Author Archive
Attracting Even More Motivated Sellers in an Ever Changing Market – Part 1
Posted on January 12, 2016 byI am often asked whether or not there are still good real estate deals out there with the market constantly changing like it has been. The real estate market will always experience ups and downs and as real estate investors we need to be trained on utilizing the best tools to locate the motivated sellers within those markets. We also need to learn to be flexible in our marketing in order to bring in the highest number of new deals.
I often hear comments like, “you were just lucky” or “you got in on the real estate game when there were still lots of deals out there, it’s just not that way anymore”. Those folks couldn’t be more wrong in their thinking. This is just “stinkin’ thinkin’” as my friend Ron LeGrand would say. There are always deals to be made if you know where to look for them no matter what your local real estate market is doing. This is just a matter of having a marketing mind.
Using direct mail to attract motivated sellers is always one of the best tools in the real estate business for locating highly motivated sellers on a regular basis. I also utilize other tools along with my direct mail, such as lumpy mail pieces to make my direct mail stand out or I will send CDs to my sellers explaining to them why they should work with me. Using a little creativity with your direct mail campaigns will increase the response rate significantly. There are several reasons for this. Read More→
Long Term Benefits of Using Direct Mail to Locate Motivated Sellers
Posted on December 11, 2015 byAs you probably know if you have been reading my articles, I strongly advocate using direct mail to locate highly motivated sellers for your Real Estate Investing business no matter what market you live in and no matter what your real estate market is doing. With the market being in its current state of affairs, there are more motivated sellers than ever before if you know how to find them.
As a seasoned Real Estate Investor I fully understand that I need to be locating the most highly motivated sellers in order to construct the very best deals. Remember, the profit on a deal is made when you buy a property.
In addition, while many investors enjoy working with pre-foreclosures, short sales, REO properties and buying houses on the court house steps, these properties take time to close on and there is a lot of competition for them.
In the meantime you need to be able to continue to fill your funnel with cash producing deals in order to keep your business moving forward. Working with motivated sellers that your competition knows nothing about is definitely the way to accomplish this goal and direct mail is the best technique to draw in these very motivated sellers. Read More→
How to Locate Highly Motivated Sellers Using Business Cards
Posted on November 11, 2015 byFinding ways to attract motivated sellers to your Real Estate Investing business is probably the most important element in your business, since without the motivated sellers, there are no deals to be made.
There are several different ways to find motivated sellers for your real estate investing business using a shot gun type of approach to locate as many sellers as you can. A shot gun approach is where you “blast” your message out to your market and hope that there are motivated sellers among the bunch. Some of these techniques include yard or vehicle signage, business cards, t-shirts and hats, door hangers, pens, buttons, business card magnets, flyers and auto shades. What I really want to focus on today though, is using business cards to locate motivated sellers.
When having business cards printed, there are a couple of things you want to keep in mind. One is that your business card needs to have a grabber headline and it needs to catch people’s attention by looking different from every other business card out there.
Use bright colors and a benefit driven message on your business cards. List the reasons on your card why that seller should work with you and how you can help them. Remember business cards are a highly effective inexpensive lead generating tool for your business. On your business card, you want to provide your potential seller with a couple of different ways to contact you so they can contact you in the way that is most comfortable for them. So for example your card might include your phone number, your email address and a website for them to check out. The more ways you give a potential seller to contact you, the more of them will. Read More→
More Unique Strategies to Locate Motivated Sellers
Posted on October 22, 2015 byI am always excited by the opportunity to share as many ideas as I can with regard to locating motivated sellers for your real estate investing business. After all, without the sellers, there are no deals. I also like having the opportunity to share ideas for both the beginner investor and the seasoned investor alike within a variety of budget constraints. One of my favorite techniques is using flyers to get the message out there that I buy houses.
Flyers are a great way to target and locate motivated sellers. They can be used to target specific neighborhoods and subdivisions where you want to buy houses. You can either hire a company to hang them door to door for you, or hire older children to hang these flyers for you.
Do follow up by driving by the area to make sure the work got done. When using a company to lay flyers for you, make sure you get references from satisfied customers first. There are some companies out there that will take you money and not get the work done, so you want to check their reputation before hiring them. Flyers are a wonderfully inexpensive way to locate sellers and this technique can be repeated either monthly or quarterly depending on your time and budget. When we used to lay flyers door to door ourselves, we would take one weekend morning to do this. My husband and I would each take one side of the street and lay flyers door to door. We would keep a chart of the neighborhoods we had done so we could track our results. You always want to be tracking where your leads are coming from so you know which of your marketing campaigns are working best. Interested potential sellers will hold on to these flyers until their situation changes and they are ready to sell, so laying flyers door to door becomes one of your long term marketing techniques. Read More→
How To Use Promotional Items And Event Sponsorships To Locate Even More Motivated Sellers
Posted on September 17, 2015 byThere are many creative ways to find motivated sellers and promote your business. One of the great ways to get positive exposure for your business and give back to your community is to sponsor events or teams. There are lots of great ways to do this.
You can sponsor sports teams such as soccer, softball, bowling or track. You can also participate in a local golf tournament for charity. One of the ways to do this is to provide uniforms or shirts which of course have your company information on them. Walk-a-thons are another great way to achieve this goal. This is a good way to get advertising out for your real estate investing business and support your community at the same time.
Another way to promote your real estate business in a positive way is to sponsor events or take part in local functions by donating promotional items. For example, if your community is having a local fair or parade, you could donate balloons to be given out to the children which have your company name and logo on them. These are always appreciated and it’s a good way to get your company information out to the public. These events usually get press or television coverage as well. Imagine a news shot of a parade where every child is holding a balloon with your message on it! Or, imagine the winning team getting their picture in the paper wearing shirts with your message on them. What better advertising could you ask for! And what better way to let people know that you buy houses! Read More→
Running Your Rental Business On Auto-Pilot
Posted on August 10, 2015 byThe rental business can be very lucrative for the real estate investor. It can also be a pain in the neck. The trick to an effective rental business is the management. We have many rentals as a part of our real estate investment business and we have always said that managing tenants is like raising another set of children unless you do it correctly.
The first thing you should do is to decide if you are going to manage your properties yourself or if you are going to have someone else do it for you. There are ways to automate these systems either way and I will discuss both. You just need to choose the system that works the best for your own needs.
You can use a property management company and run your rental business pretty much hands-off. Just remember that there are costs involved in doing it this way and you don’t have as much control. If you do choose to work with a property management company check references before doing so. In the beginning, keep a closer tab on what’s going on with your properties. Some property management companies are definitely better than others and some will take better care of your properties than others.
When using a property management company who is going to place tenants in your properties, make sure they are using a reputable tenant check company and make sure you look at the applications and tenant check reports of prospective tenants before they are placed in your property until you are sure that you and the management company are “on the same page” regarding the tenant requirements you want for your properties. Make sure your property management company understands your personal parameters when placing tenants in your properties. Read More→
How To Use Signage to Locate Even More Deals
Posted on July 6, 2015 bySignage is an important tool for you to use in your real estate investing business. Using signage is another inexpensive way to draw motivated sellers and deals to you. Many real estate investors find that signage can produce more deals in a year than some of the other methods they use in their businesses. Once again, you need to test and track the results in your own business. There are several different types of signage you can use. Some are permanent, some are temporary. Some are very inexpensive and some will cost more. I will discuss several different types of signage I have used in my own business.
One type of signage you can use is magnetic signs or vinyl lettering that goes on your vehicle. You can also “wrap” a vehicle with signage. Wrapping a vehicle means signage all the way around it. There are sign companies who will design this type of signage for you. This is a little more expensive and a little more permanent; however, it can be easily removed should you decide to sell your vehicle. Magnetic signs work very well, especially if you only own one vehicle. Sometimes you will be working with a seller who doesn’t want their neighbors to know they are selling their house and you will need to remove your signage before going to see that seller. Make sure your message is short and to the point since other drivers have only seconds to see your message unless your vehicle is parked. Read More→
Get Huge Response Rates And Locate More Motivated Sellers Using Lumpy Mail
Posted on June 8, 2015 byOne way a lot of real estate investors use lumpy mail is when they are working the pre-foreclosure market. These people are getting stacks of mail and post cards every day from mortgage companies, attorneys and other investors. There is a lot of competition for these properties so you need to do something to make your mail stand out and look different from the others so it gets opened first. Since there are fewer foreclosures these days getting noticed is even more important to your success.
There are several ways to do this. One is to simply insert something into the envelope if you are mailing a letter. It might be a piece of candy or gum with information about your business with a tag line of “In a sticky situation? Call us first”. Or, if you are using a piece of candy it might say, “Call us first, we can make you a sweet deal”. It just needs to be something that makes your mail piece look different, and makes it stand out from everyone else’s.
You could also use a lumpy mail piece like a penny, then within the body of your letter; say something like “a penny for your thoughts on selling your home”. You just need to be using something that grabs the seller’s attention. Anything that feels different or makes noise will accomplish this for you. Be creative with your mailings and you will create more leads and do more deals. Read More→
Diversifying Your Business With Multiple Streams of Income
Posted on May 11, 2015 byOne of the best ways I know of to grow personal wealth is by creating multiple streams of income in your life and in your business. In an uncertain economy, it is important not to place “all your eggs in one basket.” In order to protect your income long term you need to consider diversifying your investments so whether in a bad economy or a good economy you still have income from some of your investments.
As a real estate entrepreneur, there are several ways for you to accomplish this goal. One way to create multiple streams of income has to do with the way you purchase properties and structure your deals. You can wholesale properties for immediate income, or you can lease/option properties so you get some money today, some each month and a big chunk of cash at the end. When you do a lease/option with a tenant buyer, just remember to increase the initial asking price of the property by at least ten percent so you realize the gain in property values over the year. If you extend your lease/option for a second year, you get another chunk of cash; you increase the price again and continue to get a monthly income from it.
You can also hold onto rental properties and have someone else manage them for you. This way, you get to go the mailbox, get checks and not have to do any of the work or deal with the tenants. Apartment complexes and storage units are another great stream of income, especially when they are managed by someone else. Not only do you realize the gain on the property long-term but the monthly checks are even bigger. Read More→
Secrets of Being a Successful Landlord – Part 2
Posted on April 7, 2015 bySo now your tenant is all moved into your unit. When a tenant moves into one of my units, I provide them an inspection sheet that goes over the condition of all parts of the unit (paint, doors, appliances, etc) which they sign off on stating that they agree to the condition of the unit when they moved in. We give our tenants fifteen days to go through the unit to see if there are any repairs needed that may have been missed by my rehab crew. These repairs are done at no charge to the tenant. After fifteen days, the tenant is charged the first sixty five dollars of all repairs. This keeps the tenant from calling us to repair small items like toilet guts for instance.
I actually added this to our lease after a tenant called us at 6:30 one evening to tell us her kitchen sink was stopped up. It turned out that her small child had stuck a cup down into the garbage disposal. It just needed to be removed. The way my lease reads now, that tenant would be charged a fee of $65.00 to have my repair guy go out for something that wasn’t a repair. This one clause will save you from a lot of unnecessary trips to your units for repairs.
I also have someone who checks my rental units every sixty days or so to make sure they are being cared for properly and that the tenant has not added animals that are not on the lease. We also make sure they have not moved in any more people who are not on the lease. This is grounds for immediate eviction. Within the body of our lease, we also cover how long visitors can stay as well so there is a clear definition as to what a visitor is and what an extra tenant is. You can also hire a property management company to handle your units, but I just feel like our units are better handled by my staff. I also send letters to the neighbors surrounding my rental units letting them know that we are interested in any input they may have about my units and my tenants. The neighbors become kind of a watchdog for me to let me know if there are any problems I should know about. Read More→
The Secrets of Being a Successful Landlord
Posted on March 9, 2015 byYou’ve all heard the tenant horror stories from people who have had tenants in properties, but being a landlord doesn’t have to be difficult as long as you learn some strategies for handling your tenants. My husband used to say that handling tenants was like having a group of children that you have to train and discipline. But it doesn’t have to be that difficult.
You do have to make some specific rules for your tenants and stick to them. Every time you change the rules you give your tenants the upper hand. You must also have an iron clad lease that specifically addresses the issues that you may have with tenants such as getting your rent paid on time. This is one area in which I am steadfast with the rules. I don’t care what the tenant’s situation is, their responsibility is to pay me on time or they are stealing services from you without paying for them. My tenants are responsible for having the rent in our post office box on or before the date it is due or they are served with a three-day notice the next morning as required by law where I live in order to begin the eviction process. There are no exceptions. We even have tenants who send their checks to me priority mail to make sure they get to me on time.
You must also take the time to pre-qualify your tenants’ right from the beginning so you can avoid some problems right from the start. Don’t just accept a tenant into your rental property because they have the money to move in. Don’t let greed be your guide. Have your tenants fill out a specific rental application. Then you must run a tenant check with a reputable company. Don’t try to do this yourself just by looking at public records. You will miss credit issues and anything that may have occurred out of state. You need to find out the information you need to know about your tenants right from the start before renting them your unit. For example, if the tenant check shows the applicant was just evicted from another premises, this certainly isn’t going to be a tenant you want in your property. Or if your tenant has had recent felony convictions, this isn’t a tenant you want in your rental unit. If your applicant has multiple animals, this is also not someone you want in your rental unit. I will mention however, that I will allow a tenant with a small dog or cat to rent my units. I find that usually a tenant who has a pet that they have had for some time will make a good tenant who will stay longer in your unit. Read More→
Don’t Leave Thousands on the Table at Closing
Posted on February 9, 2015 byOne of the things that never ceases to amaze me in the real estate business is how many investors leave hundreds or thousands of dollars on the table at closing due to errors in the closing documents. This is an area where many investors need to be educated. Many times investors get excited about the bottom line and forget to check the figures on the documents.
It is a mistake to assume that the HUD or closing statement is correct or that the closing documents are correct. The person preparing the closing statement can make mistakes. In addition, the person preparing the closing statement and documents is using figures that they have acquired from other people who could also make mistakes, such as the insurance company, the Realtors, the lender, home inspection service, or the surveyor.
You need to take the time to read all the documents carefully before closing on any deal. I have personally seen errors on the HUD at almost every closing I have ever been part of. Many investors only look at the bottom line and think “yes that’s enough money” but they fail to look at the whole closing statement, and in doing so possibly leave thousands at the table. I just had a closing take place recently where there was a mistake of a thousand dollars on the HUD. They put one of the buyer’s expenses on my side of the closing statement. I don’t know about you, but I think a thousand dollars is a lot of money to leave behind when you are entitled to it. Read More→
Techniques To Find Motivated Buyers For Your Real Estate Investing Business
Posted on January 6, 2015 byThere are so many easy ways to find motivated buyers for your real estate investing business, no matter what your current market is doing. I have several favorite methods for locating buyers for my properties which I would like to share with you.
The first technique I would suggest is using wholesale buyers for those properties you want to sell quickly. Finding wholesale buyers for your real estate investing business is fairly easy. You can either run a simple ad in the newspaper or on Craigslist advertising properties for sale on a wholesale basis to draw wholesale buyers or you can find wholesale buyers at your local real estate club.
I also suggest finding wholesale buyers through local realtors, especially those who deal with bank REOs or foreclosure properties. Wholesale buyers are always interested in finding properties to grow their real estate investing business and wholesaling properties is a good way for a real estate investor to get cash coming in immediately. Another simple way to find wholesale buyers is to simply call on the signs by the side of the road that say “We Buy Houses”. Read More→
Nine Unique Strategies to Locate Motivated Sellers
Posted on December 5, 2014 byThere are several rather unusual ways that I like to use to locate motivated sellers. I’d like to share several of my favorites with you so you can find even more motivated sellers in a non-conventional way. This is absolutely the best time of the year to be locating motivated sellers since property tax bills have just gone out to owners in many states AND the holiday season is upon us. As you know one of my favorite techniques to locate highly motivated sellers is using direct mail and during the holiday season sellers are opening all of their mail since they are getting letters from friends they have not heard from in a year. Here are some of my other favorite albeit unusual techniques to find highly motivated sellers.
The first of these is to contact auction houses in your area and work with them to help you find leads on houses for sale. I’m talking about the auction you go to on Friday or Saturday night to buy “stuff”. Where do you think these auction houses get their merchandise? They get it from homeowners who need to get rid of a household full of items. One way to find these auction houses is to look in the yellow pages or google “Auctions” and find the ads that say “we consign estates”. These are going to be the ones you will want to work with. Many times an auction house will be contacted by an heir to sell items remaining in a property to settle an estate or to simply get rid of things remaining in the property after they inherit it. They may also be working with a widow or widower who wants to get rid of their excess furnishings, sell the home, and move into an assisted living facility or with a relative. The next item of business is to get the property sold as well. You can make a deal with the owner of the auction house to contact you when these situations arise, and they will give you the information about the sellers. If you offer a fair price and the auction house gets paid a commission, this is a good way to buy houses no one else knows about. Read More→
Molding a Million Dollar Marketing Mind Set
Posted on November 11, 2014 byWhen you are looking to become successful in the real estate investing business, implementing a solid marketing plan for your business is going to be one of your first priorities. This will be the main strategy that will separate you from your competition. In addition you need to develop long and short term strategies and goals for your business as you go.
Decide what your focus is going to be regarding the type of properties you would like to purchase in your Real Estate Investing business and create a plan of action that will begin to bring in motivated sellers in droves and create deals for you. If you don’t know what exit strategies to use, make getting educated one of your top priorities. One of the best ways to do that is to work with a Mentor who can help you achieve the goals you have set for yourself.
Getting a good education in the buying and selling of real estate and having someone to hold you accountable will quickly separate you from most of your competition. You can check out my website at www.marketingmagiclady.com for some really powerful tools for your Real Estate Investing business including my personal Mentoring Program.
Don’t be afraid to do what those around you will not. Dare to be different and consistent in your marketing efforts and the results will be amazing. Niche your marketing and become an expert in your market place. Become educated within your market place so you know what your property values are and what your personal target market is going to be. Decide what kinds of deals you like best and go after them. Read More→
The Fast Track to Failure
Posted on October 7, 2014 byThe quickest route I have seen many investors take to failure in the real estate investing business is by quitting before they ever have the chance to see their business succeed. Some obstacle comes along that just feels overwhelming and instead of forging on, they just say “I Quit”. Think about it, it’s easier to just quit than it is to forge ahead and solve the problem even when it’s not the easiest solution at the moment. It’s also easier to blame the market, blame your lack of education, or just adopt the “it doesn’t work where I live” kind of attitude than to take responsibility for the success or failure of your real estate business. I have heard “want to be” investors come up with every excuse imaginable not to get started in this very profitable business, and I have heard every excuse as to why it “just didn’t work for me”.
Believe me when I tell you, I have heard it all, and I feel sorry for the folks who adopt these attitudes. They are missing out on a wonderful opportunity to change their lives forever. If I had listened to that kind of negativity or thought so little of my personal abilities when I got started in this business, I wouldn’t be the wealthy entrepreneur I am today.
There are two critical moments when you must have faith in yourself and in your business; when you first begin your business and when your business is in some kind of trouble. It’s easier to be much more optimistic at the onset, it’s not so easy when you are overwhelmed, feeling like you are being pushed in several directions, or having trouble with cash flow. Sometimes quitting may look really attractive and your friends and family may suggest to you that you quit the real estate business and get a job if things aren’t going along just the way they should. Read More→
Building Your Fortune Buying Vacant Land
Posted on September 8, 2014 byThere are lots of great ways to make a lot of money in real estate, not the least of which is buying and selling vacant land. This is an effective way to do real estate deals with no hassle, no rehab, no insurance and no worries of vandalism and theft. Plus, there is virtually no competition for these properties since many investors are simply not going after this incredibly lucrative portion of the market place. I was actually in the real estate business for several years myself before I discovered this very profitable part of the market. In addition, in this current market buying and selling vacant land is another good strategy to continue making money in the real estate business.
If you live in an area that is particularly rural, then buying and selling vacant land is a more lucrative means of doing real estate deals. Since it can be more difficult to find homes to purchase in more rural areas, vacant land is definitely the way to go. There are several different ways to find vacant land deals.
One is to simply drive around and look for them. However, since it can be kind of difficult to find addresses for properties this way, it is probably a much better idea to create a direct mail campaign to the owners of vacant land. Some of the parameters I use for this list are out of state owners of vacant land, especially those with past due tax bills or folks who have inherited vacant land. These are some of the most lucrative deals out there. Be especially aware of those properties that front main highways since these will create even more valuable deals for you. Read More→
How To Acquire Motivated Sellers and Buyers in Any Market And Why You Should – Part 2
Posted on August 7, 2014 byThis month I will be discussing even more ways to find all the buyers you need for your real estate investing business.
If you have taken the time to build your dream team, you might also want to talk to your dream team Realtor to see if they work with any wholesale buyers in your area. They almost always have clients looking to buy wholesale deals. They may also have pre-qualified buyers for your other deals as well. Having a Realtor on your dream team is a necessary part of building a successful Real Estate Investing Business and if you have trained your Realtor correctly from the beginning they should already be providing these leads for you.
Many home buyers in the current market are asking friends and family members for possible leads on properties. So another technique I employ to find more potential buyers for my properties is to offer incentives to folks who have already purchased properties from me in order to get referrals. This is a technique that many Real Estate Investors simply forget about, but it can be very profitable for you. Read More→
How To Acquire Motivated Sellers and Buyers in Any Market And Why You Should – Part 1
Posted on July 7, 2014 byOne of the first things you will discover as a Real Estate Investor is that there are many motivated sellers out there just waiting to “give you” their property if you know how to find them. What I mean by this is that there are a lot of great deals to be had and big profits to be made if you are proficient at finding the truly motivated sellers. I have spent several years perfecting systems to locate all of the qualified motivated sellers I need regardless of what my real estate market is doing and regardless of what my competitors are doing.
For the many Real Estate Investors who have figured out the formula to getting the truly motivated sellers contacting them with potentially profitable deals, the problem then becomes the difficulties they encounter when trying to find enough motivated buyers for their real estate deals.
By implementing successful marketing systems Real Estate Investors are finding all the qualified motivated sellers they need, including sellers who will hold the mortgage for them or who will simply deed them the property subject to the existing mortgage, so these investors very quickly recognize that they need to acquire the resources and techniques to locate more motivated buyers for their Real Estate Investing business.
In order to become a successful Real Estate Investor you must reach the truly motivated sellers and then amass motivated buyers for your properties so you can turn your deals quickly for the big check. This creates for you, the investor, a true sense of confidence when you are actively pursuing deals. After all that’s why you became a Real Estate Investor, right? Read More→
Find All The Cash You Need To Fund Deals Without Going To The Bank – Part 3
Posted on June 9, 2014 byAnother way I have used to fund part of a deal or the rehab on a deal is to simply use a credit card or home equity line of credit. If you have a credit card with a fairly high credit line or you have a credit card with a home improvement store, these are great ways to fund the rehab on your deals. I will sometimes use a credit card to fund the rehab, and then pay it all off when I either sell the property, or when I get a significant non-refundable option deposit from a tenant/buyer. You must be disciplined enough to pay the money back to the credit card company or your credit line when you receive the profit or down payment from your deal! This is a good method to use for example, when a homeowner deeds you a property with a lot of equity, but the home needs some rehab in order for you to be able to either lease/option or resell the property.
I know that when you use a home equity line of credit funded by the equity in your home, the interest rate is usually significantly lower and the money is easy to get hold off. Usually all you have to do is write a check. I do not advocate using this method unless you know you are going to turn the deal quickly, and I would only use this method as a last resort since I don’t particularly like the idea of you using your own money to fund deals. Read More→
