How to Score Motivated Seller Leads in 2023: A Real Estate Investor’s Guide

Everyone wants to know where motivated seller leads are hiding — you, your competitors, syndications, hedge funds. Everyone wants a deal.

Off-market deals aren’t as easy to find as a few years ago. But I’m here to tell you there are still motivated sellers out there, and I’ll share where to find them!

This article highlights my favorite lead-generation strategies. I have used these strategies to generate leads nationwide, along with my clients, colleagues, and competitors. Yes, even today, in 2023.

Before we get too far into the weeds, let me explain what motivated seller leads are. I’ll also highlight how they differ from “retail” seller leads that agents and brokers typically go after.

What Are Motivated Seller Leads?

A motivated seller lead is a property owner (or an agent working on behalf of the owner) who wants to sell quickly. This eagerness to sell is usually due to outside pressure and presents a unique opportunity for us, the buyer.

There are five common types of motivated seller leads:

• Preforeclosure Properties – Homes in the early stages of the foreclosure process, where the owner has fallen behind on mortgage payments, but the lender has not yet auctioned or repossessed the property.
• Divorce Sales – Properties sold due to the dissolution of a marriage, typically as part of the asset division process.
• Inherited Homes – Homes passed down to heirs through a will or estate, often leading to the sale of the property.
• Relocation Deals – Properties sold by owners moving to a new location for various reasons, such as job changes, lifestyle adjustments, or personal circumstances.
• Financial Distress – The property owner faces significant financial challenges, leading them to sell the property quickly to alleviate financial burdens.

You could argue that every seller is motivated to some level, and every property deal is unique. But I’ve spent a decade generating real-estate sales leads, and most truly motivated sellers fit into these five categories.

Now that you know what a motivated seller lead is, let’s discuss how to find them.

How To Score Motivated Seller Leads With Technology

It’s 2023, so I shouldn’t have to tell you to embrace the digital age. We’ve all been living online for two decades, so you should already have a website, social media profile, and a basic understanding of digital advertising. What you might not know is how to use all of the various digital tools together.

This guide will outline basic (but effective) strategies for leveraging technology to find motivated sellers. While reading, you’ll see ways one tool leads to another. For instance, paid ads can be run for search traffic and social media both. Those leads can then be marketed through a CRM or EMS.

Paid Advertising

To find motivated seller leads, we need a bunch of leads to sift through. And paid advertising is arguably the easiest way to find seller leads to fill up your funnel so you can begin digging for those golden nuggets (a.k.a motivated sellers).

Note: I say easiest, not cheapest, most cost-effective, or even most future-proof. Don’t trap yourself with one lead source; I repeat this mantra throughout my blog.

Start with social media marketing, the “bunny slope” of paid advertising. It’s cheaper than channels like Google, and there are Youtube tutorials that’ll teach you how to set up an Instagram or TikTok ad. Easy-peasy.

Once you’ve got some experience running social media ads, you can graduate to Youtube and Google Search ads. These channels require more know-how and investment but are deadly lead-generation sources once you understand them.

Social Media

Social media — at its core — is a tool for communicating with people. Where most real estate investors go wrong with social media is they use it like a billboard to display the same “WE BUY HOUSES!” slogan on repeat.

There is a time and place to let people know what you do. But no one likes seeing the same boring business message clutter up their social feeds. Instead, try using social media to start conversations or scout for opportunities.

Facebook Groups are a goldmine for getting to know a community in your target market. Many towns and neighborhoods have their own group, and if it’s active, you’ll quickly get a feel for the area and the comings and goings. Engage with people, share memes, and answer questions. Become the go-to real estate guy, and motivated sellers will find you.

SEO (Search Engine Optimization)

SEO (Search Engine Optimization) significantly benefits real estate investor websites by enhancing their online visibility and attracting motivated seller leads. By strategically optimizing a website and content with relevant keywords, real estate investors can rank higher on search engine results pages (SERPs), making it easier for potential sellers to find them.

You might’ve found this very article because I took the time to optimize it for SEO. Spooky, right?

Additionally, SEOs (a term for someone who does SEO professionally) optimize for local search aspects. This localized approach allows investors to target motivated sellers in specific geographic areas, increasing market share and the likelihood of connecting with sellers who are actively looking to sell their properties.

Overall, a well-executed SEO strategy empowers real estate investors to build a strong online presence, attract a steady stream of motivated seller leads, and increase their chances of securing off-market deals.

Lead-gen Websites and Services

Sometimes investors need a bucket of leads to keep the “machine” running. Maybe the website isn’t converting traffic, the Facebook ads are terrible, and they can’t generate a lead to save their life.

Luckily, there are done-for-you lead-generation websites and services. Many refer to this type of service as pay-per-lead, and that’s an accurate description; these companies offer leads in exchange for money.

Some pay-per-lead vendors provide lead lists with thousands of property owner names and addresses, and others will provide a la carte lead purchases (typically on a first-come-first-serve basis). There are a few lead providers that will even reimburse investors for bogus leads, assuming you can prove the lead was “bad.”

Either way, if you have the budget, these companies are a great way to fill up your funnel with motivated seller leads.

Automated Outreach with a CRM or Email Marketing Software

In my experience, most real estate investors don’t continue to follow up on leads after 2-3 weeks. And that’s a big mistake because I’ve seen leads convert 6, 8, or even 12 months after the first touch!

An easy way to avoid letting your hard-earned leads turn cold is to set up a lead nurture system. This automated sequence of messages (email, text, or voicemail) is customized and sent out through your real estate CRM or EMS (email marketing software).

CRM or EMS – Which Is Better?

A real estate CRM like ReSimpli or Podio has auto-responder functions built-in, which makes it easy to build your own lead nurture sequences. Set up your outreach messages once, and you can keep “checking in” on auto-pilot for months.

If you don’t need all the extra CRM gadgets, you can set up auto-responder campaigns with email alone. Tools like Flodesk or Mailchimp offer near-identical features and have been in the email game for a long time. Plus, their deliverability (a.k.a, how likely the email is to end up in the inbox and not the Spam folder) is top-tier.

However, if I could only afford one tool, I’d choose a CRM. A good CRM usually includes email marketing features, but that doesn’t work the other way around.

Time-Tested Traditional Tactics for Scoring Motivated Seller Leads

If it ain’t broke, don’t fix it.

Real estate investing isn’t a new industry; it’s been around for a long time. And it’s no surprise that some of the most effective ways of closing deals and finding motivated seller leads have been around for a few decades.

Here are some traditional lead-generation tactics you’ve already heard of, but with an added technological twist…

Direct Mail Marketing

Ah, direct mail, made popular in the 1830s — you read that right, 1830s — and still going strong today.

Direct mail marketing is cheap, effective, scaleable, and automated. And that’s why nearly every successful real estate investor I’ve met has one or two direct mail campaigns going year-round.

The most common direct mail marketing campaign, used by real estate agents and investors alike, looks like an unassuming postcard.

Direct Mail Postcard Example

There are many types of direct mail, though. You can send out hand-written letters, cryptic QR codes, brochures, Google Street-view mailers, or even “lumpy” packages — there are dozens of strategies, and if you can imagine it, someone has probably tried it.

To get started with direct mail, follow these steps:

1. Scoop up one or two motivated seller lead lists online, or comb local tax records for a list of names and addresses.
2. Find a direct mail vendor, like Ballpoint Marketing or Yellow Letter HQ.
3. Supply the vendor with your lead lists and send out your first campaign.
4. Keep your phone nearby and check your email frequently. Easy-peasy.

Driving for Dollars

There is a good chance you’ve got a few motivated sellers in your town, maybe within your neighborhood, but you’ll never know if you don’t go outside and look around. And that is the core philosophy behind the driving for dollars strategy.

I won’t get into the finer details of how to drive for dollars, but there are some cool apps you can use to get the most out of your time on the road.

• RESimpli has baked-in property analysis features. See a house you think might be a good fit? Pull up the app and skip-trace the property for details on the property owners, check it against your existing pipeline, or even tag it and snap a photo that will later appear on your database.
• DealMachine lets you see a top-down map view of which streets you’ve canvassed, pull up property data on-the-fly and even add properties to your direct mail list from your phone.

Networking & Referrals

There are hundreds (if not thousands) of strategies for finding motivated sellers, but arguably the most effective is simple networking. And that means convincing people to like you. Time to get good at “shaking hands and kissing babies,” as my old man used to say.

We’re not just schmoozing with property owners either; perhaps an even better use of your networking time is cozying up to other investors or hot-shot real estate agents. These are people that’ll be able to feed you motivated seller leads, and in turn, you can feed them leads on real estate investment properties you aren’t able to work.

Join your local REIA, sign up for real estate websites like BiggerPockets, attend networking events (they aren’t as boring as you might imagine), and just get comfortable adding people to your sphere.

Like I said at the beginning of this article: real estate investing is a team sport, so build a team that can help find motivated seller leads!

Becoming a Master Negotiator

Now, occasionally, you’ll stumble upon a desperate seller who’ll do business with literally anyone. But this type of hyper-motivated seller is rare and doesn’t represent the majority of leads. What’s far more common is that you’ll have to coax potentially motivated sellers into working with you.

We’re taking potential motivated sellers from “kind of motivated” to “let’s do business!” over the phone, through email, or in person.

Here are a few areas great investors/negotiators focus on:

1. Building Rapport – People want to do business with people they like and trust. Be genuine, be friendly, find common ground and shared interests, smile a lot, and speak with energy. However, don’t get too far into the weeds; guide the conversation back to business if they start making dinner plans with you.
2. Active Listening (or “Finding the pain”) – A common theme amongst master negotiators is that they’re not necessarily great speakers, but they are exceptional listeners. Alex Hormozi, business guru and gazillionaire, says, “Either you sell the other person on your solution, or they sell you on their excuse. And the person who talks the most loses.”
3. Creative Financing Solutions – You must be able to tailor your offer to a seller’s need. If a seller wants to sell quickly, like within seven days, can you fund the purchase? Arm yourself with creative solutions, so you can come to the conversation confident you can make a deal work.

Building Your Brand: Becoming the Go-To Investor

What happens to a real estate business that runs out of leads? It dies!

The best way to avoid an empty, outbound lead generation funnel is to build a brand that works for you 24/7. A strong brand will keep the fires lit when your other lead sources run dry.

Google ads, social media ads, TV, radio, all of these lead gen channels only work for as long as you keep pouring money into them. And if a competitor with a bigger ad budget muscles into your area and scoops up market share… your business could be in jeopardy.

Start building a brand – you won’t regret it.

How To Create A Standout Brand

Want a blueprint for building a strong brand? Easy. Copy the best-performing real estate agent in your area. I can almost guarantee that person (or brokerage) has built a strong brand that generates leads for them morning, noon, and night.

If you don’t like showing your face, you can look to local businesses that need a steady flow of leads. This includes local attorneys, practicing real estate law or otherwise, high-ticket service businesses (like roofers or solar installers), and basically, any privately owned business that’s stayed open for the last 4-5 years.

Four Tenets For Brand Building

There are a few tenets that are non-negotiable when building your brand; these are:

• Be Unique: Stand out like a unicorn in a horse race. You are the only thing that differentiates your brand from thousands of competitors. Embrace your unique experience; you will never have to “fake it to make it.”
• Show, Don’t Just Tell: Don’t be the person who claims to be an expert. Share valuable content that proves you know your stuff.
• Stay Consistent: Keep your style steady across platforms. If your fans follow you on social media, your website or meet you at an event, they should know what to expect.
• Collaborate: One of the best ways to build a brand is to “piggyback” off someone else’s. As you grow, you’ll get approached for collaboration; leverage these opportunities to tap into new crowds.

Wrap Up

Whew! You made it; you’ve reached the end of this guide. And I’m confident you now have a better understanding of how to find more motivated sellers and more deals!

To summarize what we’ve covered:

• Leverage technology. This includes paid advertising, social media, SEO, and kick-ass real estate software.
• Don’t sleep on traditional methods. Knock on doors, send hand-written letters, shake hands, and buy someone a cocktail. It worked for your dad’s generation, and it still works today.
• Learn to speak well. This is crucial. You won’t be able to negotiate with homeowners or convince a lender to finance your deal if you can’t sell your idea or unique value.
• Build a brand. When your ad funnel runs dry, and your billboard gets blown over, the only thing that will save you is your brand. Take care of it, nurture it, and watch it grow into an incredible lead-generation engine.

If this article does anything, I hope it motivates you to get creative with your lead generation. And maybe stop relying on real estate leads from those real estate listings sites *cough* Zillow *cough*.