need marketing help w/ two custom built homes

[jenkers 0]

Hey RE investors…..i have a problem that I hope someone can help me with.. I have a lady who has two custom built homes that she would like me to l/o for her, one is a 4500 sq ft custom built home two yrs old. This house has been vacant for about 9 months , they built it in hopes of selling for a profit just before the the market got bad and then couldn’t sell ,in the mean time they were in the process of building and then moving into another custom built home 6500 sq ft that they live in now. They are not behind on payments on either home but they are running out of funds trying to save their credit and not go into foreclosure. They have run up over 100k on credit cards in supporting both of these homes. Here’s my problem, how do I market these two custom built homes? Do I do regular marketing to find t/b’s or is their some specialized marketing I can do for these higher end homes? Here’s the payments

1st house owes 558k pyments $2900.00 without taxes (she is willing to pay the taxes)

2nd house owes $675,000.00 payments $5,000.00 no taxes

THANK YOU IN ADVANCE

sjreguy in WI

[MichaelC 160]

Hello, sjreguy, and welcome to The Naked Investor.

Where in WI are you located, and what is the real estate market like where these two properties are located?

Here's the biggest problem you will have with these two properties. I'm guessing they are considered high end for the area, and well above the median price. So your market of potential tenant/buyers is going to be small. That's not to say you won't be able to find any takers, but don't expect a quick find and make any promises to the homeowner you can't keep.

As you already mentioned, marketing is your key. That, and being sure the terms you are asking are in line with the market. As regards marketing, start with the tried and true and the inexpensive: all of the usual online sources we recommend apply here: Craig's List, Backpage, Kijiji, Postlets. Do a Google search for any local online FSBO sites that might be available.

Signs. You'll need a sign on the property of each property, as well as directional and bandit signs throughout the area.

Speak with mortgage brokers. They have large numbers of folks who can't qualify today, making them good Lease/Purchase candidates. Same thing with and forward thinking Realtors. They may have some clients who are looking.

Price it right, get the word out, and see what happens.

[GetSmart 0]

I have the same type of deal going on. A builder just contacted me and wants to see if i can help him liquidate his 3 homes to my list of investors. I have a few investors that buy luxury homes, but i want to try to set up a bidding war to generate and spark interest.

 

Does anyone have information or experience with the round robin bidding process?

 

Oh yeah these homes are worth 640k, 926k and 1.6k. They average out to about $200k in equity. I have no problem flipping smaller deals, I just want my investors to know that there are others that are willing to purchase these deals as well. Usually investors think that if you don't have many they will low ball the offers and i want to make at least $30k on these babies.

[MichaelC 160]

Does anyone have information or experience with the round robin bidding process?

GS, there have been a number of threads about auctions. Do a search in the Marketing forum. And you may want to read Jonathan Rexford's posts on the subject. He uses auctions for moving his properties.

[West Coast Girl 1]

I have the same type of deal going on. A builder just contacted me and wants to see if i can help him liquidate his 3 homes to my list of investors. I have a few investors that buy luxury homes, but i want to try to set up a bidding war to generate and spark interest.

 

Does anyone have information or experience with the round robin bidding process?

 

Oh yeah these homes are worth 640k, 926k and 1.6k. They average out to about $200k in equity. I have no problem flipping smaller deals, I just want my investors to know that there are others that are willing to purchase these deals as well. Usually investors think that if you don't have many they will low ball the offers and i want to make at least $30k on these babies.

 

Hey GetSmart,

 

Here's something that you can use! I hope you find it helpful. If not, you can also go to YouTube.com and type in Round Robins and get a better understanding of how it works.

 

Good luck,

 

Jean

 

 

 

Red Robin Auctions - Steps to Success

 

Step 1: START !!! Boot Camp has ended!! Decide you will be successful and Take Action NOW !!!! Remember Momentum is key…lose it, and you will not be successful…a coach can help you keep it…remember that!

 

Marketing:

 

Step 2: Obtain MLS access and Funding for your event from Real Estate Agent and Mortgage Broker relationships.

 

a. Send out agent and Real Estate / Mortgage broker letters to all in your targeted marketing area. Must send out at least 100 letters to each group in order to be successful.

 

b. When they call, tell them you will have more leads for them than they will know what to do with. What you need is access to the MLS for your extensive marketing campaigns from your selected real estate agent and get the marketing agreement in place to take fund your mailings.

 

c. $100 for every listing you give the Realtor with $650 within 90 days for every million increment. (based on a 10% close to list ratio. If they close on more, then the fee increases accordingly)

 

d. You need event funding NOW from your selected Mortgage Broker.

Ask for $6K upfront and ¼ point on the backend of any loans closed. Developing a one page brochure detailing the benefits and numbers of leads generated at last event is helpful in obtaining funding.

 

e. Keep calling until you have an agent and mortgage broker that will work with you. Several in reserve is best. If one mailing doesn’t generate many calls, then continue to send mailings until you have the agent and mortgage broker you need.

 

 

Step 3: Install Profit Grabber software on your dedicated P.C. Have a High

Quality Laser printer for your business.

 

Step 4: Pull Expired and Withdrawn Listings from the past 90 days from MLS,

Import to Profit Grabber.

 

Step 5: Marketing Campaign Begins, you Start to Generate Leads. $$$$

 

a. Look up each name from MLS tax records and fill into Profit Grabber. Some Post Offices will not deliver letters that do not have a homeowners name and address or if there is not a match.

b. Print Transferred Executive Letter for each name and address. You should have 200-300 to start with. If not get larger area to market to.

c. Sign each letter in blue ink.

d. Use 3 way letter fold to open with Transferred Executive header.

e. Hand address each envelope in blue ink. Must have good handwriting!

f. Use unique first class stamp.

g. Use a personalized return address label with your name and address with something unique on it, i.e.: flower, car, flag etc.

h. Use Profit Grabber bar code label on back of each envelope for tracking of returns.

 

 

Step 6: Mailer # 1 is sent out – Return calls will start in 1-2 days!!!

 

a. Send out mailings to same list every 3 weeks. Each time a seller calls you back, delete them from the future mailings list. Those call backs will be filed for regular monthly phone call follow-up until the property is sold or they are ready to do a deal with you. Build rapport with people that called.

 

b. Capture another list of expireds and withdrawals from the MLS every 4 weeks, look up names and send out a new mailing, follow-up with additional mailings to this list every 3 weeks.

 

c. Return mail can be scanned into Profit Grabber for deletion or Merlindata to look-up for new address information.

 

d. All vacant properties should be reviewed against the Merlindata database for new address information.

1). Call Merlindata, set up your account for database review. You get access to their database for reviewing if a new address was added for your specific client. This is the cheapest way to track your potential seller. (They have additional services that cost approx. $100/search that will track down detailed information about the seller. This is not needed at this time.) Stick with the manual self-service for right now of 25 cents/search.

 

e. Return seller calls to your mailer should go to your automated voice mail system, not an answering machine.

 

1). Call ProQuest to set up an account to track each seller call. This service will also be used during the Round Robin process to track all your buyer calls. You will need 2 numbers, one for Seller return calls and one for Buyer calls to your RR property postcard mailer. Obtain local numbers for the areas you are marketing to. You will forward those numbers to Proquest. One for seller calls and one for buyer calls.

Every time a seller calls you will be notified by email with their name and address. You will also check daily for their voicemail messages they will leave for you.

 

2). Have local phone number forwarded to ProQuest to track caller name, address, and phone number. This most accurately captures their information for future reference. It also helps you call them back quickly, correctly and to look up their property in MLS.

 

3). These callers will be the most interested & possibly the most

motivated sellers.

 

4). Call back right away, thank them for their call.

 

5). Complete first part of WWOW sheet.

 

f. Set up Monthly File Folders: Jan- Dec for filing your WOWW sheets.

 

After you have spoken to each prospect and WOWW sheet is filled out, determine whether the seller is motivated now or will be in the future. If you determine seller is not seriously motivated now, file them in the next month’s folder so you can follow up with them in 4 weeks. Some sellers take a long time to be motivated, be patient, it will pay off. Organization is the key to follow-up. And follow-up is the key to making lots of money.

 

g. Find a printer for your sign and postcard mailings NOW. They need about

2-3 weeks to get your signs proofed, printed, and back to you.

 

1). Have signs printed: Start with 16 straight ahead arrows, printed on one side, 16 turn arrows, printed on both sides so you can use them for left/right turns as you need them. Use large letters and even Larger phone numbers.

 

2). Print: “Bid on this Luxury Home” and (Your PAT LIVE! / ProQuest Phone Number on both sides of the sign in large letters.)

 

Also print one very large sign you will put in front of your seller home that reads:

 

“This Home will be Sold to the Highest Reasonable Offer on Sunday. Home Tours and Bid Hours on this Luxury Home will be Saturday & Sunday, 1:00-4:00 PM.” (Your phone number)

 

3). Ask your printer to provide sturdy posts for your signs. The thin wire holders will not hold up, they are impossible to insert into the ground and the signs blow down in a breeze.

 

h. Have the printer print and mail your postcards first class bulk after you have obtained the seller option agreement. However, start designing the postcard now. Where will you put the pictures of the house on the card, the enchanting message, word pictures of ecstasy, etc.

 

i. Determine what Mailing list companies you want to use. Some are cheaper and have more information than others. You will need them when you decide what mailing lists you need to buy when you have your seller’s option paperwork signed and your are ready to plan your RR mailing.

 

 

j. Determine what newspapers are in your targeted area for ads you will place. Find out the cost of each for your specific ad.

 

Selling:

 

Step 7: Return calls from 1st Mailer. Fill out partial WWOW sheet

information, build rapport, gathering information for my people, will get back with you.

 

Step 8: Call back #2. , Gather more information, i.e.: comps etc, get rest of

WWOW, “What is the least you would be willing to take without losing sleep…..”, run up the flagpole to my people, will call back.

By the second call, they are more willing to tell you the truth about their situation and may be more willing to share their actual bottom line. You may

 

Step 9: Call back #3. Build rapport, appointment to GO SEE the sellers

and their home.(optional) Sell yourself, gather “Becauses”, Start GAP plan.(realtor in area can do this for you)

 

Step 10: Call back #4 after getting all info from the property and building more rapport with the sellers.

There is too much GAP, “We can’t purchase outright, but we are

Willing to invest……” Would you be interested in having us spend our

time and money in marketing your home to our extensive client list?

 

Step 11: If seller is not interested at this time, have your real estate person list

the property and get a split if sold the traditional way. Keep in touch with the client, i.e.: “Touch the Steak until it’s ready”.

 

Step 12: If the Seller is ready, Go see the sellers with “just the Paperwork to be approved”. Either fax….or go see seller with the paperwork, it might be too intimidating. You need to review it with the client in plain English and make them see that it is a very short three page document that is straight forward, not like the very detailed & complicated contract they signed with their real estate agent.

a. Have the Option Agreement & Memorandum of Option filled out by Profit Grabber prior to your meeting. It looks more professional. Decide if you are going to split equity or give them a cancellation option based on your past conversations so you are ready to get their signatures that day.

b. Very Important- Know what each paragraph means in plain

c. English to review with client.

 

Step 13: Option deal is accepted. Go to a bank and have documents signed

and notarized that day.

 

Step 14: After signatures and good bye to your clients, you go to county tax

recorders office and file your Memorandum of Option on the property which places your lien on that Property. Insures you will be paid if you sell that property.

 

Step 15: Get Sellers to fill out a “Sellers Disclosure Statement”.

Standard and required in all 50 states. Will tell you about the condition of the house up front. You don’t want surprises. Discuss any repairs that need to be made at this time. Plant new flowers in front of house for curb appeal, pine straw backyard, spruce up the home, etc.

 

Step 16: Start Round Robin Sale Plan.

a. Target RR sales date 30 days out. Pick a good weekend with No holidays or major distractions.

b. Signs should be in-hand and all OK, ready to go.

c. RR Postcard mailer planned & created, sent to printer, proof his copy, give OK. (Could take 1-2 weeks or so to get printed, especially on your first one) use your Buyer Proquest phone number on postcard with 24 hour recorded message

d. Set up your Proquest Seller voicemail that tells the buyer the address of the property, directions, bid times, price and details of the property, and any instructions on how to get into a guard gated property- (find out the tricks before the event- we held a private party for one event and gave each guard a wrapped gift before the event to let our party attendees attend). As each buyer calls from the newspaper ad, postcard, directional sign, their name, address and phone number is captured for your call back.

e. Call each buyer back the day before the event to remind them to attend the event and get them excited about the event. This step is critical to your success. You should expect 75-150 calls. Let them know it is very easy to bid on this property- just a few short steps, i.e.: preapproval letter. Let them know there is no bidder’s premium on this property-whatever they bid is what they pay.

 

Step 17: Target what newspapers you will use. Ads to come out 11/2 weeks

Before your RR weekend.

 

Step 18: Place home in MLS immediately for sale at high commission rate,

5%+, to attract money motivated agents and gain a possible sale before the RR event. Build that cost into the price you list it for.

 

Withdraw the MLS listing the Thursday before your Saturday RR to avoid MLS fees when the RR house sells that weekend. If you sell the house through the MLS, there will be additional fees to MLS, so you should check with your local agent.

 

If a contract is offered on your RR home via an agent by Thursday PM, hold your RR event anyway in order to capture potential hot buyers and call-ins for your mortgage broker and for potential other deals, buyers interested in future opportunities to buy from you, sellers interested in selling their home the RR way, etc.

 

Step 19: Your Round Robin Event! Saturday & Sunday, 1:00-4:00 PM.

a. Put out large sign in front of home week before event.

b. Make sure grounds are clean and all debris is removed, lawn is mowed the day before event.

c. Make sure everything is working properly in the house, if not, give list to sellers to replace or fix ASAP.

d. Make sure cleaning company comes in for perfect cleaning the day before the event.

e. Make sure soft music is available to play on sound system the day of event. Try out the sound system to make sure it works and the sound crisp and clear.

f. Place directional signs out in AM for several miles in every direction.

g. Have Sign-in sheets, Bidders kits, and Bidders sheets all done.

h. Get vanilla scented oils from the Body Shop to burn during event- then you have no need to bake cookies.

i. Have Mortgage Lender there on site to approve bidders.

j. Have Sellers Disclosure Statement available and on display.

k. Have coffee, waters, and drinks ready for attendees.

l. At the end of Sat, remove the signs or they will get taken.

m. Put directional signs back up Sun morning

 

 

Step 20: At end of Sunday RR, Call around to bidders. Select top bid with No contingencies. Notify Seller of exciting success and Bidder of their successful bid! You will meet them Monday at your escrow/closing attorney’s office and get the final paperwork signed by all parties.

 

Step 21: Purchase and Sale Agreement signed by Buyer first, Earnest Money check is collected, (3-5%-whatever you want), and the Seller signs the agreement. You now have a CONTRACT on the property.

 

Step 22: Open escrow and start the 30 day process to close. Must deposit earnest Money check from Buyer within 48 hours.

a. Buyer’s home inspectors, have 5-10 days to do inspection and report repairs needed to the Buyer.

b. Seller will have 7-10 days to fix and repair any items called for

in the inspection report and provide proof of repair and completion.

 

Step 23: Keep in touch with Escrow company, seller, and buyer every 2-3

Days. Keep the “good deal feeling” going, make sure escrow people keep your transaction on top of their files. Know of any issues and solve immediately.

a. Title company will search property title and make sure all is clean.

b. Escrow company will coordinate all closing steps, transfers, fees, etc.

c. Escrow company will set a date for the final closing.

 

 

Step 24: Be at final closing and all paperwork is signed, checks distributed,

And final turnover of property and keys is finalized between seller and buyer. Thank you and have a PHENOMINAL day.

 

Step 25: Walk out with a BIG FAT CHECK!!! You have done it!!!

 

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

 

Tools You Will Need for Automation success:

 

1. Profit Grabber software..

2. Dedicated PC and high quality laser color printer.

3. Signs – See above and Marco’s workbook.

4. Voicemail service or system (Pat Live)

5. ProQuest or similiar service for call tracking, VM, email notification, etc.

6. Newspapers ad departments and deadlines in your target market.

7. High quality, low cost and fast printer. Usually a local shop.

8. Business cards. (the luxury homes group)

9. Self sticking envelopes for mailers.

10. Business checking account. Keep personal and business funds seperate.

11. Business license and tax I.D. #. Keeps your expenses deductable.

12. Membership in www.Theluxuryhomesgroup.com. To help credibility

13. Supplies at Round Robin event. Coffee, drinks, water, pens, bidders kits, etc.

 

Keep focused, keep momentum, and MAKE THOSE Checks 