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Insider Secrets: How to Use Direct Marketing in a Real Estate Business

 

Learn what successful real estate professionals say about the best ways to use direct marketing in a real estate business.

Whether buying or selling, the most successful pros use direct marketing in their real estate business.  The main reason why direct mail is so effective is that it lets you send your sales message directly to your customers and potential customers. Unlike many companies, you are not interested in broadcasting your message to a wide audience. You have a very specific, targeted base of current and potential customers whom you’d like to see take advantage of your services. Meaning you should be directly marketing to this specific audience.

Direct Mail Is One of the Best Strategies for Finding Properties

Why? Because it’s been shown that most motivated sellers respond very well to direct mail pieces. Even better than websites, online marketing and email campaigns. Simply put, direct mail delivers the best bang for the buck, by far. Another advantage is direct mail can be easily tracked. You know who the piece was mailed to and you know who is responding and why. You can send out 1000 or 2000 postcards and see within a few weeks what the response rate is. For example, if you send out 1000 pieces and you know that piece generates a 3% response rate, you will get around 30 calls.

Direct Mail Call to Action – Remember that in all your direct mail messages you will need to have a strong call to action. A call to action is a statement telling the customer what you want them to do. It can be something as simple as “call me now” or “Please visit our website”. These are basic marketing fundamentals. It’s important to keep in mind that you don’t want to do what the big advertisers do. Big companies have huge brand strength and they focus their advertising efforts on building their brand. Don’t try to compete with that. They have millions of dollars to spend and you don’t, so don’t even try.

Direct Mail Message: Don’t be Boring – The number one rule in your direct marketing efforts is don’t be boring. Try to set yourself apart. Try to be funny and personable. Basically try to be a real person and let your personality come through.

Consistent Leads = Consistent Deals – As long as you have a consistent stream of leads in your real estate business you’ll have consistent deals. You might consider sending out around 1-2000 letters or postcards to a targeted geographic area. Mailings of this size, if done properly, can consistently give you around $5-$10k in wholesaling income per month. This breaks down to between 1 and 3 deals that is a direct result of each mailing. And if you’re rehabbing and flipping instead of wholesaling, it can amount to a whole lot more.

Naturally each mailing will result in different returns. Some mailings will result in 3 or 4 deals and others will not result in any deals. But over time they average out to between 1 and 3 per mailing. Remember that consistency is key, so do the mailings on a regular basis to keep the leads coming in.

Establish an Incoming Call System

If you’re going to do direct mail, you should set up a voicemail system, call center, or other system that can handle your incoming calls. We don’t recommend the calls go directly to your cell phone. Experience has shown that incoming calls can be interrupting important business. You don’t want 10 or 20 phone calls coming in while you’re trying to work. At the same time, you don’t want the calls to go unanswered, so it’s important to establish some sort of system for taking the calls, before you begin the mailing.

You can try a system like “Patlive”, which is a live call center where the calls are prescreened. They ask the caller all the right questions, then that lead is sent directly to your email. You will get a lead sheet that spells out all the necessary information that you’ll need to determine if you want to pursue the deal, saving you a lot of time.

Two Important Books About Marketing

  1. Influence – The Psychology of Persuasion. This book will change your mind about the marketing world and all that world entails. It’s highly recommended reading for folks handling their own marketing.
  1. Hypnotic Writing. This is a great book if you want to start writing your own postcards and other direct mail pieces. You’ll learn about words that sell, as well as how to get a better response from your mailings. You’ll also learn about how to write business letters, and any other business related writing.

As you go about growing your real estate business, you will need to learn how to market your company in order to sustain that growth. The first thing to remember is to allow all your marketing efforts to fall under the Direct Marketing umbrella. This direct marketing approach will focus your message and laser beam on your current and prospective clients.

 

Finding, Launching And Selling Rehabs, Rentals and Real Estate Investment Properties Using 21 FREE ONLINE Acquisition Resources and the Property Launch Formula

Are you getting into your real estate investing career and feeling a little stuck on where to find great properties to invest in? Does it seem like there isn’t really anything available in your market?

That isn’t true and you just aren’t looking in the right places or looking at ENOUGH prospects.

As my brother Mark once told me, “If our students don’t have enough deals they need to either expand their MARKET OR expand their MARKETING.” Genius!  

Whether you are going to buy and wholesale, or buy, rehab and sell or even buy and keep as a rental property, there are a number of different Strategic Real Estate Coach proprietary strategies you can use to secure great investment properties.

Real estate investors need to look at your real estate investing business like a funnel, lots of suspect properties need to go in the top for the really good deals to shake out at the bottom. You can’t set your heart on just one certain property and fall in love with it before you buy it, you have to look at MANY and OFTEN. You should be making bids on 10-15 different properties just to get one accepted. Once your offer is accepted, you have about two to four weeks to close on the property.

Since you need to have a lot of options when it comes to good real estate investing, I want to teach you 21 simple property acquisition methods that are FREE and ONLINE you can use on a daily basis.

Listen to The 21 Simple FREE ONLINE property acquisition strategies podcast where I briefly explain how I utilize these four methods below plus 17 others. 

Trulia and Zillow might be the two online methods that come to mind first. Both are great places to search for properties for sale, look up comps and to compare neighborhoods and they have really useful apps, BUT there are so many OTHER options you may have not even thought of.

Some of my favorites I will cover that I would use regularly if I was just starting my career in real estate investing again are HomePath.com, HomeSteps.com, HudHomeStore.com and Auction.com. HomePath is where you can find thousands of foreclosed Fannie Mae homes and HomeSteps is where you can find foreclosed Freddie Mac homes. I mentioned last week, HUDHomeStore specifically lists government forecloses, AKA HUD homes.

I also like Auction.com because you can choose to bid online OR at live auctions that may take place in your area at local courthouses, titles companies or some other public site.

Listen to this podcast where I briefly explain how I utilize these four methods plus 17 others.

There are so many different investment properties in so many different markets, there should be no reason why you can’t check out these FREE methods and be able to compile a huge list of prospects.

Let’s say you have closed on an investment home, now what? Let me walk you through a property on Miller Rd. we bought for just $75,000. It needed some serious TLC, so we put about $80,000 worth of work into it including a 1,000 sq ft addition to the back of the house. We also reconfigured the garage back to it’s original place. We were in to it all together about $165,000.

After our rehab and addition, it’s a four bedroom, three bath listed at $279,000. When we purchased it, it was a three bedroom, one bath. That’s right, we’re looking at about a $100k profit on this particular property! Since then we’ve sold Miller rd for $268,000 walking away with a $60,000 net profit.

Take a walk through Miller Rd. below:

If you’re wondering how we were able to purchase this property and put the $80k into it for rehab, I will tell you we used none of our cash or credit for this deal. Everything was paid for in advance with a method called “asset based lending”. You can learn more about how this was made possible through our Freedom Funding program. If funding is another large obstacle for you in your real estate investing career, let us know, we would love to work with you and provide the funding to you for your deals.

Now you have the resources you need to find these real estate investment properties, you have put the rehab work into it and you’re ready to list. What kind of marketing do you do to get your home the most exposure?

A method my team and I use that I also teach to my students is the Property Launch Formula. I refer to it as an Open House on steroids. It’s a two-part process, one being the “ethical bribe giveaway” and the second part is the “total home bonus package” which is a free group of bonuses when someone buys the property within the first 48 hours its listed. We normally include the stainless steel fridge, stove, microwave, washer and dryer, $1200 towards their first months mortgage payment, we pay their closing costs, we include a patio set, grill, lawn mower and the staging furniture.

The Property Launch Formula is a method we created in order to really generate a buzz about the property we are getting ready to list. The marketing of these houses is so important and it’s how we are able to sell them so quickly, sometimes even in just a few hours!

The last thing you want to do is put a ton of work into a great property and then just list it in the MLS and sit and wait. That’s how some properties end up being listed for over 180 days and the price drops, which takes away from your net profit.

You’ll never see my properties listed for that long!

The property we are preparing to launch in the video below is Bailey Rd. We bought the home for $31,000 and put about $22,000 worth of work into it. It’s going to be listed at $114,900 so have the potential to make about $65,000 in pure profit!

These Property Launches should take place on a Sunday between 2-4pm and for the two weeks prior to your launch, you need to make sure it’s properly marketed so people are interested and feel like they are really getting a steal.

We had one instance with our “good bones” property 1171 Gardner Rd. where we had planned the Property Launch and starting the marketing for the open house, but the rehabbing wasn’t done! The video was filmed on a Wednesday and it needed to be 100% and ready to go by Sunday!         

We bought it for $56,905 and put about $27,000 worth of work into it. The house was listed at $144,900, so similar to Bailey Rd. above, we have the potential to make around $62,000 in profit. Take a walk through the property and see the before and after shots and what still needed to be done before the Property Launch:

There are many steps that go into being an effective real estate investor, but if you are one of my students, you’ll quickly see that I will fully prepare you for success. I not only will TELL you how I make these things happen, I’ll SHOW you how to do it for yourself too.

Leave me a comment below and let me know what your favorite free, online methods to finding real estate investments are.

Talk Soon,

Josh Cantwell

CEO Strategic Real Estate Coach

CEO Freeland Ventures and Freeland Lending

CEO Yellow Jacket Properties

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Strategic Real Estate Investing Radio: 11 Simple and FREE Offline Methods to Find Killer Real Estate Investments

In this episode of Strategic Real Estate Investing Radio, Josh Cantwell covers 11 FREE simple and powerful offline resources to help you find killer real estate investments. He will walk you through everything from referrals to attorneys and how to utilize them.

P.S. After you tune in to this free podcast, I'd really appreciate it if you could leave me a review. It'll only take you a second... and keeps me motivated to deliver the best free content I can.

Here's how you do it...

1. Open iTunes

2. Find Real Estate Investing Made Easy by SREC

3. Click the "Ratings and Reviews" tab and click "Write a Review"

Strategic Real Estate Investing Radio: 21 Simple & Powerful FREE ONLINE Methods to Find Killer Real Estate Investments

In this episode of Strategic Real Estate Investing Radio, Josh Cantwell covers 21 FREE online resources to help you find some killer real estate investments. He will walk you through how each method works.

P.S. After you tune in to this free podcast, I'd really appreciate it if you could leave me a review. It'll only take you a second... and keeps me motivated to deliver the best free content I can.

Here's how you do it...

1. Open iTunes

2. Find Real Estate Investing Made Easy by SREC

3. Click the "Ratings and Reviews" tab and click "Write a Review"

Real Estate Investing: The Automated Offer Formula – It Works Every Time!

Have you ever head this saying…..”As a real estate investor and entrepreneur you make money when you buy and REALIZE the profits when you sell or rent it out?” Yes you’ve heard it? Or no you haven’t?

Whether you have heard it before or not, there’s no more true statement in all of real estate than this. If you by properties right then you can’t miss. The purchase price dictates whether you will get approved for funding and whether a private lender will fund your real estate investment purchase. The purchase price dictates whether Strategic Freedom Funding will fund your deals.

The purchase price is everything.

 

“How can a real estate investor make sure they purchase real estate investment properties at the right price?” “How can a $40k Flips member or a Freedom Funding member be assured that their deal will qualify for funding?” Many real estate investors and members of Strategic Real Estate Coach ask us this exact question in our customer service department and chat box.

One question I often get from my students is, “How do I know what to offer on a real estate investment property?” Or they ask “How do I qualify for funding?”

I have a simple solution for you. Use the Strategic Real Estate Coach Automated Offer Formula. When making offers on properties, it’s the same equation every time. I use my Automated Offer Formula to find the max purchase price I can pay on a property and then simply try to acquire it at a price below that price.

 This formula is what I use EVERY SINGLE TIME on every, single property I bid on. The math always works out. It’s simple. If I can get the property using the formula below, I buy it and so should you. If the seller wants a higher price than this formula allows, then I would pass on it and move onto another property and so should you.

This video interview explains “Asset Based lending” and how my funding companies will fund your deals using the Automated Offer Formula.

When you use the automated offer formula you can partner with us using an equity partnership. This quick 60 second video explains what an equity partnership is using the Automated Offer Formula.

The Automated Offer Formula works like this:

  • Take the Realistic Salable After Repaired Value of the subject property. (Real estate investors can get this value from a real estate agent who can run a Current Market Analysis or a “CMA”. A CMA is a report made up of 3 sold properties that have sold and transferred in the past 3 months, 3 pending comps that are currently under contract and awaiting transfer and 3 active properties that are on the market.)
  • Multiply The Realistic Salable After Repaired Value of the subject property times 65%
  • Subtract the repairs needed. (if you need a repair estimator check our hammerpoint.com)
  • The final remaining number will give you your MAXIMUM offer price

Here’s a real life case study example, we recently bought and flipped 2227 7th St.:

We started with Step 1: The After Repaired Value.

We determined we could sell it for about $140,000.

We then moved onto Step 2: Multiplied times 65%.

Grab a calculator and do the math. $145,000 x’s 65%. That’s $94,250.

Then move to Step 3: Subtract the repairs (use www.hammerpoint.com, which is part of the Realeflow Software to determine repairs). We determined that 7th street needed $30,000 in rehab and repositioning. So finally, subtract $94,250 minus $30,000 and that leaves $64,250 as our max offer price. We bought the property for just $62,000. PERFECT! It meets the Automated Offer Formula.

It also leaves us $49,000 in gross profits to work with (the difference between $145,000 (sell price) and $92,000 (all in investment) which is a nice profit spread and ensures we will make a profit even if something goes wrong.

As most of you know, I’m in the Greater Cleveland area and we had a ROUGH winter. It was subzero degrees almost the whole month of February.

Once the weather cleared up, we were able to really hunker down and get some houses turned around very quickly and on the market.

Do you remember the case study I mentioned last week, 2227 7th St? It was the home we sold in just FOUR days for OVER the asking price. This is the perfect example of using the Automated Offer Formula.

Watch the video below for an overview of 2227 7th St. and the Automated Offer Formula broken down to see exactly how it worked for us.

Like I mentioned above, the market I’m consistently buying in is the Greater Cleveland area, but if you live in a hotter market like somewhere in California, Vegas or Seattle, I can show you how to adjust the formula to fit your needs. Simply multiply times 70% instead of 65%. In those hotter markets prices are also much higher so there’s a larger profit spread. So instead of 65% multiply times 70%

Follow this link to my 40K Flips blog and watch the Automated Offer Video Training I did.

Have you used my Automated Offer Formula? If not, start today. Go make an offer on a house using this formula. If so, how has it worked out for you? Leave your own case studies in the comments below.

We’ve seen many, many of our subscribers and members use the Automated Offer Formula and have great success with it and close very profitable real estate deals.

The case study from Mark Pepe showcases how he used the Automated Offer Formula, bought a house in the Seattle market and flipped it quickly. He’s just one of our thousands of successful members.

Be Daring,

Josh

P.S. Not a Strategic Real Estate Coach Member, yet? Searching for more tips and strategies to super charge your real estate investing? Go below and subscribe to our newsletter and download our 2 free ebooks. “How to Find Your Real Estate Investments” and “How to Fund Your Real Estate Investments”