Posted by Glen SoCal on March 18, 2004 at 21:48:22:
Jim FL–
Thanks for your response.
The market I’ll be working in has about 260,000 population…half wealthier, half not. If I can’t get a good response, then I’d be doing something wrong.
Thanks for the info.
Glen
Cut the B.S. - Posted by John
Posted by John on March 15, 2004 at 15:43:42:
I’ve been marketing for over a year now and have managed to put together a handful of deals.
My question is to the investors who are apparently BUYING (not asking about the people reselling properties again) but those who are actually buying 3-4 deals a month. Please share what you are doing to generate that level of response.
I’m currently doing:
Ads in 4 papers ( few calls, tire kickers, no deals)
Signs (have put out 250 in last 3 months and bought 1 house from this and a few “almost bought”)
Direct mail to preforeclosures (bought 3 houses last year from this)
Door knocking - a couple dozen houses spoke to 3-5 sellers? left cards at all of the doors.
Call sellers - who have sales dates coming up. Most of the numbers are disconnected, owners not home (leaving messages) and managed to speak with a handful. No deals.
Letting everyone and their great great grandmother know that “I buy houses”.
Seriously now…
At this point do I just “double up” on what has worked and just do more of everything else? Hire out someone to consistently research sellers contact info, drive hoods, prepare mailings and things like that?
I am running this as a business and the paychecks are great. I just want more! How in the heck are you people doing 3-4 houses a month?
3-5 deals a week, no marketing - Posted by drk
Posted by drk on March 17, 2004 at 19:14:20:
We spent three years of beating our head on the wall with all the traditional marketing. Now the deals are handed to me to sign the purchase contracts. 90% of the deals come from MLS and we don’t touch a deal that has less than $50k in it. It comes down to finding the right realtor and then building relationships with REO departments at the banks. Our problem is that are deals are increasing every month and we constantly have to keep finding more cash investors. The more you grow the more capital you need constantly.
Re: Cut the B.S. - Posted by MicheleCO.
Posted by MicheleCO. on March 16, 2004 at 23:19:59:
Anatomy of my 3 deals this month(it’s only the 16th)
Put in an offer on HUD home offered through the MLS. Are you using agents affectivly? Got it at 63%LTV
Subject to on a condo with a mother-in-law in the basement. Came from a post card through the USPS. Worth $140K owes 103K.
Cash offer on a fixer upper in forclosure with a negotiated shortsale on the second. This one came from a referral from a mortgage lender that she couldn’t get refied. Purchase price 151K worth 225K ARV
(Working) Another referral from a mortgage lender for a seller who has a house that is going to sale on the 24th. Owes 212K Worth about 265K. This one is a little too high for my blood, so I may flip it to a buy and hold landlord type for an assignment fee.
I’m sure 5 will come in however, I am due for a VACATION and I will be attending the convention so it will have to wait.
The key is doing everthing at once and seeing what sticks in the end…
Hope this helps. Michele
My Company is doing 3-4 a week. - Posted by Bill K.
Posted by Bill K. on March 16, 2004 at 20:44:23:
I’m not single handed but using a couple of extras including a paralegal who is great on the phone and some hot salesprosto meet with the people.We call on sales with one week to go. I call them the “no timers”. Out of time and money. Go where the fish are.You can’t do them with no money that’s why we are sucessful cause most are tryin with no $. We cover a county with 75-100 sales a week. We also do shorts and forbearance. (If it don’t work they sell to us). Did I mention we have probably the most competition around? South FL. We are just addicted to doing these deals. We are always looking for others that want to learn the business and make some $ setting up our deals with leads we provide.
Re: Cut the B.S. - Posted by ken in sc
Posted by ken in sc on March 16, 2004 at 11:19:55:
Check this post by me.
http://www.creonline.com/wwwboard/messages/22002.html
It has all my numbers. If you are not getting the results you want but are using good advertising methods, then test different messages in your advertising. For a month use one flyer and then the next month use a flyer with a differently worded message. Keep track of all your calls and where they came from and if the led to a deal.
Ken
Re: Cut the B.S AND the marketing . . . - Posted by Joe Kaiser
Posted by Joe Kaiser on March 15, 2004 at 21:38:28:
John,
I too used to do all those things. Today, I don’t even have an ad in the
paper (this, after running and ad for something like 18 straight years).
And we still buy lots of houses.
When you first get started you typically pick up the newspaper and
make calls, trying to find that one motivated seller in that page of tiny
classifed ads.
It’s a tough approach.
Then, you learn that it’s much better to have motivated sellers calling
you so you do the marketing thing and with any luck, the phone rings.
Better.
What no one seems to mention is there’s a “next level” to this investor
thing, and a few years ago I decided that’s where I wanted to be. So, I
dropped all my marketing efforts (I still send out a ton of mail, though)
and decided to focus on what I’d proven, in all the years in the
business, really worked.
What’s that?
Figuring out who they are and where they’re hiding, and then going
after them with a vengence.
I can’t allow for the possibility that someone losing their home and
their big equity may miss my marketing. So, I don’t give them that
opportunity.
It’s more of a seek and destroy mentality (destroy the problem, that is),
and once you understand that approach, you’ll wish you’d figured it out
a whole lot sooner.
I love not spending $3k in classified ads anymore.
I love not talking to dozens and dozens of people with no equity who
are responding to my marketing.
And I love getting calls from the handful of people in my area who I
know are in danger of losing huge equities and are now coming to me
for a solution.
Or sometimes, asking me to quit bugging them . . .
But, all things considered, it’s the best way to play the game, at least
for me.
Joe
Re: Cut the B.S. - Posted by Doug Pretorius
Posted by Doug Pretorius on March 15, 2004 at 20:50:00:
Let’s be real here. All that marketing IS generating CALLS, right? I mean, you didn’t get 5 or 6 calls, and did deals on each of them, did you?
If so, have you considered working a niche that doesn’t require stupidly desperate sellers? Something like Cooperative Assignments, Straight Options, or even Consulting?
The paycheck for these deals is smaller. But then again you don’t need to spend $10k in advertising to get one $20k deal, which is approximately what it took for me.
Re: Cut the B.S. - Posted by jasonrei
Posted by jasonrei on March 15, 2004 at 19:36:45:
Advertising budget of 5-figures per month and have a partner and a couple of workers.
If it was just me, I wouldn’t try to do more than 3-4/mo.
Doubling up would help. Hiring an assistant would help.
Re: Cut the B.S. - Posted by Jim FL
Posted by Jim FL on March 15, 2004 at 17:36:52:
John,
I used to be a high volume buyer.
I’ve since slowed, and changed my thinking to one deal per month, perhaps two, making the same money as 6-8 is a whole lot more fun…and relaxing.
How did I generate that amount of leads?
I still do by the way.
I marketed BEYOND my comfort zone.
Those signs, 250, nice try, no offense.
In the last 5 weeks, I’ve used 700, along with just about the rest of the other stuff you do, and a few other things.
I’ve bought two houses, both with KILLER equity in them, in well sought after areas, with good schools etc.
What’s the trick?
Make some noise!
Don’t let anyone in the area escape seeing your message several times per day, every day, for weeks, months on end.
Eventually, they get the point, and the calls come in.
Every time I slow my marketing, for what ever reason, I must begin again with a LARGE BANG to shake things loose.
Sounds to me like you could use some noise in your area.
Don’t be shy with your marketing budget.
That is the single biggest line item in my budget, marketing.
Anyway, good luck, and enjoy the ride if you decide to get aggressive.
Sounds like you’ve done well so far, so keep it up.
Take care,
Jim FL
Re: Cut the B.S. - Posted by Arthur
Posted by Arthur on March 15, 2004 at 17:34:12:
One thing i plan on doing which you have not mentioned is put up a sign as soon as i buy a property, something along the lines of
“Aquired by John Investments
Save on Realtor fees, contact us direct.
Tel: 928 123 4567
e-mail john@johninvestments.com”
and when its sold, replaced with “SOLD by John Investments…blah blah blah”
That way you have like mini-billboards up, people will see you and are more likely to remember you, people will see that you are actually doing deals, and neighbours who are thinking of selling may come to you.
Just my thought 
Re: 3-5 deals a week, no marketing - Posted by dean
Posted by dean on April 16, 2004 at 05:33:17:
How in the heck did you get somone at the bank they always cut me off sorry I can’t help you.
and for Realitors they are so lazy here in FL
If there not lazy then there investing themselves
Re: Cut the B.S. - Posted by Eric in MD
Posted by Eric in MD on March 17, 2004 at 24:00:42:
Michele,
Sounds like things are going great!
I’m curious how you are working with morgage lenders for referrals. I have been considering this also, but haven’t quite figured it out yet. Are you paying any referral fees or just “trading favors”? (As a realtor it would probably be unethical for me to pay referral fees in that type of situation)
Thanks in advance.
Eric
Re: Cut the B.S AND the marketing . . . - Posted by MM
Posted by MM on March 21, 2004 at 06:15:04:
Joe:
Thanks for the comments. How do you find those handful people, who are at verge of losing thier homes? Any guidance/help will be appreciated. Thanks in advance.
Re: Cut the B.S AND the marketing . . . - Posted by Jorge
Posted by Jorge on March 16, 2004 at 10:53:31:
how do you find those people that you seek and destroy?
Joe, what’s your website url? - Posted by IB (NJ)
Posted by IB (NJ) on March 15, 2004 at 22:15:30:
Thanks.
Re: Cut the B.S. - Posted by john
Posted by john on March 15, 2004 at 21:23:34:
You’re absolutely right. There were alot more than just 5 or 6 calls. Even a learning curve that I had to go through to get to the point of putting a few deals together. Going back in time with what I know now (then I didn’t know what I didn’t know…) I think I could have put a few more together.
Re: Cut the B.S. - Posted by john
Posted by john on March 15, 2004 at 21:21:17:
Thank you for your reply. I can’t phathom a 5 figure budget currently. A low 4 yes…
Re: Cut the B.S. - Posted by Ken (Fl)
Posted by Ken (Fl) on March 16, 2004 at 06:30:52:
Jim,
What area of Fl are you in? I might be able to help you with your overflow.
God Bless,