Marketing for Real Estate Investors


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Presentation on marketing to find deals given to the Augusta (GA) REIA on March 5, 2007.

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Marketing for Real Estate Investors

  1. 1. SLIDE 1 MARKETING BASICS FOR REAL ESTATE INVESTORS Marketing for Deals Homeowner Solutions, LLC Robert Kim, Manager Phone: 803-292-2227 Website: www. Property-Aid. com
  2. 2. SLIDE 2 What We'll Cover - Why Marketing is Important 0 Marketing Principles - Marketing Methods - A Few Comments
  3. 3. Why market? - Lets people know what you do - Generates leads 0 Single most important factor for business survival
  4. 4. Marketing Principles - Definition of Marketing 0 Main Purposes for Marketing - The Two Types of Prospecting - Motivational Factors of Sellers - Marketing Plan Components
  5. 5. Definition of Marketing - Definition for the real estate investor: Attracting qualified buyers & sellers to act in their best interest to use our product or service
  6. 6. Definition of Marketing - Definition for the real estate investor (continued): Buyers — Home buyers Sellers — Home sellers Product — Our houses Service - Buying houses to solve their problems
  7. 7. Main Purposes of Marketing SLIDE 7 or Real Estate Investors - Getting motivated sellers to call you - Building a buyers list - Building a private lenders list (not covered here since may have special legal requirements)
  8. 8. The Two Types of Prospecting SLIDE 8 ° Reactive (or Shotgun) — waiting for things to happen, e. g., putting an ad in the newspaper and waiting for the phone to ring ° Proactive (or Target) — making things happen by reaching out to the masses, targeting your prospects, and giving them a compelling reason to do business with you
  9. 9. The Two Types of Prospecting SLIDE 9 Use a mixture of both reactive and proactive marketing but the majority should be proactive (or target) marketing
  10. 10. Motivational Factors of Sellers SLIDE 10 Pre-forec| osure* - Mismanaged rental properties o Divorce - Outgrown house - Bankruptcy - Loss of job* - Job transfer - Retiring to another state - Major lawsuit pending
  11. 11. Motivational Factors of Sellers SLIDE 11 Age/ failing health - Mortgage payments too high* - Built new house - Death of spouse or family member - Property on market too| ong* o Property is functionally obsolete - Inherited property*
  12. 12. Motivational Factors of Sellers SLIDE 12 Failed business - Failed rehabber* - Little or no equity* - Wants to move back home - House needs too much repair - Vacant property* 0 Title problems
  13. 13. Motivational Factors of Sellers SLIDE 13 roblem (Junkers) Solution Seller doesn't have I'll buy your property money to fix it in any condition Seller is I like to buy ugly ashamed/ embarrassed houses about property Seller is worried about I'll close quickly with property no hassles Neighbors are Let it be my problem complaining or bldg dept is filing complaint
  14. 14. Motivational Factors of Sellers SLIDE 14 Problem (Junkers) Seller is worried about I'll take on the liability vandals and druggies on property Seller has been I'll make your making 2 payments payments for many months
  15. 15. Motivational Factors of Sellers SLIDE 15 Problem (Pretty Houses) Solution Seller is concerned I'll make your about credit rating with payments late payments Seller wants to stop Let me worry about worrying about house it Seller afraid to take big I'll pay full price loss since no equity
  16. 16. Motivational Factors of Sellers SLIDE 16 Problem (Pretty Houses) Solution Sellers getting divorce I'll close right away and want to dump property and each other Seller has had property I want your property listed with Realtor for 6 months or more without any offers
  17. 17. Motivational Factors of Sellers SLIDE 17 Problem (Bread and Butter) Solution Seller has received many I'll pay full price low—ball cash offers Prospective home owners I can buy for can't qualify for loan to buy cash house Seller has house rented and I'll buy as is and tenants keep damaging it make the repairs
  18. 18. Marketing Plan Components SLIDE 18 - An ever-changing collection of marketing pieces - Marketing pieces will change depending on market conditions, target market, etc. o The people to whom these marketing pieces will be distributed - Lists can be purchased or generated by you
  19. 19. Marketing Plan Components SLIDE 19 0 Method of distribution - Mail? Door-to—door? On stakes or telephone poles? By radio or television? - Schedule for distribution - Weekly? Bi-weekly? Monthly? REPETITION IS KEY! o Projection of what to add and when - Start with signs, change to letters or postcards in a few weeks?
  20. 20. Marketing Plan Components SLIDE 20 o Budgeting from your profits for more marketing - 10% of all profits is a good starting point-it assures a solid base of marketing from which to work o Testing and tracking - Always ask leads “Where did you hear about me? " or use different ways to track such as different phone numbers on different pieces
  21. 21. Marketing Plan Components SLIDE 21 Generating Lists - FSBO’s in newspapers, Iwanta, House Hunter magazine - Courthouse for preforeclosures, bankruptcies, probates - Networking at REIA's, auctions - Mailing list companies, e. g., Dunhill International (www. dunhil|
  22. 22. Marketing Methods SLIDE 22 eaching Your Prospects Property Type Who has them? Junker Attorneys Ads in legal (Estates) paper Junker Bankruptcies Hang out at bankruptcy court w/ cards Junker Bank REO Dept. Letters to REO dept. with Rolodex card
  23. 23. Marketing Methods SLIDE 23 eaching Your Prospects Property Type Who has them? Junker Realtors Ad in Realtor magazine Junker Unemployed Ad in local people pennysaver Junker Landlords Mail to eviction lists Junker People w/ code Call or write to violations owner
  24. 24. Marketing Methods SLIDE 24 eaching Your Prospects Property Type Who has them? Pretty House Transferees Flyers at company relocation depts. Pretty House Professionals Ad in business paper Pretty House People with 2 Mail to expired houses MLS listings
  25. 25. Marketing Methods SLIDE 25 eaching Your Prospects Property Type Who has them? Bread & Butter Elderly people Flyers in nursing homes Bread & Butter Frustrated Hang out at eviction court w/ cards Bread & Butter Out-of-Towners Letters to out- of-town tax addresses
  26. 26. Marketing Methods SLIDE 26 essage Delivery Business Cards (restaurants, utility workers, mail delivery people, landscapes & lawn care people, anyone you meet)* - Classified Ads (newspapers, newsletters, pennysavers, Iwanta, Yellow Pages)* - Signs (bandit signs, billboards, magnetic vehicle signs, every property you own)* - Flyers (nursing homes, bail bond companies, HOA's, insurance companies, laundromats) o Direct Mail (letters & postcards to banks, home owners, attorneys, Realtors, charities & non-profit organizations)*
  27. 27. Marketing Methods SLIDE 27 essage Delivery Networking (birddogs, wholesalers, rehabbers, landlords, private and hard money lenders, Rea| tors)* - Mass Media (television, radio) 0 Internet (website, newsgroups)* - Trade Shows - Coupon Mailers - Press Releases - Six-Inch Stick On (on doors of vacant houses) - Credibility Kit* - Door knocking
  28. 28. A Few Comments SLIDE 28 10 Rules of Thumb 1. Sellers are selfish — What's in it for them? 2. Confusion means “No" — Keep it simple, no jargon 3. Don't try to be all things to all people — Be focused with your marketing 4. Keep unsolicited messages short
  29. 29. A Few Comments SLIDE 29 10 Rules of Thumb 1. Solicited (targeted) messages can be as long as you like for those who request them 2. Testimonials work 3. Free stuff works — Free reports, free pizza, etc. 4. Advertise only to those who need it - The most compelling offer isn't desirable to those who don't need your product/ service
  30. 30. A Few Comments 10 Rules of Thumb - Repetition is the key to success — Use contact management software or hire out to others such as direct mail specialists, e. g., Karen Claeys in Augusta at phone: 706-627-1242 - End by asking for something specific — Tell them to “Call today! " or ‘‘Call (123) 456-7891"
  31. 31. A Few Comments 7 Reasons for Failure 1. Lack of a long term commitment — This is the number one factor for going out of business. Marketing results don't happen overnight. 2. Lack of continual follow-up — Often takes multiple messages and multiple contacts before people call. 3. Lack of a budget — You MUST spend some money to market effectively.
  32. 32. A Few Comments 7 Reasons for Failure 1. Too large of a budget starting out — Best to start with small budget then increase it each month. Operating on a shoestring budget promotes creative marketing. 2. Being risk averse — Must be willing to risk losing money on new marketing campaigns.
  33. 33. A Few Comments 7 Reasons for Failure 1. Lack of defined benefits — Focus on one main benefit and brand it but be sure to list other benefits. 2. Never distinguishing yourself — Distinguish yourself from your competitors. Don't just be a copycat marketer and convey the same message with the same benefits as others.
  34. 34. A Few Comments SLIDE 34 Business Card - Use both sides (don't waste space with your picture) I - Give benefits to houses, land. and mortgages. SEIIEFS We buy, sell. and lease-option - I I~ . .:_J Ill l. 'uT'vJLIII Tm .1 lI. .IIvv‘ I. ..-. I 'rI'{“" I I I I I o Press “pain" buttons then I‘ ‘HI I '‘l 'r ; l_I‘ I'lt', ‘«"I>_“i, : (. T_iII HOVIICOWHET SOIUIIOFISI Ia‘u't. '~‘ -LIQSP. ($513.5 I : "X: $I WIPII I. _7."~. ’:‘rII ‘. I"-J¢- I". ,Iv'I In-l; I JUL. :_. r._wy-. - yLuLzI L>IoLI‘. urrI; ,‘
  35. 35. A Few Comments Bandit Signs AVOID FORECLOSURE (123) 456-7890 WE BUY HOUSES ALL CA$H (123) 456-7890 SLIDE 35 Keep message short and simple Give website if you have one Put at or near busy intersections where traffic will stop Put up at least 50 at a time - www. banditsigns. com
  36. 36. A Few Comments SUDE 35 Bandit Signs ii‘, BUY HOUSES - Obey code officials if And close quickly they call (put them (123) 456-7890 out at 5 pm Friday _ -c and take down by 12 WET', 'j”¢<"é g8‘EJ§ES midnight Sunday? ) PAYMENTS 0 Avoid “sign wars” (123) 456~789o with others WE BUY HOUSES - Brand yourself with Get a Solid Offer same basic layout & www. So| idOffer. oom COIOFS (123) 456-7890
  37. 37. A Few Comments Postcards - Keep them “generic” and non-offensive - Address them to “Home Owner”, don't use home owners’ names - Use both sides - AIDA — Attention, Interest, Desire, Action
  38. 38. A Few Comments Postcards Sell your hmixc or land "as is" for : i l‘. iir price on IIIL‘ (late of _ our choice. .. It yin », ii| l In I ll _1iIll hi-um in l. iin| in lhr lnxhwl. . ii| l. .imI Iliml '(‘rlIlI| ll III In iniiu_ l1‘. IlI this iIIipm'I. H|i iiIus. .i; x ‘iIll HM} IllH| ¢’l‘ (hr pa rlkrl mliilium. .. iimxiiisr I’ IN W HUI KIN | ) I. VI) in Ni-iilh ( . irii| in. i iml (irur; -_i ii ‘xi r / i‘ -'i i'l i l . 1» ‘ ' r int? mil 4 ' l. -, , i ‘ 1“~I‘i il"l ‘~ iii i 'I“ I’i ii » . i"i: i ii‘ I‘ IV”, . r r’i] A I’-ii'l‘. ' ‘i . ;i i" i ll K mil ~i. 'i i; ' V , [i , l, , in H‘ H”, , I, ‘ ‘ I l" i— lrilc . i " ii iiir x- ‘I n ii xii , i, ‘ ‘Pic hi wt‘ (-'T l Jlli'. ,'i'. lli piiw: iii i-i itiix , 5, H. ,2. , ._ , ,,. .i 4lli‘ ,5 . , _ I, ‘ lIlI’ l‘i-i~i«. - H 1 iii! iitpvii iii iv: l‘ . i - i- , ;» , v . ,, M H, ‘], i., _k NH i“«lil&“ii~» i. ‘l*i»‘: i-i. -. --ii in i“-, ii ii ‘nil hihr. V», —~ ‘mu’ i'i‘iV<i* Ii'i| l"‘- I’ ‘W. -.5 wit unit: "‘l , I i. H i ii. i i , ,, l W“ 9 H“”~' ‘ 9' "‘ ">‘ ‘ “" :1’ “ " r 'il"‘, l1=‘i' ii) iii i i'fii ‘i I (. i!lii~. Ii'c. .'l. ii‘. .Zl~ll‘. {"g i<, ll . ."i1 ‘H. ‘ii l‘llu-I}_‘l . ‘:iii-t" , “‘, .‘ . ;i / , , . ‘H VI‘! ,, - , _.i_ ‘M, _‘. ,.] l ' ll ii - i J’ i | i'I| Vu I'll) _i‘uuI / mun m liunl " x is" , __, i_‘ III! ’ :4 Lin pun 0-i (hr | :1(vlni_I| ul Ll| lIlL'L', , / ,. ,, ‘i _, i , ,, ll . :. . i, i., ,.-, we lIli'__'_lll lulp _mi Ull). .. 4 I i‘- ‘. li li‘| "V‘l. 'iH‘I'i r (iiii ii ll ‘ii “‘‘. ‘">V“1,! L“V‘>’: ‘K ""’ L ' ‘ ' l 1* 3"“ Ii -i . , . i.' IPWH I"? -332" lV. |'l‘II[h‘l'L — i(| .‘inii 4
  39. 39. A Few Comments SUDE 39 Postcards i 7Use both I i. . i.. i " ‘ff Sides WE BUY HOUSES AND LAND SCASHS FAST CLOSINGSI CALL (803) 292-2227 wvvw. Property-Aid. com
  40. 40. SLIDE 40 A Few Comments Classified Ads 333' Esme wamed 295 Sample Ads for Wholesale Deals CASHFORYOURHOUSE E FAST, FRENDLY‘ mg I °Drive traffic to your website i No Hassle-:1 No Agent Cam-_ rmasions. Am’ Who-: -dc Any [T; §lE'dS‘$'O‘. T.<; %;f; ;l: cJl: ?§E‘t: !3?= ? 0Try ‘[0 get {Q tgp Of Sgctjgn 770 642-4258 Cvcwri Val la‘: we BUY : _ . ' UGLY HOUSES; Run ad every day, notiust l . . Quick, SI"r‘-pie, N-3 prawuve, E ‘Wt: Buy As-Is l iom -3V rzvsti; -i s Amer: - '5 #1 HOFTIGDUVOI °AIDA WE BUY HOUSES ' UC-BE. FLLTON, CHEROKEE ANY CIZNDZTFON ANY PRICE 404-6 516-931 8 WWW hntrrwg CF16 (‘Om
  41. 41. A Few Comments SUDE 41 Classified Ads | ’|| buy or lease your house. make Samle Ads for Sub'ect-To Deals your payments. do repairs & close q= .iicl<Iy. Any area, any price. any condition, 555-5555. oDriVC traffic ‘[0 your website I buy and lease houses any area. any condition. any price ‘Try TO g€l lIO lOp Of 555-5555. Section Payment Assstance ‘Run ad every day: We have a special program to TlOl _]USt pCI'10d1C3.lly help 'nake your house payments 0 555-555.
  42. 42. A Few Comments inding Wholesale Buyers Your ideal buyer: — Has cash — Is experienced — Is committed to closing quickly
  43. 43. A Few Comments SUPE 43 inding Wholesale Buyers - Your REIA - Your local newspaper - Your buyers list - Auctions (tax lien, foreclosure)
  44. 44. SLIDE 44 Questions? Comments? MARKETING BASICS FOR REAL ESTATE INVESTORS Marketing for Deals Homeowner Solutions, LLC Robert Kim, Manager Phone: 803-292-2227 Website: www. Property-Aid. com