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<Steve>

E-mail Flyers to FSBOs

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OK, just finished up my daily required marketing work.

 

I tried something different today by sending the L/O Intro Letter to FSBOs' e-mails. I have found many "For Sale By Owner" sites out there, where sellers list their houses and include a direct e-mail. I copy and past the Intro letter or flyer and e-mail it to every listing I can find in my area.

 

Here is the one I worked on tonight: www.salebyownerrealty.com

 

Has anyone else been successful doing this?

 

<Steve>

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I do it, Steve, and I know a few students I have worked with use this method, too. Generally, I like this approach and find it to be a very cost effective, (it's free), and time efficient method.

My personal preference is to use an online FSBO site, (my current favorite being Craig's List), and sending a first email to all FSBO's listed.

 

My first email simply says:

"Hi. I saw your property listed on (name of site) and was wondering if you'd be interested in selling it on a lease purchase?

Michael"

 

I want to keep it generic as possible, with no links to my site or fancy signature line. I want the homeowner to think I am simply a buyer, interested in their house. This will generate a high response rate.

 

Once responded to, I will reply with my second email which says:

"Hi Joe,

Thank you for the quick reply. Your house sounds like it may be just what we are looking for. Please let me explain.

My company, Carbo Properties, specializes in Lease Purchasing. This technique has proven to be quite advantageous for homeowners. Done correctly, you can receive an above market price for your home in less time than it would take you to sell it traditionally.

We are not Realtors and charge no commissions of any kind. In fact, our service to you is free! We'll even arrange to have the tenant/buyers pay all closing costs, too! The bottom line is that you will net many thousands of dollars more when you sell your property using the Lease Purchase Advantage.

Presently, and as is often the case, we have more tenant/buyers than we do properties to offer them. Your property seems to fit our needs quite well. I have attached a flyer with some additional information to further explain about the Lease Purchase Advantage. Please feel free to contact me with your questions. Or please pass along your contact information to me, along with a good time to call and I will contact you.

Thank you for your interest.

Signature"

 

I attach my LPA letter, and await to hear from them. And this can be done over and over again. All at no cost, and with little expenditure of time. The homeowners who don't respond have already expressed their disinterest, so no time is wasted, and no adversarial phone conversations have taken place. The homeowners who do reply, well, then we speak on the phone and see where it all leads to. My usual next step after speaking with them is to get an offer in their hands after doing my CMA.

Rinse, and repeat.....

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Great reply Michael!

 

I am going to copy and save this technique and us it in my e-mail marketing. I can see how it can be important to approach a seller in a way that is a little more low key as if I was just an typical individual asking about the seller's home. And play down a real estate company image to begin a dialogue with the seller.

 

Then as things unfold and there is a need to begin explaining who I am, the company, and what I do, then we have all the tools (Naked Investor flyers, forms, letters etc... and site) to begin to explain the Lease Option Advantages.

 

Got it! Awesome, and Thanks,

<S>

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This would also work when talking to home owners. Get all the face to face time you can. You never know what may happen

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I have been doing about 15-20 FSBO emails a month for the last 10-12 months. My letter is pretty much the same one that MichaelC is using. I also include the LPA attachment.

 

So far I have had 4 people follow up with me, 1 was mildly interested if he couldn't get someone in selling FSBO or trying a realtor first. The other 3 wanted to be cashed out immediately and did not feel that an L/O was a good option for this market.

 

As for calling the FSBO's I managed to make about 50 phone calls, and had 2 people considering it, the rest thought anything remotely creative was insane and definitely not of interest

 

I am hoping that by diligently following up and constantly emailing new people something will click.

 

I will be moving upstate for 2 months while I wait for my house to be ready, so I am going to have to stop my mailings until I am back in my home area (Long Island). My new home area has much more moderately prices homes, ranging from 185k-1+ million .

 

My Current market the home start at 375k for a serious fixer upper, anything decent will run you well over 550k these days. It is really amazing how home prices are still skyrocketing by 20-30% per year, I am starting to wonder if there is a limit on this.

 

Mike

:ph34r:

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MikeP, in a market like that are you doing any straight options? By my calculations prices for "anything decent" are going up by over $10k per month. It looks like you could get a 30 day option/purchase contract at market value and sell it at market value 30 days later for a nice profit.

 

My market isn't going up anywhere near that fast (8%-12% per year) and L/Os are still a no-go. I can't even imagine what you're going through to get deals!

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Update to my e-mail marketing-

 

The beginning of August I started my e-mail marketing and it seems after a couple weeks, replies are starting to roll in with potential motivated sellers.

 

Many folks respond to let me know they are not interested or the property has been sold. Kind of courteous to e-mail me back I think.

 

The e-mails I do receive from potential sellers, I send out my second reply as MichaelC stated in the earlier post, and include a link to my web site or the Naked-Investor letters and flyers explaining the Lease Purchase Advantage. Still not sure if attaching the web site is a good idea or not. Don't want to come on to strong, but the second reply is when I introduce myself and business.

 

So far I have spoken to one seller on the phone and e-mailed a short offer a few days ago. Haven't heard anything back and will follow up with another call.

 

The last couple days, if my e-mail had a bell it would be ringing off the hook. Just today I have had (6) favorable replies and (2) want me to call now.

 

So, I'm off to make calls will see what happens.

 

<S>

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The last couple days, if my e-mail had a bell it would be ringing off the hook. Just today I have had (6) favorable replies and (2) want me to call now.

 

So, I'm off to make calls will see what happens.

Steve,

 

Congratulations! Let us know what happens.

 

Kim

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Thanks Kimberly-

 

After a few phone calls and e-mails this weekend, I will be looking at a house tomorrow that shows some promise. It is a smaller house in good shape. FMV is 75K to 80K in a nice area. I think I may be able to get it for 65K to 70K, will see. The seller's rent is $600 market is $700ish. The only draw back is this is a (2) bedroom :D which lowers the pool of available t/bs. The sellers motivation is a divorce. I will see it tomorrow.

 

Second, I talked with a seller on a larger home and the seller put it on the market after 9/11, couldn't sell and rented it for a while. And now the house is vacant and the seller again can not move it and is motivated. Reason they are selling, they built another home. They can not sell this home because simply, they are priced to high. The seller called me back with additional questions and I told them about the price and they dropped their asking price from 190K to the low 170s about market. This may work well as a CA.

 

Lastly, I received an e-mail from a new real estate agent, who found my business card sitting at a Lowes Home Improvement store and is looking for a job. He e-mailed asking if I was hiring? :( I told him no, but to call me when he gets set up and we could work some deals together. Hey maybe this grass-hopper can be broken in correctly with the ways of REI in mind.

 

<S>

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Sure, tell him you're hiring. Let him be your Guy Friday in exchange for unlimited and immediate access to MLS. :D

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Second, I talked with a seller on a larger home and the seller put it on the market after 9/11, couldn't sell and rented it for a while. And now the house is vacant and the seller again can not move it and is motivated. Reason they are selling, they built another home. They can not sell this home because simply, they are priced to high. The seller called me back with additional questions and I told them about the price and they dropped their asking price from 190K to the low 170s about market. This may work well as a CA.

 

Looks like I will be closing with the seller tomorrow on this house! I have been working with the seller all this week and they are ready. A little tweaking of some verbiage in the contract and this will be my.....

 

FIRST TRUE NAKED INVESTOR SANDWICH L/O!!!

 

 

This is a gorgeous house in an awesome neighborhood with nothing for me to do but market and lease it to a t/b. Finally!

 

Here are some numbers:

2 year term with 1 year extension

60 day-no pay to market for a t/b and if one is found in 30 days I get a free months rent!

 

First year:

T/B price $190,000

T/B rent $ 1,300 to $1,400

my equity $15,000

positive cash flow $100 to $200 per mo.

 

After rent credits the first year my equity to capture on the front end and preferably on the front end $6,600. And if fate has it, I'll do it again the second or third year with a different t/b.

 

This deal isn't huge and I realize somethings that I could have done better with my negotiating that I will catch with the next one. But I have possession for 3 years and am sure to have at least 2 separate deals with t/bs over that time period. B)

 

This house was found using email marketing this month.

 

Salute!!!

<S>

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Congratulations Steve! So what if it could have been a better deal. It's a deal, the next will be easier AND better for you!

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Thanks Alice and Kimberly-

 

The contracts were signed today!!! :D

 

Now I am off the "hot seat" with the seller's 101 questions, and off to market for a t/b.

 

<S>

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FIRST TRUE NAKED INVESTOR SANDWICH L/O!!!

Nice going, Steve! Excellent deal! I may have missed it, but did you need to put any of your own money down to secure the deal?

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