07/05/2017
11 Ways to Market Like a REI Pro
Whether you are a seasoned pro looking to refresh your memory on best practices, or are brand new to real estate investing (REI), here are some basic ideas, techniques and concepts to employ to help you secure more successful flip and/or fix/flip deals.
1. Ask for referrals. Whenever you complete a successful deal, ask everyone involved to refer you to others they know who might need help. This can be the start of a networking process that can be very beneficial to your future REI prospects due to the “multiplier” effect. Leave a trail of business cards wherever you go.
2. Enlist the support of local service people, i.e. landscaper, letter carrier, plumber, lawn service person, electrician, etc. Pay them a referral fee for leads they provide that turn into a profitable deal for you.
3. Dialing for dollars. Review Craigslist ads on a daily basis. Look for key “distress” wording such as: FSBO (For Sale By Owner), fixer upper, must sell, etc. Reach out to them.
4. Driving for Dollars.
a. Become a “territory farmer”. Cruise neighborhoods looking for vacant or rundown houses, FSBO signs. Identify a specific geographic area, and set up a “farm” marketing system. Dedicate yourself to driving and studying the same area on a consistent basis—say a 40 square block section. Drive it every couple of weeks. Get familiar with each house. Look for changes such as peeling paint, newspapers piling up, mail not taken in, lawn not mowed, boarded up or empty property. These are signs of a potential distressed property. They may need help to move out of the house. You can assist them with “cash for keys”.
b. Walk the “farm” neighborhood(s) on foot. Leave a business card at each house.
c. Ask questions of neighbors about what exactly is going on with the people living in the run down house. Are they under financial duress? If so, why? Find out how you can be of assistance.
5. Find an investor-friendly realtor. They are there to help you. They get a commission for their efforts—which they earn in spades. Use them as a resource whenever you feel the need.
6. Network at landlord investor meetings. Identify those who might be thinking about making a change.
7. Seek out landlords who are experiencing the following problems:
a. Evicting a tenant. Clues that an eviction is about to happen or is in progress: Sheriff’s deputies putting the tenant’s possessions out on the lawn, or maybe an Eviction Notice on the tenant’s door. Ask the landlord if he is thinking about selling.
b. Old “For Rent” signs; look for ones that have been up for more a week. The landlord could be getting tired of dealing with “tenants and toilets”.
c. Shabby look. Seek out properties that need paint, are j***y; those could be signs that the owner is in a mood to sell.
d. Absentee landlords. Look for phone numbers on “For Rent” signs in a different area code; or look them up at the county recorders or tax office. They may not want to fool with the situation any longer.
8. Look for garage or estate sales: These are often an indicator that someone has to move.
9. Look for uninhabitable dwellings. When Driving for Dollars, look for properties with a notice on the door that indicates it might involve a building code or health code violation or is a condemned property.
10. Unique circumstances to look for. Search the newspaper each day for:
a. Articles about homes that sustained fire damage. These properties are ripe for purchase from insurance companies or a homeowner who lacked adequate replacement-value insurance.
b. Obituaries. Make note of the name and date; look up the address. Track the property over time. Start a series of letters (after waiting a few weeks or months, out of respect to the bereaved). Widows/widowers may not want (or cannot afford) to stay in their home much longer.
11. Retain property scouts, aka bird dogs. Offer a referral fee for a good deal. Attend REI club meetings, there are usually property scouts and bird dogs who attend as well who are looking for business.
