Whether you are just starting to dip your toes into the ocean that is real estate, or are free diving in the great blue yonder, you need to be aware of the rules that govern your ability to maximize your success.  You have most likely heard that there are countless ways to become profitable within [...]

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Real Estate Investing: Specialize or Die

Whether you are just starting to dip your toes into the ocean that is real estate, or are free diving in the great blue yonder, you need to be aware of the rules that govern your ability to maximize your success.  You have most likely heard that there are countless ways to become profitable within the huge genre that is real estate; if so, then You’re right!

Some people like myself stumble into a niche they love, and are great at from the start of their career, while others may fail in real estate before ever truly finding what inspires them to kick butt and take no prisoners.

Here are some tips to help you narrow down the search to find what is right for you.

1. Keep the end in mind: Sit down and make a list.  A list of your short and long term “financial” goals, your skills, your abilities and your limitations.  Do you desire steady residual cash-flow?  Do you need to make cash right now?  Do you have starting capital?  Are you handy with a hammer?  Are you a good leader? Manager? Negotiator?  Like I described in my last post, “What will you do for success in Real Estate”, know what you are willing to do and not do to reach your goals.
2. Explore your options: Mobile homes, wholesale, retail, lease options, REOs, fast turning, rehabbing, commercial investing, short sales, loan modifications, Realtor, buy and hold, multifamily, foreclosure, land development, pre-foreclosure, note buying/selling, etc.  Spend a short time going through this list, learning about each and deciding if the vehicle in question will get you to your real estate goals AND make you happy in the process.
3. Have lunch with an expert: One of the best recommendations I can make is for anyone in real estate that is currently unhappy or not as productive as they would like to be, to take a “mentor” out to lunch.  In my first week investing, I took five knowledgeable investors who were not trying to sell me some course, out for lunch to pick their brains.  These meetings gave me insight to the game, that has carried me through to this day.
4. Don’t spread yourself too thin: I know that I am not the only one that has ever piled too much on to his/her plate.  Over committing to too many deals at one time (on more than one occasion) has almost cost me my entire bank roll.  Unless you have completed more than 15-20 transactions, it will be wise to complete one deal, get it cash-flowing, then move onto the next.

   Choose just a few areas of real estate that interest you, and run with them.  Market for your targeted properties and keep to your game plan. Do not stop marketing after you are committed to a propertyl;  if and when you find a great deal, but are too busy to act on it simply wholesale the deal for fast cash.  It is far better to make a smaller wholesaling fee and continue investing profitably, than to bite off more than you can chew and go far over budget.

5. Become an expert: Becoming an expert is really a never ending process, but when you find a niche or specialty in real estate, dominate it!  Become the best investor in your town within your desired field.  Be the expert that people are asking for advice and the name that everyone thinks of when they think of your niche.

Always remember that your end goals and desires may continuously change.  Be open to new ideas, what may sound like a terrible investment strategy may just turn out to be a great money maker.  Keep in mind you are your own person, what works for someone else may not be your cup of tea.  Find what you want (money goals), what suites you (i.e. mobile homes) and kill it!

- J. Fed

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Real Estate Investing: Specialize or Die

If you’ve ever wondered why you’re not getting many responses from your real estate marketing, it may be because your message is unclear or because you don’t have a message at all. Your marketing message is what buyers and sellers see and is what they use to determine whether they want to do business with you [...]

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5 Ways to Fine Tune Your Real Estate Marketing Message!

If you’ve ever wondered why you’re not getting many responses from your real estate marketing, it may be because your message is unclear or because you don’t have a message at all.

Your marketing message is what buyers and sellers see and is what they use to determine whether they want to do business with you or not. Understand that it’s not about what you do in your business that matters more than what you can do for the buyer or seller. That’s what really matters.

How can you show that your services can benefit your buyers or sellers?

1. Point out real problems in your market

In order for your message to resonate with your ideal seller or buyer, you have to understand the problems they face. With sellers, there may be the fear of foreclosure, double mortgage payments, job transfers, divorce settlements, etc. With buyers, there may be problems like finding the right home, understanding the home buying process, repairing their credit score for loan qualification, etc.

However, simply pointing out the problems may not be enough. If you really want to show you understand these problems, then you need to also talk about what other problems can be created if they are not addressed quickly. For example if you’re marketing to home owners facing foreclosure, you might want to mention how difficult it would be to get a second home if a foreclosure takes place. Sure they may already know that, but if its in your message, then it shows that you know this too!

2. Point out Solutions that your company provides to those problems

Ok, now you understand their problem. The first question that would come out of their mouth is likely, “How can you help me?” This is the point where you can show your company as a solution to their problem. Saying, “We’ll buy your home” may not be enough. Explain to them “How it Works,” so that they can see for themselves what exactly will go down. Make it very simple for them to understand.

3. Point out the features and benefits of your services that will help your buyers or sellers

Your customer doesn’t care too much about what you do until they see how it can benefit them. Mention the benefits of being able to move on with their lives after you buy their home, or the benefits of starting a new life once they buy a home you have for sale. It’s important not to confuse benefits and features. Features are the characteristics of your service. Benefits are what your buyers and sellers have to gain from that feature.

For example, if you say that you have a 24 hour recording for sellers and buyers to listen to regarding their services, that would be a feature. The benefit would be that sellers and buyers have a risk-free opportunity to listen to what you have to offer and they can do it at any time of the day.

4. Create a clear USP and separate yourself from your competition

USP stands for Unique Selling Proposition, and having one can separate you from the competition. The perfect example I use all the time is from Dominos. Their USP was, “Get Fresh Hot Pizza delivered to your door in 30 minutes, or it’s free. As you know, not all the pizza places offered that, and this boosted sales for Dominos. So find out what you can do to stand apart from everyone else and not blend in. I wrote a blog post on USP that you can check out to learn more.

5. Have a clear call to action

A Call to Action tells your buyer or seller exactly what you want them to do. Whether you want them to call you, email you, or go to your website, It should be clearly stated within your marketing message. Don’t just assume people will know what step to take next. Tell them with words like Call Now, Click Here, Email me now if you want to sell your home, etc. Not having a call to action is like having a car without a gas petal. You’re ready to go, but with no gas pedal you’re just stuck. You might as well get out of the car and walk away — I’m sure you wouldn’t want your buyers or sellers reading your message, getting all pumped about doing business with you, then walking away because you failed to give them the next step.

Remember, your message needs to be clear and more about your prospect than about you. It should speak directly to them and resonate with their problems and concerns. It should highlight your services as an overall solution and benefit, while not blending in with the rest of your competition. Finally, it should always state what the prospect should do next in order to get started now!

Hopefully these tips will help you craft a winning marketing message.

To Your Success,

J. Lamar Ferren
“New Breed” Investor

Leave a comment and tell us other ways you would fine tune a marketing message.

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5 Ways to Fine Tune Your Real Estate Marketing Message!

I’m honoured to be a part of the BiggerPockets team of excellent contributors. And no, my dear US readers, that is not a typo. In Canada we spell things a little different. Favour, honour, and labour are all spelled with a “u. And that is just a few of the things we do a little [...]

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The Great Canadian Real Estate Opportunity

I’m honoured to be a part of the BiggerPockets team of excellent contributors. And no, my dear US readers, that is not a typo. In Canada we spell things a little different. Favour, honour, and labour are all spelled with a “u. And that is just a few of the things we do a little differently up here …

I know I have the attention of Canadians, but why should anybody else care about the Canadians, especially when we’re talking real estate?

Well, if I was an American real estate investor I would be learning all about the Canadian folks and how I can reach out to them because Canadians are buying up American properties in record numbers.  In fact I have heard several folks say that nearly 30% of all US foreclosures are being purchased by Canadians and Canadians are now the number one purchaser of American real estate outside of US residents.

So, if you’re a wholesaler, flipper, realtor or other real estate professional and if you’re in Florida, Nevada, Arizona or California especially, then you should be paying close attention to what is happening with the Canadians because we’re presenting a very good opportunity for you. You see:

• Here in Canada our homes are expensive. The average price of a home in Canada as of January 2010 was $328,537 (according to CREA). In Vancouver, where I live, the average price of a home is $637,637. When you take condos out of that the number rises closer to $900,000! And that is up 15% over last year.
• Our economy is recovering. We slowed down but in general, the economy in Canada is doing fairly well. Many people lost money in the stock market but it’s coming back now and consumer confidence is increasing.
• Our dollar is nearly at parity with the US.
• We have cold winters up here (but almost nobody lives in an igloo) and most Canadians dream of owning a place in a warmer climate.

When you put all that together you can understand why homes in sunny states like Florida and Arizona look like an incredible bargain to Canadians. Many Canadians see opportunities in the warm areas, our dollar is strong and we’re tired of freezing our butts off 6 months of the year.

We’ll talk another day about how you can reach out to prospective Canadians … but for now I just wanted to introduce you to the great Canadian opportunity. And while we represent only 10% of the US population, we are actively looking to share a little of your fine sunshine.

Image: © Madartists | Dreamstime.com

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The Great Canadian Real Estate Opportunity

Some of these you may know, others might be new info. Add eco-friendly insulation (icelyne foam/denim) to exterior walls and attics. Build a ‘green’ list of vendors/contractors (plumbers, painters, contractors). Create a ‘green’ marketing strategy for your project. Don’t use duct tape on ducts, use mastic.  Duct tape will increase the likelihood of heat loss/leaks. Educate appraisers [...]

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The ABC’s to Green up any Investment Property

Some of these you may know, others might be new info.

Add eco-friendly insulation (icelyne foam/denim) to exterior walls and attics.

Build a ‘green’ list of vendors/contractors (plumbers, painters, contractors).

Create a ‘green’ marketing strategy for your project.

Don’t use duct tape on ducts, use mastic.  Duct tape will increase the likelihood of heat loss/leaks.

Educate appraisers on the unique green features of your project to get higher appraisals.

Find the right eco-products suppliers (low price, quality products, good customer service).

Get an energy audit to find air leaks, or problems with insulation, plumbing, electrical issues (City/State rebates available in most US cities).

High effiency toilets (HET’s) aren’t glamorous but they will save you 30-60% water and almost all have significant rebates.

Install water conservation devices (low-flow shower-heads, sink aerators, etc).

Justify every green effort with the question, ‘Will this save or make me money?’ If yes, move forward, if no, cancel.

Know what green elements buyers/renters in your area want (and will pay more for) and provide accordingly.

Leverage all rebates and tax incentives available to your project.  Be ruthless and apply for everything even remotely possible.

Make sure all windows are properly sealed and installed correctly.

Negotiate a better price on all of your green building supplies/paint etc, by ordering from one provider.

Orientate all windows and doors to take advantage of natural day-lighting.

Paint with no-VOC paints only, especially in sleeping and children rooms.

Qualify each ‘green’ vendor/contractor by asking to see examples of their work.

Remove toxic carpets and replace with Sisal, seagrass or organic wool alternatives.

Sand down wood floors/cabinets and re-stain with eco-friendly, non-toxic alternative.

Track every rebate, incentive, credit you apply for and follow up every two weeks until you receive your checks.

Utilize your utility company to receive a free (or heavily discounted) energy audit.

Ventilate your property adequately.

Wrap your hot water pipes to minimize heat loss.

Xeriscape your property with native plants and water-conserving landscapes.

Yank out every non-cfl/LED bulb you have and replace with cfl’s or LED’s.

Zero in on least-cost/biggest benefit opportunities.  Since aerators cost less than 2 bucks, are easy to install and conserve 40-60% water.

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The ABC’s to Green up any Investment Property

One of the key skills you’ll need to learn as an investor is how to structure deals. When you get really good at this, you’ll be able to pull some real magic tricks out of your hat and profit from deals that other investors wouldn’t touch because they can’t figure out how to make [...]

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Are Sellers Rejecting All Of Your Offers?

One of the key skills you’ll need to learn as an investor is how to structure deals. When you get really good at this, you’ll be able to pull some real magic tricks out of your hat and profit from deals that other investors wouldn’t touch because they can’t figure out how to make it work. I’m not there yet…I’m definitely still in the learning stages.  I spent my first year in real estate investing only making offers on bank owned properties, but  once you deal with private sellers it is an entirely different ball game.  In fact, I’ve dealt with lots of rejected offers from private sellers over the past several months.  Sure, sometimes the sellers simply aren’t motivated enough, but I also have to consider how I can structure and present my offers in such a way that I can increase my number of accepted offers.

In case you’re in a similar boat, I thought I would share a few tips that I’m putting into practice that I’ve received from my mentor as well as fellow investors with several more years of experience under their belts working directly with home owners:

#1: Always provide a written offer

It’s easy to think that you’re saving time by giving sellers verbal offers, but frankly everyone likes to “see it in writing.”  Regardless of whether you think your offer will be accepted or not, put the offer in writing and allow the seller a chance to review it and give it due consideration.

#2: Remember cash isn’t always king – give options!

In the beginning, all I would make are low cash offers thinking “Cash is king, right?”  Well, yes and no.  It can be king for some sellers, but not for others because it really depends on the seller’s situation.  Be sure to give the sellers options.  If you ask the seller some key questions (e.g. how much is owed on the property, why they are looking to sell, what they plan to do with the money after they sell) you will be able to determine what types of deal structures could possibly work. For example, your written offer can include a few different options:

• Cash
• “Subject to” (liens remain in place and you take over the payments)
• Seller financing
• Combination of  “Subject to” and seller financing

#3 Consider an option contract

If your intent is to assign the contract and the seller just doesn’t seem to want to meet you at a number you’re 100% confident with, consider an option contract at the sellers price and just go out there and see if you can find a buyer within the option period (get at least 90 days).  There’s no risk!  If the seller’s price is completely unreasonable, you don’t need to waste your time….but if its just a little bit too high for your comfort level, go ahead and get that option agreement signed and see what you can do with it.

#4 Consider a partnership

My mentor gave me an example of a deal he did where there was substantial equity in the property but the home needed a lot of work.  After a rehab, it was going to be an excellent home to sell to a retail buyer. What he did was set up a contract with the seller and they agreed to rehab the property, market it, sell it, and split the profits.  The seller paid the mortgage and carrying costs while the rehab was completed and they both made a nice profit when the property was sold. A win-win for everyone.

#5 Always follow up

Persistence pays.  Even if the offer is rejected now, the seller may have a change of heart later. Be sure to follow up a few months after you’ve made the offer and check in to see how things are going.  I’m currently working on a deal with a seller I made an offer to back in November! This is more common than you’d think.  Don’t miss out on deals because of a lack of follow up.

I hope these ideas are helpful. If you have others, please do share in the comments below!

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Are Sellers Rejecting All Of Your Offers?