I am a poor college kid with a limited budget until I start doing wholesale deals. Right now I am working part time and have some money to spend of marketing.
If I have $200 to spend on marketing for the next couple weeks, where would I get the most bang for my buck?
Bandit signs
or
FOCUSED Farming Mailouts would definitely be on the top of my list, and if I had to choose one over the other, it’d be Farming and mailing out postcards to the owners!
Good luck…wish I’d gotten started with this in college…keep after it and by next year you’ll be in shock at how far you’ve come!
Jason
Bandit signs hands down. I just put out 84 within the last 8 days and have gotten about 35-40 calls so far, I expect more calls to come. So far I have 2 potential deals. 1 lease option and 1 wholesale.
did you find a company to put them out for you or did you do it yourself?
Just put them out yourself for the first time if you’re short on cash. That money should be spent to buy you as many signs as you can get.
Are you guys kidding me with the friggin bandit signs…
They only have 200 bucks…
If you have limited funds then you need to be willing to crawl through crap to get where you want to go… and putting up bandit signs at 3 bucks a pop aint it…
In fact at your budget having 200 bucks may be a curse…
If you want a plan read on… If you “just” want to be able to tell your friends “Hey I am a real estate Investor” then go down to the local sign company and buy signs… then when youre out of money start researching network marketing and sell Amway or something.
The cheapest form of advertising is your COI…
47- Center of Influence
Talking to People You Know is an exceptional method for creating business. Much like building your referral program, marketing to your center of influence is widely underutilized. This group of people is probably the least tapped into referral base you have. After all, we don’t want to bother people we know with our business, do we? To that I say, “Bull!”
There are no better fans than those people who know your character, your trustworthiness and your commitment to helping others. However, most investors have a difficult time contacting these people and soliciting their help. I believe you should create a list of everyone in your life you know. And when I say, “know,” I am only referring to those people you can call on the telephone or send an e-mail to. I am not talking about the acquaintances we have in our lives, like the postal worker or the teacher of our children. The people you want to contact are in what’s called your “Center of Influence.”
Here is an example of a partial list of your Center of Influence.
Mary Smith 1324 South Emery Street Bakersfield Ca 93308 661-555-4854 Sister
Mark Smith 1324 South Emery Street Bakersfield CA 93308 661-555-4854 Brother-in-Law
Fred Williams 514 Bruce Street Bakersfield CA 93314 661-555-7878 Attorney
Melba Jones 1001 A Street Bakersfield Ca 93301 661-555-0114 Mom’s Friend
Again, your list should include everyone you can call or e-mail. No matter what your relationship is to the person, if they will know you by name, then put them on your list of people you know. One note: only put people on your list who live in the city in which you plan to buy houses. Asking Grandma, who happens to live two states away, to refer you to her friends will not be the highest and best use of this marketing program. With that said, everyone else will be.
The following are examples of types of people who could be in your Center of Influence.
• mother and mother-in-law
• father and father-in-law
• brothers
• sisters
• former and current brothers-in-law
• former and current sisters-in-law
• past and present CPA
• past and present attorney
• past and present real estate agent
• landlord
• hair dresser
• manicurist
• massage therapist
• workout trainer
• tailor
• pool service rep
• gardener
• doctor
• all members of a charity organization you might belong to
• church members you know
• anyone you have donated money to—ever
• co-workers
• former co-workers
• former employers
• current employer
• current customers of your current job (be sure to first get approval from your supervisor)
• former customers
• drinking/social buddies
• college friends
• high school friends
You can see that the list can go on and on. I will caution you not to prejudge anyone that comes to mind as being someone who will not be receptive to your new endeavor. Everyone changes, and if four years ago you didn’t have the best of relationship with them, so what. Don’t let that stop you from including them.
Once you have established a list of people who know you, you do two things to the people on your list. One, you will mail them a letter with 10 business cards and secondly, you will telephone them and tell them about your new career.
Here is a sample of the type of letter you should send:
Hello,
I am excited to announce the establishment of my new business, [Your Business Name] here in [Your City]. After careful consideration and extensive study, I’ve found the one thing that I enjoy and can make a difference with – Real Estate Investing. The opportunity to help people who may need to sell their houses is a worthy endeavor and the rewards are endless.
I understand that jump-starting my career is of great importance and I am counting on you for your support.
One of the first rules of business is that referred customers are the key to success, as these people are much more likely to do business than those who don’t know anything about me. I put together a list of people who I felt I could count on to help me succeed, and I had no doubt that you would want to be included in this process. And, it doesn’t come without reward to you. Although I know that you would not want something in return for helping me, I’m excited to be able to offer you $500 for every referral whose house I buy. This is for your time in telling others about what I do.
So if you would, when you hear of someone who is looking to sell their house, just give them one of my business cards and at the same time, gather their telephone number and name, and then call me with that information. I am hoping that won’t be too much trouble. I would certainly appreciate it. To make this all the easier, I have already written your name on the back of each card.
My business will cater to people who need to sell for a number of reasons.
• Trying to buy a new house and need to sell
• Divorce
• Foreclosure
• Probate issues
• Job Transfers
• Tired of being a landlord
• Bankruptcy
• Any other reason someone may have
Thank you for your help, and I appreciate your friendship and support.
Respectfully,
[Your Name}
[Business Name]
[Telephone Number]
You will mail this letter immediately upon the completion of your list, and include 10 business cards with the recipient’s name on the back. Take the time to respect their time by writing their name on the cards. They will appreciate it, and when you ask a seller who referred you, he/she be able to tell you and you’ll be able to reward your referrer.
Again, the second thing you will do is call the names on your list by telephone and let them know of your new endeavor.
The following is a simple conversational script to use as a guide:
Hi [name] this is [your name]! [You may have to remind them who you are by referencing someone or something. Once you know that they know who you are, continue as follows:]
Question: I hope all is well with you and your family.
Answer: They’re doing great….
Statement: They’re doing great… Outstanding!
[Always repeat what they say with a positive or negative follow-up word.]
Statement: I don’t want to take too much of your time, but I wanted to tell you about a new endeavor I’ve started. I have researched and been studying the real estate market and have started investing in single-family houses.
Statement: My company’s name is called [your company] and I’m going to be working with people who need to sell their home for a variety of reasons: divorce, foreclosure, probate, job transfers, people tired of being a landlord… basically anyone needing to sell a house.
Statement: I was hoping to count on you for a reference if you happen to come across anyone needing to sell.
Statement: I’ve sent you a few of my business cards and a letter to [their address] outlining what I’m doing. If you would read it over when you get it, that would be great. And if you have any questions please give me a call back.
From there, just have a normal conversation with them. Be prepared for them to ask you about the market.
Note: Any of their negative feedback response will be great practice for when you come face-to-face with sellers, so use every opportunity that presents itself to you. In other words, turn lemons into lemonade!
I recommend that you call these people monthly and ask them for referrals. Sending a letter once or making one telephone call will not reinforce your new career. So take the time and energy, and call. Besides, these are people in your Sphere of Influence and most likely would like to hear from you.
The second type of person will be your acquaintances, those people that you come in contact with on a daily or weekly basis but don’t really socialize with or know that well.
The following is a list of that type of person.
• bank teller
• grocer
• child’s school teacher
• pest control technician
• air conditioning tech
• auto mechanic
• person in your office complex
• receptionist at your gym
• postal carrier
• gardener
• parking attendant
• computer tech
Talking to Acquaintances
Your acquaintances will not be as enthusiastic about referring people to you as your group of people who you know well. You have to strike up, at least, a light-hearted relationship with them. I am not saying you have to become good buddies, but it is important that there is a sense of respect and reciprocity. A few kind gestures or words will go a long way. A cold soda given to your gardener on a hot day will bring big rewards.
When approaching these acquaintances, remember that their sense of loyalty and commitment to you is less than those in your Sphere of Influence. I have found the easiest way to broach the conversation of referrals is to start taking about their family.
The conversation should go something like this:
Question: I hope all is well with you and your family.
Answer: They’re doing great….
Statement: They’re doing great… Outstanding…
[Note: Always repeat what they say with a positive follow-up word (or a negative one if appropriate, like if someone has a cold or something.]
Statement: I don’t want to take too much of your time, but I wanted to tell you about a real estate program I have that could make you some extra money.
Statement: I’ve started investing in single-family houses, and I’m offering to anyone I know who refers me to a home seller that I end up buying from, a $500 referral fee.
Statement: I work with people who need to sell their houses for a verity of reasons: divorce, foreclosure, probate, job transfers, people tired of being a landlord, anyone needing to sell a house.
Statement: And I was hoping to count on you for a reference if you happen to come across anyone needing to sell.
Statement: Here are a few of my business cards. If you would pass them out to anyone you know who may need to sell their home, that would be great. Just write your name and number on the backs of the cards so I can make sure you get your $500 referral fee.
The script is different from the Center of Influence in that these people don’t necessarily know you very well, and you don’t have to tell them that this is a new venture for you like you will with people that know what you have been doing. Coming from a position of knowledge is more powerful than coming from that of a learning stage, so choose your wording wisely.
Also, reiterate to these people monthly what you do and your offer of the $500 referral fee.
Now we’re to the type of person that you don’t know.
You Never Know Who You’re Talking To
Never assume that someone is not worth promoting yourself and your services to. Even if a person doesn’t own a house or isn’t considering selling, they may very well know someone who is, or they may want to sell some day down the road, themselves.
Strike Up a Conversation
Most people are terrified to talk sales with others, especially people we don’t know. This is mostly because they know that they are going to have to ask people to part with their hard-earned money, their most valuable possession of survival. I’m not going to get into whether you should or shouldn’t try to hard-sell people in this e-book, only that there’s an easy-to-confront way of promoting yourself without having to ask others to give you anything. In fact, as I mention above, you actually give them something (the Birddog Fee).
Small talk is the easiest form of communication there is. It’s light, it finds itself in much agreement with both parties and is rather enjoyable. And through the right small talk, you can open doors to recruiting more allies.
If you’re at the health club, for instance, riding a bike; make eye contact with your neighboring health enthusiast. Just find a point of commonality and blurt it out. There are so many ways to do this: you can start with a joke, a question or a comment that you think they might agree with:
JOKE: “And we do this why?”
QUESTION: “How far do you ride?”
COMMENT: “I can’t believe how out of shape I am!” or (if it’s busy at the club) “It’s so hard to get a bike at this time of the day.” Or (if it’s slow) “It’s so much nicer here at this time. You can get a bike no problem.”
These are all very real and inviting comments that allow others to start talking to you. The trick is to look for a point of commonality and go with it.
If you’re standing in a long line somewhere and it’s taking forever to get through, look at the person behind you and say, “I always seem to choose the slowest line,” or if you have a full basket, say “I only came in for one item.” These kinds of icebreakers are magical in getting others to be willing to talk to you. (They might even instantly come to like you!) And once they respond, the door has been opened for you to easily give them your business cards. They will willingly take them, and they will willingly hand them out.
If people acquire a good feeling about you, they are likely to feel good about recommending you to their friends and acquaintances. It takes but a comment or two to impress upon another that you’re a nice person. Once you’ve done that, hand your cards and tell them of your commission program. It’s that simple.
I challenge you to hand out 10 sets of three business cards every day, Monday through Friday, to people you come in contact with. I know, you’d rather not talk to 10 people you don’t know. What’s worse, they don’t know you either. It can be a bit difficult to accomplish. However, real estate investing is an extremely profitable venture, and those profits don’t knock your door down on their own; they must be earned. Just think of your business cards as seeds that must be planted in order to reap the harvest.
Here is a list of what this type of person looks like. I know it’s a short list, but it’s extensive in its scope:
• All females you see
• All males you see
It is that simple! Learn to strike up a conversation with strangers and you will be rewarded handsomely. Perfecting this trait will also give you incredible confidence when communicating with sellers and negotiating reduced house prices.
One more suggestion: when you send someone a referral fee check, always include five or six more business cards.
I would put out Door hangers in 1 or 2 neighborhoods.
Spend that same 200 every few months in those neighborhoods.
Think, Big Fish, small pond.
Good Luck
I guess I’m going to jump on the bandit sign band wagon. A person can buy 25 of the 18x24 bandit signs on banditsigns.com with shipping for $72.00, that still leaves $128.00 for direct mail or fliers.
A person can get 100 12x18 bandit signs for little over $!00 dollars with a few dollars more for shipping and still have over $80 to spend.
Thanks Michael. It’s just too much help for one day. Nick Brian.
Add on to MichaelQuarles post:
Google “free postcards” or “free business cards” and you’ll find many ways to get your materials well w/in your budget. You’ll have to pay shipping and if you upload your photo but it’s minimal in most cases. Usually get between 100 and 250 cards.
Here’s an idea, use the $200 to market a new ‘employment opportunity’ position to the recently unemployed.
The job description? Commission based loan modification/short sale generation.
Send a bunch of people out knocking on doors and pay them off the commission.
or pay them a little bit out of the $200.00.
or have them cold call…
-Jeremiah
invest the $200 in a good course or seminar on real estate investing. Right now dealing with private sellers isn’t the best way to go, as most of them are way under water. Meaning that you won’t be able to work out a good wholesale deal with out a shortsale, which contrary to popular belief takes a while (months) and is not gauranteed.
I would learn more about working with private lenders, deal structuring and selling houses. Learn how to use options and assignments . Best of luck