Residential Real Estate Leads

Written by Jeremy Horelick
Bookmark and Share

Lots of investors pass up residential real estate leads in order to focus on the more lucrative commercial market. But without the leverage and visibility of a commercial developer or brokerage behind you, it's naive to expect success when taking on firms that have been in business for 50 or 100 years and have the aggregated resources of multiple investors, lawyers, accountants, and other advisors. For this reason, most people choose to stay in the residential game instead, which can still yield huge returns.

The strategy of some real estate investors is to start in the residential sector and build up enough equity to eventually leverage a small commercial acquisition. This may take five or even 10 years of effort, though. Over that time, a great number of investors make the contacts they need to eventually form partnerships and pull off bigger deals they could never afford on their own. And because most people were brought up in single-family homes or apartments, the residential sector is a familiar place and a good starting point.

How to Generate Residential Real Estate Leads

In an ideal world, the residential real estate leads fairy would drop by your home or office and whisper in your ear that a new property--and a steal, at that--had just been listed. The next best thing is a full-service real estate marketing agency that alerts you whenever a new lead pops up in your area. Some of these companies offer the same listings to all their clients, which scarcely helps. But a few companies manage to divide their listings among their clients, each of whom "owns" the rights to specific territories.

How are these territories and their owners determined? Easy: through a first-come, first-served system of designations. This eliminates the hassle of contentious bidding while allowing prospectors to snatch up undervalued or emerging high-growth areas. Then, any residential real estate leads that spring up in your ZIP or ZIPs are yours to pursue. Of course, real estate investors with rival marketing firms may have access to the same information, so acting quickly is still imperative.

Bookmark and Share