Basic Plan Includes:
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. Active Listing
An active ‘For Sale’ property listing on the MLS.
How is this identified?
We 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. We will also combine these listings with additional property information so you know what other categories the property falls under (Ex. pre-foreclosure, vacant).
3. 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
4. Delinquent Tax Activity
These properties have had a tax delinquency noted in the past 36 months.
How is this identified?
The property either has a record of delinquency in the past 3 years or not and if we have the year we will display it.
Why should I market to these leads?
Tax Delinquency can be an indicator of financial distress, potentially making these properties great investment deals.
5. 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.
6. 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.
7. 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.
8. Pre-Foreclosures
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
9. 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.
10. 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.
11. Deceased Probates - Please Note: These leads will be found within the LIEN INFO section within the FILTERS
A legal claim that can be placed on a property due to the death of the property owner. It is a legal claim by the personal representative of the deceased person's estate for the payment of debts and expenses that were incurred after the person's death, but before the estate was settled.
When a person dies, their assets, including any real estate they owned, become part of their estate and are subject to a probate process. The probate court will appoint a personal representative, also known as an executor or administrator, who is responsible for collecting and managing the assets of the estate, paying off any debts, and distributing the remaining assets to the beneficiaries of the will or according to the state laws of intestate succession.
During the probate process, a lien may be placed on the property, which allows the personal representative to pay off any debts or expenses incurred during the process before distributing any remaining assets to the beneficiaries. The lien will be removed once the estate has been settled and the property has been distributed to the beneficiaries or sold to pay off any remaining debts.
Josh Tobias
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