getting buyers first

General Real Estate Investing
1

Ive recently run some ad campaigns to investors that I wholesale property to that said:

I HAVE DEALS! thats it… My letterhead, and envolope, my

business card and that sentance. (maybe a bit of reputation also)

And then they called and called. And luckily I had deals (i dont suggest you try it unless you have something to pitch them).

And then I hired a girl to take “orders” from the people calling me, wanting to know about these deals I had.

And then I solicited all the Bird Dogs I know with a letter saying, I NEED DEALS.

Get it?

I just bought myself a new house. It was a good deal.

2

Thats a great strategy you have there. It worked because you were targeting a specific group; investors who know what I have deals means.

Many people at first when they start marketing they fail to breakdown their target market.

3

thanks for the reply

I realize its simple, but as you stated, It had an important impact on a target market.( I have seen a similar posting to what I describe I have done below posted by others on this site).

Similarly, I have targeted (on the buying side) specific neighborhoods that I thought were undervalued. I then simply made myself know, over and over and over again to everyone, letting them know that I was a buyer. That I wanted to make an investment in thier neighborhood. And that by generating an economy of scale, it would benefit everyone.

Now because it was an early project of mine, I needed to pick out the first project, take the plunge and make it successful at all costs. Then with that house, I invited (aggressively) everyone in the neighborhood through the house, and got them talking about the good job I did (they were 1940’s pre tract homes that all basically looked the same).

Interestingly, by the 3rd rehab, I had people essentially trading in thier old houses for rehabed ones. It created alot of predictability. Plus, as time went on, I was raising the tide of everyone. Even though this had a net effect of raising the prices of houses I would buy, it also ment that people came into purchasing my house with cash in thier pockets, thereby making it a bit easier sell, and giving me an opportunity to sell profitable upgrades.

Moral of the story, I focused on a very specific market, 3 blocks by 3 blocks in a working class neighborhood. Then I got everyone to believe in what I was doing, so they would understand it, and how it would effect them.

The project helped me to launch a carreer that keeps on giving.

4

Where are you located? Just curious

You seem to be very focused which is hard to find. Not only have you segmented your marketing but you have really segmented your area to a very specific group. Many people when they first start think that they have to own their entire state, when they really should just focus on one little area.

5

Currently in MN (this is the area referred to in the stories I have added to the site). My land development and distressed debt enterprises also have tenticles in other midwestern states, as well as focusing about 10% of my business each in FL , AZ and San Diego County in Southern CA.

As you noted in your last reply, keen focus is essential in running a successful enterprise.

A short story; is that at a young age I approched a mortgage banker about buying his company and taking it nationwide. ( at the time, as a relativly in experienced, but deep pocketed entreprenuer, I thought bigger was better, I also though by having a big enterprise, somehow that would for sure be a good ego trip, and that it MUST be the way to making bigger money ). The owner of that company, who had made a similar sale of his other business (a family owned regional garbage hauler to, WM or BFi, i dont remember who), said “why do you want to do that, why not just get really good at doing business in MN”.

At the risk of sounding too dramatic, I had to think about that for a while, not as much that I was trying to find an excuse to say why I wanted to be bigger, but to study the Idea he was advising, to be really good and focused. I never bought that company, but am thankful for his tidbit of wisdom.

NOW, jumping ahead to today, and my afore mentioned growth plans into other states, I am again harnessing my strenght, which is understanding local markets.

Within this growth plan however, I am harnessing other local markets. Through my reputation, or dumb luck, experienced people in other markets meet me and offer different types of alliances. What I bring to the table is my Bank Contact and Finance experience, but most importantly my understanding that real estate dollars are made at the local level.

The fact that these new partners are players in thier local, I ad to our alliances the focus of dealing with a local market, providing tools and wisdom to make their market stronger. Together, we are adding alot of service in our niche of: buying distressed loans from big national lenders. Those lenders dont have a local presence, they dont have a local focus or local contacts, much less the trust of the locals.

And by finding the best way to manipulate that local focus, I make money. And I believe these relativly new alliances of mine will be stronger.

(thats my $5 answer)