Sending Postcards To Homeowners In Pre Foreclosure – Some Pointers

Blog Article from: Consumer Data Leads

When reaching out to distressed homeowners in pre foreclosure, one popular marketing vehicle is a postcard, because they are cheap to print, cheap to mail, and a postcard doesn’t have to be opened – they stare distressed homeowners in the face. Yet despite the advantages of this “tiny billboard”, there are potential pitfalls to avoid. In this post, I’ll hopefully give some insight when planning a postcard campaign to upside down, struggling homeowners that are eager for hope and solutions.

Focus on Benefits, Not Features

One of the biggest mistakes we’ve seen with postcard campaigns is the tendency to focus on features, which talk bumpkins about the REALTOR. The reality is, the homeowner doesn’t care about you, your expertise, your training, how big you are, how many homes you sold, or what association you are a member of. Let’s say you helped 28 homeowners avoid foreclosure last month, or you are a member of the Better Business Bureau, or you completed a course on short sales. That’s great, but it doesn’t answer the homeowner’s only question – WHAT’S IN IT FOR ME? People buy on emotion and justify it later with logic – they’ll come back to your credentials later, according to world renowned sales trainer Zig Ziglar.

While features are the language of logic, benefits are the language of emotion. Here’s some examples of benefits:

“Get a good night’s sleep for the first time in six months”…

“Move on to build better memories”…
“Stop harassing collection calls”…
“Lift a ton of bricks off your shoulders”…
“Help your family”… etc.
the lead with “drip” marketing.

In another post, we showed an example of one client’s postcard that did a good job focusing on benefits, and it paid off. 

The point to get here from 40,000 feet is that you should talk less about you and more about the homeowner that is experiencing a very difficult period in their lives.

Postcards Will Not Close The Sale

Not much can be fitted on a 4 1/2 by 6 postcard. The objective then of a postcard is to tease the homeowner and encourage them to learn more. In our view, the best call to action is to drive them to a landing page, where they can access something of high perceived value, such as a free report. Once on your landing page, you can capture the homeowner’s contact information and nurture 

People Respond To Repetition

If you send one postcard one time to one list, hopefully you can get a deal. One listing will pay for the postcard campaign and put money in your pocket. But the reality is marketing has never meant to be and never will be a one-shot deal. To create big, predictable results, you have to market your services repetitively and be “in the face” of your listing prospect with several touch points. It’s like a parent that finally gives in to repeated requests for a new toy, a piece of candy, or permission to stay up late. Distressed homeowners are the same way. The best results come from multiple mailings. Through repetition, you establish familiarity, which in turn builds credibility, which in turn builds trust. You then have more of a license to call the homeowner or knock on their door.

Use Creative Calls To Action

While you ideally want the homeowner that is falling behind on their mortgage payments to call you, the reality is many of these homeowners will not immediately pick up the phone and warm up to a stranger that has sent one post card. Yet those homeowners that would not otherwise pick up the phone will feel feel more comfortable going to a landing page where they could download a free report on the 5 things they should never do if they fall behind on their mortgage payment, or a leery homeowner would feel more at ease listing to a 2 to 3 minute hotline that provides an overview on their options available. The soft sell approach works.

Instead Of A Logo, How About A Map To Your Office?

In our view, a logo isn’t as important as a brick and mortar address. It’s a virtual world and there are a lot of shysters on the internet, so people want to see a real place. This is especially true with distressed homeowners that feel vulnerable. Remember, the entire media for the past two years has been telling everyone that if someone approaches homeowners with foreclosure help, they are probably a vulture. Having a real place for the homeowner to see and visit will go a long way in dispelling this myth.

The Big 3: Top Buyer Trends Of 2015

What are set to be the biggest buyer trends of 2015, and how can you navigate them? 

According to a recent poll of industry insiders, there are three big trends which are expected to be seen in home buying in 2015. So what are they? What do they mean for real estate agents, investors, and businesses? What impact will this all have for regular home buyers and sellers?

Millennials

Data shows that 90 million millennials are out there, accounting for as much as 40% of the real estate market. Many have already been heavily engaged in real estate investments, home buying, and launching technology based real estate startups. While many expected millennials to shun real estate after the recent crises, most are surprisingly bullish, even if they haven’t acted with their wallets yet. If anything, millennials are more confident. They are more knowledgeable about housing cycles and the various factors involved. Subsequently, they are better armed with data than any generation before.

Millennials may have slightly different interior design tastes than older generations, but that’s nothing new. Professionals just need to design and stage homes and apartments according to their most likely prospects.

What is notable when it comes to marketing to millennials for real estate professionals is that the data shows they switch between so many more devices and mediums in such short periods of time. There’s TV, tablets, smartphones and desktops or laptops, and outdoors. Staying in front of mind, and ingraining branding, now often requires a strong cross platform approach.

International Buyers

International buyers will be one of the biggest forces in the U.S. house buying market in 2015. For insiders, this probably won’t be too much different to last year. Around 80% of global investors said they were upping their stake in U.S. real estate. It has performed well for them, and continues to offer the best rates, bargains, and growth potential.

The level of investment from different countries may change slightly in 2015, due to fluctuations in foreign markets. Expect two main types of international buyers this year: those that are seeing wealth and income rise abroad and are just naturally expanding their holdings, and those whose markets are looking frothy and want to secure assets. With this in mind, low oil prices could see another rush of Canadian investment and second home purchases over the next 12 months.

As more real estate professionals increasingly ramp up to market to these buyers, it is likely those which build the best relationships, have solid long term follow up, and which engage prospective overseas buyers earliest in the process are the biggest winners.

International buyers may find that they find the best deals and lock in the most value by going outside the box and not competing with other foreign buyers who are often willing to pay top dollar, or pump up prices because they are satisfied with low yields. For example; choosing San Diego instead of San Francisco, or Connecticut instead of New York.

Mobile

Mobile is already big. 90% of home searches have begun online, and now over 60% of them are via mobile devices. We’ll rapidly see this gap closed to the vast majority beginning on mobile devices, and going mobile only.

The good news for consumers and home buyers is that real estate companies, agents and investment firms are becoming much better with this technology. They are serving up more effective and higher quality mobile designs and tools.

For real estate agents, investors, and other related industry companies, there is really no more room to slack. These independent professionals and firms need mobile responsive sites, need to connect in a way which is effective for on the go buyers searching from mobile devices, and need to be able to respond accordingly.

At the same time, this could leave some space for marketing to those on desktops who are being ignored in the mobile rush.

Evaluating Real Estate Tools: What Does Your Business Need?

Education may be the most important tool we all have in achieving more of what we desire. There is no question that education and training can make all the difference in the success and failure of a real estate investor. However, with so many options and paths to take, aspiring property investors ought to take a moment to consider whether they are taking the right one for their individual goals.

Let’s take a look at a few of the real estate education choices investors have:

Online Real Estate Forums

The internet serves up endless information. Much of it is free. There is probably enough to spend several lifetimes sifting through without ever getting through a comprehensive map of the real estate investment process. Free is great. Data on demand in the palm of your hand is convenient. However, many hopeful investors have allowed themselves to be pulled into using some of this as their only source of information. Specifically, some have turned to online real estate forums as their only main source of real estate investing training and education. This can mean very fragmented learning, with little evidence to back up ‘advice,’ and even some very terrible amateur information. While some of this may be extremely valuable, without a proven system, an end-to-end program, or a reputable source, new investors can find they are continually stalling and making seriously expensive mistakes.

Real Estate Licensing Courses

Licensing courses, which prepare individuals for the state real estate sales person license exam, can be very organized and compact. They can also deliver volumes of important legal information, which can have great value in staying out of trouble in the course of business. At the same time, these courses traditionally haven’t delivered much practical information or training about how to actually buy and sell real estate. These courses may be a necessary pre-requisite for becoming a Realtor, but not a real estate investor. In fact, while there is no harm in taking the course, becoming licensed and signing on as an actual Realtor has been seen as limiting by some.

Realtor Certifications

For those that do choose to become Realtors and embrace its benefits in investing, there are many more training courses served up on a seemingly endless buffet. Many can be great knowledge and skill building courses. Some will help investors stand out by specializing in certain niches. However, those that fall into the trap of never ending learning without any action, or who are simply chasing yet another set of letters to put after their names on, can find it becomes an excuse to never get started. Make sure to find balance between ongoing education and self-improvement, along with actually investing.

Old Books

Old books in general can be packed with timeless wisdom. In fact, some of the most crucial investment advice is repeated by respected billionaire investors. However, while many principles may never grow old, out of date strategies and tactics could be seriously perilous when it comes to investing in real estate. This isn’t necessarily about markets or marketing changing, it is about regulations and laws. What was legal 10 or 20 years ago may now land investors in jail for decades, even if they didn’t know they were breaking the law. Is that a risk you really want to take?

Real Estate College Degrees

Before you starting freaking out; we agree that almost all education is valuable. Despite the fact that student loans may not always pay for themselves and that many billionaires have been made without college degrees, there are advantages of going to college. You can very easily build a network, learn, and get a degree. However, that is a completely different argument than going back to college specifically to gain a real estate related degree before actively investing. Can you really afford to wait four years to start investing? How about starting investing now and using some of your profits to invest in further education?

Summary

In summary; while all of the above have value, they may not be the speediest, highest ROI, or most efficient for those that just want to get going in real estate. For these individuals, consider an organized, up to date, reputable real estate investment education course and system that can be rapidly digested.

Better Real Estate: Balancing Business & Social Good

How can real estate agents, investors and CEOs balance businesses with their personal life and the social good of a community?

While the main draw to real estate for the majority of investors may be the profit potential, along with the fabulous freedom and lifestyle, most individuals figure out there is more on the line. Some plan on using their freedom and new found financial surplus to wield great social good. Fewer might do it specifically to advance their charitable goals. Many more wake up and realize that there is more to life, and that their incredible fortune allows them to be one of the most influential forces in their community. Real estate and charitable contributions go hand-in-hand.

Having the desire and passion to follow through doesn’t mean things will come easy. In fact, many might find it harder to stick to their social and philanthropic goals than to make another million dollars from real estate deals. Of course, if it was easy everyone would be doing it.

Renovating the Real Estate Industry

There are many ways in which the U.S. real estate industry can be renovated and improved upon. The following illustrates a few examples of what can be done:

• Improving real estate licensing training
• Providing more affordable housing
• Decreasing and eliminating discrimination
• Developing a culture of real ethics
• Reducing the costs for consumers
• Improving living standards
• Simplifying the home buying, selling, and investment process
• Increasing transparency
• Increasing accountability

Yes, there are agencies and organizations that practice these things. However, many do a horrific job at it. Some inadvertently do more damage than good, either due to ineffective and inefficient structures or a lack of real estate education. Internal regulation, self-regulation, and more personal leadership could really make a difference.

Limitless Ways for Real Estate Professionals to Wield Social Good

Beyond finding ways to directly improve the real estate industry, there are many ways in which both companies and individuals can do a lot of social good. Some of these ideas may include:

• Providing more affordable housing
• Recycling distressed property to help communities and low income earners
• Helping solve global social issues like clean water, poverty, and access to healthcare
• Providing homes for orphans
• Delivering food and better food for those in need
• Contributing to solving health issues like cancer
• Supporting sustainable local businesses
• Creating healthier living and working spaces
• Protecting the environment
• Opening up access to education

The Many Challenges in Trying

Whether real estate professionals strive to accomplish all of the above via donations and monetary giving, there can be many challenges that appear to get in the way. Perhaps you experienced some of these already:

• Financial emergencies
• Medical emergencies
• Lack of time
• Needing to pay the bills
• Trying to keep up with the real estate ‘Joneses’
• Spouses and family members which appear to sabotage your efforts

Redefining Success in Social Good

Success is all about how you perceive it. What are you prioritizing? Do you have to see the same wild results, metrics and money coming in from social projects as your regular real estate business? Or; are they worth doing for the sake of doing the right thing, having a good impact, planting small seeds that will flourish over time? Consider the internet, mobile marketing, cell phones, and green building: few believed these ideas would ever catch on. Sometimes it took a decade or more, but most are glad they did.

Strategies and Tactics for Achieving More 

In spite of the challenges, there are many strategies and tactics to use:

• Block out the time to do it daily
• Make it your first priority
• Create a plan and automate it
• Get accountability partners
• Form a Google+ community group of like-minded individuals
• Nominate someone to oversee these initiatives and come up with new ones
• Turn off the phone until you’ve made progress
• Get out of your normal space and get free of distractions and negativity
• Blog on it daily

Advanced Home Staging Tips & Strategies For 2015

Is it time for sellers, real estate investors, and agents to take home staging to a whole new level in 2015?

Home staging has become more popular than ever. The data certainly justifies the means, but there are several advantages to staging that many may not even know about. Even some of the best home staging efforts may need a push in the right direction. That said; what are some of the current trends in staging? Perhaps even more importantly, what can you do to stage your home and sell quicker than ever before?

Beyond Home Improvement

Coverage by the Union Tribune in San Diego suggests that even modest home staging can trump six figure remodeling jobs. Perhaps it can in some cases, especially when novice rehabbers make grand, but poorly directed ‘improvements.’ In other cases, simply sticking to ‘prehabbing’ or staging could be all that is needed to sell a home.

This doesn’t mean that renovating isn’t critical for recycling, maintaining, and reselling many properties across America. However, it is important to know when each strategy should be deployed for the maximum ROI. Don’t overlook timing down to the season and month.

Home Staging Smarts

Most individuals are familiar with the general concept of home staging. For some, it means hiring any one of a variety of professional home stagers. For others, it is putting the finishing touches on a rehab project. In some cases, all that is really needed is to prepare the property for some expert photography, or even investing in virtual staging.

Based on media headlines, some may question the need for staging in what is reportedly such a hot market. Regardless, professionals are reporting that more inventory is coming on the market, and that there are certain neighborhoods and price points which just move more slowly. While there are dozens of variables that could be responsible for this, UT San Diego reminds of popular statistics that show “staged homes sell 73 percent more quickly, within 32 days of being re-listed.”

So when you absolutely need to sell a home swiftly and need top dollar, it only appears wise to invest in staging.

Home Staging Trends, and what’s Next…

The home staging buzz, which sparked the recent media coverage, stemmed from a staging mission in Poway, a suburb of San Diego. The firm, which charges as much as $8,000 for its services, and which sometimes reportedly has people sleep onsite to show properties, was described as crafting the ideal interior, as to appeal to every homebuyer.

This company may be good at what they do, and there are certainly moves to generically remove clutter, improve aesthetics, and neutralize the pallet. However, is it really possible to stage a home that looks okay to everyone? If there was, would it make sense in every market?

Think, for a moment, about how far we’ve come in virtually every other area of business and life. What experience, product, and service isn’t customized and personalized? Everything from content to art is curated. So why is home staging still stuck in the dark ages?

After all, you certainly have to have some idea of your target market and their tastes. There is so much data out there, and it is easy to access.

If selling an expensive property, isn’t it worth tailoring the experience? Isn’t the small effort and investment required for the rewards worth it? Remember, there are services and assistants which can help.

7 Ways To Spot A Rising Real Estate Market

How can home buyers and investors spot rising real estate markets?

While the U.S. property market is only headed upwards, it is clear that the country is full of very diverse sub-markets – each of which are in different parts of their own cycle. There is a little something for every real estate investor, strategy, and budget. However, everyone is looking for rising markets that promise growth and longevity returns. So how can real estate investors best cut through the cloudiness, and discover which markets are really on the verge of growth?

New Construction

New construction can be one of the best tells of a rising real estate market. While it is true that over-building has been the sign of markets getting frothy, building is a very positive sign. This applies to multifamily construction, new home communities, retail, and custom home building. Builders have big research budgets, and normally do their homework very well before digging in and investing in the process. So look for neighborhoods that are quietly breaking ground. They should bring sizable equity gains in the near future.

Job Signs

While the real estate market is on fire, and many parts of the economy have been catching up, jobs and wages have been the one laggard many industry experts have been waiting for. Some, job markets appear to be as disparate as housing has been. Some areas and sectors seem to have plenty of jobs, while others have clearly failed to keep up with rising housing and living costs. Publicly published job and unemployment statistics can be tainted and seriously difficult to decipher. In contrast; local job ads, and talking to local employers about their hiring and interviewing experiences can reveal enormous amounts about the strength and direction of the market. How many jobs are being advertised? How tough is the competition for talent?

Population Growth

Population growth can be a side effect of strong housing and job markets, but it is also a sign of great growth to come. So is the population in the destinations you are evaluating growing or shrinking? While these trends are quite obvious, some markets can be very deceptive. For example; the population bleed California was experiencing a couple years ago has reportedly changed. Some older and well entrenched markets might now be dying due to a lack of movement among wealthy aging buyers. Others might be doing better than expected. Some off the beaten markets like Alabama and Wisconsin actually appear to have consistently grown since the 1800s, according to the U.S. Census.

What They are Talking About

What are locals at the coffee shop and gym talking about? When the conversation at the adjoining tables and treadmills is increasingly focused on real estate, refinancing, buying homes, and investing, you can tell there is action in the works. Don’t be shy about interjecting yourself into the conversation to get a better feel for how others feel about the current market. Note that this might be a great way to rack up some highly valuable local leads too.

Infrastructure Investment

When government and other entities are making heavy investments in a local market, businesses, buyers, and investors will not be far behind. That means more real estate transactions, jobs, money in the local economy, rising property values, demand for property and rents. However, once it has already happened, or is in action, a lot of the smart money may already be in. Getting ahead of this by joining the local Chamber of Commerce, sitting on planning committees, or at least networking with those that are on the inside can provide a significant edge for the serious investor, and those that want to lock in the most equity up front.

Easier Lending

Lenders and banks may have the most exhaustive research and data sets on the planet. They frequently pull back lending and even stop lending in markets they are concerned about. In the reverse; they’ll offer deals and make borrowing easier and less expensive in the real estate markets they are the most bullish about. So keep an eye on where banks are promoting loans, where they are opening or closing branches, and even talk to mortgage brokers about where the easiest and most difficult places to get loans are at.

Media Attention

While incredibly easy to manipulate, what the media is saying about different markets can have a great impact. It is important to watch who is publishing what, and to look behind the headlines to double check the data and the motivations for publishing both positive and negative information. However, where there is attention, there will certainly be more investment too. Just as the masses will always follow where leading stock investors go. Recognize this for what it is and invest appropriately.

Landlord's Responsibilities to Their Tenants From Safety to SecurityDeposits

From Erin Eberlin

As a landlord, you have a responsibility to your tenants. While you expect them to pay you rent each month, when they signed that lease, they have certain expectations of you as well. Here are some of the responsibilities a landlord has to their tenants.

Responsibility to Maintain a Safe Environment

A tenant expects their home to be safe. As a landlord, you are responsible for providing your tenants with a secure place to reside.

Your tenants should feel safe inside of their apartment. This means you should ensure all doors and windows are properly secured and have appropriate working locks. All front doors should, at the very least, have a deadbolt lock.

You should also make sure no one else has a key to the tenant’s apartment. You should always change the locks once a prior tenant moves out and before a new one moves in. If you are going to give keys to Realtors to show your vacancies, make sure to use a generic lock and then replace the lock prior to your tenant moving in.

You should not allow unsupervised repairmen inside a tenant’s apartment as this could lead to claims of robbery. You should make sure you have followed all safety codes, such as installing working smoke and carbon monoxide detectors.

Tenants should feel safe outside of the building as well. Make sure any outdoor areas are well lit and free from hazards, such as a broken step or unstable handrail.

If you have a multi-unit property, tenants should feel safe with the other tenants in the building. You need to properly screen all tenants who are looking to rent your property and check for criminal history or other red flags. You should also be wary of allowing any animals that are considered dangerous breeds. These types of animals have a higher propensity to bite and can make other tenants feel uncomfortable.

Maintain a Quiet Environment

A tenant expects their home to be quiet. Again, when screening tenants, you should look for those you believe will be respectful of others. You should also have a strict quiet hours policy in your property that all tenants must consent to - for example: no loud noises, music or otherwise, after 10pm.

Responsibility to Maintain a Clean Environment

A tenant expects their home to be clean. While you are not responsible for washing a tenant’s dishes or picking their clothes up off the floor, as a landlord, you do have certain responsibilities to maintain the property as a whole.

You need to make sure trash is taken out, either by yourself or through an agreement with a tenant or superintendent. You need to make sure common areas are well cared for; that they are free from garbage, mopped or vacuumed on a set schedule and have working light bulbs. You must maintain outdoor areas in the same manner; make sure the grass is cut, outdoor lights are functioning and the yard is free from debris.

If a tenant has a problem with rodents, roaches, bedbugs or other, you will need to rid the problem yourself or hire a professional to do so. Be careful of putting down insecticideswithout a license as you may take on additional liability for doing so.

Respond to Repair Requests Promptly

A tenant pays you rent to reside in your property. It is your duty to them to respond to requests for repairs in a reasonable amount of time. The severity of the repair should warrant how quickly you should respond. A cabinet door off of its hinges does not need immediate attention, but should still be taken care of in no more than a week.

Lack of heat in the winter is a repair that requires immediate attention, both for the safety of the tenant and for the benefit of your property. The lack of heat may cause your water pipes to freeze, and that could lead to thousands of dollars in repair costs. Also, you could face legal ramifications if you are at fault for the heat not being on—for example: the lack of heat is due to a faulty furnace and not because the tenant did not pay their gas bill.

Landlords Should Advise All Tenants to Purchase Renters Insurance

Many tenants do not know they are not covered under your insurance policy. You should advise all tenants to purchase renters insurance so their possessions are protected in the event of a fire, flood or other disaster. Renters insurance can also help protect their liability for an accident a guest may have inside of their apartment. Renters insurance can be purchased for as little as $10 a month.

Properly Store Tenants' Security Deposits

As a landlord, it is your legal responsibility to keep a tenant’s security deposit according to your state's laws. Many states are different, so you will have to check with your state to learn what is required.

For example:

In New Jersey, landlords with 10 or more rental units must keep their tenant’s security deposit in a separate interest bearing account. They must also inform the tenant in writing, within 30 days, of the amount of their security deposit, where their security deposit is being held and the interest rate.

The landlord is also responsible for informing the tenant annually of how much interest the security deposit has earned, for informing the tenant if their security deposit is transferred to another account and for informing the tenant if the property changes ownership. The landlord must also return the deposit and any interest, minus deductions for damages or other allowed expenses, within 30 days of the lease termination.

How To Increase Your Direct Mailing Campaign Success

By Than Merrill on January 12, 2015

Unfortunately, too many new investors believe that the success of a direct mail campaign is based solely on its initiation. In other words, just conducting a direct mail campaign is not enough to guarantee success. What they don’t realize is that executing a successful direct mailing piece is much more time consuming and difficult than they could have imagined. This is not to say that they can’t work, but it takes much more than just stuffing a letter in an envelope and waiting for the phone to ring. To get the most out of your mailing, there are many different steps that must be followed:

• Find the right list. Not all lists are the same. Before you mail your heart out, you need to make sure you are mailing to the right homeowners. Start by defining what you want out of your mailing and go from there. If you are looking for distressed homeowners, you need to do your homework and find the most up to date and accurate list available. The bottom line is always important, but you should be weary of lists that are considerably less expensive than others. Often times, it makes sense to spend a little more on a better list that can produce results. Research the lead source and read the referrals and terms of agreement. Most companies offer a short term trial period or some sort of opt out agreement. Spending money on a list that doesn’t yield results is essentially throwing money out of the window.

• Presentation. Whenever you do any marketing, especially direct mailing, you should put yourself in the recipients shoes. Before mailing, you should ask yourself what would make them open the envelope and read your letter. If the homeowner is distressed and late on their mortgage, they may be getting inundated with multiple calls, letters and postcards. You need your letter to stand out from the crowd. To do this, you need to be creative with your envelope and the wording of your letter. Some investors will send use bright pink or green envelopes, while other will opt to hand write the names and addresses. If the letter is not read, you have no chance of getting a call back. Once the envelope is opened, you need to have a letter that can easily portray what your intent is, how you can help them and how to reach you. Most recipients will open quickly and give your letter a short glance. Bullet points and well placed bold sentences work better than a standard letter form. Your goal is to get them curious and interested enough to call immediately after opening.

• Conversion. A good conversion rate is anywhere from 1-3% of the total letters mailed. There will be plenty of letters that will fall on deaf ears, but that is to be expected. The natural instinct is try to turn every phone call you get immediately into a deal. Sellers may sense your desperation and opt to work with someone else. With every call you receive, you should have a short script, or even a list of basic questions you want answered in the initial phone call. The key is to find the seller’s motivation and see what they want out of the deal. It is very rare to get a deal to contract after the first phone call or first meeting. You need to exhibit some patience with your direct mail leads and work them like you would work any other new lead. Some leads need to work with a sense of urgency, while others need some time to digest everything. Every call that you get must be placed into a database and followed up with as quickly as possible. Getting your phone to ring is not the goal, converting those calls to deals is.

• Repeating the process. If you are only going to send one round of 100 letters and expect your pipeline to fill up, you may be disappointed with the results. Direct mailing is a numbers game. Before you start, you need to commit to sending your same list multiple times. Most homeowners won’t respond to your letter until at least the fourth time you reach out to them. This means having the budget and patience to see the process through, regardless of any previous results. It is always better to send the same list multiple times than to keep switching from list to list and hoping for better results. Take your time to find the target market that you like and dive in head first. You can tweak the letter, envelope or presentation, but you can’t give up if you are not getting the initial results you desire. To give yourself the best chance for success, you should plan on mailing your letter at least four times.

There are many investors who have had great success with direct mailing. On the flip side, there are those that consider it a waste of time and money. In most cases, those investors have done things wrong along the way. Direct mailing shouldn’t be your only marketing piece, but rather one in a series of ways you plan to grow your business. Before you put that first stamp on, you should make sure you have the best list and are willing to commit – regardless of the early returns. If you do this, you will find more success than you realized.

What Makes Distressed Homeowners Actually Sell?

What pushes distressed homeowners to actually accept offers and sell their properties?

While short sales and foreclosures might constitute a smaller share of total home sales than in the past three years, there are still billions of dollars in non-performing loans and REOs to be had. In fact, there are far more than most can fathom. Recent numbers suggest a greater number of conventional sales, hidden inventory off of the market, and the shifting of distressed debt by mortgage lenders and servicers. None the less; there is still a vast number of distressed properties available to those that know where to look.

Many of these delinquent mortgage loans and distressed properties aren’t alone. There are many new and re-defaulting loans, as well as some that are just being notified of an impending foreclosure. Whether it is banks, corporate asset managers, or simply regular individuals, selling sooner is clearly the best move. Investors of all types are more than happy to create a win-win for those in the shadow of a foreclosure. However, not everyone considers selling to be an option. So why don’t they accept those offers and sell?

For some, it is the price being offered, the strength of the offer, how trustworthy the buyer is, and much more. These issues can often be overcome with the right real estate investing education and negotiation skills. However, there are other specific reasons that different sellers don’t act when they ought to be highly motivated. So what are they, and how can you overcome them?

Banks and REOs

Banks, credit unions, corporate asset managers, mortgage lenders and servicers are typically incredibly motivated to remove nonperforming loans from their books. They often have masses of deadweight loans on hand in the form of both REOs and non-performing loans. More often than not, these properties are being devalued everyday they sit unsold. Still, many home buyers and real estate investors are bewildered at the stubbornness and apparent lack of motivation of these entities to negotiate.

Besides greed, and not wanting to let a dollar slip away, there are two main issues that prevent them from selling. One is process. These institutional sellers thrive on process and procedure, even to their own detriment. And you aren’t going to talk them out of it. Submit offers the way they want, and agree to check the boxes they want, or don’t waste your time. Secondly, it is all about the net sheet. They want to go with the offer which nets them the most. Don’t expect them to figure out your deal is better. Show it on the right form in black and white. Sometimes offers of 30% less or $100k less have been accepted because they perceived it would net them more.

Higher End Homeowners

Even before the whole credit and foreclosure crises started, experienced real estate industry professionals will tell you they learned that there are far more emotions involved when dealing with higher end buyers. It shouldn’t matter if you tell them the sheriff is coming to toss their belongings on the side walk next week, unless you solve their emotional needs. Doctors, surgeons, business owners and others that may even now have good incomes, but fell into foreclosure prioritize other things greater than the foreclosure itself. Their ego and reputation are on the line, and likely a family that doesn’t want to move or isn’t even aware of the situation. No amount of explaining will beat these arguments in their heads. You have to provide a solution. Can you help them do the math, and create a solution that will help preserve their ego, credibility, and family unit? Maybe it will be moving into a smaller but newer rental condo instead of owning a waterfront home. Or it could be moving into an older and larger home, but conjuring up enough proceeds to provide their partner with a substantial renovation budget.

Tapped Out Low Income Earners

While you may be trying to create a win-win, some distressed property owners that have no funds to leave and go somewhere else may just take any offers as a serious threat to their livelihood. They might not see it feasible to move out, especially when local rents have risen and they are barely working. Can you line them up with a rental agent to find something else? Treat them to a luxury tour of rental complexes? Offer to help with moving expenses and maybe even connect them with local assistance programs? Anything you can do to get them to sell to you should warrant consideration, as long as the numbers make sense.

Get to know your sellers. Know what emotions and processes are holding them back. The more you know about a seller’s situation, the more feasible it is for you to create a scenario in which they will sell to you.

The Attraction Of Today’s Real Estate Market To Younger Homebuyers

What is drawing younger homebuyers into today’s real estate market? Real estate agents and investors need to understand what is driving them, as do mortgage lenders and the government. The more that millennial buyers understand their competition and peers, the better they’ll be able to navigate the market too.

Living Costs

Zillow announced that renting has become twice as expensive as owning. In fact, new data shows how incredibly high incomes need to be in order to afford even modest rentals. At the same time, mortgage interest rates and home prices remain at incredible lows. This gap between what renters versus owners are paying to live is only widening. The decision to rent or buy now will increasingly separate and dictate how well younger generations live for the rest of their lives.

When We Were Kids

Many millennials are turning to buying houses as a way to get back the lifestyle and environment they had as kids. Many are having kids of their own now, are growing up, and are getting married. Recent surveys of buyers reflect what it is millennials are looking for in a home. Kitchens and outdoor space are among the top needs. Many of today’s buyers’ tastes are unquestionably suburban, if not bordering on rural.

The Other Benefits of Homeownership

There are many benefits associated with owning a home. Although significant, the financial perks and advantages of buying and owning real estate are only the tip of the iceberg. Homeownership can provide increased security, peace of mind, fulfillment, and can even increase the odds of children doing better in school. While many would argue that millennials are more mobile than ever, and love the freedom new technology provides, homeownership can provide the perfect balance and give them something grounded.

Real Estate Investment

It is true that many millennials might not be ready to settle down yet. Some are still exploring the planet, finding their optimal destination, or need to stay in the wind to stay employed. However, the benefits of real estate investing are undeniable. Even if they won’t be moving in yet, buying homes now can lock in great prices and rates for later, while providing additional income to fuel their other passions.

Data, Data, Data

The impact of the recent crises has been minimized, thanks to better data and more real estate education. The woes of the early 2000s would be scary if they were unpredictable and random. They aren’t. Now, homebuyers have a much better understanding of real estate cycles and what moves them. It is simply a matter of preparing for them and planning ahead.

Incomes

Millennials are now growing into their best earning years. While Fox News reports a dip in millennial startup launches, which could signal many are turning to ‘real jobs,’ others have already found success as business founders. Either way, they are now finding the confidence and financial capability to commit to homeownership and mortgages.

Availability of Home Purchase Mortgages

Mortgage guidelines have made it difficult for homebuyers to apply for a loan in recent years. However, times appear primed to change. A variety of low down payment mortgage loan programs are being revived to compliment the 100% financing options that are already on the market. With more government pressure, expect continued loosening. At the same time, credit scores are strengthening in the wake of the crisis, and young workers are seeing their credit gain traction. Ironically, landlords have become so tough on tenant screening and moving in costs that it is actually easier to get approved for a no-down-payment mortgage loan.

Tips for Finding Section 8 Renters

How can you find more Section 8 renters to occupy your properties?

Some real estate investors are reporting that they can’t find Section 8 renters fast enough, especially good ones. So where are they and what are the most cost effective real estate marketing methods for attracting them?

Section 8 renters can be incredibly profitable for some real estate investors. Those taking advantage of today’s market by expanding their portfolios with buy and hold properties could certainly use a steady flow of interested renters to minimize vacancies and maximize yields. The good news is that reaching and pulling in significant numbers of Section 8 renters doesn’t have to be that hard or expensive.

The following is a list of fast and affordable ways to find Section 8 renters for your properties:

1. Craigslist

Craigslist still proves to be one of the most affordable and effective ways to fill rental vacancies for real estate investors. Make sure to tailor your ads in a way to avoid being seen as another real estate agent or scam artist.

2. Bandit Signs

Outdoor signs are a great and cheap way to generate inbound calls from prospective tenants and home buyers that are ready to make the move. Make it even better by using automated phone services so you will never lose a lead and can streamline the qualification process.

3. Non-Profits

Non-profit organizations, charities, local shelters and government office workers can all be great sources of needy tenants. They will more than likely be truly appreciative of the opportunity to use their housing vouchers to rent your homes.

4. The ‘Competition’

Other landlords, property managers and real estate agents that don’t want to deal with Section 8 renters and the government can be excellent sources for leads. They can also serve as doorways to more collaborative efforts in the future.

5. Referrals

Perhaps the best way to reduce marketing costs and bring in leads on good tenants is simply to keep asking for referrals from current tenants and others in the neighborhood.

Make Money As A Part-Time Real Estate Investor

by JD Esajian

The benefits of real estate are undeniable. The investing field offers so many different ways to work and earn a living that there is something for everyone. So what is the best way to get started?

For many, real estate isn’t just the best way to get ahead, or the only way to make money – it is their only option. Yet, with the incredibly busy lives we lead today, and the tight financial situations many are in, becoming a full-time investor is not always an option. Conversely, those new to the field may need to approach the real estate industry as a part-time entrepreneur. That said, there is nothing wrong with working as a part-time real estate investor. There is plenty of money to be made, without going full-time. There are a variety of options available for different real estate strategies, personalities, and skill sets. The following represents some of the best options for part-time real estate investors:

Become a Real Estate Agent

Becoming a Realtor is one of the first things real estate investors should consider. For many, becoming a real estate agent is the best way to get their feet wet. It can be an avenue for learning more about the inside workings of the industry, getting to know how transactions work, making connections, finding leads, and gaining experience with other people’s deals. The downside of becoming a Realtor is that it is neither cheap, nor a path to any guaranteed paydays. It can cost thousands to get set up as a Realtor, not to mention weeks or months of training. Then you realize that this isn’t a ‘job.’ There is no salary. It is all commission work, and essentially like starting your own business. It also doesn’t offer the paydays that investing does. It can even take months to make your first check. However, the commissions can be sizable and frequent if you catch on quick.

Become a Real Estate Assistant

Many that want to get into real estate might consider becoming an assistant to a real estate agent. This type of part-time gig could provide a regular paycheck while learning what you need to on your path to investing.

Turnkey Real Estate Investing

For those with cash to invest in real estate, but little time, turnkey property investing could be just the ticket. Turnkey real estate investing offers hands free passive income and passive wealth building. Simply invest in your choice of rental properties and let someone else handle all the management and maintenance.

Become a Landlord

For those that like the concept of passive income, and want an alternative income stream, becoming a landlord may be the right move. Becoming a landlord can yield many rewards, monetary and otherwise. It is smart to invest in some real estate investing education before jumping in, but it doesn’t require a degree, license, or too much extended time on the sidelines.

Weekend Warriors

Reality TV has highlighted how fun, exciting, and profitable fixing and flipping houses can be. Buying discounted homes, improving them, and keeping them as rentals or reselling them can easily be done on weekends when you are off from your 9 to 5. It might take a little longer, but it can work. After you have a couple deals and big paydays under your belt, you should be able to pick up the pace and ditch the job.

Wholesaling Houses

Wholesaling real estate is less intensive than becoming a landlord or rehabbing houses. It is a matter of buying low and selling low. This might be the right choice for those needing money quickly and. It can be especially attractive for those without DIY experience and who don’t have any interest in rolling up their sleeves to replace flooring, tear out kitchens or paint walls.

Buy and Hold Land and Lots

Small, “buildable” lots and rural acreage can be very inexpensive. They need very little maintenance and the holding costs are minimal. While they may not be a high profit or income choice in the short term, they can offer easy entry into the field of real estate investing.

Ultimately, no matter what you are starting with and where you hope to go, there is an option for getting into real estate as a part-time entrepreneur.