In this episode, I am going to talk about a source of leads that you might not have considered. I did not use this early on in my real estate investing business, but I use it very frequently nowadays: setting up your contractor to send you leads.
All established real estate investors have one or more contractors that they utilize on a regular basis. Very active real estate investors sometimes have three or more contractors that they utilize to rehab their properties. Even if you have only done one deal so far, chances are that you worked with a contractor.
One of your biggest needs as a real estate investor is to get more leads. Not just any leads, but qualified leads that turn into deals. I have discussed several ways to find leads as a real estate investor. The one source of leads that I’ve never talked about until now is your contractor. Think about it – they are out there in your target markets all day long every day driving from job site to job site. They pass by numerous houses that are in distress. Why not pass these addresses on to you, so that you can try to contact the owner?
In fact, I am a huge fan of giving your contractors a short list of criteria of the types of houses you might be interested in and what they should be looking for when they drive around. This list should include some of the following:
- overgrown lawn
- stickers on the windows
- no snow removal
- pile of newspapers on the front porch
- overstuffed mailbox
- broken windows
This list could probably be much longer, but I think you get the idea. I would also advise you to let your contractor know what physical features and locations you are interested in. In other words, if you prefer brick, let them know. If you never invest in properties at a main road, let them know that as well. Give them a lot of the criteria that you would give to a realtor or any other lead generating source. They may not end up being your main source of leads, but they will be another source, and it’s important to get leads from more than one place. You already have a relationship with your contractor, and they should get to rehab any leads that they bring you. It’s a clear win-win situation and should be motivating enough for them to jot down an address while they’re out running around.