This post is part 3 of 6 detailing what my partner and I went over during our annual meeting this year. The point of this meeting was to come up with a plan that will create a more consistent and profitable business for 2013.
The items we covered in our meeting are listed below. To view prior posts related to this series click on the link for that topic.
Getting tons of calls from your marketing is easy if you have a lot of money. You can send out thousands of direct mail pieces each month and even pay someone to do it for you when you pockets are lined with moo-la. This however is not the case for me, unlike a lot of people I have some money to spend on marketing, but it’s limited to $5000 for the year or about $415 per month. So in order to get more seller calls, I need to either refine my marketing and make it better (which I’m doing by testing) or come up with ways to get calls that don’t cost money.
Most people call this Sweat Equity or spending your time instead of your money. Now unfortunately I’m limited on time as well, but my partner is going to pitch in some of his time while I get smarter and bring in leads in other ways.
Driving For Dollars. This in conjunction with door knocking will get you right in front of people who may be willing to sell because their house is in terrible shape. When you drive around looking for houses, you are usually looking for those vacant properties or those that just look poorly kept up. Even if the house is vacant, you can knock on the neighbor’s doors and find out more information about the past owners of the vacant property. Maybe even get a phone number that you can call or have them pass on your information to the owners.
REO. The ultimate in sweat equity. This requires looking at bank owned properties each and every day and making 20+ offers a week. This is a money free way to get deals. You may have to put down earnest money with each offer, but if you are making a lot of offers the agent you are working with will only require you to write one check that will be used for all offers. Only being cashed when an offer is accepted. If you work it out correctly and have a buyer ready to go, then you just use their “deposit” at closing for the earnest money. Free Free Free!
Small Bank Managers. This method requires you to identify the small banks in your target areas. You can do this by looking at the FTCs website and locate banks that only have 1 to 5 branches. Then you get the asset managers name and send a letter to them or give them a call. You may have to be persistent but it should work. Once you have their attention they will probably send you a property or two to see if you are a serious buyer. The important part here is that you have to perform early and often or you risk souring your relationship.
Probate Attorney. Almost identical to dealing with the bank asset managers. You find out the probate attorneys in the area by going to the courthouse and looking through the probate files. If you find a lawyer who is on multiple case files you send that person a letter. Once you get contacted by the attorney make sure you react quickly and perform. Even if the deal isn’t a good one, take it as far as you can so you look serious and capable of doing deals.
Internet Marketing. This is going to be a slow build for me. Each quarter I’m going to be expanding my internet marketing umbrella. First order of business is to create a local blog for our main target areas and build up posts about the community and real estate market in the area. Gain google rankings for local key words. The next faze will be to build squeeze pages (which I’ve recently bought some software to help me out to do this quickly and easily. I will share this in a future post). Internet marketing is great when it works because leads come in even when you are not working. They are like permanent bandit signs that anyone can find if they are looking.
These are some of the ideas we had to get more leads by spending a minimal amount of money if any at all. I’d be interested to hear of other ideas that people have used in the past. We could make this post the go to place for finding FREE Lead attracting methods.