Calling Fsbo Ads

[Guest Jared]

I am a new investor. I have been calling 20 For Rent and FSBO ads per day. I just got my 800 number set up, and ordered my signs. I am printing up something like 500 flyers, and 500 more pull tab flyers with all my info on them. I have ordered 200 bandit signs, and I might just make some more cheaper ones on paper and staple them up. I have had NO luck calling from the paper. I live in Southern California, and all the ads in my paper are Agent listed except for a select few. I was wondering, would someone mind sharing their weekly investor schedule so maybe I can mimick it to success? Currently I don't have anything really organized. I know for sure that I am damn tired of calling ads from the paper, and don't think I will anymore. I think the real motivated sellers dont place ads because most are in foreclosure and are afraid to take action, or they don't have any money or equity and don't want to spend the $$ to advertise. That is just my guess though. I may be wrong. All I know is I am striving for the day I find that first deal that makes me 300 dollars cash flow per month with no work! YEA! So anyhow, if someone would please share their schedule with me (pref someone who is and has been successful in the past with L/O investing). Thanks!!!!

[Doug Pretorius (ON) 9]

First and foremost: What are you thinking and how do you feel when you are making these calls? If you feel nervous and you think nobody will be interested, then no one will be! It's a cliche perhaps but it's true nonetheless.

 

Second, What are you offering? You are in one of the hottest seller's markets on earth. If you're asking people to give you their houses for 80% of what they're worth with no money down, then you're kidding yourself. On the other hand, if you're offering them 10 or 20% MORE than their asking it should be a different story.

 

Remember that cold calling is the only predictable form of marketing. No matter how much advertising you do you have no control over how many people call you. But you do have control over how many people YOU call.

 

You're calling plenty of people, so there's no question in my mind that the problem is what you're saying or how you're saying it.

[Guest Guest]

Hey. THanks for your input. Actually like I said, most all the ads are for agents. So most of the calls I am making are to FOR RENT. Of those most people are investors, or people who really want to rent for profit. I have lived here my whole life, so I know your right about the market. I have no hesitation on the telephone, I am very good with talkign to people. Its more like you said...in a HOTTT market where appreciation is well above 100% in the last 3 years it is hard to find people to do no money down deals. Anyhow, when I am on the phone I dont discuss any down payments or anything, I simply ask if they would consider leasing me the property. They always say YES! and I said, alright and if I made my payments on time would you sell to me at the end ofmy lease, and most say no because they want the income from the house. I make great conversation on the phone. Todays paper, I looked through it and of the 178 ads total for rent and for sale (combined), 150 of them are agent listed. That leaves 27 for me to call, and of those 27 more than half of them are renting for a profit. Infact, most of the ads are above the market rent for the area, so its clear they are making a prfit. In my county housing cannot be built fast enough to satisfy consumers needs. For every one house thats built there are another 5 needed to be built. I am trying, but I havent started any marketing yet in the area besides cold calls so I am hoping that signs, and flyers will be my golden tickets to my first deal. Any other comments would be GREAT! Thanks!

[Guest Guest]

PS...If only I lived in TX, I would be rich! I see houses on realtor.com all the time, no one can sell there. If anyone is in TX, please tell me how L/O are working out their? Thanks!

[jtlab 0]

PS...If only I lived in TX, I would be rich! I see houses on realtor.com all the time, no one can sell there. If anyone is in TX, please tell me how L/O are working out their? Thanks!

<{POST_SNAPBACK}>

 

 

I think texas may have passed a law that gives homeowners a 6 month option period to break out of there option agreements! I do not know if it passed but I believe it was a law that the legislature was to vote on.

[Doug Pretorius (ON) 9]

There's all kinds of crap going on in Texas that's messing up investor's lives.

 

27 private out of 178 is better than my area. Out of an average 220 ads (for sale only) I'm lucky to find 15 FSBOs. But I can't even get through that many before I have 3 or 4 appointments.

 

The key is that I'm offering CA's above asking price right on the phone.

 

For FRBOs do what Bev does, offer them more than their asking for rent!

 

I was a landlord once upon a time. When I discovered that I could make 30% more on an RTO with no management hassles, I said: "Forget renting!" That's the same thing the landlords you're talking to will say when you show them the money.

[IStealHouses 0]

Doug. Thats a great idea (offering more than asking or renting price) but if I do that, and the deal gets signed up I may have to drop it and give it back. I mean offering more rent or monthly payment that is needed would make it hard to rent it out and have a monthly cashflow. I would have to charge WAY higher rents to my TB, and that will make it difficult to find tennants. I will try your idea tomorrow and try to get some appointments so I can get some negotiating practive in ASAP. What do they say when you tell them you will offer them more for rent / payment if they do the deal? Do they ask why, or how? BTW: What the heck does CA stand for?Classified Ad possibily? Sorry, new to this forum.

[Doug Pretorius (ON) 9]

"IStealHouses" nice name

 

CA = Cooperative Assignment. It is the means by which you can offer much more to the seller. They get the price, they get the cash flow, you get the buyer's down payment and move on to the next deal--in a nutshell.

 

You don't have to charge astronomical rents and prices to your T/Bs because in a CA you do not remain in the middle.

[IStealHouses 0]

Doug, Please elaborate "CA". How do I not remain in the middle? How exactly would this work, is it a Lease Purchase or some kind of Subject To? Thanks in advance

 

PS: Thanks, I thought the name was pretty funny myself.

[Doug Pretorius (ON) 9]

MC will probably chime in with a better definition but...

 

It's a Lease Purchase which you assign (as the name suggests). You're essentially setting the LP up for the seller.

[Craig 0]

PS...If only I lived in TX, I would be rich! I see houses on realtor.com all the time, no one can sell there. If anyone is in TX, please tell me how L/O are working out their? Thanks!

<{POST_SNAPBACK}>

Welcome to the Naked Investor. I lived in Irving/Dallas area for 2 years. People in that market are use to buying new houses. So houses will sit for a long time before selling. I would think Lease/Options would be a absolute gold mine in that area. Might be worth the relocating for.

 

If anyone has any ideas on doing them long distances please speak up.

[IStealHouses 0]

Is there a way to do it long distance? I would think you can do the paperwork easily long distance, but finding a TB would be a pain in the ass!

[MichaelC 160]

Hello IStealHouses, and welcome aboard!

Sorry for getting into this thread a bit late. As for what a Cooperative Assignment is, it is one of the various lease purchase techniques we can utilize to try and satisfy a homeowner's needs, while allowing ourselves a profit for our troubles. In a nutshell, you work with the homeowner to find a tenant/buyer willing to pay full retail, so to speak. In exchange, you keep the option money collected as an assignment fee. (I'm just hitting the high points here ).

As a new investor, there isn't a more risk free and less adversarial way to get into this business.

As for warm calling, like all things it has its ups and downs. Does it work? Absolutely! But it can be tough at times. On the other hand, who promised you a walk in the park? Calling is just one marketing technique, however. You will need to incorporate numerous ideas to know what works for you, in your area. No shortcuts or magical formulas, I'm afraid. Try a few things and keep track of what works and what flopped. With some time, you'll know what methods are worth your money and time, and which aren't. There's no education like experience.

I think texas may have passed a law that gives homeowners a 6 month option period to break out of there option agreements! I do not know if it passed but I believe it was a law that the legislature was to vote on.

There is a thread on this subject here.

Is there a way to do it long distance? I would think you can do the paperwork easily long distance, but finding a TB would be a pain in the ass!

Sure you can work deals out of your area. But you'll need someone local, who is dependable and can do the hands on stuff that you can't from a thousand miles away.

[draegarfrog 0]

As far as working deals from out of state....I'm out of country and I'm trying to work some. You can find property on the internet and make contact with the seller and maybe even get him to agree over the phone (depends how motivated he is) but I'm finding that you definitely need to have a local contact that can meet with the seller check out the property, market for a tenant/buyer, get/give keys etc. You can do the contracts (I think, haven't done it yet but this is my plan) by fax. Also when my contact finds a tenant/buyer I plan to interview him myself. I think the problem may be that sellers or t/b may have some reservations with doing business this way. Obviously the best way would be face to face but I'll give it a shot and keep experimenting, I have nothing to lose and all to gain.

[BEV! 0]

As far as working deals from out of state....I'm out of country and I'm trying to work some. You can find property on the internet and make contact with the seller and maybe even get him to agree over the phone (depends how motivated he is) but I'm finding that you definitely need to have a local contact that can meet with the seller check out the property, market for a tenant/buyer, get/give keys etc. .

How bout any relatives of yours or your wife's on the US? Can they work with you as a team? Like find the relative willing to do this with you first and then focus on that part of the US to work your biz...

 

I think the problem may be that sellers or t/b may have some reservations with doing business this way.

True, but with a local contact (relative/trusted friend) it just may work out... I'd give it a try.. (BTW: sorry for misreading your email about this issue.. some times I get swamped with emails and my eyes go crossed )