Attact BUYERS with newspaper Ad? - Posted by Jim C

Posted by Beldorian on December 03, 2000 at 17:31:16:


Comments are always welcome.

Here is what I have found. Building a buyers list is fine, but when people are reviewing ads in the paper looking for homes to buy that, generally, means they are looking for something to buy now.

That is not to say that something may not work out with a deal that they are trying to put together now, and they will need your services later. However, I doubt this is the common rule.

In most markets buyers are “a dime a dozen”. That is why I would suggest you put your energy and efforts into finding motivated sellers first. Then when you have a deal, look for your buyers. That’s all.

One of my mentors told me once, “There are a million ways to make money in real estate. Because of this it is easy to get ‘de-focused’ and not make any money.”

Basically, you only have so much time each day, so use it as effectivley as possible. Better to take calls from potential sellers all day than create a list of “possible” buyers that will go somewhere else, immediatley when you tell them that the home you listed in the paper is gone and you don’t have another one, but you will keep your eyes open.

I think the main reason for this strategy, as taught by most gurus, is to demonstrate to the newbies that don’t think they can sell homes in their market, to place an ad and get calls.

Best of success.

Attact BUYERS with newspaper Ad? - Posted by Jim C

Posted by Jim C on December 03, 2000 at 13:11:12:

What kind of ad should I put in the paper to attract BUYERS? I heard that I should put a fake house in there and then when they call for that, just say that I sold it and call them when you find another one.

Or should I just run an ad that says “I sell houses” or even “I buy and sell houses” (because I already plan to put one in the paper saying that I BUY houses).

Thanks a lot!!!

Re: Attact BUYERS with newspaper Ad? - Posted by Mark-NC

Posted by Mark-NC on December 04, 2000 at 08:19:17:

I quess everybody operates in a different way. I personally like to run a fake buyers ad. Mainly for investor flips. This way when you do find a home all you do is have to make a few calls and the deal may be done. I prefer it this way so I have a shorter closing time and I won’t have to run the risk of using hard money to close if I can’t sell or flip it right away.

As one of the post mentioned below said. Yes, there are tons of buyers out there. But, there are not that many qualified buyers. That’s the problem. And yes some people want a home right away but not allways. You will find that many need help and thats where you come in.

Another nice thing about running a fake ad for retail buyers is you can find out by the calls, what type or price range home is going to be the fastest and easiest to move when it does come time to sell. For instance I know in the area that I work in I can sell a house in about 2 weeks as long as it is not over $70,000 and preferably in the 50k to 60k range. Once I break that price range it takes a lot longer to sell. The thing is from my past experiance it is easier for me to make 10k on a smaller home than it is on a bigger home because of potential holding costs.

The ideal situation is to have ads running for buyers and sellers to keep a constant flow of deals running.

As far as what your ad says. I wouldn’t put “I buy and sell houses” in the same ad. I don’t think you will get much response.

Like I said, in my area I pretty much know what type of house I am looking for and thats what I advertise for. One of the problems I had is there are many ads in the local paper that say “we buy homes” (I counted 4 of them the last time I looked). I ran that ad myself and I wasen’t getting much response. So I placed an ad that sounded a little more like an individual looking for a particular home rather than an investor. It basicly said; “Individual looking for a reasonably priced, 3 or 4 bedroom home, any condition, can pay cash 555-5555”. This drew a lot more response than the “we buy homes ad”.

As far as advertising for buyers I run a couple different ads on and off. For my retail deals my ad may say. “Nice 3 bd ranch, needs a little tlc, seller flexible, can help finance or will discount for cash 555-5555” this ad pulls both side’s, retail and wholesale buyers.

Or I may run an ad for junkers that reads; “Handyman special, very cheap, cash 555-5555” This will draw a good response for your whole sale buyers and rehabber’s.

Like I said everyone is different, this has worked well for me by keeping the phone ringing and knowing what the market is for my buyers and sellers.


Re: Attact BUYERS with newspaper Ad? - Posted by Beldorian

Posted by Beldorian on December 03, 2000 at 16:24:29:

Are you asking this question because you have so many sellers that you don’t have enough buyers?

I, personally, would worry about finding motivated sellers and getting deals under contract before worrying about getting buyers.

Then you don’t have to worry about putting a fake ad in the paper and wasting your money.

Best regards.

Re: Attact BUYERS with newspaper Ad? - Posted by Brad SC

Posted by Brad SC on December 03, 2000 at 17:13:13:

I hope no one minds the comment, but from what i’ve read and studied, isn’t the purpose of the ghost ad to build a list of prospects when first starting out? This may cost a few dollars to run, but as opposed to the holding cost… Or are most of the pros able to negotiate the purchase so that they have ample time to find a T/B prior to the next payment falling due. Could someone please clarify this for me? Thank You.


Re: Attact BUYERS with newspaper Ad? - Posted by Houserookie

Posted by Houserookie on December 03, 2000 at 18:36:20:

Amazingly I find it easier to find the buyers first.

I’d like to know what to shop for before I buy.
But If I find a motivated seller along the way, tha’ts okay too. Most sellers are also buyers.