Financial Stability Score (FSS) allows the real estate investor to target homeowners who are likely to be struggling financially in their mail campaign.

In a nutshell, FSS offers an additional level of pressure for your motivated sellers list.

The FSI model was originally developed for companies selling high-ticket items where customers take out a loan. For example, window replacement companies and car dealers only want to mail to people who are likely to qualify for a loan. It keeps them from wasting postage and salesman’s time to bring in tire-kickers with low scores. FSS takes hundreds of data points and lifestyle factors into account, making it a much better indicator than income alone.

As a RE Investor in search of “motivated sellers”, you can utilize the lower end of the stability spectrum for their seller lead list. The good news is that this can be applied to various lists including Absentee Homeowners with Equity and Seniors with Long-Time Ownership (ready for downsizing)

The Financial Stability Indicator is a 2-digit score on a scale of 1-30 that is assigned to households. A score of “01” indicates the households at the top – very financially comfortable and score of “30” would be people who are really struggling. Financial data was used in building the model, but the ranking does not directly correlate to the credit scores. There are very few homeowners with a score under 20, as most of those would never have been able to qualify for a mortgage.

Whether you are a new or experienced investor, you should consider testing FSS on your next direct mail campaign.

This is especially true in competitive markets because it allows you to target groups who aren’t getting offers from a lot of other investors.

RE-Investor List is a leader in bringing this alternative to the market. It is especially valuable to investors in busy markets where Absentee Owners are already getting multiple offers to sell their homes. Tax delinquent and foreclosure lists are either very difficult to get or are also getting too many offers.

  Two combination examples are:

  • Seniors with Long-time Ownership: often ready to downsize or transition to assistance.
  • Homeowners with Low Financial Stability Scores (FSS): Struggling financially and likely ready to cash in on their asset.

Both these categories have additional advantages

  • their homes probably don’t haven’t been updated
  • they may have deferred maintenance.

They won’t be expecting the same money as their neighbors with the shiny new kitchen and fresh paint. 

Get in touch with one of our brokers today.