are what I call carpet bombing - mass mailouts for the trash can. Targeted marketing is a personal letter offering to buy their property.
This is a fabulous time for Sub2s in a stable market like TX. Prices are still up, but sales are slow – a perfect storm.
Stick with newer properties that need little or no repair, that you can buy at reasonable discounts. Pre-foreclosures are okay if there is enough equity. Avoid tired landlords, let someone else inherit their problems.
I have done about three mailers in two years. What I’ve done is sent yellow post cards to pre-foreclosures. I have gotten TWO deals from those mailers, the mailers cost me less than a hundred bucks and made about 60k.
Gerald, I agree that most cards go to the trash can, but for me, the two that didn’t sure paid off.
I did letters too and have gotten one deal from those. So I think they both work, if the seller is desperate enough and NEEDS the help they will respond either way. I haven’t done any mailers in awhile because my phones always ringing from my ads or referrals, but they are away to get deals.
However I do agree 100% with you about sticking with newer homes that need very little or no repair if you’re looking for a sub2 deal.
John,
Did these mailers fetch sub2 deals for you or some other kind of deal?
Uncle Daddy-O
Uncle Daddy-O,
Two were rehab and retail.
One ended up being an owner finance deal.
I am an investor and a broker. I have had great luck with marketing to expired listings in newer neighborhoods in areas that I want. I send a postcard sending people to a hotline number or to a specific website that gathers their information. My response rate has been about 8-9%.
I send out roughly 200 postcards each month and end up with 4-6 leads and 1-3 deals each month. I have been very fortunate with my responses.
If you are completing a subject to deal, where do you obtain the legal documents? Some buyers willing to turn over possession want payment to a new rental for them. would that be something to be neotiated? or should they pay their own rental fee to move in a new home?
Does any one have any marketing ad copies either for internet or newspaper ads?
And I am finding realtors are not willing to present these type of offers, what do yo do then?
Chuteme,
I’m just curious, where are you getting your leads for your mailing strategy?
Melissadata is a good source.
Ted_IL
I do a lot of marketing and I still cant see why or how anyone markets for subject to… Subject to is a method for buying a house and even houses which are free and clear still have a loan that can be purchased subject to… Unless you think that a free and clear house isnt already seller financed…
There are only 6 main prospect groups… and a number of sub groups…
Scratching my head in california