How to Dominate the Real Estate Market with Direct-to-Seller Leads

In today’s challenging real estate environment, finding profitable deals that pencil out isn’t as straightforward as it used to be. As interest rates remain elevated and inventory tight, competition is fierce.

Traditional approaches—like scouring the MLS, waiting on agents, or relying on wholesalers—often mean slimmer margins and less control.

However, there’s a proven way to regain the upper hand: going direct-to-seller.

Why Go Direct-to-Seller?

Relying on wholesalers or agents involves waiting for deals to appear, often with significant markups.

By building a system that goes straight to homeowners looking to sell, you create a more consistent and controlled pipeline of opportunities.

Direct-to-seller marketing gives investors an edge—reducing competition, increasing potential profit margins, and putting you in the driver’s seat of deal flow.

The Power of a Multi-Channel Marketing Approach

To truly dominate any market, you need multiple marketing channels working in tandem. Cold calling may be your first step, but supplementing it with direct mail, PPC advertising, or other targeted outreach techniques creates a robust, reliable ecosystem for consistent lead generation. When these channels are executed effectively, you’ll no longer wait for deals; you’ll create them.

Optimizing Cold Outbound Marketing

Among the various marketing methods, cold outbound calling stands out for its relatively low barrier to entry and high potential volume. With the right team—professional, well-trained “phone assassins” who know how to navigate conversations—you can transform raw data into a steady stream of qualified leads.

This involves:

1. Precise Targeting: Begin by identifying your “buy box” criteria (e.g., property type, location, price range) and overlay known motivators such as pre-foreclosure status, vacancy, or absentee ownership.
2. Relentless Outreach: High-volume calling filters through hundreds of uninterested parties to uncover that one homeowner ready to engage.
3. Thorough Qualification: A successful operation doesn’t just pass along anyone with a heartbeat and a house. You want leads that have been screened and are ready for serious discussions. This allows your closer to step in and negotiate effectively.

When to Implement a Direct-to-Seller System

If you’re a newer investor, buying one or two properties a year, you might still rely on wholesalers or simple on-market deals. But once you’ve built a small portfolio and have a dedicated salesperson on your team, it’s time to go direct. With the right CRM, well-defined processes, and a proven marketing partner, you can scale your acquisitions from a handful of deals to a steady monthly pipeline.

Sales Skills: The Often-Overlooked Secret Weapon

Generating leads is only half the battle; converting them into signed deals is the other. Many investors underestimate the importance of sales training. Scripts, objection handling, and consistent follow-up protocols turn warmed-up leads into profitable transactions. Good salesmanship isn’t just a perk—it’s a necessity. Investors who master communication and negotiation will stand out in the marketplace, build trust with sellers, and close more deals.

Building Out Your Arsenal: From Flips to Creative Financing

Direct-to-seller marketing doesn’t just help you find flips. Some leads may not be ideal for a straightforward fix-and-flip project, but they could be perfect for creative financing structures or buy-and-hold strategies. When you control lead flow, you control your destiny. That can mean cherry-picking the absolute best deals—whether it’s a straight cash purchase, a subject-to arrangement, or a seller-financed opportunity.

Adapting to Market Shifts

While today’s environment may seem challenging, it also means more sellers are coming to terms with current conditions. As homeowners realize that interest rates won’t magically drop soon, many are ready to move on regardless, which creates new opportunities for direct-to-seller investors. By staying ahead of the curve, continuously improving your marketing channels, and sharpening your sales skills, you can thrive—even when others struggle.

Final Thoughts

In an industry where patience and persistence pay off, building a direct-to-seller funnel is an investment in your long-term success. By developing a multi-channel marketing approach, honing in on cold outbound calling, and perfecting your sales process, you’ll position yourself not as a market follower, but as a market leader.

With these strategies, you can grow your portfolio, improve your margins, and achieve the financial freedom that comes with controlling your own deal flow.

Get started on optimizing your portfolio with a tax strategist. Reach out today.

Transcript

Introduction

Announcer: You’re now listening to The Tax Smart REI Podcast—the number one tax podcast for real estate investors.

Thomas Castelli (00:06): Hey everyone, thanks for tuning in to this week’s episode of The Tax Smart REI Podcast. Today, we’re joined by Scott Morse, CEO and founder of Lamassu Leads, and host of the “Leads to Deals” podcast. He helps investors find motivated sellers to acquire properties directly. We’re going to dive into all of that in just one moment.

Thomas (01:15): Scott, thank you so much for taking the time to join us today. Would you be able to give our listeners a little overview of your background and how you got involved with real estate?

Scott Morse (01:20): Absolutely. Number one, thank you for having me here, Tom. I’m a big fan of REI, though I’m not married to it. I made my money in different marketing companies and verticals, mainly in the legal profession—feeding attorneys leads, though I’m not a lawyer. About four and a half years ago, I discovered the real estate investing vertical. I took principles from industries where I’d made a lot of money and applied them to REI.

Originally, someone who borrowed capital from me for deals suggested I try marketing directly to motivated sellers. I felt the industry was ripe for disruption in wholesaling, single-family, and now self-storage as well.

Discussion on Finding Deals 02:29

Thomas (02:29): The big question today: It’s getting harder for people to find deals that pencil out with interest rates where they are. How do you help your clients dominate in any economy?

Scott (02:34): “Dominate” is the key word. If you want to move from hobbyist to full-time, you need multiple marketing channels. It’s like setting up bowling pins: first you set up your cold outbound, get it producing consistent leads, then move into direct mail, PPC, and so on.
My experience shows the most robust, low-barrier channel is cold outbound marketing. I’m currently in a 12,000-square-foot call center full of “phone assassins” who help our clients dominate the outbound channel. This should be one of multiple channels you have to truly dominate.

Direct-To-Seller Approach 03:54

Thomas (03:54): So you’re basically helping investors go direct-to-seller, finding motivated sellers and cutting out wholesalers and agents?

Scott (04:00): Exactly. My ideal client is an investor who wants to cut out wholesalers and their big markups. They want direct access to sellers. I provide leads not only to top wholesalers but also directly to top investors. The idea is to have a consistent high-volume flow of qualified leads from outbound calls.

Comparing Profitability 04:49

Thomas (04:49): How much more profitable can going direct-to-seller be compared to using agents or wholesalers?

Scott (04:55): It should be more profitable, but it’s not always just about profit—it’s also about control. You’re not waiting for deals; you’re creating them. On-market deals are a marketing channel too, but they can be competitive. Direct-to-seller reduces competition, usually increases your spreads, and gives you control over your deal flow.

Handoff Process 05:59

Thomas (05:59): When you find these motivated seller leads, do you close them on behalf of the investor, or do you just deliver them up to a certain point?

Scott (06:04): We handle everything up to the “20-yard line.” We do all the data work, the skip tracing, the initial qualifying conversation of about 14-15 minutes to ensure they’re motivated. Once we have a highly qualified lead, we hand it to the investor. The investor’s team then negotiates the deal and closes it.

Markets Served 08:34

Thomas (08:34): Which markets do you serve?

Scott (08:34): It might be easier to say where we’re not. We’re in around 60 markets nationwide. We cover most major markets except a few like Montana, the Dakotas, Wyoming, and Washington State. Otherwise, we’re pretty much everywhere real estate activity matters.

Property Types 09:13

Thomas (09:13): What types of properties are you targeting?

Scott (09:19): Primarily single-family asset classes. But that can vary widely, from a $30,000 house in Detroit to a $1.6 million home in LA. We’re making 46 million outbound attempts a year, gathering a lot of data on seller behavior and motivation.

Seller Motivations 10:57

Thomas (10:57): Are you seeing a trend in why people want to sell? Like foreclosures or other common reasons?

Scott (11:02): There’s always talk of foreclosures, but I haven’t seen a huge uptick. What we are seeing is people accepting the reality of interest rates. After waiting and waiting for them to drop, many sellers are now ready to move on anyway. Downsizing due to age, health issues, or needing to free up equity without costly rehabs is common. That kind of motivation is really consistent right now.

Process Behind the Scenes 11:35

Thomas (11:35): Can you take us through the process of how you find these leads before they reach the investor?

Scott (11:41): Sure. Once the investor gives us a geographical target and their buy box, we go “shopping” for them. We pull all records that match their criteria, then overlay known motivators—pre-foreclosures, divorce, vacancy, absentee owners, tired landlords, and so on. We then relentlessly call through that data with our highly trained callers to find that one motivated seller out of hundreds. Once found, we pass that lead to the investor.

Acceptance of Interest Rates 13:59

Thomas (13:59): Are you seeing an increase in pre-foreclosure leads due to interest rates?

Scott (15:07): Not yet. We read about it, but we’re not seeing it in the data. In fact, the last 90 days have been better than the previous 6-8 months. People are accepting rates and moving on, which creates more motivated sellers.

Ideal Client Profile 17:57

Thomas (17:57): Who’s your ideal client? Do they need a team, a CRM, or experience?

Scott (18:03): Yes, they should have at least a salesperson in-house, a CRM, and some experience with direct-to-seller marketing. We’re really looking for established investors doing several deals a month who can handle a steady lead flow. The mom-and-pop investor doing one or two deals a year might be better off working with wholesalers until they’re ready to scale.

Cost Structure 19:56

Thomas (19:56): Let’s talk costs. How do you charge?

Scott (20:01): It depends on volume and market. A minimum might be around $5,500 per month and can go up to $40,000 for high volume. Each market has a different cost per deal. For instance, in Central Florida it might cost $4,000-$7,000 per deal in marketing. The investor just needs to ensure that fits their profit model.

Working with Flippers 21:12

Thomas (21:12): Do you work with flippers?

Scott (21:18): Absolutely. Most of my investor clients are flippers, not buy-and-hold. Some also incorporate creative financing strategies, cherry-picking deals that don’t work as flips but work as subject-to or seller-finance. That way, they build a portfolio on deals they might have otherwise thrown away.

Sponsor Message 22:44

Thomas (22:44): Are you tired of working with generalist CPAs…. If you’re ready to elevate your game, head over to therealestatecpa.com/podcast and request an initial consultation today. We’re accepting clients for 2023 and 2024. That’s all for now; let’s dive back into today’s episode.

Sales Tips 24:01

Thomas (24:01): You mentioned sales training. Can you give two or three sales tips for investors who get these motivated seller leads?

Scott (24:05): First, people don’t do what you expect; they do what you inspect. Supervise your sales team. Listen to calls, track KPIs. Second, have a script with known objections and rehearsed rebuttals. Third, don’t be an order taker—ask for the business. So many in REI don’t ask for a decision today; they just send the contract and wait. Close the deal by actively guiding the seller.

Training Resources 25:53

Thomas (25:53): Do you help clients set up this process?

Scott (26:04): Yes, we have a training portal. While I’m not a guru traveling around teaching, I want my clients to succeed. The better they do, the longer they stay and the more they invest in marketing. We provide evergreen sales fundamentals that apply in all situations.

Podcast: Leads to Deals 27:19

Thomas (27:19): Tell us about your podcast, “Leads to Deals.” What do you cover?

Scott (27:19): On “Leads to Deals,” we discuss everything from generating leads to converting them into closed deals. My passion is the art of communication and sales. Sales changed my life and I believe it can change many investors’ lives too.

Personal Investing 28:59

Thomas (28:59): Do you invest in real estate yourself?

Scott (29:01): Yes. We have around 40 residential properties in Florida and some self-storage. Recently, we shifted some Airbnbs to a platform called PadSplit, renting by the room month-to-month. This helped us maintain profitability after Airbnb revenues declined.

Final Tips 31:21

Thomas (31:21): Any final tips?

Scott (31:21): Sales skills are critical. Study sales. Zig Ziglar, Tom Hopkins, Jordan Belfort’s Straight Line Technique—understand a methodology and repeat it until it’s second nature. Good salesmanship will increase ROI, reduce wasted leads, and create consistency in your business.

Closing Remarks 36:42

Thomas (36:42): Thanks for coming on, Scott. We’ll put all your info in the show notes.

Scott (36:47): Thanks for having me, Tom.

If you’re interested in reducing taxes through real estate investing, feel free to contact us for more information or consultation.

Disclaimer: This podcast summary and transcript were partly generated by AI and may contain some errors or miss key points from the audio recording.