Lead Type Glossary

1. Cash Buyer:

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.

2. Delinquent Tax Activity:

These properties have had a tax delinquency noted in the past 36 months.

3. Foreclosure Activity:

These properties may go through the foreclosure process, but may not have entered or completed the foreclosure process yet.

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.

4. 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.

5. 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.

6. 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.

7. 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 its 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.

8. Long Term Owner:

The same party who has occupied the house for the past 25 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 25 years or there is no recorded transfer date from the county, which means the ownership predates the county record keeping 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.

9. 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.