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by: Scott Rister
Did you just hear about the investor in your local RE club
that closed on a deal netting them $15,000 and they didn't
even have to lay a hand on the property? Or what about the
person that just bought that rental house on the same block
for 30-50% less that what you paid for yours? Are you at the
point scratching your head and thinking they're just lucky?
Or probably that's all they do and just don't have a life
outside of real estate....right?
Somewhere in between total luck and absolute sell-out hours
chasing deals is where you should be in finding truly motivated
sellers, or rather having them finding you. It's a weird coincidence
that the smarter I work, the luckier I get finding great deals.
Did you catch that? It's not always about how many hours you
put into real estate and how hard you work at your marketing
program that produces the best results which is finding great
deals that puts money in your pocket and that's what real
estate investing is all about.
Let me share with you some simple principles in marketing
for the independent real estate investor. You may already
be in tune with some of these but let's all take a pulse-check
here and make sure we're on the right track.
1) What Are You Hunting?
I'm asking what types of properties and real estate opportunities
are you seeking? The more narrow your focus and marketing
efforts can become to a target group, the greater success
you will experience. If you are seeking wholesale opportunities
then you will not gain very much success putting out "I
Buy House/Lease Option" bandit signs next to established
neighborhoods. In addition you will not gain a favorable response
direct mailing to pre-foreclosure prospects if the primary
weapon in your arsenal is cash-only deals with hard money
lenders that don't go above 70% LTV.
The marketing medium you use and the message you accompany
with it that hits the right target market turns sellers into
motivated sellers. There simply is no generic marketing message
and medium that is a "one-size fits all" approach
in real estate.
2) Just How Much Money Can You Spend?
Now, we're talking about something that hits home real fast
when it's about coming out of pocket with hard earned money
in the "hope" that it will come back to you in the
form of truly motivated sellers. If you're first starting
out in real estate investing then it's imperative that you
have a short-term budget to work within so that you're not
forgetting about paying for all the other necessities in life:
food, shelter clothing! You simply DO NOT have to have a large
marketing budget to be effective to grow your RE business.
One §.34 postcard netted me §8,400, so it's all
about hitting your target market as explained in #1. However,
be realistic about what monetary constraints you have and
how to incrementally build your marketing program as you experience
more and more success.
3) Track Your Results!
Oh, we miss the boat on this one so much. When you are incorporating
bandit signs, direct mail, flyer campaigns, etc... it can
start to get confusing where and if your success rate justifies
the marketing mediums you are using. Tracking your responses
and closures of deals is necessary so that you can identify
areas that need to be tweaked or worked on. Most importantly
though when you find out that great mailing list is really
working or the flyers in a particular neighborhood is getting
tremendous feedback....then go in for the kill! I mean when
you are measuring success and can track it effectively it
allows you in full financial confidence to justify increase
in marketing expenditures for areas that are producing the
results desired.
My hope is for you to realize that marketing to the real
estate investor is the lifeblood of his/her business. Great
deals rarely come knock on your door to find you. They find
you when you have a marketing system implemented that is like
a funnel prescreening sellers for motivation and directs them
to then contact you immediately. Take a quick check of your
marketing program and tune it up if needed so you too can,
"Find
All The Motivated Sellers You Can Handle!".
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