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Hey Moguls, JP Moses here to give you another perspective on leads...
In my opinion, there’s really no such thing as a dead lead – it’s just a lead that’s of no use to the one who possesses it. BUT, it might be of use to someone else. Let’s turn that around – there might be an investor who has leads that don’t work for him but would be a gold mine for you.
How can you find out?
Well, when this idea first occurred to me, it was one of those “aha” moments. I’ve been in this business for nearly 20 years now and I’ve flipped more than 400 properties… but even after all that I sometimes get a fresh new download.
Leads Dying a Slow Death
Soooo… I often ask other investors how many times they get calls (leads) from zip codes that are of no interest to them. I think you know the answer to that.
Something to the effect of: “Too many to count.”
Where do those unwanted leads go? They die a slow death in the trash bin. How sad. :(
But (and this was the “aha” point), what if I could be that investor to take those unwanted leads out of their dead pile and breathe new life into them?
You, friends, could do this too…
You could ask those investors you interact with to hand off any leads that are in zip codes that are of no interest to them. Which means that you’ve just acquired a brand-new source of leads that are live!
Of course, you’ll make it worth their while to hand off leads to you. My suggestion is that you pay at least $1,500 for a lead that actually turns into a deal. That makes the exchange sweet enough to draw eager participants.
I’m sure you’ve heard the saying: “One man’s trash is another man’s treasure.” That certainly holds true in this case.
Find the Investors
So, where do you network with local investors? Try your REIA meetings. Or perhaps you’re in a Mastermind group. Well, regardless of where, make it a point to intentionally connect with fellow investors – explain how easy it’ll be for them to pass off their dead leads and potentially make a few bucks – and ask them to send their unwanted leads to you.
Simple!
The only caveat is this: To set up your profitable arrangement, you are looking for investors who target specific geographic criteria.
Remember to make sure that you maintain the highest level of integrity when making this work. Be honest and aboveboard in all your dealings. If you get a lead and it does end up turning into your profitable deal – pay the investor their referral fee. Show respect for those with whom you’re interacting.
Final Thought
Do you see how simply changing my perspective about leads enabled me to creatively come up with a new strategy?
This just goes to show you that a little creative thinking goes a loooong way in this business. And it’s also shown us that we are always learning! There’s always something new to uncover. That’s what I love about this industry… it never gets boring but continues to provide me countless opportunities to think outside the box.
Now it’s your turn.
Your Thoughts
Is this a new idea to you as it was to me? Or have you already been doing this type of exchange? I’d love to hear from you. Please leave your input in the comment box below.
Intentionally reach out to other investors – set up a meeting for coffee or lunch.
Build rapport by asking engaging questions – learn their deal criteria.
Follow up to remind your investors to send you leads in zip codes they do not want.
Operate this exchange with full disclosure – don’t try to weasel out of paying the referral fee.
Enjoy your new source of leads.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.