This blog is dedicated to showing you the ropes of how to market as a real estate investor. It's NOT how to do piddly-diddly marketing that gets you a couple responses. I want your phone (or your assistants) to ring off the hook... Actually, I want you to be so swarmed with hungry sellers you get yourself an answering service just to handle them.
If you're new, frankly you need a storm of leads to get in the game. If you're seasoned as an investors, you need/want more deals to fill the pipes.
So why would I do this?
Well, a friend of mine and I were having drinks one night and talking about how we got started. We talked about all the dumb rookie marketing mistakes we made and all the subtle things we did right (though we stumbled on a lot of it). He reminded me that we've slammed the Baltimore/DC area with so much marketing that I've got 152 (average) calls per week. Then he reminded me that people actually offered me serious cash money to buy some of my phone numbers. So as we kept ranting, it started to seem like a good idea to tell others just how to do this sort of thing!
So what now?
Well truth is, I don't know. I'll start posting on this blog, but...
I want your feedback!
Yup... I want to know what it is you'd like to know about getting truck-loads of motivated sellers. So tell me what you want to know about! email me at tbudzich@gmail.com and post a reply to this message. Let me know what you want to know how to do, and I'll get busy posting!
Stay tuned...
5 comments:
Just wanted to post to show support for the blog.
Ted,
I saw your post on the MAREIA bulletin board and looked at your blog. I’m looking forward to sharing marketing experiences with other investors. Somewhere along the line, I realized that the success of my real estate investment business is almost totally dependant on my marketing. After doing this couple of years, I have some cash reserves and the resources I need (hard money, private money, contractors, etc.). Now I spend most of my time focusing on lead generation.
I’m trying to introduce at least one new marketing technique every couple of weeks. My most effective technique so far is road signs. They produce lots of calls, but they tend to be poorly qualified. And with the local municipalities cracking down on the signs, this technique may be doomed.
I have tried direct mail, but my results were poor. I suspect that this was due to poor list selection, not following up, etc. Direct mail will be my next big advertising venture. If anyone has any advice, please share it with us.
What is the minimum I can expect to spend on a marketing campaign. I receive so many direct mailings and hear the same from others that I'm really skeptical about direct marketing. I became an affiliate with ibuyhouses.com -- appeared to be a waste. Even though there were motivated sellers, they needed more for their properties than they were valued. I would like to hear more about how to get my phone to ring off the hook. What would it cost to get 2-3 calls daily?
I think the blog is a good idea. There are plenty of investors out there with plenty of motivations for doing the business and lots of experiences. What you are doing is wonderful as most successful investors want to be paid for sharing their knowledge.
Thanks
Here are a few methods I use Ted.
• Look at bulletin boards, local papers and small independent publications. This goes for every publication you get. Make sure you get one of the first copies off the press. Go to the facility that houses the presses and get your copy before the ink has a chance to dry. Let no one beat you to the punch.
• Better yet, advertise yourself and get people who are thinking about selling to call you before they actually tell the world through an ad.
• Look at the legal section of the newspapers. Contact heirs, attorneys and sales in the garage or estate sale sections. Also, 20% of people who have garage sales are planning on moving soon. Ask about the house or their neighbor’s homes. Always keep your antenna up!
• Your odds of success increase when you choose large population centers and remain in the market constantly on the lookout for your type of deal.
• Look for vacant houses, run down, fire-damaged, abandoned, with city notices evident. Talk to the neighbors of these homes. They usually know who owns it and what is going on. They have an interest in seeing it restored to beauty. It sure is a shame you can’t look in the mailbox to see who is receiving mail at the property in question – wouldn’t that be easy?
Don’t be afraid to walk up to a property and look in a window to confirm that it is indeed vacant. Don’t endanger yourself by getting bit or shot! Use common sense. Contact out-of-state owners through property records, by letter and/or phone. Leave your cards on the door!
• Oreo stands for Other Real Estate Owned. Make friends with your local lenders and let them know you are the one to call when they have a foreclosure looming or in progress. Hint! If you will Pre-qualify with lenders beforehand they may call upon you sooner. Pre foreclosure then Auction, if not sold at auction then it goes back to lender as O.R.E.O.
• Again, watch the local paper for foreclosure auctions, tax sales, HUD and VA listed properties. Note: Auctions held in bad weather where the property absolutely must be sold, are your best chance to limit competition and get property at rock bottom prices, due to the fact that there is no low limit on what can be accepted (no reserve) you may win big.
• Real estate agents are going to try to sell you something! When you approach them be very specific with them and tell them to only call if they have an absolute steal. Ask agents to give you those expired listings, since they couldn’t sell them. Suggest a 2% commission if they will assist with closing the paperwork after you make the deal with the seller on your own.
• Don’t be so selective. If the property is an absolute steal, lock it up and sell it to somebody who does like to work with that type of real estate. Condos, trailers, residential lots. Get the option and hand it off to another buyer. Look for distressed sellers in addition to distressed property.
• Post fliers everywhere – colleges, laundromats, shopping centers, bowling alleys, public bulletin boards, churches and local businesses. Wherever large numbers of people congregate, give them a chance to give you a lead on a hot deal. (I.e. I pay $500.00 to you at closing if I buy a house that you told me about! Do you know anyone who is selling property? Please call [your name] at 555-1212.) Print quality business cards.
• Join organizations of all types. The sky is the limit. There are so many –just pick the ones that you would be interested in truly being a member in and let it be known you pay bounties for consummated (closed) deals.
When you use headhunters, leave out no one. Property managers, moving companies, relocation services, neighbors, landlords, tenants, the mailman, the paper boy, gardeners, landscapers, service technicians, pest control people, friends, acquaintances, relatives and other investors. You name it! Everyone should know they can make $500.00 if you end up buying a property they tell you about – enlist your army! On commission, only pay when you close the deal! Give each of your soldiers stacks of your cards for exponential growth.
A special note here: Water, Gas, and electric company personnel who shut off
utility meters can be very good bird dogs, when it comes to finding property that
is in trouble or vacant. give them those bounty cards below.
• I suggest you have at least 10,000 business cards made with your offer of the $500.00 bounty and hand them out in stacks to everyone you can.
• As you grow, you might consider T.V., radio, phone books, billboards, street benches, bumper stickers, bigger commissions. Use your imagination.
• Put up signs telling people you buy real estate.
• Make multiple lowball offers on overpriced properties and walk away. Don’t deposit earnest money but they may stew on your offer and call you a month later accepting your deal. Leave the offer with them.
• Older people should not be left out. They are very valuable informants. They know everything and need people to talk to! Listen to them.
• Go to free seminars on real estate. Not only to learn about real estate but also to capture names and circulate amongst real estate minded people. Once you have their names, call your own club meeting and network to prosperity. Find your mentor here.
• Go to where people are buying those “by owner” signs. Ask them what they are selling. Follow them home and get the first look! Be first or lose the deal.
• Try offering 15% less than what you intend on paying. You never know – they may accept it. If they don’t, you can still negotiate up to 15% more and get it for what you originally were willing to pay. Any higher, walk away but leave the offer on the table (the offer stands).
• Make your offer easy for the seller to understand. Get the option to buy but use a contingency to protect yourself. Iron out the details later but lock it up now!
• Buy from sellers who tend not to care: seized, foreclosed, tax sales, corporations, non-profits, disinterested heirs, probate attorneys and private auctions.
• Try just helping someone to sell his or her property even if you don’t want it. Be a friend and offer to help for nothing in return. You will be amazed at what happens when you sincerely try to help with no thought in mind of making money. This is a magic bullet in disguise.
Can never have enough good ideas, keep'em coming Ted, I like your style! Dan Auito at www.magicbullets.com
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