As stated, marketing is key to this business. Develop a successful marketing plan, and before long, you’ll be saying, “man, this is easier than I dreamed.” People with lousy to no marketing are the ones that say, “RE investing doesn’t work.”
JP, I see one glaring problem in your posts on this thread, you keep mentioning that you can’t find anything for 70% of value. Well, the truth is, you may not find it in your market. You’re using a formula pulled out of a book and trying to force it to work in your market. It doesn’t work that way. You have to know your market and make a formula that works in it.
Now, I don’t know your market, but I’m betting that it’s probably a pretty booming market. If it’s anything close to the way CA has been, for example, buying at 90% of FMV is still a good deal because in a month or two, it’s going to be worth 5-10% more!
Property values play a VERY important role in what makes a deal work or not. Getting a $100k prop for 70% of FMV isn’t nearly as tough as getting a $500k prop for 70% of FMV. Why? Look at the numbers. $30K off of first, but $150K off of the second. And depending on your market, each property good basically be identical (both a 1500’ 3/2 ranch, for example).
If your goal, for example is to make $20K a deal, you HAVE to get at least a 30% discount on the $100K prop, but you could make that on the $500K prop with an 85% or possibly even 90% offer.
You mentioned that you have realtors that look for properties for you through MLS and that you are trying to find motivated sellers that will sell for 70% ARV but if they are really motivated why would the have a listing with a realtor? Don’t most people that list with a realtor want to get at least FMV or more if possible? Expired listing would be an option, if you can find some of those try them.
I’m not an expert but what I have learned so far is that if you want to get properties you need to find the “really” motivated sellers and that you can do that through finding people that are facing foreclosures, divorce, probate, job loss/transfer or other situations that would make someone need to sell quickly. Place ads in your local newspapers, leave flyers, business cards anywhere/everywhere you can. Let people know that if they want/need to sell their home that you have options for them.
These are some of the best posts I’ve read ever on this board. Just the advice I needed now. I am at the point where I am ready to purchase a home. I have to basically START marketing. I am going to get business cards made up this week. I am also thinking about making a flyer that says “know a boarded up home, make $500.” and put it on cars at the train station…etc.
What do you guys think, I am also going to set up my voicemail box. The newsday ad’s don’t run well, I just sold a home(my parents) through the paper and its hard to get results.
When people say they are get 10% from the marketing what does that mean? I see a lot of people using phrasing like that over int he marketing forums.
I think the 10% people are talking about might be that say if they send out 100 foreclosure letters maybe 10 will call, but you need to keep in mind that doesnt mean they get 10 deals just 10 calls.
That is one thing you need to do, market your a** off . But make sure you keep track of what brings results and drop whatever doesn’t.
Another thing I heard that you could do is if you send out post cards or flyers put
P.S. if you’re not looking to sell your house but know of someone who is give this to them
or something like that.
Ok cool so for a preliminary intro into my marketing this weekend, you guys think its a good way to get birddogs? By flyering if they recommend a boarded home to me and I buy it Ill give em 500 bux. Figure some people should be able to refer others
It’s a start but like someone earlier said you should probably try to find and close some deals on your own first before you start looking for more bird dogs, if you don’t know what works and the details involved how can you tell a bird dog what you want them to do? and an experienced one probaly would rather go with an experienced investor. So do a couple own your own, then once you get the hang of it find more bird dogs if you need to.
If he had more bird dogs he would have more deals if you have more deals your options of closing more have increased. The thing he might need is more investors to handle the amount of deals SUPPLY AND DEMAND!!