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Leadpipes- Glossary- Types & Overview

Leadpipes

Leads are what every real estate investing business needs to be successful. That’s why within your

Realeflow account we deposit leads from the top data providers. The lists of leads that we provide are a

great way for investors to target specific sellers, buyers, and other investors.

With various different filters to choose from, you can now refine your search to a broad or narrow scope

with the ability to export your list into your Contacts and Properties as well as start a direct mail

campaign through Realeflow.

Below is the list of different Leads we provide with a quick explanation:

Standard Leadpipes:

1. Absentee Owners- Property owners who do not live in the property.

How is this identified? The tax mailing address of the property owner is different than the subject property address.

Why should I market to these leads? Absentee Owners or Landlords are great potential seller leads as they often do not have the same type of emotional attachment to a home as owners who live in the property that they own. Your marketing efforts could serve as a ‘trigger’ for them to cash out and move on from the property.

2. Free and Clear- An equity based lead, these properties are owned without any mortgage and are thus ‘Free & Clear’ of any debt.

How is this identified? There is no open lien or mortgage associated with the property.

Why should I market to these leads? These property owners do not have to concern themselves with ensuring that they receive full market value for their home to pay off their mortgage. An opportunity for an easy, quick sale without having to worry about bringing their home to ‘retail’ condition may be appealing to these owners.

3. High Equity- An equity based lead, these properties are owned with a mortgage on the property and the loan-to-value is less than 60%.

How is this identified? We find all the open liens and mortgages associated with a property and add up the total debt at the time of purchase. This value (the loan) is then compared with the AVM (Automated Valuation Model) price of the home. If the loan-to-value is less than 60%, that means the property owner has a high probability of high equity in the property. For example, a $20,000 mortgage on a property valued at $100,000 has a 20% LTV, and is, therefore, a high equity lead.

Why should I market to these leads? A homeowner with a large amount of equity in their home does not have to worry as much about ensuring that the purchase price covers the cost of their mortgage. Any offer over their current debt is money in their pocket. High equity homes also tend to be longer term owners and may be open to the possibility of an easy exit while cashing in on their home’s equity.

4. Low Equity- An equity based lead, these properties are owned with a mortgage on the property and the loan-to-value is greater than 80%.

How is this identified? We find all the open liens and mortgages associated with a property and add up the total debt at the time of purchase. We then compare this value (the loan) with the AVM (Automated Valuation Model) price of the home. If the loan-to-value is greater than 50%, that means the property owner has a high probability of low equity in the property. For example, a $90,000 mortgage on a property valued at $100,000 has a 90% LTV, and is, therefore, a low equity lead.

Why should I market to these leads? Low equity homeowners are often constrained by the debt on their home. With little equity, they need to make sure that the purchase price covers their existing debt. Adding on broker/agent fees of 6% to 7%, it may become impossible for them to sell their home without bringing cash to closing, something that most homeowners are not interested in doing. In a situation where they need or want to exit the property, there are few options for these sellers. Investors who offer solutions, whether a short-sale or a sale without an agent, may be the answer these homeowners are looking for.

5. Upside Down- An equity based lead, these properties are owned with a mortgage on the property and the loan-to-value is greater than 100%.

How is this identified? We find all the open liens and mortgages associated with a property and add up the total debt at the time of purchase. We then compare this value (the loan) with the AVM (Automated Valuation Model) price of the home. If the loan-to-value is greater than 100%, that means the property owner has a high probability of being upside down or ‘underwater.’ For example, a $120,000 mortgage on a property valued at $100,000 has a 120% LTV, and is, therefore, an upside down equity lead.

Why should I market to these leads? This scenario is one that every homeowner is fearful of - owing more on your house than what it’s worth. A sense of hopelessness can occur as the possibility of a retail sale is difficult as BPOs will often prevent new financing to be put in place for a potential buyer. The home may also be in need of repairs that cannot be afforded. These make great short-sale leads where you can work with the seller and the bank to negotiate a win-win-win.

6. Cash Buyers- Owners who have likely paid cash for their property.

How is this identified? Cash Buyers do not have a mortgage associated with the property at the time of purchase.

Why should I market to these leads? Cash Buyers often have the liquid capital to help fund your deals. They are often in the real estate investing business and can also be used as investor leads for wholesale transactions

7. Private Lenders- Private lenders are identified as having significant capital holdings which can be used as a funding source for your deals.

How is this identified? Our Private Lender leads are individuals who have been identified as having $1,000,000+ of income producing assets.

Why should I market to these leads? Without question, the number one issue facing investors is access to capital. Having multiple sources of financing available will allow you to quickly close deals before other investors.

Important Disclosure: There are certain disclosures that must be made when negotiating with and marketing to Private Lenders. While we try to ensure that these disclosures are made in our marketing pieces where applicable, it is important that you consult with a real estate attorney in your state when you are soliciting Private Lenders

8. *Probates- A probate lead contains the probate contact or Personal Representative who is the Executor of the deceased’s estate.

How is this identified? We receive probate leads for a significant portion of the country. These leads have been sourced by individual counties and provided by the probate court.

Why should I market to these leads? Properties that are coming out of the probate process are generally well cared for. The recipient or heir of these properties are often looking for a way to relieve themselves of the pressure of owning and being responsible for a home they did not want. It is important to understand that every probate situation is different - some individuals make decisions quickly, while others need time to grieve and collect themselves for difficult decisions. Sensitivity is key to dealing with these leads.

Important Disclosure: It is important to understand that while a deceased person’s estate may be in probate, it does not necessarily mean that they have real estate holdings. It is also very important to understand how to tactfully and thoughtfully market to these individuals, who may be under emotional distress due to the passing of a loved one.

***Probate leads are first come, first serve. They is an additional fee to unlock these leads

 

Premium Leadpipes:

1. Active Listing- An active ‘For Sale’ property listing on the MLS.

How is this identified? Realeflow receives active listings from MLS IDX feeds, which are updated daily.

Why should I market to these leads? Any home for sale is an opportunity for a deal. Reaching out to the agent or broker for additional information will help you get important details to be able to analyze a potential deal. Realeflow will also combine these listings with additional property information so you know what other categories the property falls under (Ex. pre-foreclosure, vacant).

2. Bored Investor- Absentee owners who have owned the subject property for a long period of time.

How is this identified? One of two ways: One, the landlord has owned the property for ten years. Two, there is no recorded transfer date from the county, which means the ownership predates the county recordkeeping or predates the date that data providers have received transfer date information. This will vary county-by-county and state-by-state.

Why should I market to these leads? Bored Investors have often extracted a significant amount of income from these properties and may be looking for an easy exit where they can cash out and relieve themselves of the stress of being a landlord.

3. Foreclosures- These properties have gone through the foreclosure process in their state and have been foreclosed on.

4. Long Term Owner- The same party who has occupied the house for the past thirty years is the owner of the property.

How is this identified? Similar to ‘Bored Investors,’ but these leads include owners who live in the property. They have either owned the property for thirty years or there is no recorded transfer date from the county, which means the ownership predates the county recordkeeping or predates the date that data providers have received transfer date information. This will vary county-by-county and state-by-state.

Why should I market to these leads? Long-Term Owners may be looking to move towards the next stage of their life - whether it is to relocate, down-size, or to cash out on any equity, these owners are a great seller lead.

5. Potentially Inherited- These properties have been identified as properties that were potentially inherited either from parents-to-children or from spouse-to-spouse. The properties in this lead type are not guaranteed to be inherited, but show the characteristics of being so.

How is this identified? We look for transactions where there was no mortgage associated with the property at the time of sale or transfer. If the last name of the buyer matches the last name of the seller, we flag these properties as being potentially inherited.

Why should I market to these leads? Inherited properties are sometimes seen by the receiving party as a ‘burden to bear’ and a problem that they need to address. Whether the property is transferred by probate or by divorce, you may be the solution to their problems by reaching out to these leads in a tactful manner.

Important Disclosure: This lead type will contain some false positives with properties that were not inherited. Properties that were transferred between spouses for tax and financial purposes, for example, could fall under this lead type. Another possibility is a coincidental cashless transaction between two parties sharing the same last name.

6. Pre-Foreclosure- These properties are going through the foreclosure process, but have not yet completed the process.

How is this identified? We receive notices from several counties when a foreclosure notice has been filed. The types of notices vary from state-to-state based on whether it is a judicial or non-judicial jurisdiction.

These notices can include:

-Foreclosure Judgment Entered

-Notice of Default

-Notice of Foreclosure Sale

-Notice of Lis Pendens

-Notice of Trustee Sale

Why should I market to these leads? Homeowners in the foreclosure process are distressed and looking for a way out of their situation. An unfortunate life event is often the catalyst that puts an owner in a financially distressed situation. These homeowners are often looking for a solution that can provide them with a graceful exit.

Important Disclosure: The foreclosure process is complicated and vastly differs from state-to-state and county-to-county. Frequency updates from individual counties varies from daily, to weekly, to sometimes monthly. For some counties and states, pre-foreclosure records are not deemed to be publically available. It is important to do your due diligence on pre-foreclosure properties to ensure it is still actively in the pre-foreclosure process. For more information about state foreclosure laws please refer to: https://www.nolo.com/legal-encyclopedia/state-foreclosure-laws

7. Vacancy- These properties have been identified as being vacant, thus there is no one living at the property address.

How is this identified? The USPS (United States Postal Service) maintains a database of vacant properties, which we are able to obtain.

Why should I market to these leads? A vacant property is a prime opportunity for a deal. There are many reasons why a home could be vacant, but the longer the property remains vacant, the more costs the homeowner has to incur to maintain the property, without the benefit of rental income.

8. Zombie Property- These properties are in the pre-foreclosure process and are also vacant.

How is this identified? If a property is in an active pre-foreclosure process and has been identified from the USPS as being vacant, this property is categorized as being a Zombie Foreclosure. For more information on Zombie Foreclosures refer to: https://www.nolo.com/legal-encyclopedia/zombie-foreclosures.html

Why should I market to these leads? Similar to pre-foreclosures, owners of Zombie properties are in desperate need of rescue. In addition to being under the stress of being in foreclosure, the process is often dragging on as the bank is delaying the process, leaving the home in an unwanted and, thus, unkempt state. Owners and banks are often highly motivated to work with a potential buyer to exit this property.

9. Bankruptcies- These leads are homeowners who have recently filed for bankruptcy, generally making them very motivated sellers.

How is this identified? These individuals are confirmed homeowners who have filed a Chapter 7, Chapter 11, or Chapter 13 bankruptcy.

Why should I market to these leads? These seller leads are typically very motivated. It is not uncommon for the mortgage holder in this situation to also be very motivated, giving real estate investors opportunities to negotiate great deals.

10. Renters- A renter lead is a person who is currently renting an apartment or house and may be in the market to purchase a property of their own. These leads include renters between the ages of 21-45 with a household income of $100k+, meaning they are more financially able to purchase a home.

Why should I market to these leads? Renters are great leads to target for both selling properties and building your buyers list. Many are tired of paying rent to make someone else rich and are ready to buy a house of their own. If they aren’t ready at that time, they are great prospects for the future.

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  1. Josh Tobias

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