I’ll be honest, this article is going to be more about my research into this area and less about my experience. Honestly, I’m interested in creating some good dialogue about this topic and hearing from you regarding your experience buying leads. Having talked with other investors about this topic, it seems like I get a wide variety of responses regarding which services are worth the money and which ones are not.
Over the last several years, more and more companies and websites have popped up offering seller leads to investors and real estate agents. For those investors who prefer to avoid MLS listed properties and would rather negotiate a deal directly in an effort to get the best deal possible (rather than buying from a wholesaler) … these types of services can prove to be very helpful. In most cases, the paid service will provide some sort of lead for a motivated seller that the investor can then contact directly in an effort to negotiate a favorable purchase (typically well below market value).
Not having used any of these services for any amount of time myself, I can’t really comment on which types of services seem to provide the best ROI. However, here is a list of the different types of purchased leads that I’ve found in my research as well as some initial observations:
Subscription to a Database That Can Be Marketed To
There are a few services out there where an investor can pay to have access to a nationwide database of potential leads. I say “potential,” because the data provided is really just a starting point – not a true lead.
For example, the service may offer data on people with high equity properties, out of state owners or even owners of vacant properties. These lists are definitely valuable, but require that …read more