Bummed in Connecticut!! - Posted by Tim (CT)

Posted by Jim FL on May 17, 2003 at 24:42:15:

Tim,
With all due respect, you are missing the point.
Let me share with you how I feel about certain things, perhaps it will help shed some light.

If someone else is in a certain area doing this business and making a good living, I know this stuff works there, good news, right?
Okay, maybe.
Now, if no one I can find is doing my business in a certain location, and people all look at me like I’m from Pluto when I talk about it, GREAT!
A WIDE OPEN MARKET!

If houses are selling FAST, within DAYS for FULL VALUE…AWESOME FOR ME!
My deals will sell too…and make me more money, thanks to the “Time value of money”, since I sell mostly on terms of one form or another.

Now, this does mean that I’ll have to work harder to get leads and eventually deals.

Since I just relocated a couple years ago, to an entirely new state and a completely new market to me, I remember quite well what it is like to begin.

So, at this point as I see it, you have two choices:

  1. QUIT! Give up, this tuff does not work there, no one else is doing it, and you cannot get a deal!
    Kinda harsh, but hey, that’s me, deal with it!

  2. GET OVER IT…and PUSH THROUGH IT!

Honestly, this might offend some, but frankly, from 500 post cards and only 10-15 bandit signs, I’d certainly not be upset over lack of results.
This is not nearly enough of a run on marketing to really shake things loose.

Let me tell you about a recent push I made, and it paid off.
First though, keep in mind, for me, the only real “investment” in the traditional sense in my REI business is my market budget.
I “invest” money monthly into getting my message out, and as a result, buy a lot of houses no money down.

Anyway, I slacked off for a while.
I got lazy and my business suffered as a result.
Sure, deals were coming in, but not at a pace to keep me happy.
Rather than get upset over the 50 bandit signs I was placing weekly, or the 50 mailers per week to targeted possible sellers, or the 4-5 other things with my message out there, I decided it was time to step it up.
I figured that the most cost effective way to get the job done was to BLAST my message all over the place.
How to do this?
Simple, spend some time and money on simple effective marketing ideas that I KNOW work.
Bandit signs, vehicle signs, vinyl letters on vehicle windows, ads in local eatery menus, flyers, business cards, word of mouth, and of signs in EVERY SINGLE yard of a house I own.

I BLASTED the area with several HUNDRED signs.
Some newbie morons decided they did not like “the new guy” and stole most of them, calling and leaving late night messages bragging about it…sick, and infantile, but STILL not enough to discourage me.
My response was to simply hold the remainder of my signs until right after I knew the county was planning a VERY LARGE clean up of signs.
Sure enough, since I stopped placing them, these idiots placed all of theirs out apparently, and they went with the county trucks over a week or so.
Now, theres are gone and mine are out there again, the only ones there.
I hear other area investors complaing that they are not getting deals, and how they are buying leads from a large franshise here that has TONS of billboards, and real estate agents and brokers.
Crazy thinking to me.

Especially since I’ve signed 4 deals in the last nine days.
Now, this is because I began a push, stuck with it, kept it consistent, except for a week or so there, and made it multi pronged.
My message is repeated all over town, in several different arenas and media forms, but always the same.
People see it and call, because it becomes familiar.

So, are you gonna QUIT!!!..or get off your duff and market?

I think that is what you need to do.
Remember, as Ron said, this business is not easy.
Only those of us who can push those obstacles over and use them as stepping stones will get to our goals.

And slow business is a direct result of poor marketing on your part.
Don’t scrimp on what makes the money.
Invest in your business, by promoting it.

As someone here recently pointed out, marketing is really the biggest part of our business, and I do tend to agree.

My marketing budget increased twice over in one month, but the result was that my buying increased 3 times over.

Something to think about,

Jim FL

Bummed in Connecticut!! - Posted by Tim (CT)

Posted by Tim (CT) on May 16, 2003 at 16:07:13:

I’ve sent out over 500 postcards…not 1 bite. I sent them to out-of-state owners and expired listings. Nothing. I’ve got 12 to 15 bandit signs out. 1 call from an fsbo that was just curious.

It’s tough staying upbeat …

I’m really beginning to believe that Connecticut people are just too conservative.

Any other New England REI’s doing well right now?

I’m now trying to work with different realtors to try and get them to send me the people they meet that have no money or no equity. Maybe a L/O deal there. I’ll flip some cash back to the realtor as a finders fee.

This is starting to suck!

Re: Bummed in Connecticut!! - Posted by phil fernandez

Posted by phil fernandez on May 17, 2003 at 10:20:27:

Tim,

Here’s what often happens. You send out 500 or 1,500 post cards and nothing happens. Then 6 months down the road you get 3 calls on your old post cards that people kept. So it’s not always instant success, but results down the road. Keep on sending them.

Same with the bandit signs. You’ll get calls on them in the future.

Re: Bummed in Connecticut!! - Posted by Bill H

Posted by Bill H on May 17, 2003 at 02:34:15:

Tim:

Nothing in this business succeeds like persistence. I used to send out 2,250 (Yep, Two Thousand Two Hundred Fifty) newsletters a month. Took a while for them to pay off but I made $68,000 from the first one that did.

Keep at it. Persistence pays.

Good Luck,

---------->bill

Re: Bummed in Connecticut!! - Posted by dell

Posted by dell on May 17, 2003 at 24:58:57:

I am wondering how many properties you have analyzed and how many offers you have written.

We started doing real estate in Jan of this year and have purchases nine properties, some to rehab and sell and some to keep. All needed from a little to a lot of work, all will or have profited us a minimuim of 10,000 or 10,000 annual cash flow. We have not used any bandit cards, we have not done any mailers and the only ads we have run are for sale ads.

What we have done is looked at 5,000 + ads, looked inspected over a hundred properties, talked to a dozen realtors, wrote 50 some offers and purchased nine properties, most with no money down (we do use bank financing and have owners carry the downpayment as our main financing method).

One of my stable pieces of data is by Robert Shemin “The person who writes the most offers buys the most properties”

A side note, all except one of the properties we have purchased were listed by realtors.

Go out and write offers.

If one strategy doesnt work try another. Dont bang your head against the wall doing something that is not working, try a different approach.

Good Luck

Dell

Re: Bummed in Connecticut!! - Posted by RichV(FL)

Posted by RichV(FL) on May 16, 2003 at 20:38:55:

Tim,

Keep your chin up…the same thing is happening here in Sarasota County Florida. Its a wealthy county, people are conservative, and they know what they have when it comes to housing. Its a sellers market here.

But, I am still able to score deals…you gotta hang in there. Just stay on your toes and when the deals come up be the first one to grab them.

I know some of the CT market…I have family in Danbury and I used to live in Westchester County NY (near Greenwich).

Just keep pushing and dont give up so easy.

Great Success,

RichV(FL)

Re: Bummed in Connecticut!! - Posted by JZ

Posted by JZ on May 16, 2003 at 19:27:56:

Tim (CT),
I admire your determination. I’m in Danbury, CT and the same situation exists here, sky-high prices for anything from orange-crate type houses on up. Even rehabs are insanely priced. Although I haven’t been buying anything lately, or even looking in this town, I plan to soon, but not here. Condos still cash-flow in Waterbury (town plot, bunkers hill areas),I’ve been told, and I think they’ll come down in price soon too. Also been thinking of looking over in Fishkill, Cold Spring, NY area which another investor suggested to me. Another investor I know just picked up a SFH in central CT which had been tied up for a CHFA loan but buyer couldn’t get the $ commitment because of termite damage. RE salesperson told him about it as listing was about to expire and he bought it to resell quick. I believe that experienced investors would do ok here if they came from other states, they probably would experience a learning curve unless the same market conditions exist here as where they came from. There may be other towns east of here that have better opportunities. Are you in Bridgeport? I know a guy who picked up a condo there in the early 1990s for $5k on his credit card. Prices are probably too high now. If you persevere, the knowledge you are getting now will serve you well when market conditions change.
One last point to make in this brain dump. Waterbury was the town where Robyn Thompson, the rehab queen, did very well. Still is, far as I know. She started in the 1990s, saw the opportunity, and took action. I think the market at that time also helped. An investor I spoke with recently told me he had 200 rental properties in Waterbury which he lost in the early 90s when that market went bust. He filed bankruptcy. I would guess he picked them up in the 1980s when prices were high, (like they are now?) and when jobs and people started leaving during the 1990 recession and developers over-built the place, he couldn’t make his mortgage payments.
Well I hope you find a RE investing angle that finally works for you.
JZ

I feel ya… - Posted by John CO

Posted by John CO on May 16, 2003 at 18:22:56:

I’ve been chipping away at real estate investing for a couple months now. I’m still working to get a deal, but I just keep convincing myself everyday that creative REI has to work…anywhere in the U.S… If other people are doing it, than I can do it too!

You have to remember with direct mail, the average response is around 1%…so don’t beat yourself up if you don’t get anything from 500 postcards. Somebody told me a good rule of thumb is that for every $500 spent in marketing should equal 1 deal.

What keeps me going is just attending as many REI events as possible, and surrounding myself with like minded people. I really believe that you need a support group to keep you going. I also always listen to REI audio tapes whenever I’m in the car. It’s a tough business I know…there’s lots of frustration and rejection. I stay up many nights looking up at the ceiling and getting disturbed with myself. But getting disturbed forces me to take ACTION! I will not settle for where I am at in life. I keep repeating to myself a quote I heared:

“If you do what others WON’T for 5 years…you’ll be able to do what others CAN’T for the rest of your life”

So just try taking a little bit of action every day…just think of everything you do to get a call as planting a seed in the ground. Eventually, something will come to harvest.

Right - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on May 16, 2003 at 16:18:50:

Tim–(CT)--------------

Yours is the standard complaint. It is not easy to make money with real estate. Haven’t you heard that before? It takes persistance. If the real estate market is strong where you are, there will be far fewer good deals to get.

Send out 5,000 more postcards and see how that does. Put up 50 more bandit signs.

If you thought it was going to be easy, you were wrong. Why do you suppose that something like 80-98% of those who start out in real estate investing quit? Now you have to start the slogging through to success. Only those who persist make it to the pot of gold.

Good InvestingRon Starr*******

Re: Bummed in Connecticut!! - Posted by Tim (CT)

Posted by Tim (CT) on May 17, 2003 at 22:33:42:

Just curious…are you in Connecticut?

I realize it’s hard work - Posted by Tim (CT)

Posted by Tim (CT) on May 16, 2003 at 16:29:19:

I’m not afraid of that at all. I just want to see some return at some point. And, I also realize that there’s no guarantees in this business. I was curious to see if anybody else in New England or, specifically, Connecticut was having pretty good success.

Thanks for the reply.

robynthompson.com (nt) - Posted by Hal Roark

Posted by Hal Roark on May 17, 2003 at 08:40:49:

tn