Getting Started on a Budget

General Real Estate Investing
1

I sent this to some people I work with and thought I’d post it here.
There are two main reasons for people not taking action. 1) Too many questions (paralysis of analysis) 2) No money (broke)
So I put this together to break things down to the VERY basics, and how to get started with less than $300 to your freakin name!!
I hope this helps.
Seriously, if you are just starting off, and this doesn’t help…you may want to make sure your 9-5 is VERY secure…
Granted I do Lo’s, but I think this is across the board. I also focus on direct mail, but on a budget you can focus on Clist.

What you need to get started.

On a budget….
I’m a BIG believer in approaching business as a business, but I’m going to break this down to the BARE essentials…

You don’t HAVE to have your LLC, but then you are getting checks in your personal name, unless you create a bank account with a dba.

Get your yellow coroplast signs! I’m not a fan of “bandit” signs that you hand write on, but at the very least get the one color, 2 sided yellow signs to use for directional signs and you can also use these to get by as yard signs and put your number on them.
It’s best to order at least 50 for a price break. When I first started I ordered one at a time for $35 EACH!!! Spend $175 and get 50.

Get your URL. This is your website URL. This costs about $20 or so…big whoop….

If you don’t have a website, you can STILL get things rolling.
Using your URL, you can set up e-mail addresses. Go Daddy can set it up, or whoever you bought your URL from, or your web person can using Squirrel Mail etc.
Example: you buy www.Tomsleaseoption.com now set up e-mails like tom@tomsleaseoptions.com tom.smith@tomsleaseoptions.com etc.
Why? Because it’s very difficult to appear professional when you e-mail is a g-mail or yahoo account. Not saying you COULDN’T do some deals or get a response…but let’s get the odds in your favor OK?

Contracts…this is a no brainer…you have to have your contracts.

Cell #. Again, no brainer.

Start sending e-mails to Craigslist FSBO’s and FRBO’s using your e-mail addresses, and you can use VA’s from Odesk or Elance etc. to do this for $3 an hour.

I’ve put some of my templates below just as an example. Tweak them , don’t use them, whatever. Again, I use direct mail, but due to the cost, I wanted to put this info out there for those just starting off. Clist is FREE, and it allows you to work out the kinks in regards to talking to sellers and getting your groove down.

I saw your home online and thought it might be a good fit for our lease purchase program if you’d be willing to sell at top dollar for no commission.
We have a large database of people in our program that are 6-8 months away from financing and because of this, are willing to pay top dollar for your home.
They are responsible for all maintenance until they close, you don’t pay a commission, and you even get your asking price!

If you’d like more information, just reply to this e-mail or call me at XXX-XXX-XXXX.

John Jackson
Leasing to Buy
Leasingtobuy.com
Our company is the largest of it’s kind in Texas and the ONLY one that is an Accredited Member of the BBB!

Would you consider a lease purchase on your home?

By utilizing Leasing to Buy’s FREE services you:

• Get your full asking price!
• Don’t pay a commission!
• Keep marketing your home while we market the lease purchase!
• Have a qualified Tenant/Buyer within 45 days!
• Don’t worry about repairs! Our clients pay for the repairs!

Leasing to Buy is the largest lease purchase company in Texas, and is the ONLY one that is an Accredited Member of the BBB!
For a FREE lease purchase analysis, and to see if our program might be a good fit for you, please feel free to e-mail me or call me at 817-xxx-xxxx.

John Jackson
Leasing to Buy
Leasingtobuy.com

2

pilot76180

That was a very generous post!

Who would you send direct mail to in this market?

I found that stale FRBO’s and FSBO’s are more ready to deal.

I have my assistant contact the oldest clist poster first and move backward (forward).

We get upside down owners frequently that have fixed financing. Sometimes we can find buyers for these overpriced houses if we can offer long enough financing for say 7 to 10 years (with a very small built in spread).

Great post!
:beer

3

Keep in mind, I go against the grain…
I send direct mailers to LISTED houses on the MLS…
Why?
Because they are trying to SELL their houses!
I don’t look at expireds or any of that.
Just get me the list. I’ll hit em all!
I’m not an agent, so I don’t care.
Most of the houses I get are listed with an agent.

4

Interesting. What do you pitch them? How do you typically handle the agent’s commission and their interference in your deal?

5

Believe it or not, I almost NEVER talk to the agent, as I’m working with the owner.
I only pay an agent if THEY bring a deal to me, and then it’s about 1/2 of one month’s payment.
If the owner wants to pay the agent something they can, and I normally recommend 1/2 of one month if they are going to.

6

Sweet. Know what, I never thought of actually targeting the sellers of listed properties. When I think of it, it makes perfect sense to target them because as you said they want to sell their house (imagine that)!

What I typically tell sellers with listed houses is they CAN cancel their listing if they want to avoid having to pay their realtor. I don’t suggest they cancel it, I just inform them that they can…that way no one can say I tortiously interfered with a contract. If they cancel the listing that’s their decision. Otherwise, like you, I tell them they can always pay their own realtor if I buy it.