Here’s a strange fact for people not familiar with Minnesota: almost a full third of the Mississippi River rolls through the state. America’s greatest river curls and unfurls for nearly 700 miles before straightening out. Even though there are spots north of Minneapolis where you can jump across it, this is truly the state that owns the river.
While there is a lot about Minnesota and Minneapolis that many people don’t know, it’s a city that I know like the back of my hand. I make my living flipping houses here and have seen the market ups and downs. Although it is a well-kept secret—we here in the Twin Cities hate to brag—this is still one of the best housing markets to invest in. And, during a potential recession, it could be even better.
But, to achieve your goals of flipping houses in Minneapolis, you have to know the best way to get leads. This is a market that requires you to be smart, and that means knowing more than river trivia. It means knowing how to work the market.
Understanding the Minneapolis House Flipping Market
Both prices and supply of these have reached record highs over the last few years. In 2019, the median home prices reach $294,000, which was a record. In addition, inventory has been extremely tight across the region. In 2019, the stock of available homes dropped 5%. People are looking to buy, but they don’t have a ton of options available to them. All of this has combined to make this a seller’s market.
So, while you might not have a hard time selling your rehabbed investment houses, but finding them, to begin with, can be challenging. Last year, the Minneapolis Star-Tribune reported that investors made up nearly 10% of all Twin Cities purchases last year. Some of that was me. Some of that might have been you. The truth is, this being a good market means there is a lot of competition. And, when other investors see the opportunity in economic upheaval, it’s likely to get even tighter.
This can be pretty dangerous for your business. You rely on having projects. In a competitive real estate investing market, you could feel forced to overpay for a desirable property or settle for one that is more than you can handle. Either way, it might make it tough to turn around with solid returns.
That’s why the quality of your leads matter, perhaps more than ever.
Ideas for Getting House Flipping Leads in Minneapolis
Now, you might already be trying some of the more common ways to dig up leads here in Minneapolis. We’ve all probably tried buying lead lists, attending property auctions, and driving for dollars. These real estate investing lead generation strategies work, sometimes. But, they aren’t enough to get you a steady stream of projects, especially when others are doing the same—and homeowners are increasingly wary of social contact
There are some more uncommon marketing ideas for real estate investors that you haven’t tried yet, though, and they don’t require you to approach homeowners invasively. Here’s a few:
- Activate social media. Folks are spending more time indoors—and online—lately. So, why not meet these distressed homeowners where they already are? It’s actually possible to find motivated sellers on Facebook. Social media can be your foot in the door, so to speak.
- Send handwritten notes. A bit old-fashioned, I know, but that’s exactly why it may work. Homeowners are deluged with information and advertising They simply don’t have bandwidth left to process yet another piece of ‘noise.’ But, a polite and friendly handwritten note can help them feel connected to you—and your business proposal.
- Do the legwork on Zillow. Let’s face it, you might not be feeling like going out much these days, either. But, that doesn’t mean you can’t use Zillow to reach distressed homeowners. You can explore up and coming neighborhoods, find preforeclosures, and even contact homeowners directly.
Any of these have the potential to deliver more leads to you. But, you will be putting in the time and effort to be sure. Frankly, there is a better way to get leads for flipping houses in Minneapolis.
Minneapolis House Flipping Made Easier
In some ways, I consider myself lucky. I’m pretty established in this town and don’t need to create a sense of urgency to find projects just to try to keep momentum. But how did I do that? Well, hard work, of course. That’s the key. But another important thing was becoming an independently owned and operated HomeVestors® franchisee.
See, becoming a franchisee means that I get qualified leads delivered right to me. These leads are from distressed homeowners who want to sell quickly. They see the nationally-known and trusted “We Buy Ugly Houses®” ads, and they call up a local HomeVestors® franchisee like me.
I can find Minneapolis real estate investing opportunities without having to look at the same listing as everyone else. There tends to be a lot less competition. And, the seller already has some built-in trust, since they are the ones that reached out.
In a competitive market, you have to work harder. You have to be smarter. I know that becoming an independently owned and operated HomeVestors franchisee gave me an edge.
If you’re interested in seeing what being a Minneapolis HomeVestors® franchisee can do for you, request information today.
Each franchise office is independently owned and operated.