Hi all - been reading this forum for sometime and this is my first post. Starting to really get serious about REI now. I am going to stat out wholesaling and am marketing for buyers right now.
My Delima is this:
I submitted an ad to the local paper saying something like, looking for buyers to purchase property at 50-75% market value call now etc.
I dont have an entity right now because I am just getting started. I wanted to do my first few deals as sole individual to build some capital. Then create the enitity and go on from there.
The paper came back and said I needed to fill out a form that is asking for my business name, tax id #, purchase contracts etc. Since I am starting out I dont really have any of this information yet. They said I can fill it out the best I can (which is going to be hardly at all) and it will either get approved or rejected. I am thinking with the lack of information I can provide them it will get rejected.
I know there are plenty of other ways to find buyers and I will be utilizing them - I am just wondering if anyone out there has any suggestions to get around this. Maybe there is another way I can word the ad that would qualify it as a private party ad or something.
Are you talking about applying for credit with the paper or trying to get your ad approved?
I’ve never heard of a newspaper rejecting an ad like yours, and I’ve certainly never heard of a paper asking for a purchase contract. Are you sure they didn’t ask if you had a purchase order instead?
If you’re not applying for credit with the paper (that is, you want to be billed for ads), then I am surprised they are asking for anything at all. Usually you jsut give them the ad and a credit card number and you’re done.
If you are applying for credit, then the documentation requirements make more sense.
If you can explain to me a little better, I’d appreciate it.
Paul,
Thank you for responding. I found this strange as well and is the reason that I am posting.
It definately says says "Please attach copy of Investment or purchase contract, sales literature. "
I did this online and my card has already been billed. Everything looked like it was going OK and I got an email from the newspaper saying "Thank you for the self submitted ad. In order for the ad to be considered for publication in The Gazette, please complete and return this form.
Management will make a determination regarding the ad."
It says on the website “Currently, this system takes only Private Party ads for clients placing ads in Iowa. If you are a business, placing a commercial ad, or located outside of Iowa, please call or email and a Media Consultant will assist you in placing your ad (phones answered 24/7).”
I know that this is to get approved but seems like an awful lot to go through for a little probing ad like mine.
I am placing the ad in the Real Estate Income area of the paper.
EZLoanz - Yeah it almost looks like it is a background check or something. I wish there was another way I could word my ad so it doesnt come off as selling anything. Not sure what to do but there doesnt seem to be anyway around except for filling out what I can and hope for the best.
I think you should start your entity. Its better to get all that stuff out the way and plus if you make money tax wise it would make more sense to have it under your company. Its not expensive to set up and LLC, pretty much 1 form a small fee and a call to get a tax id number. It took me about 1 day.
Even though you haven’t shared the ad with us, I believe the problem to be with how you phrased your offer.
Suggesting that you are looking for buyers rang of a business offering; you might need to change your approach to fly under the radar.
Rather then try to attract multiple buyers of multiple properties with one ad you could market each property/group of similar properties in a FSBO capacity.
Taking the FSBO approach is one way of cutting the red tape.
I agree with EZLoanz. You may just need to change the wording of your ad. It may just seem like you are actually selling something. I think you need to get your entity started as soon as you can.
Well I filled out the form and submitted it. As expected that came back saying they needed more information. I tried to give them what they want and furhter explain what I am trying to do. I did get the request elevated to another management level so we will see how that goes. Not very hopefull though - lol!
Here is what the ad says:
RENTALS AND REHABS
All areas and conditions
Looking for buyers to pur-
chase properties at 50-75%
Full Market Value!
Call Now. ###-###
Any suggestions on how to reword this?
There are a ton of other ways to find buyers so if I cant get this sorted out in the next week or so I will probably just abandon this approach and focus on some other things.
I plan on getting the entity going before I actually sign a purchase contract. I want to get a strong list of buyers in place before I take any other steps.
I BUY HOMES WITH CASH
IN ANY CONDITION,
AS IS,
NO INSPECTIONS,
NO HEADACHES,
NO REALTORS!!! (people LOVE that)
5 DAY CLOSINGS
555-555-5555
Believe me, selling 'em ain’t the problem. You find a screaming deal and one ad in the classifieds on the weekend will bring in more buyers than you can handle. Last house I sold was a dump purchased for $110,000
which was $45,000 under market. I DID NOTHING TO IT. It sold first day! 65 phone calls and I’m in New England the market sucks here.
I know his ad was looking for buyers. Everyone in the country is looking for BUYERS, that’s the problem.
He also stated that he was just getting started. I know the theory, line up your buyers first. Yea, right. I can just hear those phone calls. Hi… Well no, I don’t actually have anything to sell but when I do can I call you back? Oh and how much do you pay for a house? Forget it man, FIND THE DEAL FIRST!!! THE BUYERS WILL COME.
The whole POINT of my post was don’t worry about the BUYERS, you leave $25,000- $40,000 on the table and you’ll have all the buyers you want.
The ad is not clear! Change it.
If you don’t tell people what you want they will not respond. I put ads in papers that specifically say how much I pay for homes. It’s a dollar amount. People call because they see an amount. In their heads they’ve decided, THAT, will buy their house. It is absolutely unbelievable but true. I buy houses because someone see’s a price that THEY THINK is fair.
Change your ads around people, play with them, find out what works. I’ve been doing this for 20 years. I have NEVER advertised for BUYERS. I just run an ad for the particular home I have for sale.
Try an experiment… Next time you get a house to wholesale put it in the paper on a weekend. I usually call the paper on Friday. Now that same Friday call your “WHOLESALE” buyers, none of them will react the way they would if you didn’t run that ad. Put a little heat on 'em.
“Hey Joe, I just picked up a little ranch house, put it in the paper for tommorow, take a ride by and let me know if your interested” He now knows the house is in play TOMMOROW, It’s his call. I never had a lot of luck selling to “buyers” You take the market out of it when you do it that way.
Have you ever sold something and for whatever reason decided that you DID NOT want to sell it to THIS particular person. Maybe he was a pain in the @ss, or a potential pain in the @ss, whatever. What happens?? As soon as you say “Ya know I think I’ll sell this to someone else, we’re not gonna get along here, and I don’t need the aggravation”
Answer>>>>>> They want that THING more than EVER!!!
It’s sick but true, as soon as someone is told they CAN’T have it, they want it.
Remember that. You can create those situations very easily. Schedule your showings ALL AT THE SAME TIME!! Nothing like having 20 people walking around a ranch house to move people along. It also let’s them know immediately that you don’t have to play the price game.
“Here’s the price… That’s it… If it doesn’t work for you, no hard feelings but look around, this place is going to sell this weekend, I’ve had 60 phone calls for it” (always use your cell phone number in ads, nothing like that sucker ringing away while people are looking at the home)
It actually makes this business much easier.
You know I’m leaving money on the table, you want it ?
Petemfa is absolutely right! You have to test, test, and test again. That is what marketing is about. If you don’t test, you ain’t doing it right! I just did a direct market campaign for a company and I sent three different letters to three different sets of addresses. Then wait for any responses and see which ad performed best.
I run several Google and Yahoo ad campaigns and run up to three ads for every keyword. See which ad works best and brings in most responses. Take that one, dump the rest, then write other to try and beat it.
Try taking a couple of words out one week and see what happens, try something else the next week.
Remember, you have to have a headline to catch their attention. Ask a Question - big and bold. TIRED OF PAYING RENT? or a good one I did for a Relator: I Just Saved a Buyer $45,000! But you HAVE to have evidence to back that up. All caps for the headline only. The rest in regular case.
So if you need no inspections how do you know that it is a deal that can be resold. For example foundation problems etc. I know you mentioned that you have been doing this for 20 years so maybe you know your area well, but Id like to hear how you prepare for the worst case scenario with an ad like this.