Hell everyone,
Where are your deals coming from these days? Are you finding motivated sellers via marketing (direct mail- targeting free and clears, etc), or REOs/short sales/motivated sellers via MLS listed properties?
Thanks,
Uncle D
All of the above… Just keep in mind the cost of the advertising dollar as it relates to commissions paid in a purchase real estate transaction.
Let’s assume that youre buying a 50k house through the MLS; doing so typically means you are paying 3k in advertising fees. What could you do with the same 3k if you invested it in your business’ marketing program.
Besides if an Agent can “pocket” a listing for 3 days at the least whouldnt it be over priced when it actually hits the MLS. A “good” deal is gone way before you will ever see it…
As a guy who has spent hundreds of thousands of dollars on advertising the breakdown is fairly easy. Rule of thumb, do what successful businesses do.
Newspaper
TV
Direct Mail
Bill Boards
Everything else
THe biggest mistake we make is not investing in our business enough. Some tell us that a 2 dollar bandit sign and a patlive account is all you need. If that were the case you would see Pepsi and McDonalds bandit signs all over the place. You dont because they have learned that advertising dollars spent should be between 8-12 percent of your gross return.
Fairly simple if you apply mainstream business practices.