Posted by Charles Parrish on September 04, 2006 at 19:44:37:
Your are welcome; glad to help. Go make offers and have fund controlling real estate.
Charles Parrish
Experienced Invstors-- Marketing tips to share - Posted by Nancy
Posted by Nancy on September 02, 2006 at 11:35:31:
Hi Every one,
I want to hear from Experienced investors what are a few best ways of finding deal. Methods of lead generation marketing that worked for you.
Here are a few that worked for me:
- Car signs
- drive around neighborhood for vacant homes
- direct mail
- MLS
thanks
Nancy
Re: Experienced Invstors-- Marketing tips to share - Posted by Charles Parrish
Posted by Charles Parrish on September 03, 2006 at 10:33:20:
Here are some systems I use:
Direct Mail: Send letters or post cards to assessed owners of real estate. The Message: A sincere message to owners stating that you are looking for properties to purchase. Design your letter with a personal message (my wife and I, buying for our family trust?etc). Send thousands of them all the time. The return on your investment is well worth it. You are anticipating that your letter will reach someone who wants to sell. Many owners will hold your post card or letter for months, sometimes for years before they call you.
Expired Listings: You will find many motivated sellers from expired listing. These sellers are truly motivated since they had their property listed with an agent, and it did not sell. That seller may have tried to sell their property months prior to listing with an agent. Now after months of it being listed, the property still has not sold, and is in now in the expired listing status. That seller is now starting back at square #1, an unsold property. This is why the expired listing can be one of your best sources of motivated sellers.
Be consistent; mail a letter to every expired listing from every county in the area you are working.
Visit the property, knock on the door, "Hello, I am Charles; Is this property still for sale? To save time, find the seller?s telephone number and call them. Keep in mind that you have lots of information about that expired listing;
? DOM, days on the market. It may have been on the market for 300 days.
? The listing price and all the reduction of price. The starting price may have been $300,000, after 60 days, the owner may have reduced the price to $290,000 and than another reduction during the life of the listing. These are signs of seller?s motivation.
? There is a section on the listing form for comments. The agent will write comments about the property and sometimes the owner?s motivation. The agent may offer a bonus, or state the house is vacant, owner must sell, owner is moving or house needs work. All of these are clues that should attract a savvy investor to that listing. You can do a word search to find the listings with word clues.
? Another method of locating anxious sellers is to locate listings out of town property owners and call them. These owners have a reason to be motivated, they are far from their investment and it is difficult to manage from a distance. Hello, my name is Charles, while at the court house I found your name as owning some real estate in Baltimore, would you like to sell it or any other property you may own?. We call this WARM CALLING.
? For Sale by Owner: FSBO?s. Call them every day; without FSBO’s, many real estate agents would not have any inventory. Agents and investors depend very much on FSBO?s to create transactions. A FSBO is an open invitation to the world to call them. They are a target for agents and investors.
? News papers: Major and local publications. Run ads in as many newspapers you can afford. I have ads in 127 newspapers. It pays to advertise, and it pays very well. With just one good transaction closed, $20,000 - $100,000 could be made.
? Vacant ugly houses: Drive around neighborhoods and look for ugly vacant properties and find the owners. An interesting way to find the owner of vacant houses is to place a “for sale” sign on it, use your cell phone number. Guess who may call you, and what they might say?
? Discussion boards: Participate in discussion boards on the internet. It works for me; I am controlling properties all over the country because of discussion boards. It pays to help others on the internet. Be generous with your knowledge and willing to help others.
? Bandit signs: I think bandit sign are sight pollution, but others use them successfully. I suggest you call these people who are breaking the law and ask them if they have any properties they can not close. The owners of these signs can be your best prospects.
? Ten contact rule: Talk to 10 people a day. ?Excuse me, do you know of anyone who wants to sell their real estate?? This is hard work, but it works, and this walk and talk method is great exercise.
? Offer referral fees: I offer $2,500 per property and sometimes more. This will get a Locator?s attention and keep their attention and loyalty to you once they collect a few of these fees.
? Make it your mission to work on prospecting daily.
? Rent ads. When calling rent ads, say, "Hello, I am calling about the house for sale.? You know perfectly well that they are offering the property for rent, not for sale, but the owner may have tried to sell, but has had no takers. So in their desperation to cover their negative cash flow, they decided to find a tenant to help cover the negative cash flow. Offer to lease these properties with an option to purchase; offer to do all the repairs for a discount on the rent. Find a tenant who will give you a large deposit, offer them an option to purchase with terms that suit you, short term option, and raise the option price. This is called a sandwich lease option transaction. The profits could be very attractive.
? Make it a habit to attend auctions, talk to the owner of NO SALE AUCTIONS, and make an offer to purchase the property. The thought behind this is that the seller probably tried to sell their property as a FSBO, and used agents unsuccessful and finally gave it to an auction company to sell. After a no sale at the auction, the owner is now back at square one. The owner may have a high degree of motivation to sell at a discount or attractive terms.
? Real estate wanted: Call these so-called investors; they may be good at marketing and making their phone ring, but poor at closing these leads. You may be a better negotiator. Offer the investor a referral fee on any lead they give.
? Always call the ads with the motivational head lines; Lease option, Owner Financing, Must Sell, Make an Offer, OBO (or best offer), Moving, Below Market Sales Price. Look for the motivating words in the ad. This tells you as an investor, that this could be a motivated seller.
? Contact housing inspectors and property owners with violation notices. When the violation is issued to the property owner, it is a civil matter. If the owner does not abate the violation and does not come to housing court when summoned, this violation now becomes a criminal offense. The courts have the authority to issue a body attachment for the owner of the property. The owner could be arrested. This offense could be minor as failure to paint part of the house, a broken window or any other housing code violation.
? One of the best ways to find these motivated sellers is to attend housing court. Sit up front so you will be able to hear the case number, the address of the property and the testimony. You can talk to the owner of the property out side the court room, send a letter or go to their home.
? Attend REIC?s (Real estate investors clubs), network with everyone you know and meet at these investors clubs. Go out of your way to meet others, sit with others and work the room.
These are just a few unusual, out of the box and creative marketing ideas. I hope you will find them helpful.
Charles
Re: Experienced Invstors-- Marketing tips to share - Posted by Atlanta_bob
Posted by Atlanta_bob on September 02, 2006 at 19:32:26:
Hello Nancy:
Jim Kennedy posted a list of 33 ways to find motivated sellers in 2004 (I think). Here’s a recap of his list, altho you may find it by searching the archives:
http://www.creonline.com/wwwboard/messages/82181.html
Hope this helps.
Atlanta_bob
Thank you Mr. Parrish! - Posted by James
Posted by James on September 03, 2006 at 17:58:19:
I know there are Gurus who would provide this information if you attend their $5000+ Bootcamps,but thanks to generous people like yourself the info is free for the taking here on CREO!Thank You!
Re: Experienced Invstors-- Marketing tips to share - Posted by LK
Posted by LK on September 03, 2006 at 14:10:38:
Great information, and you didn’t even charge us for it.
Re: Experienced Invstors-- Marketing tips to share - Posted by Peter
Posted by Peter on September 03, 2006 at 13:03:30:
How does one get a list of expired listings? Thanks.
Re: Experienced Invstors-- Marketing tips to share - Posted by Nancy
Posted by Nancy on September 03, 2006 at 11:00:30:
Thanks for sharing!!
Nancy
Re: Thank you Mr. Parrish! - Posted by Charles Parrish
Posted by Charles Parrish on September 03, 2006 at 23:25:41:
Thank you for your kind comments. It is a pleasure to help others.
When I became interested in real estate, (before Al Gore invented the internet, and after the Wright Brothers discovered flight) other investors in my community viewed me as competition and refused to answer the most basic questions or point me in the right direction. I was forced to use the ?Trial & Error? method, although I called it the ?Trial & Terror? method. It cost me thousands of dollars and hundreds of hours spent at seminars by
presenters like, Al Lowery, Jack Miller, Jimmie Napier, Bill (Tycoon) Green, Paul Simon, and the many gurus long forgotten.
Wishing you good luck,
Charles Parrish
Re: Experienced Invstors-- Marketing tips to share - Posted by Charles Parrish
Posted by Charles Parrish on September 03, 2006 at 16:37:38:
Thank you, I am glad you thought it was great information. No charge! I will be glad to answer your questions about investing, I am an auctioneer, investor, chairman of an REIC and a real estate investors school.
Put the information to good use.
Charles Parrish
Re: Experienced Invstors-- Marketing tips to share - Posted by Charles Parrish
Posted by Charles Parrish on September 03, 2006 at 16:32:23:
Have an agent print them for you. Also have that same agent make offers on everyone of them. Your offer should be about 30% below market value, don’t look at them until you get an acceptance or counter offer.
Charles Parrish
Re: Experienced Invstors-- Marketing tips to share - Posted by John
Posted by John on September 03, 2006 at 17:56:07:
That is all! What do you do with all that spare time you must have. lol. Your site also says you are a broker as well. And to have time to post informative posts like this is amazing. You should teach a class on managing your time.
Re: Experienced Invstors-- Marketing tips to share - Posted by Peter
Posted by Peter on September 04, 2006 at 12:47:42:
Thank you for your response. I was wondering if there was another method to get the expired listing. I have tried to get them from real estate agents but all the agents I have contacted will not give out the expired listings. So is it just a numbers game to get the right agent?
Re: Experienced Invstors-- Marketing tips to share - Posted by Charles Parrish
Posted by Charles Parrish on September 03, 2006 at 23:14:17:
With my spare time I cut and paste all that great information I give away and insert it in a operational manual called The Control & Roll System of Real Estate Investing.
How to Control real estate with contracts, using delaying, right to market and other sweet clauses to recycle real estate by public auction and profit from all types of properties controlled, but never owned.
Thanks John for your comments, they leave me wondering if you are sincere or putting me on.
I do conduct a ?Time Management? segment at our ?Pro-Active, Gorilla Auction Marketing Sales Meetings? every Wednesday at 4 pm at Auction Brokers in Baltimore.
Wishing you good luck,
Charles Parrish
Re: Experienced Invstors-- Marketing tips to share - Posted by Charles Parrish
Posted by Charles Parrish on September 04, 2006 at 14:47:06:
Find an agent to work with. Let the agent know you are a buyer, have the agent sign a buyers agreement, what it says is that you will pay the commission directly on FSBO’s and expired listings.
You really should not have a problem.
Here is the agreement to consider using.
Fiduciary ?s Consultant Agreement
THIS AGREEMENT made this ____day of _____ 2006 by and between Charles Parrish, agent of an LLC to be created, of 6721 Harford Road, Baltimore, Maryland 21234, hereinafter referred to as ?Client? ,
and ___________________________________________hereinafter referred to as Consultant (Fiduciary).
NOW THEREFORE, in consideration of the following and of their mutual promises and agreements, the parties to this Agreement agree as follows:
WHEREAS Client is in the business of real estate investing and other real estate related activities. Client has acquired a reputation for fair dealings and enjoys the goodwill of the public. Consultant desires to associate with Client for the purpose of procuring real estate for Client and to advance each others financial position.
WHEREAS Consultant encounters during the course of business, persons involved in the purchase, sale, option, assignment, liquidation, for sale by owner, bank owned properties and mortgages, expired real estate and others who have interest in real estate. Consultant wishes to refer properties to Client for the furtherance of their business pursuits of Client and Consultant as individuals and not parties of a legal transfer. Consultant agrees to refer certain CONTACTS to Client for the purpose doing real estatsae transactions.
NOW THEREFORE, in consideration of the mutual promises and agreements it is agreed as follows:
- That this Agreement does not constitute a hiring by either party.
- Should Client/ purchase or contract to sell any property referred to Client by private treaty or public auction,upon settlement of same, Consultant will be entitled to and will be paid at time of settlement a percentage based on the acquisition price of the property up to ____%, or as agreed at time the referral is presented to Client.
- All fees are calculated on a net basis to Client at time of settlement.
- This Agreement may be terminated by either party upon verbal or written notice.
- Consultant agrees to meet with or talk to Client at certain intervals for marketing advice or training sessions in order to advance their skills as a Consultant and to better represent Client.
- It is understood that Consultant and Client have entered into this agreement in order to advance their networking business and increase their income and that there has been a meeting of minds of all parties.
- Client agrees to submit a verbal or written activity report to the Consultant on every property referred.
8 It is understood that Consultant is representing Client as a fiduciary representative and will conduct themselves ethically, and professionally at all times during real estate inquiries, solicitations, advertisements, publications or negotiations, and that Consultant will have the Client best interest during contact will owners of suitable properties for Client, and will be honest in all negotiation with s, sellers, lenders, agents and others, and will make full disclosures where necessary. - TYPES OF PROPERTIES DESIRED: Client prefers real estate that is not listed; For Sale by Owners, Expired Listings, Self generated real estate referrals, pending foreclosures/tax sale certificates, bank owned properties, mortgage notes and deed of trusts (current or in default). Will consider non-conforming real estate, marinas, commercial, apartment houses, farms, land, lots, subdivisions and businesses with real estate.
- It is understood, that it is not the intention of the parties in this agreement to circumvent a commission, fee or
legal obligation that is due any real estate broker, if you are a licensee working as a real estate agent, your
agreement with your broker to split commission, fees or any equity in a legal agreement relating to this
agreement is an integral part of this agreement and it is expected that as a Consultant that you will honor
your moral and legal obligation to your broker to split fees.
_____________________________________________________________(SEAL) Date ____________________
Consultant/Fiduciary
Address
_____________________________________________________________(SEAL) Date ________
Charles D. Parrish, Client
6721 Harford Road
Baltimore, Maryland 21234, 443-253-3886 ? Cell, 410-426-6000?Office, 410-426-8000 ?Fax
DISCLAIMER: The contents and any attachments hereto are intended only for use by the addressee(s) and may contain legally privileged and confidential information. Any dissemination, distribution, or copying of this e-mail or attachments is strictly prohibited. Charles Parrish
Re: Experienced Invstors-- Marketing tips to share - Posted by John
Posted by John on September 04, 2006 at 01:40:56:
100% sincere.
Thanks!! - Posted by Peter
Posted by Peter on September 04, 2006 at 15:16:57:
Thank you so much for imparting your valuable knowledge and experience to a beginner!! I greatly appreciate it!! Thanks so much!!