We categorize our motivated seller leads into nine different groups based on their status in our motivated seller lead flow system.
The first group is when a motivated seller calls into our office for the first time. We immediately categorize their status as “Initial Call Back". While we may speak to them live the first time they call in and skip this step altogether, this is a pretty typical status for motivated sellers to be in if they inquire via our website, leave a message when they first call, or call our 24 hour answering service and leave a message. We use the Property Information Sheet to gather this basic information.
The second motivated seller status is the “Research" status. This is usually after we have talked to the motivated seller and gathered information using the Property Information Sheet. This is when we do the research on the property and put together a full Seller Property Information File. Once that file is complete, the seller moves to the “Make Offer" status.
When a seller is in the “Make Offer" status, it means that we need to meet with them, see their house, and then actually make an offer after we have verified the assumptions we made in the “Research" phase.
Once an offer has been made, there are usually two choices for the next status: “Under Contract To Buy" or “Offer Made: Follow Up". A large number of our motivated sellers sit in the “Offer Made: Follow Up" stage since we are not buying a large number of the properties we make offers on after the first offer. We do however follow up with these sellers to see if we can buy the property as the seller's situation and motivation level changes.
In the “Under Contract To Buy" status, we start preparing for closing on the deal. Once we close the status changes to “Bought It". However, our chief aim is to get it to a “Sold" status, or “Rented" status as quickly as possible depending on whether we are trying to quick turn the property for a fast profit, or rent it out.
The only remaining status is the “Dead" status. Notice we do not use this status when we made an offer and it was not accepted (that's “Offer Made: Follow Up"). We only use this when the seller has not sold to us, and the house is no longer available for purchase or the seller insists that we stop calling and following up (which rarely happens).
So, that summarizes the various stages that our motivated seller leads go through. For additional information, consider checking out the corresponding Real Estate Investor Cookbook Checklists for each status.
James Orr is a professional real estate investor, marketing expert and founder of the Learn To Be Rich™ on-line investment game.
He works with a network of real estate agents, brokers and real estate investors across the United States through the AnalyzedDeals.com website.