Sold !

FirstAmerican, Welcome to the Naked Investor family. Your postcard should target hownowners in a certain "farm" area. Your PURPOSE is two-fold. 1) Tell them you'll buy their house above market value within 30 days. You will get calls from this. Hit them with a Cooperative Assignment. Mail to the same addresses every 3-6 weeks....same message. Today's indifference becomes tomorrow's motivation. You never know when life will throw somebody (in your target area) a curve ball and they have to sell. Keeping your postcards coming regularly will insure that they will call YOU when they need to make a quick move. 2) Offer a $500 - $1000 referral fee so they will tell their neighbors, co-workers, friends about you. If you do a deal with someone they referred to you, pay them well. They will refer others. I look forward to seeing your marketing campaign when you post it.

Magnetic signs for the car (truck). I buy houses ABOVE market value within 30 days GUARANTEED! Call XXX-XXX-XXXX. This will get the SELLER'S attention. Postcards to a neighborhood or "farm" area saying basically the same thing. Offer a $500 - $1000 referral fee. Repeat mailing every 3-4 weeks. This will get everyone's attention in your particular "farm" area of interest. Focus your calls on FRBO's....they understand the renting game. When asked if they'd consider selling at the end of the lease, they'll pick up their ears a bit and listen. This will get the attention of the landlords. You have all bases covered......you have everyone's attention Wash, rinse and repeat.

It's called "farming" and it's what real estate agents have been doing for years. I think it's the best way to go because you can develope a data base and manage it and then send out mailers to them over and over again until you get the results you want. It has been said that it takes an average of 7 "exposures" or impressions for your name to be remembered and recalled by people. If you are just blanketing mailing lists willie-nillie, you are wasting your time. I say pick a neighborhood of 1000 homes and mail to them on a regular basis - every 4-6 weeks. Soon enough, they will begin to respond and/or pass your name on to friends, family and co-workers who might need your services. My .02......

If comps are at $210K and appreciation is ONLY 3.3%, you have your $217K option price. Do you know what your appreciation rate is there in your part of the world? In Florida, we are screaming along at over 20% a year and in some parts 30%+ !!!!!!!!!! Take your $210K comps, add appreciation and that's the "spread" you just created for yourself (the money you have to work with.) Let's assume, for argument's sake, that your appreciation rate is only 10%. That brings your strike price to $231K !! You have $21K to work with, which gives you great rent credit possibilities to fill the house fast and a fat cushion for a nice option consideration fee (pay day!) Next year when they purchase the house, it will comp out at $231K and everyone is happy, especially you becauSe you have gone on and done 15-20 more deals in the meantime. And when the seller calls you and says the TB is moving out, can you help again, you smile and say, SURE, I'll be right over with the paperwork!

And they SHOULD get a deposit. Most rentals (leases) do ask for a security deposit and this should be no different. I know I am going against the grain here a little bit, but think of the worst case scenario possible and look 12 months down the road. If the TB has to bail or can't get financed or you have to evict him, he can try to scream that he has equitable interest in the property. You DO have a separate lease and a separate option agreement, BUT, with a purchase there is no "security deposit." If you can show the judge that you have received a security deposit from this "tenant," the tendency for the judge would be to look at this thing more as a rental....and uphold the eviction or whatever is causing this trouble in the first place. I say always ask for a "security deposit" on the lease portion of your deals. What say you?

1. Convert to pdf files before e-mailing 2.NEVER sign first.

Also, find out how much they owe on the property and then ask them if they would take what they owe for it. That could put 500K in your pocket each year just by asking that one question !

OOOOOOOOOOOOooooooooooopppps.....that was me above talking about the postcard mailing service offered by the USPS. Forgot to log in. Doh !

An offer a day keeps the bill collectors away !

Yup. Cold calling works. I hate it. But it WORKS !! It's good to track your efforts as you have to see where the deals are coming from and the best use of your time and dollars. Good for you ! I wish I had the discipline !

Doug, Make the postcard more exciting. "Sell the sizzle," as they say. How about this? (one of mine I am using with pretty good response): ------------------------------------------------------------ Sell Your Home & End The Pain! Trying to sell a home now can be a real pain. STOP! Let (your company name) be your pain killer. We are home buyers! We are NOT real estate agents - (BY CHOICE !) You need to sell? We need to buy! House vacant? Need repairs? Must move quick? Making double payments? Late payments? Foreclosure? Divorce? Liens? Family problems? Stop worrying, because… (YOUR COMPANYNAME) buys houses in all price ranges – any condition. We can get mortgage payments off your back in hours, not months. Let’s talk! CALL NOW xxx-xxx-xxxx ----------------------------------------------------------------- Kinda dynamic. Then, mail the same people the same message every 4-6 weeks for the next 6-8 months, like I said above. Offer a Finder's Fee or reward on your card if there's room. It has worked for other ventures in my past and it's starting to work with my "ramping up" real estate biz, too. -Rich

In every business situation I've ever been in, I have used my answering machine or voicemail to take the call and set an appointment with the caller. Meaning: The message was something along these lines - "Thanks for calling. Please leave a message at the tone....all calls received before 11am will be returned by 2:00pm. All calls received by 5:00pm will be returned by 7:30pm." Something like that.......... If you are going to use a voicemail syatem, it let's the caller know he's not been dropped into that black hole of Voicemail where he might wait 3-4 days to hear back from you. Next step is to keep your word and make the callbacks. Not always easy to do, but you have to try - it's the first chance to build trust and get them to see that you "do what you say you are going to do."

Marc, If you advertise "24 Recorded Message", then you will get a lot of response, naturally, because it is non-threatening. But, if you just advertise a number to call, motivated sellers will expect to hear a human voice. When they don't, they may not leave a number or message. You just lost thousands of dollars. Is it worth it? When you answer your calls "live," you can qualify the caller for motivation, qualify the house and get all the specs you need to run your comps. If they all look right, you can call the guy back and arrange a meeting that afternoon ! WHY WAIT !!?? Motivation is motivation. People who need to sell, need to sell NOW and if you can get the job done fast, they'll go with your plan, not the next guy, who might just be answering all his calls. Speed and time is of the essence in this business and in any business. The early brid catches the worm, so to speak. And, if you answer your phone this morning and can lock up a property this afternoon......you can do it again tomorrow and the next day and the next...... How much money do YOU want to make?

Doug, I agree. 8% from a mailing is GREAT !! But, it seemed from the following quotes that you were complaining about the low response: What have the responses been like? Are the "tire-kickers" looking for a full cash out or are they mildly interested in the SLO/CA route of selling? I guess your posts seemed a little bit on the "down" side and that you were NOT happy with the responses you were getting. -Rich

Doug, 3 thoughts: 1) Mail to neighborhoods (a "farm area")you want to own in. Lists of sellers who have their mind made up on what they want to do isn't always the best idea and gets a low response, as you've found out. 2) Mail to those neighborhoods (same people) every 4-6 weeks for 6-8 months. You'll start to get responses for sure, then. 3) You lose a lot of business by sending people to a voicemail. Try to answer the phone whenever possible.

Thanks, Doug. That makes sense. But, how does one insure that you'll get paid? I understand what's going on, but WHY, then, couldn't the seller and the new buyer just PROCRASTINATE and drag their feet until the option RUNS OUT? When it does, the guy holding the option is out of the picture anyway. Devil's Advocate

Could we say that you are actually selling (or assigning) your option for $20K ?? Is that another way to look at this? Can it be done that way with this auction scenario? Or does the paperwork need to be "cancelled", as you are doing? All you HAVE, really, is the option to purchase, right? You don't have a Purchase and Sales Agreement, right? I would think that there's something in the middle I am probably missing, but it seems like you are, indeed, selling your option for anything over the price on the option agreement. Is this close to being correct? Or, am I way off base here?

Hi Jonathan, Can you elaborate what you mean? Thanks! Alan <{POST_SNAPBACK}> Alan, I think he answered that already. His cancellation fee (in this example) is $20K or whatever the final selling price on the home is minus his option price. In this scenario, the home sold at auction for $120K and his option was $100K, therefore, his cancellation fee is $20K and he is out of the picture with seller and the buyer now dealing with each other. Correct me if I am wrong, Jonathan. I want to understand better, too. Thanks.

Are you working exclusively with OPTIONS, or are you doing lease options, as well?

Alan, Steve has got it right. And, always put a clause in your offer that let's you pull it if you don't like the house or the neighborhood. Something like, "this offer is contingent upon inspection of the property and surrounding areas."

Jonathan, Another question: Let's use an example........the seller sells you a 60 day option to buy the house for $100K. Now, you go and create the auction, which brings in, say, $120K. $20K is your payday, right? Now, how do you finish off the deal? Are you getting your own mortgage, or are you attempting a double closing? If a double closing, then I ask how hard is it to arrange one of those in Florida (I'm right down the road from you)? If I am off a bit in my assumptions, please correct me; I find this fascinating.

Alan, Why are you running around looking at houses without having some form of committment from the seller? That's one of the first rules of time management in this biz.....don't WASTE it ! You are becoming a "motivated buyer." maybe this is why you haven't done a deal. People sense that you need to and they can command you to come look and see all day long. They need you, not vice verse. Make some ground rules for the sellers and make THEM stick to the rules. Give it a try and keep your head up !

Welcome, Carney.....your enthusiasm is contagious. I have been severely hampered since the beginning of the year and have had my efforts stalled regarding my beginning investing career. My Dad had a bad trip-and-fall (no one to sue, though, damnit.... )accident resulting in a dislocated shoulder and, now, the MRI shows a rotator cuff muscle tear. I have been nursing him as much as possible (he's 83 and a real fighter), which has taken the bulk of my free time after tending to the J-O-B. Been reading and studying and getting the ducks in a row, so to speak. I hope to make some progress soon in the RE arena. I will tell you that this is the forum to have in your arsenal. Come here with just about any dilema and these old pros will be there for you to guide you through your transaction. Just be real and be yourself with people you talk to. They just want a friendly, nice guy to deal with instead of all the RE sharks that they have encountered. Fill THAT void, and you've got it made. Good Luck.

Jonathan, I'm confused: why would you have the inspection on the last day of the auction? By the way, Jonathan....I have seen a slew of books recently touting the 5 Day Auction. Where did you learn this technique or did you come up with it by yourself?

Water - check. Batteries - check. Propane - check. Canned food - check. 10 cases of Jack Daniels - check. Coca cola - check. I all set in Palm Beach County !!