Making Offers

[Troy_Ross 0]

Something I learned the other day - thought I'd pass it along:

 

I plugged in 'for sale by owner' in Yahoo to search for FSBO sites. I got a pretty big list and visited many of them. While looking through, I noticed a few of the sites offered a way to contact sellers via email. The site would allow you to send a message via a form to the owners while keeping their email identity hidden. Thus I took advantage of the opportunity.

 

I created a new email account with Yahoo (so I would not get into trouble with someone complaining about spam). I sent the following message to over 200 sellers:

 

"My name is Troy Ross, and I am interested in buying your house on Lease Purchase basis. A Lease Purchase holds many advantages for the seller: <then I listed the advanatages>

 

If you need to sell your home today, call me today and learn how you can sell your home immediately without paying any fees or closing costs! If you are interested in discussing additional Lease Purchase advantages, or possibly selling your house today, please call me at 804-269-7994. Thank you. - Troy Ross"

 

Well I got a few responses. Five to be exact so far. Two of which were not interested (of which I sent a reply today). Two of which wanted to learn more (of which I sent a reply to call me or visit our web site to read our 'Owner's Guide to Selling Without Stress'). And one that said 'yes'.

 

This is what he wrote:

 

"Troy,

 

If you are interested in a lease purchase of our home, the following are the figures you would be looking at:

 

$5000 down payment

$2400/month for 2 years of which $500/month would be applied to the closing costs!

 

Let me know if you are interested.

 

Best Regards,

Mr. <name withheld>"

 

I by chance had already talked with this man's wife the other day and she told me she would talk with her husband about an LP. I had already done my homework because she told me some of the numbers already. They wanted $249k for the house and they pay $979 per month on their mortgage on a 2708 square foot home. So I replied with this message:

 

"Sir,

 

We not only buy homes and renovate them to resell them, but we buy homes on a lease purchase to resell to our tenant buyers. I operate a business that helps tenant buyers get into their first home.

 

Your proposal is well noted. Furthermore, I have researched the area and the recent sales data shows that homes are selling for approximately $79 per square foot.

 

I will offer to purchase your home on a lease purchase as follows:

 

Rent $1200 / mo

Purchase Price $214,000

Option Period 36 months

Option Consideration $2000 once a qualified tenant buyer is obtained

Rent Credit $0 per month

We pay ALL closing costs

 

This offer shall expire on May 5th at 5pm.

 

- Troy Ross, Capital Renovations

www.capital-renovations.com

804-269-7994"

 

He replied today with two words - "not interested". The fact is that he is simply not motivated BUT the fact remains that I did my homework and found that his home is NOT worth what he claims plus his rent was outrageous. It's a possibility that he is an investor himself.

 

We are continuously calling FSBOs but I am going to continue with this email campaign - I think it is a good idea; doesn't take alot of time to do; and does not cost much at all! Just a suggestion to others that this may be a good idea to do.

 

We have not found a good bite yet but we are still trying.

 

- Troy

[MichaelC 160]

Troy, excellent use of available resources. As you noted and as I say almost daily, to get a deal you need to have an offer accepted. To have an offer accepted you need to get it in the homeowner's hands. This method you describe is time efficient and painless. I like it and suggest you continue.

This specific homeowner you made an offer to was more likely than not an investor. That's why you see him asking for $5K down and offering a rent credit. A typical homeowner who sells three homes in a lifetime is not going to be saavy enough to do that.

The other good that came of this, Troy, is it's clear you have learned enough to know that making offers on properties does not require your visiting homeowners and looking at kitchens and fruit trees. Streamline the process, make more offers, and do more deals. Your offer to this particular homeowner was to the point, professional, and fair. His flat out rejection of it states very clearly and quite loud that he is not motivated to the point where he is worth any more of your time. Best of all it required very little of your time and no expense.

[option8 0]

We are continuously calling FSBOs but I am going to continue with this email campaign - I think it is a good idea; doesn't take alot of time to do; and does not cost much at all! Just a suggestion to others that this may be a good idea to do.

 

Troy,

Great suggestion...

I tried a little test with a FSBO website today. I sent about 20 emails to homes in my area. I received a few responses saying "not interested" a couple of those were qualified with "at this time" and one said she would speak to her husband later in the day. (This isn't a "NO")

 

I am thinking this approach has possibility.

The text of my email was as follows:

We are investors looking to add properties in your area to our portfolio.  I currently have people looking to purchase in your area.

 

If we could  immediately lease your home for a period of time (making your payments and taking care of the day to day maintenence with no hassle to you) and cash you out a few years down the road, would this be something  you would be interested in, or probably not?

 

Thanks

 

Natalie Bankston

www.option8enterprise.com 

 

I see several benefits to doing this:

1) cut to the chase and find out if they are motivated.

2) leave my electronic calling card just in case they decide they are interested further down the road.

3) faster than dialing

4) I don't think anyone else is doing this.

 

My email needs to be refined...I wrote this quickly and fired it off just a fast this morming. I would like to add No commissions, close quickly, etc.. I know that Michael would suggest we don't say we are investors, but my website make that clear anyway. Any other input would be appreciated.

 

(Perhaps we should move this to the marketing forum...)

option8

[Troy_Ross 0]

My email needs to be refined...I wrote this quickly and fired it off just a fast this morming.  I would like to add No commissions, close quickly, etc..

Whoa - I heard a little Conti & Finkel verbage in your message too! LOL!

 

What I write in my messages are as follows:

 

Subject: We want to buy your house!

 

My name is Troy Ross, and I am interested in buying

your house on Lease Purchase basis.

 

A Lease Purchase holds many advantages for the seller:

 

No Realtor fees or commissions to pay (I am not a

realtor).

 

No closing costs (I pay all closing costs).

 

You retain all tax benefits of ownership until the

sale.

 

No maintenance or repairs to deal with (we do it all).

 

No vacant property to be concerned about.

 

If you need to sell your home today, call me today and

learn how you can sell your home immediately without

paying any fees or closing costs!

 

If you are interested in discussing additional Lease Purchase advantages, or possibly selling your house today, please call me at

804-269-7994. Thank you.

 

- Troy Ross

 

I truly think my message should be refined as well... Anybody else got any suggestions?

[JerseyJeff 0]

Troy,

 

I think I heard a little bit of MichaelC verbage in your email.

 

JerseyJeff

[MichaelC 160]

JerseyJeff,

I think I heard a little Troy_Ross verbage in your post

[Troy_Ross 0]

 

 

 

You guys are TOOO funny!

[MichaelC 160]

 

 

 

You guys are TOOO funny!

..........not to mention charming and handsome............

[NickC 0]

You guys ARE too funny!

 

I'm liking the idea guys!

 

I was thinking, what kinds of marketing slogans are you guys using? Why not keep your e-mail message the same as your fliers?

 

 

We Buy Houses!!

 

-debt relief!

-we can take over your payments!

-fast closing!

-we can cover your maintence & repairs!

-no commissions!

 

Call us to review your situation, and find out if we could buy your house!

 

XXX-XXX-XXXX

 

 

Just a thought.

Nick

[JerseyJeff 0]

I was thinking, what kinds of marketing slogans are you guys using? Why not keep your e-mail message the same as your fliers?

In the few marketing classes I had in college and grad school, I was taught to try to personalize your contact with a potential customer and show them how you will solve their problem.

 

We Buy Houses!!

 

-debt relief!

-we can take over your payments!

-fast closing!

-we can cover your maintence & repairs!

-no commissions!

doesn't make me feel all warm and fuzzy inside. If I got this email from someone, I would just assume it was another mass email from a company who doesn't care about me and my problem, but is just looking to make a buck.

 

You have to try to speak directly to each homeowner as if they are the only customer you have. Now, don't get me wrong, you can list the benefits to the buyer, but put it somewhere in the middle of the email, after you have introduced who you are and what you can do for the homeowner. Also, don't list quick bullet points like you're printing these up from a template. Try to make each one a logical sentence showing the benefit to the homeowner instead of just listing and on to the next one.

 

The difference between email/letter versus bandit signs and flyers is that you don't have alot of time or space for the latter. You need to make your point quickly to people driving/walking by. But, with an email/letter, if your introduction catches the owner and shows how you can solve their problem, I can guaruntee even if your letter is two pages long, they'll read it (not that I suggest a two page letter), but, you get my point.

 

My thoughts.

 

JerseyJeff

[NickC 0]

Very good points indeed, JerseyJeff! Makes a lot of sense. You should think as if you were in the homeowners shoes; hmmm, an e-mail, will I read it?

 

The reason I mentioned my other post, is that I am thinking in the way of familiarizing my marketing with homeowners. I'd like to keep all my marketing the same, so that when homeowners constantly see the same message, they'll recognize it's my company. They might think; hey, I've been seeing this same ad all over the place; maybe we should contact him to see what he's got to offer?

 

How about a nice, personalized e-mail, such as you suggested, and at the bottom of your e-mail leave you company's marketing slogan?

 

Just my thoughts.

Thanks

Nick

[JerseyJeff 0]

If you are looking for a corporate identity, putting We Buy Houses all over the place isn't going to establish it. If a corporate identity is very important to you, spend the money and have a logo designed for you and then print it on everything you send/hand out.

 

Personally, I think it is an expense us newbies can do without right now. Maybe, after I have closed a few deals, I will use the profits to have a nice logo designed, etc. But, right now, my money is better spent elsewhere.

 

JerseyJeff

[MichaelC 160]

If a corporate identity is very important to you, spend the money and have a logo designed for you and then print it on everything you send/hand out.

 

Personally, I think it is an expense us newbies can do without right now.  Maybe, after I have closed a few deals, I will use the profits to have a nice logo designed, etc.  But, right now, my money is better spent elsewhere.

 

JerseyJeff

I agree. One bit of advice I like to pass along to novices is to market within your budget. Stick with the necessities. Things like business cards, flyers, newspaper ads, signs, etc are practical and money well spent.

On the other hand, your likeness on a bobble head doll carrying a "We Buy Houses" sign isn't a wise expenditure, (although if anyone goes this route I want one for my collection).

[NickC 0]

Stick with the necessities. Things like business cards, flyers, newspaper ads, signs, etc are practical and money well spent.

 

These are the marketing tools which I was referring too. Shouldn't cost too much, and it can get your message & number out everywhere.

 

What I was implying is sending an e-mail as previously mentioned, and at the bottom to type out your marketing slogan that is on your flyers, newspapers, etc...

 

This could familiarize your e-mail with the marketing you have in place. "Oh, this is the guy with all those flyers and signs all over the place. Maybe we should call, and see what he's about?"

 

After all, we should be marketing to whatever our budgets will hold, right?

 

Thanks.

Nick

[TPSG, LLC 3]

Jersey Jeff....sounds familiar what you are saying

 

But you are, which is what I have been saying from the beginning and always will...the greatest thing you can do when advertising or marketing to someone is this "think of your customers as one person, not a whole, market to that one person" The reason is, more often than not, that one person will have the same needs and wants as everyone else. We all hate spam, we all hate people and companies who don't care...so why in the heck do you guy keep putting out "We Buy Houses" verbage that everyone else puts out there...I don't get it.

 

Don't do that , people get used to seeing that, realize what you do and automatically block it out of there heads. You need to develop something and spend some time outside of Carlton Sheets, and everyone elses books and figure out who you are trying to attract and then put yourself in their shoes. Think about the emails that piss you off and the ones that attract you. Think about the signs that you miss and the ones you notice...

 

Market with a budget is a great idea. The easiest way to do this.....and yes I know, it takes time, is sit down and think about every possible way there is to market yourself, then find out how much each one costs. Based on your budget, use the ones that cost the least right now but are still worthwhile. And yes, you may actually have to go out and walk, and put things up and talk to people. If you expect people to just come to you, you're in for a real shock for a good 6 to 12 months or so.

 

If anyone ever wants any real training (Michael and I have talked about this) regarding Marketing and how to do it, I will be more than happy to mentor someone in Marketing for Real Estate and in general. Just message me and we can talk.

 

Hope that helps!