Do you need a chunk of cash, like ... soon?
Quick-turning single family homes is an excellent way to
generate four and five figure paychecks within thirty to
sixty days. Great stuff! The key to it working though is
buying cheap.
The cheaper you buy the house, the hotter the deal is, the
quicker your retail investor wants to close, the sooner you
get paid. So, how can you generate a steady flow of
motivated sellers calling you with houses you can buy
cheap, cheap, cheap, you can quick-turn for quick cash.
The first thing to do is think about is who is going to be
motivated enough to sell their house as cheap as I want to
buy it. By far the biggest motivator for selling cheap is
vacancy. When a house is vacant it costs the owner money
and it deteriorates in value every month it is not occupied.
Another motivator is the house being in bad condition. Poor
condition takes the house out of the general retail market
and severely reduces the potential buyer pool. If no-one
want the house the price must come down.
Next, draw up a marketing plan for the lead sources you can
tap that will produce owners of vacant homes in poor
condition. It doesn't have to be slick or sophisticated, a
yellow pad is fine. Simply list out the lead sources you
are going to use, and next to each lead source put a
deadline for having them implemented and producing leads.
Here are 7 lead sources for houses you can quick-turn to
generate quick cash.
1) Banks: These are the ultimate motivated sellers. Their
charter with the government requires them to keep
properties they take back at a low level, so they are
constantly trying to move REO property off their books. You
could say that banks are junker factories. Their whole
process just produces vacant, ugly houses you can
quick-turn. The foreclosure process causes neglect and
sometimes willful damage from the original owner. The
bureaucratic processes once the bank owns the property
means it is sitting vacant for months, being neglected,
often vandalized. Then it is listed by a realtor who prices
it unrealistically high, and it sits vacant for another six
months, continuing to deteriorate. If retail buyers even
look at it they quickly eliminate it from consideration,
realizing it requires more work to be livable than they are
willing to do. So the property sits on the market even
longer, vacant, deteriorating more, and finally comes to
the notice of investors.
2) Realtors: For a start, almost all banks have their
properties available through realtors, so if you want to
make offers on bank owned property you have to team up with
a good realtor. But (good) realtors are also highly
networked and are constantly working to achieve the
hallowed status of generating 100% of their business
through referrals. This comes from them having high
integrity and delivering on their word. Developing a
relationship with a good realtor results in a steady stream
of junker listings, from all types of sellers, not just
banks.
3) Flyers: After working with a good realtor and making
offers it won't be long before you identify the areas of
town where most "deals" are located. Once you have defined
this area, call it "Junkerville", you can now focus on it
because it will provide the highest return on your time and
advertising dollars invested. Your goal for Junkerville is
to achieve "top-of-mind awareness" with all it's residents
and extract every opportunity that comes up. You want to be
a household name in this area with your name associated to
'buying quick for cash' in everyone's mind. One of the best
ways to flush out motivated sellers in Junkerville is with
flyers. Use flyer distribution companies to put your flyer
on every door in the target area. Use college students if
no distribution companies exist in your town. A flyer drop
once a month is good, twice a month is better.
4) Signs: Signs are a powerful tool for generating
leadflow. Now that you have identified Junkerville, put
signs high up on telephone poles in the high traffic areas.
Gold 12 x 18 coroplast signs with horizontal ribbing are
best.
5) Classified Ads: Locate the local newspaper (probably a
weekly) that is distributed in Junkerville and place a
classified ad in this publication. Use the ad copy, Quick
Cash for your house. Any condition. Call Now: xxx-xxx-xxxx,
all bolded. Make it a five line ad rather than a three line
ad with the top line and the bottom line empty, so your ad
stands out. Local papers have cheaper rates so cost for
this should not be an issue. You may be surprised to find
you are the only quick-turn entrepreneur advertising there.
Resist the urge to advertise in large daily papers that
are distributed all over the city and more expensive
6) Display Ads: Place a 3 x 2 display ad in the local paper
servicing the Junkerville area. The best display ads are in
an editorial format that makes it look like one of the
stories published by the paper. Use a powerful,
benefit-telegraphic headline and do your utmost to have the
ad placed in the top right corner of the right hand page as
close to the front of the paper as possible.
7) Postcards: Direct mail is a very useful tool for lead
generation because it allows you to target so precisely.
Postcards are very effective direct mail pieces because
they are cheap and don't require opening. They are ideal
for delivering the message of 'Quick Cash for your house.'
There are two ways to use postcards to generate quick-turn
deals:
i) Saturation mailing within Junkerville to flush out
motivated sellers. Call the Postmaster at your local post
office to find out the zip code and carrier routes within
Junkerville. The call your title company and get them to
generate a list of all of the names and addresses for
houses within those zip/carrier routes (use a list broker
if your title company won't provide this for you). Send the
list and the postcard template to a mailing service to
print and apply the mailing. If you trust the mailing
service vendor, let him deliver the batch to the post
office, if not, pick up the completed postcards, check they
are all there and post them yourself.
ii) Targeted mailing to foreclosures outside of
Junkerville. Preforeclosure is a hotly contested area so it
pays to target more precisely to a specialized niche so you
can appeal directly to their special problem with your
mailing piece. The easiest way to create equity in deals
you can quick-turn is to target houses with big seconds in
default. The sellers are unable to sell because they have
no equity, sometimes negative equity, the lenders holding
the 2nds are in a no-win situation, about to be foreclosed
off and losing their entire investment. These are
relatively easy deals to negotiate. Get your title company
to generate the list for you (hire a student to go to the
Clerk's Office daily to compile the day's filings for you
if your title company won't give you the list) then mail
them weekly until the foreclosure sale.
Putting all of these lead sources into play will generate a
steady, if not overwhelming, flow of highly motivated
sellers calling you every day. Once you have this leadflow
coming in it's important to adopt a mindset of "next".
Don't get hung up on any one seller.
If they are hot, they're hot. They want out, you buy cheap,
quick-turn, get paid. If they're not, "next". You are
sifting for gold and may have to float 20-30 offers before
one is accepted and you have a deal. With experience that
number will come down to about one in ten.
Use these 7 sources to keep your leadflow high, sift for
gold, and watch your chunks of cash come tumbling in.
----------------------------------------------------
Ben Innes-Ker is a real estate investing warrior and author
of the Motivated Seller Magnet - Automatic Lead Generating
System. He is constantly refining his marketing systems to
make his investing more profitable with less effort. He
shares these unique systems with his Power Marketing
Members. To receive your free report on how to create a
steady stream of motivated sellers, go to
http://www.motivatedsellermagnet.net .
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