Tag Archives: motivated sellers

Your “Veteran” Stories…

If you’d like to share stories of veterans in your life, we’d love to hear about those men and women that sacrificed themselves, their families, and in many cases, their lives. Or even just the stories of the men and women that fought in wars here and abroad and their courage and character.

No matter what we think politically or the viewpoints on many of the past and present wars, we need to respect and honor the people that served the country. If you’ve got a great story that could touch our readers, please do share!

One of the organizations we support – and feel strongly about – is the Wounded Warrior project. Too many soldiers come home injured, unable to find work, and finding it very difficult to put their lives back together after service. This organization is doing some wonderful things and if you can get involved, donate, or support in other ways, there are hundreds of thousands of men and women that would appreciate it!

Also, if you have another charity that you support that helps Veterans and their families, please do share it with our readers.

5 Deals for Less Than $3K

In the month of October, we put 5 deals under contract and will be out of pocket less than $3000!

In fact, we used someone else’s money, so it’s not cost us a penny… just some time!

What exactly did we do?

1. Find the motivated sellers!

We started by sending out a direct mail campaign to about 350 property owners. What is different about this campaign versus our standard “absentee owner marketing” campaign is the fact that we found owners of VACANT land that had owned the property for more than 10 years!

2. Screen the leads…

Out of 350 letters that went out, we had about 70 calls! Yes… that’s right! Twenty percent of the people responded to our letter. Typically with other real estate direct mail, I’ll get between 8 – 15%, so this market is definitely hot!

Oh! And by the way… we actually send all of these leads to our virtual assistant who called them all back, filled out lead sheets, and gathered all the preliminary information. In some cases, she even pre-negotiated the price down!

3. Evaluate the deals…

Obviously with 70 deals (give or take), the due diligence took a little time. The great part, however, is that since you’re mailing in clusters, you can duplicate your homework across lots of properties! We hand picked the very best of the best and decided to make offers.

4. Make offers…

Next, we had to put our offers together. Some of the sellers, we called over the phone. Others, we simply dropped offers in the mail and hoped for the best! We gave them 10 days to get the contracts back to us and had 6 contracts back in that time period.

5. Additional due diligence…

The executed contract is just the first piece of the puzzle. Now, I would never suggest you go into a contract on a deal you don’t have every intention of closing on, but you aren’t going to do all the due diligence required on every deal until you have a contract in hand. For example, when we buy real property, we don’t pay for inspections and appraisals until after we have a signed contract. The same holds true for land. There are going to be additional calls to make and some more homework to do, but now it only takes you a short while since it’s the deals you’re actually going to close on.

NOTE: You may have noticed I said that we got SIX contracts back, but that we were closing on 5 deals. Why?

Because during the due diligence, we found some issues that were deal breakers for us. We simply decided to get out of the contract, which was completely within the terms of the contract, prior to closing. THAT’S what this secondary period is for!

6. Closing…

The last step in the acquisition process is closing on the deals! Since we wanted to use someone else for the financing (remember… the more you leverage OPM, the better your ROI is). So, we actually assigned the contracts to the LLC we set up with the partner on these deals. He put up all the money and we did the work!

7. BONUS: Pre-sold one…

We actually run regular ads for our properties on Craigslist and happened to be running a group of ads for seller financing. A potential buyer contacted us and the more we got to talking, the more I realized that one of these new properties was much more appropriate for their needs and pre-sold it while we waited for the deed to be signed off on! They are currently deciding between 2 of these BRAND NEW DEALS!

The Numbers

One of the lots, we picked up for a flat $500. It’s one block away from the lake and would have lake view with a two-story home on it. They are looking at that one for $4900 with seller financing option which will be $900 down and the balance seller financed at 8% for 12 months.

Total profit potential = $4575.44 (5075.44 – $500 purchase price = $4575.44)
Total potential ROI = 915%! (Our ROI is infinite because we had nothing invested)

If they choose the other lot, the purchase price is $8900. We have a total of $2100 into it will all closing costs and additional expenses incurred. If they choose this one, they’re going to pay $8900 with seller financing. This will be $1000 ad the balance seller financed at 8% for 12 months.

Total profit potential = $7190.36 ($9290.36 – $2100 purchase costs = $7190.36)
Total potential ROI = 342%! (Our ROI is infinite because we had nothing invested)

The best part about these types of deals is that there’s NO SHORTAGE of deals AND there are loads of people that are interested in putting up a few thousand dollars to “test” something when you can show returns like that on their money!

Heck, even when you split the profits… that’s still over 450% ROI on the first scenario and over 170% ROI on the second! Show those numbers to investors and they’ll be lining up to do deals with you.

PLUS… if you want to get started yourself… you can use your own money or even a credit card advance for less than the cost of most home study courses these days!

For more information on how we’re picking up these land deals for next to nothing, check out our Simple Land Investing

Is Your Real Estate Website Getting Results?

Most people are getting this wrong when it comes to using the Internet in their real estate business. This goes for investors AND real estate agents alike.

The thing is… it’s not their fault. They don’t know any better.

Let me use a story to illustrate this point…

Last week, a friend of mine wanted to “run something by me” to see if it was a good fit for some stuff we’re doing with investors and agents. In a nutshell, it was a guarantee of a page 1 listing in Google in six months or less.

At first, that sure sounds like a big promise, but there’s more to the story and if you don’t know what to ask, then it could either be a total waste of time or money… OR both!

There are a few things that you want to know the answers to…

#1. Who CONTROLS the Website?

In other words, do you own the website and all of the information? Or are you simply getting a “landing page” on someone else’s site? SO, if you stop paying the monthly fee, is your site wiped off the map, or worse… handed over to someone else?

#2. What keywords/keyword phrases will I show up for on page 1 of Google?

It’s real easy for someone to promise you page 1 of Google, but you’ve got to know what you’re getting to page one of Google FOR!

I could promise you page one of Google for the keyword phrase: “3 ways to find buyers online”. But, is that REALLY going to accomplish your goal(s)? Maybe, maybe not. It depends on what you’re looking to do. If you’re marketing to find pre-foreclosure needs, probably not.

But the point is, page 1 of Google is not for anything and everything related to your website. It is for one specific keyword or keyword phrase.

See #1… If you CONTROL the website yourself, you can have dozens, even hundreds or thousands of “pages” come up on page one of Google for specific keywords.

And YOU want to CONTROL what keywords you’re coming up under on page 1 of Google and you may want to come up for SEVERAL keyword phrases.

#3. What is the PURPOSE of the website (or individual landing pages)?

You’ve got to take a few minutes and think about the types of people you want to attract to your website based on your business. Are you looking for:

  • Motivated sellers?
  • People facing foreclosure?
  • People looking for fixer uppers?
  • People looking for INFORMATION on real estate investing?
  • Credibility to support your marketing campaigns?
  • Etc.

Your website, or at the very least your pages, should be very different for each of these types of leads.

#4. Is your site designed for lead capture?

It’s amazing to me to see the number of real estate sites out there that are just plain junk. They do absolutely NOTHING to capture prospects and provide you the opportunity to follow up with them.

According to the National Association of Realtors® 2009 “Profile of Home Buyers and Sellers”, 90% of all homebuyers use the Internet as a source of information.

And of those, 77% drive by the property prior to ever contacting an owner or agent to see the interior. This means, that you’ve got to capture their contact information to follow up with them or risk losing the lead.

#5. Are you actively generating traffic to your website?

Unfortunately, too many people believe the old adage, “If you build it, they will come.” That is simply NOT the case when it comes to the Internet. You must advertise and market the site consistently. The marketing doesn’t have to be difficult or time consuming, but you must do it. PERIOD.

Sure, if you set your site up properly from the ground up, you will have “some” traffic, but you simply won’t get enough to build a business.

It’s also essential to understand that your website is really your HUB. There are lots of other spokes, so to speak, that are a part of your online presence including social media, content marketing, classified advertising, and more.

So to recap…

It is CRITICAL to have an online presence if you want to be doing anything in real estate these days. PERIOD.

Over 90% of all homebuyers start their search online (and for motivated sellers, the numbers are also comparable).

When it comes to your website, you MUST:

  1. CONTROL your own website…
  2. Understand the basics of KEYWORDS and KEYWORD PHRASES and how to effectively use them in your web marketing strategy…
  3. DEFINE the purpose of your website (and/or individual pages on your site)…
  4. Ensure your site is optimized for LEAD CAPTURE
  5. Actively GENERATE traffic to your website…

To use this article on your own website, include the following:

Looking to use the Internet CORRECTLY in your real estate business?

Visit http://realestatemoneymagnet.com to get my HANDWRITTEN Money Magnet Model and a Comprehensive video that explains each magnet! You’ll discover how to SUCCESSFULLY use social media for you real estate business. You’ll also learn the 2 real estate social media sites you MUST be using if you’re serious about leads!

Is It A Good Time to Buy Real Estate?

Nothing is harder to watch than seeing real estate investors simply watch the best market we’ve seen in countless years pass them right by.

If this is you, here are 5 concrete reasons why this market is the best we’ve seen in years and why now is the time to buy real estate.

  1. Rock Bottom Home Values
    Home values have plummeted. I don’t think anyone would argue here. And what does that mean for you…deals, deals, and even more deals! We have right now the best deals we’ve seen in the last decade or more.
  2. Cash Flow
    It also has gotten a lot easier in just about all markets to cash flow on properties. During the boom, many of the most popular markets across the country became virtually impossible to really cash flow. Now, not only is it a lot easier; but it’s expected!
  3. Real Motivated Sellers
    The real motivated sellers just raised their hands. What was considered a motivated seller 3-5 years ago was they were will to sell their house. Sure, there were some hard cases but they were far and few and took a lot of digging. Now, they are everywhere.
  4. Government Programs
    There are a number of government programs available to help new home buyers buy real estate and to help investors get into real estate for very little down and record low interest rates.
  5. Low Risk Strategies
    Terms have never been easier to negotiate; taking a lot of the risk and upfront money out of the game. You really can invest with very little to no money or risk at all.

Real Estate Investing Mistake – Lack of Focus

Real Estate Investing Mistake #1: “Focusing on the Next Shiny Object”

There’s so much information everywhere you turn that it’s extraordinarily easy to get distracted. One “guru” is telling you that – hands-down – foreclosures are the most profitable strategy. Then, another “expert” is saying that foreclosures are frustrating, overworked, and unprofitable and claiming that the best way to make money now is investing in “paper”.

So, what’s a new investor supposed to do?

Who’s right and who should you listen to?

The answer may surprise you!

The truth is… just about any market is profitable at any given time. It’s just a matter of finding a system that works and following it… Continue reading

Absentee Owner Marketing Real Estate Course

This comprehensive real estate course opens the door to one of the most effective markets for real estate investing: absentee owners.

This training, you’ll discover:

  • Why absentee owner marketing is one of the most profitable niche markets you can tap into
  • How to get motivated sellers calling as early as NEXT Wednesday
  • The single most important thing that you need to know when it comes to contacting absentee owners
  • How to eliminate time-wasters and focus only on those sellers that have equity, and are interested in selling their property quickly
  • how to convert dead absentee owner leads into a positive return on your marketing investment
  • And much, much more.

Course contains: 57-page digital training guide, audio training, absentee owner blueprint & process map, “dead leads” marketing fee, sample letters

Training created by Heather Seitz, Real Estate Training Academy

Foreclosure Investing: Persistence Pays Off

We’re currently working on a short sale for a property on which the owner hasn’t made a payment since February of 2008. (Yes, the banks CAN take that long to foreclose!).

There had been a few offers along the way, but they were either refused by the lender or the Realtor® she was using didn’t know what to do in order to get the deal closed. In addition, the lender is AHMSI, who is difficult to say the least.

Offers came and went because the bank simply didn’t respond. When we finally got involved, we moved right up the chain of command, contacted the Attorney General for the State of Florida and a few other agencies. Amazingly enough, we got a reply within a few days. Continue reading

Getting Started In Real Estate Investing

Real estate investing is really simple if you simply follow the basics. The problem is that we have the tendency to complicate things more than they really need to be AND that we over-think things too much. We get “too much” specialized knowledge that it begins to cripple us from ever getting started in real estate investing.

When I started out in the business, I made a commitment that I had to implement at least one thing from any home study course I purchased, event I attended, or book that I read before I could buy something else.

You see, we all tend to keep looking for the “magic pill” to riches in real estate and no such thing exists. You need to actually take action and apply the specialized knowledge that you are getting — not simply go from strategy to strategy, never actually implementing anything.

In addition, when you take this piece meal approach to getting started in real estate investing, you often get contradictory information, which makes you start to question if a strategy will work. Continue reading

Getting Started in Real Estate

Real estate investing is really simple if you simply follow the basics. The problem is that we have the tendency to complicate things more than they really need to be AND that we over-think things too much. We get “too much” specialized knowledge that it begins to cripple us.

When I started out in the business, I made a commitment that I had to implement at least one thing from any home study course I purchased, event I attended, or book that I read before I could buy something else. You see, we tend to keep looking for the “magic pill” to riches in real estate and no such thing exists. You need to actually take action and apply the specialized knowledge that you are getting — not simply go from strategy to strategy, never actually implementing anything. Continue reading

Classified Ads for Real Estate

Let’s get right to the point here!

Classified ads work IF YOU DO THEM CORRECTLY!

There are hundreds of classified ads in any of your publications on a daily basis. Most of them look identical to one another and don’t do anythingto grab the attention of your prospects.

Your only goal in marketing is to get apotentially motivated seller (or buyer) to contact you. Nothing else! (Despite what some say).

Just as in any training that I do on marketing, I will tell you Continue reading