Real estate blog
Thursday, March 29, 2007
Get More Deals By Using "Lumpy Mail"

Residential real estate investors can be some of the worst marketers for getting new deals. I should know – I used to be one of them.

Most real estate investors spend much of their time learning the technical aspects of the business such as how to purchase, what forms to use, how to analyze deals, financing strategies, exit strategies, etc.

Yes, this education is critically important, and I don't recommend skipping it but don't forget that your "real" business is generated from your front-end lead generation work that results in getting new deals.

Without effective front-end marketing, many real estate investors can suffer from a shortage of incoming deals. This is especially true for part-time real estate investors, who have a limited amount of time to spend finding new deals.

But I've learned from direct interaction with many real estate investors that they often find prospecting to be frustrating and time consuming.

So how is your particular "lead generating" machine running? Is it consistently producing new deals for you? You can quickly find this out by asking yourself the following questions:

- Am I consistently getting the amount of new deals that I want?


- Is my return-on-investment for my time & effort high?


- Is this valuable time that I'd rather spend somewhere else?


- Do I really know how to get new deals?

I've noticed that using "We Buy Houses" signs, placing newspaper ads, and making lots of lowball offers is the standard advice that's out there for generating new deals. These strategies can work well, but in general they aren't targeted to any specific area AND unfortunately most of your peer investors are using these same strategies.

For example, take my investment areas in and around Philadelphia. I consulted with the List Service Company I use by asking them for the number of active real estate investors in my four county investing areas (within approximately 40 miles of Philadelphia).

They forwarded me the following numeric list "counts" of folks who indicated that their lifestyle included real estate investing:

-13,750 real estate investors in Philadelphia County


-11,568 real estate investors in Montgomery County


-9,739 real estate investors in Bucks County


-7,280 real estate investors in Delaware County





Total = 42,337

Yikes! Granted these folks aren't exactly lining up to steal my particular deals but there are a heck of a lot of investors near me. Quite a "Herd", isn't it?

My advice to you is to do the same as I have done - get out of your area's real estate investor Herd now. Here's why it's important to do it, and do it NOW:

Reason #1: Your peer investors (in my case 42,337) are all using the same general strategies to get the deals. Make yourself different from them and watch your business increase.

Reason #2: 2007 & 2008 will be great Investing years:

- The current "selling" market is slow


- The current property inventory is high


- Home sellers are getting more motivated to sell


- Mortgage defaults are increasing (pre-foreclosures)

Reason #3: This is your big chance to "stand out" from the rest of your peer investors. Compare "apples to oranges". Give folks value, as compared to the standard "low-balling" investor. Offer them a plasma TV, a leather couch, or ??

Personally, I'm a big fan of targeted Emotional Direct Response Marketing in order to make myself different than the Herd and to get those leads to contact me. Using Emotional Direct Response Marketing is an excellent way to address a home seller's "wants" and then giving them a solution that fits their particular "wants".

Get inside the heads of your target market to understand their "wants" no matter who they may be. Get this right and you'll be very successful in your business.

My favorite way to get my Emotional Direct Response Marketing message to my particular market is by using Direct Mail. As far as the actual mail pieces go, I've found that using "Lumpy Mail" is a great way to differentiate myself from all the rest of the investors who may be farming that very same prospect or area.

For example - which mail piece do you think would get the attention out of a pile of direct mail pieces sitting in some "pre-foreclosure" prospect's mail pile? Will it be the plain envelope containing the standard letter stating "sell me your house now before it gets sold on the Courthouse steps" or the neon green card sized envelope that's stamped "Do-Not-Bend: Gift Enclosed" on it's outside, and that contains an obvious "lump" in it's center from some unknown "thing" inside?

I don't know about you, but those Lumpy Mail pieces are really interesting to me and to most people. It's kind of like getting a present in the mail. Once you get the prospect to actually open that envelope, why not make that "lump" be a piece of chocolate, a folded up dollar bill, or some other neat present to make yourself really stand out?

Believe me, if you do this you'll be remembered and you'll stand out from your competition. Also, don't forget to give people things of value for free inside your Lumpy Mail pieces. This is very important as well.

Something of value could be a Free Report that you wrote, or an offer for a "Free Home Audit" (you decide what that will be), or you could just entice them to call you and tell you their story. Once again, you'll be remembered and that's 80% of your goal with Direct Mail.

Using Lumpy Mail is just one example of how you can differentiate yourself from the real estate investors around you. Lumpy Mail should also be a definite component of your marketing system.

That leads me to one final point – your marketing system. If you're a real estate investor and you don't have a marketing system that's helping to separate you from the real estate investor Herd around you, you're wasting precious time and money.

Integrating Lumpy Mail into your marketing system will result in a definite increase in people wanting your services, and that's crucial. As a result you'll be able to save time, beat out your competition, and get more great deals. Lumpy Mail works. Be creative and go for it!

Labels: , , , , , ,

Monday, March 26, 2007
Professional Real Estate Investors' Number One Secret Revealed

If you want to make money in real estate like a professional investor then there is one secret that you really need to know. This is the secret that will be the difference between you earning a nice little bit of profit or equity from your investment strategy and you making a killing from your investment property assets.

This secret is little known outside of the professional property investor circle – this secret is hardly ever divulged, revealed or explained - and yet it is the absolute, number one essential factor that every single professional investor applies to every single real estate investment purchase decision that they ever make.

And the secret is – professional property investors secure their future profit when they purchase…

What?

That makes no sense, does it?

Actually, it makes a wealth of sense, let me explain…

Depending on the investment approach that you take, you can work a property's purchase price right down and in so doing you immediately create greater room for eventual profit.

For example, if you have a large lump sum to put down as a deposit for an investment property why not split the deposit in two, three or four and use the power of OPM (other people's money) in the form of multiple mortgages to acquire multiple properties?

This will allow you to negotiate the purchase price down if buying from a single vendor on a new development for example - it's called leveraging and here's how it works in basic terms: -

If you have USD 100,000 to invest, instead of buying a single home for USD 100,000 you can buy four for USD 100,000 by putting a USD 25,000 deposit down and mortgaging the other USD 75,000 on each one. Chances are if you're such a strong buyer you can hit the vendor hard with an aggressive purchase offer – say, 'I'm going to take four properties off your hands today and I want a 5% discount on each and I want all white goods, air conditioning, carpets and curtains thrown in.'

At the end of the process you will have paid out USD 100,000 for four properties that you have bought for USD 380,000 and which are actually worth over and above the original asking price of USD 400,000 because of the extras you got thrown in. At this point you can simply resell immediately and have turned the original USD 100,000 into at least USD 120,000 without doing much work for it at all!

Alternatively – you can buy a property at auction, you can buy a repossessed home or you can buy the worst house on a decent street all well below market value. You can then work the real estate into an attractive home and resell via a realtor at top market value and turn an undervalued property into a capital returning asset.

Another approach is to target a housing development coming to the end of the development phase. Any properties remaining for sale where the original sales have fallen through or any pieces or real estate remaining unsold as a result of being on an odd shaped plot of land or having less than perfect views can be snatched from a desperate developer keen to get onto their next project for well below market value if you're in a strong position to make them an offer and buy immediately.

Even if you are not in the position to act so aggressively and quickly, never ever offer what a vendor is asking, bargain hard, negotiate down, get extras included and try and increase the value of a property in relation to what you're paying for it before you buy…this will put you in the professional property investor league and ensure you make a killing from your real estate assets rather than an mediocre return.

Labels: , , , , ,

Thursday, March 22, 2007
Raleigh North Carolina Real Estate – Leading You To A Dream Home

Raleigh North Carolina and all the areas that are around it are voted among the most preferred places to live in the USA. With the North Carolina real estate market being quite stable, Raleigh real estate agents are confident about finding the right property for his or her client. The three main universities in the area draw top technology firms and educated employees. It is hardly surprising that Raleigh is the number one choice for people to live in as well as work in. Quality of life is high, crime rate is low, with affordable housing available, some of the best educational institutions are located here, and some of the best health care facilities in the world can be found here. The environment is great to grow in with a family.

Industry wise, Raleigh has the best. One of the biggest research parks in the United States is located here along with three highly rated research universities. Raleigh is home to some of the most well-known names in the pharmaceutical, computer software, telecom and biotech industries. Raleigh, N.C., topped the list of best places to live with its low unemployment, strong income, and job growth, while maintaining its low cost of living. Raleigh is part of the "research triangle," including Durham and Chapel Hill.

Raleigh North Carolina real estate agents quote the area's unique selling point as its abundance of opportunities. The area's natural beauty, proximity to the Blue Ridge Mountains, the Atlantic coast and great weather throughout the year. There are also many activities for the residents to be involved in, like theater, art and sports. It is this publicity that mostly attracts people to Raleigh. A rich and diverse culture, with a charm of its own, marks Raleigh as a great place to live in.

Since buying a property will be a one-time purchase in most peoples' lives, it's best to get all the relevant details before making the investment. A North Carolina real estate agent can help do this. The Raleigh real estate market has many choices for the discerning home buyer. Working with a knowledgeable real estate agent saves you a lot of hassle. Browsing through the websites of various Raleigh real estate agents will link you to much valuable information about living in the area with access to all their listings. They will show you homes in the prices you want matching the criteria you specify.

Labels: , , , ,

Sunday, March 18, 2007
Investing In RV Parks

Rv parks can have good cash flow, without most of the traditional headaches of being a landlord. The downside? (Every investment has one.) The income can be variable and unpredictable.

We used to travel in a conversion van that we sometimes camped in. When staying at RV parks, I noticed that the managers always seemed relatively relaxed and cheerful. I think this may be because the job is not that stressful. It certainly isn't like being a landlord.

First, as an owner/operator of an RV park, you don't own any housing or vehicles that need to be repaired. Every tenant is responsible for their own Recreational Vehicle. You need only maintain the common areas, and can do that how you want.

Second, even if they stay for months, you can collect in advance and ask them to leave on a day's notice if they cause trouble or don't pay. Regular tenant/landlord law does not apply. These are very mobile residences, unlike regular "mobile homes."

Finally, you have visitors, not tenants. They are vacationing or escaping winter, and are generally in a good mood more often than apartment or house renters would be.

On the other hand, these are visitors, who have no lease. They can leave at any time. In other words, your income can be very unpredictable from month to month. It also can vary a lot seasonally, so you have to budget well. Some RV parks are just closed for half of each year - and this may be the time when taxes and insurance need to be paid.

In buying an RV park, you have to see the actual income from the previous several years. One year is not enough. You want to see that the income has been steady or is growing. You don't want to buy a dying business.

Look at the tax returns to get the truest - or at least the safest - record of income and expenses. Determine the net income before debt service. Decide what you can invest, and what kind of return you want for your trouble. Subtract that "profit" from the net before debt service. What remains is how much you can pay on whatever loans you need to buy the property.

The amount you can borrow - with payments that fit into that number - plus the amount you have for a down payment, determines the most you can pay for the property. Don't forget to account for any additional costs you will have that the current owners don't have, such as higher insurance rates or property taxes. Also, base your calculations on existing income, even if you have a plan to increase it - that is the safest way.

How much do RV parks sell for? I have seen them as low $85,000 for a really small one. Others are priced in the millions. As you look in a given area, you will notice that they are often selling for a similar amount per space. In some parts of Arizona, for example, parks sell for as cheap as $8,000 per space, because of a limited season. In other parts of the country, they sell for as much as $30,000 per space.

You can use this as a rough guide to see if a park is priced in line with others in the area, but in the end it can be very misleading. Good management can make a nice park worth $20,000 per space, while one a mile away may be in a bad location and worth only $14,000 per space. You have to see the actual income and expenses before investing in RV parks.

Labels: , ,

Friday, March 16, 2007
Affordable Online Real Estate Advertising

Real estate business generates huge income opportunities for investment purposes rather than as a residential property. Investors own multiple real estate holdings, for residential as well as commercial purpose to maximize rental income and profits. Generating profit through real estate investments entail for managing and selling properties, investment analysis, market analysis and negotiation strategies.

Advertising online on real estate saves time for the client, customers and third party agents (brokers, realtors, real estate agents). There are different sites that promote traffic to the website and the listings.

Advertising ensures redirected home search traffic, useful links, targeted banner campaigns, website hosting, consultation and design for sale by owners, agents, broker, mortgagers and builders.

Advertising often offers an option of 'selling it yourself' and avoiding realtors fee. Again looking for a potential realtor can be met best through web networking. There are sites, which provide interaction, and advertisements from all interested the parties. There are showcase websites for each property that attracts interested traffic. It is difficult for Real Estate Brokers or Agents to maximize sales opportunities without the support of a good online presence.

A Real-time Website hit counter vigorously captures visitor behaviour, click path, geographical position, and use of search engine keyword. These websites help real estate professionals to do online business. Informed and educated choice making to marketing and web site performance is also promoted.

Cost-effective e-tools are readily found in the e-market that helps to add more listings, attract more buyers, and create model websites. Advertising through net also provides the buyers with more options like photos and detailed property information.
Real Estate Databases allow upload of multiple photos, detail listings descriptions, changing prices and marking as sold options. This information is easily available and accessible from the net. There are more advantages of advertising on the net. It allows additional features like.

- Unlimited description field


- 360 Virtual tour link field


- Mapping link field


- Customized Micro-sites


- Plug-in works with the existing website


- No more web developer maintenance fees


- Adding and updating the listings instantly

Most of the sites allow posting requirement from individuals and getting free responses and property alerts. The unique features of locality level maps, virtual walk through of properties attracts potential buyers. These sites often include a FAQ section on legal, financial and maintenance issues, which is educative for all the parties involved in the transaction process.
The Broker's ad writer published by National Institute of Real Estate Brokers provides a guide to affordable online advertising on real estates.

There are websites that focuses on designing, developing and marketing web directories and sites related to real estate. There are advantages of getting the website listed in the real estate directories. These sites are affordable and effective. There is high opportunity that a site indexed by search engines. Good web site directories have quality affiliate links increases the back link count. All these thus ensure higher search engine ranks.

Labels: , , ,

Know about real estate, mortgage lenders and news about real estate, mortgage.

Name:
Location: New York, New York, United States

Digg ItDel.icio.us
Furl ItReddit
WistsMy Web
RSS ATOM
Real estate blog ARCHIVES
January 2007 / February 2007 / March 2007 / April 2007 /


Powered by Blogger