Utilize List Stacking to Streamline Your Real Estate Business
You want to buy homes from motivated sellers, but how do you find them? You likely see other real estate investors with a high volume of home purchases and you’re wondering how you can duplicate their techniques for your own business. You’re in luck because that’s exactly what we can help you do.
Our goal is to help real estate investors like you work smarter, not harder. We can help you save money on your bottom line while also bringing in more income. List stacking is a great way to reach your real estate investing goals, and we’re going to explain how to do it.
List Stacking for Real Estate Investors
You have a rich pool of data to pull from in your area but how can you narrow it down to a hyper-target motivated sellers? List stacking is a way to narrow down your list by identifying multiple factors at one time. The goal of list stacking is to save money on your marketing efforts.
For example, right now you may pull separate lists for homes that are vacant and tax-delinquent and market to the contacts on each list. There's an overlapping area of homes that are both vacant and tax delinquent. This targeted group offers a higher likelihood of selling their home to you. The more factors that apply to a home or property, the more motivated the sellers are likely to be. You can make an offer on their home, and they're likely to take it so they can be free from the burden.
You can narrow your lists down manually, but that takes valuable time. Instead of having one long, general list, you can have multiple smaller lists that are hyper-targeted. Combine a series of factors together to find homes and properties that meet more than one of any combination of your factors. Then, instead of sending 10,000 postcards, you can save that money and target the 500 who are most likely to sell to you.
Examples of List Stacking
You may be thinking that fewer records mean fewer buying opportunities, but this isn't a bad thing. Right now you're executing marketing campaigns by casting a wide net and hoping that someone shows interest in selling you their home. When you hyper-target a real estate marketing campaign, you spend your time and money on well-qualified leads. You'll probably get a similar amount of interest from a larger or smaller list, but the small list saves money on your bottom line.
Examples of qualifiers you can combine including:
- Absentee homeowners that don't live at the property
- Owners with high equity in a property
- Recently inherited properties
- Vacant property where no one is currently living
- Property owners who are behind on the taxes
- Empty nesters whose grown children have moved out
- Single Family Residence (SFR)
- Owner age, ideally a range like 45-64 years old
Why is List Stacking Important for Real Estate Investors?
If you combine two factors and still have a long list, consider adding a third or fourth factor to get more granular. The tighter your lists, the more targeted your results are. Basically, you spend less to get the same number of leads. Instead of sending 10,000 direct mail pieces, maybe you only send 500. But you know that those 500 client targets are more likely to sell you their home.
What Are the Pitfalls of List Stacking?
List stacking offers many benefits, but there are also risks involved. You have to be able to track dead leads, wrong numbers, and anyone who requests that you stop marketing to them. This can be very manual process without the right software and leaves you vulnerable to costly mistakes.
In some states and localities, there are strict record keeping laws that real estate investors have to follow. Failure to meet those requirements can lead to fines, having your license revoked, and even jail time. Examples of data that you need to track include:
- People you've contacted
- Dates of contact
- Methods used -- direct mail, email, phone, etc.
- Date of a request to cease contact
- Leads that haven't responded
Not only does the law require this data in some cases, but it can also improve your future lists. When you eliminate stale leads, you save money on future mailing. You also protect your brand by not continually contacting someone who isn't ready to sell you their home.
Benefits of Using Profit Drive for List Stacking
Profit Drive offers a solution for your list stacking needs. Our solution saves you time and money, helping you identify your most qualified leads for campaigns. It's easy to get started, and then you can spend more time closing sales.
First, import your properties lists and tag each property using the factors listed above, along with any others that are pertinent to your area. For example, if you have a vacant properties list, upload it with a vacant properties tag. If you have a separate list for code violations, upload it next. Profit Drive automatically identifies previous imports and adds the new tag. This way each property is only listed once in your list database.
You can upload as many lists as you have until your complete list is ready to use. Then, Profit Drive helps you efficiently sort data according to your factors. Choose one or many factors until you reach your desired result. Each if you only want to send a single postcard, we still offer the best rates available.
Our list stacking solution also offers direct mail management. Once you select your list, you can trigger a direct mail and check one project off your list with no additional work. That's because we can print one-off postcards in a batch with other orders. This allows us to honor a better rate no matter how many postcards you want to send.
Simply upload your print-ready postcard file and we take care of the rest. AS you receive 'do not contact' requests and learn other details about a property, you can update those in the Profit Drive system. You can also export your list to contact the property on your won.
Ready to Get Started?
List stacking can be the turning point for your real estate business. After all, word of mouth is the best advertisement and when you attract more sellers through hyper-targeted campaigns, you win over more work of mouth recommendations too. That means more opportunities to buy homes for cheap. Let us help you get started today. It's quick and easy to bring automation to your workflows and list stack future campaigns.