I recently got mail notifying me that I have an increase on one of my credit cards to 800 dollars, I’m GUESSING they really want ME to spend. I know it’s not much. But it is a start. At first I was really looking at how financially stable I am… I am really in the hole, for now, so I didn’t pay any attention to it. I have being studying REI for over a year so then a thought flashed before me and now I am HERE and the rest is history. :biggrin I am still working on my first deal, my main focus (finally!) are Lease Option and wholesaling… I’m starting from scratch and if you were in my shoes knowing what you know now with only 800 dollars to really spend on, what would it be??? Marketing wise ofcourse.
I guess the best bang for the buck would be to get 25 to 50 bandit signs since they would last longer than anything else you may try to do. Keep in mind however, with such limited resources your options are limited both in advertising and in exit strategy options.
I would then get an 800# call capture system to place on the bandit signs. So the bandit signs could sift and sort the prospective leads for you all day long.
However, my non-marketing thoughts are, if you are in a hole as you stated, I would not put anything on a credit card.
When your first deal closes set aside $800 for a marketing budget. Lead with revenue, not debt.
Even better, find a partner, who has the passion, cash, but not the time to do the legwork.
Are you in NJ? In NJ, If you put up those bandit signs they will be torn down in a matter of a week. Money wasted. Town DPW punch holes in the signs.
Maybe in other states, they are not as aggressive. Subjectively, I would not spend the $800 on bandit signs. I would spend a couple dollars on business cards. Google “business cards”. I have used GotPrint personally. Go to a real estate seminar and meet someone who can teach you on how to cold call in person or on the phone. Cheapest yet not the fastest. But you wont waste the money.
Bandit signs are overrated. I’m sick and tired of the gurus shoving that strategy down peoples throats considering it’s illegal in a few cities and the response rate is very low compared to direct mail or online marketing.
I say screw the bandit sign crap and get yourself a nice cheap but effective lead generator site. You can probably find someone to design one for you really inexpensive wise and you can get hosting practically for nothing these days.
Now we’re talking. Mr. Investor is right. For $800, create a capture page for homeowners by outsourcing to India or the Phillipines. Once you have that, do some online marketing yourself… forums, twitter, article creation etc. You’ll generate leads and learn online marketing at the same time.
Thank you all for your responses, it is much appreciated.
I can see how I can spend sometime with bandit signs and like Mr. Investor mentioned, it really depends on my city. By setting up a 800 number, what can you suggest the type of message I can leave? I’m thinking of just mentioning about the process of Lease Option advantages and how they can work with me… N I’m not saying it is impossible, but it is difficult for me to convince someone to partner up with me with no deals under my belt. Also, I don’t have that language of a REI, yet, I am working on it. I just need that FIRST deal and I’m confident I can partner up with anyone interested.
Now that sounds interesting with learning online marketing. I am horrible with computers, something I am really thinking in changing. How will you outsource India or the phillipines?? What is good website you can recommend for an effective lead generator site?
I have done just about all that is mentioned on here. With that said if you have 800 to work with marketing. Don’t blow it in one Month.
You can buy 100 blank signs for about $100.00 and you can get some markers and write your message on there.
As far as 800#'s they are over rated for sure. I have two of them and I do use them. But I would rather speak to seller or buyer. Besides, how many sellers have you actually spoke to? Get use to chatting with sellers or buyers. Go on appointments.
Direct mail is great, but you need a consistent budget.
Websites (SEO) stuff in my opinion is a long term build. I am learning this part as I am working with my own sites. I am also doing the work myself. Because I want to learn it. I take the 1st 5 positions of google in my own area. I have not had one lead come from it on the BUY side.
I think it is important, but I don’t think growing it should be the first priority of business.
I like bandit signs because its fast and you can get action. On top of that why not start cold calling FSBO, FRBO and other investors.
Now just like everyone else. This is just my opinion.
Depending on the market that you’re in we’re finding that with all aspects of marketing combined (ads, signs, direct mail, etc.) our coaching students are spending an average of $1500 - $2500 in marketing costs in order to buy 1 house. You will then have fix up costs, holding costs, and marketing costs to sell/lease/rent.
Bandit signs are a cheap alternative to getting a message out, and an 800# is a great way to capture those calls, however, if you don’t have an investor list to sell those deals to then you’re still doing to need some cash to do the deal yourself.
If you’re truly “in the hole” at this point then I wouldn’t rush out to spend that $800. I applaud you for taking action and taking your studies to the next level, however, putting yourself “in the hole” deeper isn’t going to do you any good.
Look for ways to drum up leads that are free. Realtors can be a great source of referrals. They get calls daily from people wanting to sell that are overleveraged. They can’t figure out a way to get paid so they turn the leads away. Same thing with mortgage brokers - they’re being contacted by folks trying to re-fi in order to avoid foreclosure. They have a TON of dead leads. Realtors and Mortgage Brokers are used to working on commission and only getting paid if the deal gets done. Approach them via phone, use the $800 (if you must) to buy lunch and establish relationships and network. Then, follow up regularly with these folks.
Running a real estate investing business is no different than any other business. You want to build up to having 6-12 months of operating expenses set aside. While you’re doing that you may have to spend more time doing things that you don’t have the money to pay others to do. Establish those relationships early on with people who are in the business every day and you’ll never go hungry!
How many leads do you honestly you will get from organic search? You’ll be lucky to get any, and if you do, you would have to have been online for long time. Real Estate is extremely competitive area and to rank high enough to capture a regular seller’s info you would be lucky.
Online presense is extremely important, but it has to be coupled with a marketing campaignt. Adwords ($2+/click), Postcards…etc. Having a website and hoping people to call you on it is like having a phone number and hoping someone will look it up in the phone book or online phonebook. I have very successful web lead generator, but it doesn’t work on its own.
$800 is ok as far as marketing budget, but that leaves no room for other expenses. Depending on his exit strategy of course.
Door knocking
Flyers
Cold Calling
4x6 Post Cards to select lists
Bandit signs
…etc.
there are many ways to market, but there has to be a system around it.
As far as bandit signs being taken down, so what? its $2/sign. Thats the cost of mailing 4 letters, and seen by more people. The major difference between the two is that letters are highly targetted and the calls would be much better quality. Signs are advertising and no telling who sees them or calls on them.
Flyers are cheap (0.05 to 0.10 per flyer) but requires walking and driving around, and for some reason people don’t like that. it is work.
Cold calling requires certain techniques and patience, and people don’t have the know how or the patience
4x6 costs money, people starting out scared to spend the money since they have no clue of the return, or they send 50 or 100 letters/post cards and quit
Bandit signs are hit and miss, and people want them to last 10 years
Online marketing requires patience and marketing
$800 a month is very good marketing budget. $800 fixed, leaves no room for testing. I would spend $200/month for 4 months while I work on getting more money to make it last longer.
I didnt say organic search I said Forums, twitter…Web2.0 etc. That is free. We are not talking about pay per click or organic ranking. The parameter he gave was budget… and to stay within his budget and generate leads I would suggest spending his time and not his money on adwords, postcards etc.
If I were to couple your website with any kind of marketing, find someone in the business you can cold call with and go to real estate clubs. You’ll generate leads with your cheap site and web 2.0 marketing, cold calling and attending real estate clubs. Your cost will be minimal.
As far as 800#'s they are over rated for sure. I have two of them and I do use them. But I would rather speak to seller or buyer. Besides, how many sellers have you actually spoke to? Get use to chatting with sellers or buyers. Go on appointments.
I have an extra phone ( long story) that I can use instead of a 800#, would it be a problem when I’m working that I don’t answer? I usually get out at 5:30 pm.
If you're truly "in the hole" at this point then I wouldn't rush out to spend that $800. I applaud you for taking action and taking your studies to the next level, however, putting yourself "in the hole" deeper isn't going to do you any good.
Look for ways to drum up leads that are free. Realtors can be a great source of referrals. They get calls daily from people wanting to sell that are overleveraged. They can’t figure out a way to get paid so they turn the leads away. Same thing with mortgage brokers - they’re being contacted by folks trying to re-fi in order to avoid foreclosure. They have a TON of dead leads. Realtors and Mortgage Brokers are used to working on commission and only getting paid if the deal gets done. Approach them via phone, use the $800 (if you must) to buy lunch and establish relationships and network. Then, follow up regularly with these folks.
Yeah I must be taking action, I’m already working on my business card and I must start on a flyer…just brainstorming so far. Also, I do know a mortgage broker that I left on a good note when I met with. I have to keep up that business relationship.
I would spend $200/month for 4 months while I work on getting more money to make it last longer.
With everyone’s advice and suggestions this is very doable, I didn’t thought about it this way. When your in hole your not thinking straight, and I just felt like taking a gamble and put all the $800.
If I were to couple your website with any kind of marketing, find someone in the business you can cold call with and go to real estate clubs. You'll generate leads with your cheap site and web 2.0 marketing, cold calling and attending real estate clubs. Your cost will be minimal.
Nice. I heard a blog can keep a cost minimal maybe I can pick up on that.
OK…WOAH…HOLD EVERYTHING…well, you don’t really have $800…sounds to me like you’re in the hole and have the ability to get $800 more in the hole, and doing so would NOT be a good thing.
First, you need to look at what got you into the rut that you are in. Let’s say you make some cash, but don’t get the problem fixed, then you end up deeper in the hole, with bigger lines of credit, and that’s a recipe for disaster!!
Why not take on some part time jobs or if you’ve got the ability to get some overtime, get a bit of real cash built up…doesn’t have to be a lot, but some that you can work with that doesn’t get you deeper in the hole. What happens if you invest all $800 from the credit card…you’re going to be pulling your hair out every day wondering where the deal is and if it doesn’t come, that stress ain’t good for your health either. Take a breather…keep learning…and get some money that’s yours to invest.
Now…let’s say I had a little cash to invest…(I think I started with under $200). There are two things that I do recommend for people getting started…and only one of those would I recommend to you at this point, and that’s farming an area, taking note of the dilapidated houses, and sending postcards to the homeowners. Don’t do a mailout of under 200 letters. Every time I’ve done at least 200, I’ve done at least 1 deal. Put it under contract, and wholesale it. No blog, no pay someone from the phillipines to setup a website for you, none of that stuff. You don’t have control of it. You DO have control of when and where you go farming, of you sending out the letters, and of you following up on those.
Once you get some cash, then yeah, I’d do that as well as bandit signs. But right now, that’s what I’d start with. Don’t get deeper in the hole to find out that you’re deeper in the hole.
I say screw the bandit sign crap and get yourself a nice cheap but effective lead generator site. You can probably find someone to design one for you really inexpensive wise and you can get hosting practically for nothing these days
Victor,
Do you have a car? Use it to advertise. I bought a packet of magnets the size of an 8.5 x 11 paper that you can put in your printer. I got it from Staples and costs about $14 for a packet of 4. I put one on each side of my van and 2 on the back. Another thing I would do that wouldn’t cost is to post flyers at your local supermarkets, library, and any other place that would allow you to post to a bulletin board. HTH
“”“I have an increase on one of my credit cards to 800 dollars… I am really in the hole, for now, so I didn’t pay any attention to it…”“”
You do not have $800. What are you talking about??? I can’t believe that there are investors here telling this person to put himself even more in a hole on the slim chance that he will get a deal out of a few bandit signs or a web site.
Get a job and save your money. Real money that you don’t pay back. Or, look for a property you want, knock on the door and tell them you would like to make them an offer. Put FREE ads on Craigslist. SHOESTRING Budget for those who are in the hole. The rest of the stuff is just fluff!!!
You have a huge chance of failing as an investor if you keep the current mind track you are on.
Why don’t you look for ugly vacant houses by driving around low priced neighborhoods. Track down the sellers and ask if they want to sell. So far you have spent gas money about $25 maybe. Then you put a house under contract at 30 to 50 cents on the dollar for a $10 deposit. Then you go to your local real estate investment meetings and wholesale the deal for $5,000 to $25,000 in 30 days or less. Then once you get your check you can do it the easy way and spend the marketing money to have sellers calling you. Forget spending that $800 and focus on finding deals using your time.
Mr Investor, What are you talking about??? I am not in the hole!!! I have plenty of money.
I quoted the kid who has $800 added on to his maxed out credit card that you are telling to buy a lead generation web site. YOU HAVE GOT TO BE KIDDING ME. He is in the hole!!! And you people are telling him to jump in deeper.
You really need to pay attention to what he wrote before giving CRAZY advice to put himself in more debt. I will assume that none of you were paying attention to what he wrote.