Hit rate on calls received... - Posted by Mike G

Posted by Jim FL on November 11, 2002 at 14:39:52:

Dave,
Thanks for the kind words.
I put out flyers all over the place, and someone, either me, my partner, my family, my friends, kids we pay a few bucks to here and there, are all passing out some kind of flyer daily.
So I do some and so does anyone else in my life.
Works out nice, because when Jim has money, the party is at my house, and my friends like me to play host.
So they help out.

We just had a flyer run today, we hit strip malls, Walmart, K-mart, Target, All kinds of stores and bulletin boards, small businesses, anywhere we could find a surface to put them up, they went.
We did both flyers for houses for sale and some got our buying machine.
We also added some signs out today, as well as driving everywhere wearing our clothing items with logos and our message and three vehicles out today with our message all over them.
Today was a slow day for marketing, so you can only imagine when we are marketing HARD what we do.

Bottom line, EVERY DAY we do something to market.
Even if it is just traveling around town with a vehicle marketed up heavy with our message.

Take care,
Jim FL

Hit rate on calls received… - Posted by Mike G

Posted by Mike G on November 08, 2002 at 09:03:05:

For all of you pro’s, on average how many calls do you receive from your marketing efforts before you do a deal? I know it obviously depends on a million variables. Just want to get a rough idea.

I’ve recently cranked up my marketing machine and am now receiving a few calls. None have led to a deal yet and of course my conversion rate will be much lower than yours at my level. But I do have a very experienced partner w/ whom I discuss how to structure the best deal, so I have confidence w/ what I’m doing.

I just want to get a feel for what I should be expecting…1 in 50, 1 in 20, 1 in 10, 1 in 5???

Re: Hit rate on calls received… - Posted by Rob FL

Posted by Rob FL on November 08, 2002 at 22:13:04:

I’d guesstimate that I end up buying 1 property for every 10 to 15 calls received. The remaining properties are either too far away from my location or else they are duds.

It goes in waves - Posted by Jim FL

Posted by Jim FL on November 08, 2002 at 14:23:50:

Mike,
I’ve found that my calls and deals come in waves.
I learned a long time ago, even after getting several deals signed up to keep my marketing for sellers going at all times.
I used to sign up a deal or two and back off from my marketing.
A BIG mistake.
Starting all over was not a good idea, because it takes some time and persistent marketing to get people to respond to it regularly.

Now I’d say we average about $500 - $1,000 per month on average in marketing.
Sometimes much more, if we are using bill boards, radio or T.V.
But I don’t do that often, usually just in the summer months.
I’ve had months were we sign 2-4 deals per week, and thankfully earlier this year and late last year, several months like that in a row.
However, I’ve had other times when I’ll get 2 deals in 2 months time.
My marketing remains the same in all of these times, except for a little more when there are less deals on my plate.
Simply because I have more time to market.

As you market, track what is bringing the calls in and do more of it.
It takes some time for marketing to develop a pattern, so let each method work for at least 2 months, in my opinion, before you can realy tell what is working and not.

I wish I had some solid numbers for you, but really, my leads come in waves.

Good luck,
Jim FL

Re: Hit rate on calls received… - Posted by ray

Posted by ray on November 08, 2002 at 12:20:15:

I’m new but here’s the stats on my first deal:
Mailed 779 postcards/letters
Received 23 calls
Had 3 good deals negotiated but 2 fell through due to mortgage companies and the VA. Did one deal and expect a conservative NET profit of $10-12K.

Re: Hit rate on calls received… - Posted by franklin

Posted by franklin on November 08, 2002 at 09:56:17:

My hit rate has been, about 4 deal/25 calls, also what i’ve learn is you must ask the right question, the why,how,what,etc… YOU must ask many questions about the situation, not about the house so much… that change of perspective helps know if the caller is motivated or not… deal or not. Hope that helps

Great Success… Franklin

Re: It goes in waves - Posted by Curious

Posted by Curious on November 08, 2002 at 22:26:27:

I’m curious how you keep up with that many deals? Do you have an accountant do all your books? Could you perhaps give us an overview of how you keep your daily routine organized? The reason i’m asking is that i have 3 sub2 deals with tenant buyers in them, and i fumble around at times. I would love to have your volume, but just not organized i guess. Curious how you big boys manage. Thank you!

Market How? - Posted by TCR_Va

Posted by TCR_Va on November 08, 2002 at 18:22:32:

Jim,

What all are you doing to market motivated sellers? I am completely stumped up here in Richmond. I got one ad in the paper (We Buy Houses type) but I am doing L/Os. Got any suggestions?

Re: Hit rate on calls received… - Posted by James Strange

Posted by James Strange on November 08, 2002 at 19:40:00:

10k net 779 cards = $12.83 per card.

Who says that junk mail does not pay?

Re: Hit rate on calls received… - Posted by matt

Posted by matt on November 08, 2002 at 12:53:12:

Franklin:

What methods of marketing do you use and which have you found to be the most effective?

-Matt

Re: It goes in waves - Posted by Jim FL

Posted by Jim FL on November 08, 2002 at 23:02:21:

Curious,
First, why the anonymous name?

Honestly, my book keeping is NOT my strong point.
Between my wife, myself, and my partner, and some software, we try to do our best to keep track of things.
I am learning to be more organized as time goes by, because I am forced to.

The volume of deals may seem high, but as I said, it goes in waves.
I am happpy to get any more than 30 deals per year, and don’t always hit that.
We also have deals cashing out here and there, so there are times that there are less books to keep.
Spreadsheets and quickbooks helps a little, but I’m still kind of fumbling thru learning all that.

If someone ever designs a system of software what will do everything according to the way I do deals, it would be sold as soon as I saw it.

For me, getting the the next level of my investing is not about money, it is about systemizing things, automating them and making my hands on operation less so as time goes.
I am always thinking of new things to try, and the books are just one of them.

Sorry not to have any hard core wisdom for you, the book keeping for me is an ever evolving portion of my business.

Take care,
Jim FL

Re: Market How? - Posted by Wes

Posted by Wes on November 11, 2002 at 11:02:14:

TCR Va,

I would also recommend the following articles from this web site (among others):

Good Luck!

Wes

AGGRESSIVELY!! LOUD! OBNOXIOUS! OFTEN! - Posted by Jim FL

Posted by Jim FL on November 08, 2002 at 22:41:13:

TCR,
If you are getting discouraged because you are not getting as many calls as you’d like, don’t fret.
How long has the ad been running?
It usually takes over 2 months to get a somewhat accurate gauge as to its effectiveness.

Also, don’t count on just one method for marketing.
Have as many lines in the water as you can at once.
Track the results, and use more of which ever one produces the best for you.

For me, well, to be honest, there are some things I do that I will not share at this time. Trade secrets, and trial runs on some things.
But, here are a few we have going at the moment:

1.) Business cards EVERYWHERE! I pass them, my partner does, my wife, my kids, my friends, my family, my associates, anyone I meet, professionals we work with etc.

2.) Flyers, we probably get out about 500-1000 flyers weekly, all over the place.

3.) Signs, keeping some out all the time, and more on weekends.

4.) Vehicle signs. We have four vehicles with signs on them all over the place.
We also have a trailor that is painted up with our logos and gets towed, parked, what ever all over town.

5.) Word of mouth.

6.) Internet ads and website.

7.) Ads on local school television stations, the kids tape these and take them home to study for projects, and it is all produced by the kids. A friends son made me up a nice Power Point animated commercial, and it airs on the school stations and gets taken home to parents daily.
The students have to recruit businesses to advertise on the network as part of their grade, with more points if they produce the spot, which they did for me.
We also have a tape of it coming so we can use it on other local cable stations etc.
Nothing fancy, but it gets the point accross.

8.) Every house we sell also has “We buy” stuff located at it. We get neighbors calling us all the time.

9.) Clothing items. Everyone in my home, my partners home, and several friends all have clothing items with our logo on the front and message on the back. These get worn every where, every day.
We get calls on them, and people even stop and ask about us, getting a business card when it is not me or my partner.

10.) We advertise along with other small businesses. Either by sharing ad space for a small dual ad, or placing marketing materials at their stores, offices and places of business.

11.) Events: Just last weekend my wife who runs her own small business, was hosting a booth as a vendor at a local LARGE motorcycle rally/rodeo/weekend.
There were about 5,000 bikers there, for the whole weekend.
We had marketing materials there at her booth, and scattered around the entire event. Both for our “We Buy” business, and for homes we have for sale.
We got a few calls.
And for anyone who picked up our FREE brochure, bought a raffle ticket from my wifes, business at her booth, we gave away a FREE shot of Applie Pie, some home made holiday drink.
We got a TON of traffic, she did well, and we got some leads, and exposure.

And honestly, that is just a little of what we do.
I market BIG TIME, always have, always will I’d imagine.

Bottom line, you need to market beyond your comfort zone and the calls will come.

Be creative with marketing, and not shy.
Shout your message to the world repeatedly and the calls will come.
Deals follow after.

HTH,
Jim FL

Re: AGGRESSIVELY!! LOUD! OBNOXIOUS! OFTEN! - Posted by DaveNC

Posted by DaveNC on November 11, 2002 at 14:22:49:

Hi Jim FL, Great post, as always. I’m just curious though, where do you put out so many flyers? Are you putting them out yourself or paying someone to put them out? Just wondering what works best for you. Thanks for all the great info. Dave