Over the next few months, the publication date may be erratic, but please be patient, once I get a laptop, it won't be an issue. Another busy month in the arena.

We'd love to hear suggestions and specific questions you may have regarding real estate investing. Send us your questions and topics and we'll include answers, discussions with experts and responses in subsequent issues.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Today's Topic: Survival Marketing Tips
Issue #007
November 1, 2004
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Also this issue: Nominate real estate investing service providers for our free directory.

Survival Marketing Tips - Buying Houses

can make all the difference as a real estate investor.

Most guru types say that if survive the first 2-3 years, you will make it in the business.

This statement rings true to my own experience.

So let's create a category that we will call survival marketing relative to that initial 'critical' period.

Generally, as new investors, we do not walk into the game with a network of real estate professionals at our disposal, with whom we have a working relationship.

This is probably the biggest hurdle with little real estate experience under our belts.

Over time, we meet exceptional people and after several transactions, we start to build relationships with these people.

Gradually after we have had out feet held to the fire a few times, we learn which electricians to use, which closing agents, which real estate and mortgage brokers to use, etc...

And probably more importantly which not to use.

In real estate, luck plays a role but more specifically having really good information plays a bigger role, coupled with hard work.

The reason many people do not survive is that they simply don't get enough activity and there are not enough resulting transactions to create adequate cash flow, ergo they quit the business.

Even if they don't quit, it can really put a strain on the home-life.

Boy howdy...

So how do we stay alive long enough to know the ropes, build that professional support network and start really making money?

Let's lay out some tips that have worked for me - some by stumbling on to them, and some through instruction.

One: Mail Outs

You need to do mail outs and I mean lots of them. Statistically, if you send enough letters enough times, you will buy some houses.

One thing to remember about mail outs is that you never know when the people will call. It could be six months or a year down the road.

Another thing is the content and quality of the letter. When I say 'quality', I mean how many responses you get per hundred sent out.

In one the mentoring groups that we participated in, some people got as much as a 20% response, others got 1% or half of one percent.

That's typical of all marketing.

The problem in the beginning can be the expense while you are honing the content of your mail-outs and learning where and who to target.

But mailing is an important segment in your long range real estate investing program.

MAIL OUT TIP: Include your email address.

Always include your email address on every letter you send.

I got an email from a lady, an out of state owner saying:

"You expressed an interest in buying my property (with an address included). Please contact me with an offer, if you are still interested."

She left no phone number - only an email address.

After a couple of email relays this morning, I got her phone number and gave her a call after I took a look at the house.

We may have a deal in the works, we agreed to talk again in a week and discuss more of the details. She is an older professional lady who has had the house rented for 12 years to the same tenant.

However, I asked her if there was a particular reason why she picked my letter to respond to, over the others she had mentioned.

Her response:

"Only two of you included an email address in your letter. And you were the only one who responded. Email is easy for me."

So in retrospect, Ron LeGrand and Kathy Kennebrook were' correct when they said to make sure to include every way of reaching you - including:

==> fax
==> phone
==> cell
==> and EMAIL ADDRESS.

Interestingly, on subsequent mail outs I did not include email addresses. I only wonder how many wanted to email me and threw the letter away because there was no email address.

Even one would be too many...

Needless to say, I will include it in every mail out in the future - forever.

One last point of the subject:

Check your email at least once a day. From my experience, lots of real estate investors are terrible at responding to email.

Like the guy who sent that seller a letter and did not respond to her email.

Another Survival Marketing Tip: Signs

Put out some signs that let people know how to get a hold of you.

I have had many calls and four serious opportunities from my signs over the last two years and they have more than paid for themselves. I have had deals from signs and can honestly say that the ROI on this marketing has been the best.

It’s easy to target demographic areas too, but it can be a real hassle with local regulations.

Although, this is an area that is very saturated at this point, I still use them.

Tell People You Buy Houses

Talk to every body you meet about real estate and what you do.

If you make people money, they will funnel you leads. I called an associate recently to fund a project. I set the deal up so he made a really good rate of return on his money - deliberately.

The deal was complicated with title issues and there was a lot of detail necessary to get the title clean.

I got an email from him a few weeks ago that said something to this effect:

"That had to be the most drawn out, convoluted screwy deal I have ever funded. But it was really profitable. Go out and see how many more of them you can find. I'll take them all."

Now he wasn't just talking, he meant it. And to show his appreciation he referred me the deal in the last newsletter.

At the time he said, "$50,000 in equity isn't worth my time to get off the rifle range, but if it will do you any good, have at it."

Another recent example, I told a mail man who delivers the mail at a rehab I bought out of foreclosure that I am looking to buy houses.

He has brought me three leads to date and one may be in the works.

If the transaction comes through, how do you think he will feel when I hand him a check for $3000 as a referral fee?

Just yesterday, a youngster I had working for me on a job site stopped by the house to give me the name, address and phone number of the man who owns the house next door to his mom.

He had been talking to him last week about trying to rent it from him - so he could 'go home to eat'. The owner told him I am going to sell it.

You never know where you will get a good lead.

Another Survival Marketing Tip: Classified Advertising

Don’t just run ads.

Keep running them.

More importantly - read lots of them.

I found a house and two apartment buildings that are ‘do-able’ deals in the paper. Bought the house – not sure yet on the apt buildings.

We also bought a profitable foreclosure deal from an ad we placed in the local classifieds.

To Recap Survival Marketing:

1) The simplest way to get business in the beginning – inexpensively - is to talk to lots of people – and never stop.

2) Hang signs.

3) Advertise when you can.

4) Do mail repetitive mail-outs.

5) Cross your fingers and get to work.

That's it for now...

=======================================================

NOMINATE A REAL ESTATE INVESTING SERVICE PROVIDER

Nominate a real estate investing service provider to be added to our
free real estate investing services directory here.

=================================================

WE BUY HOUSES: FAST, PROFESSIONAL SERVICE

Call us a 206-WE-BUY-HOuses (206-932-8946)

Or check us on the web at:

http://www.206-we-buy-houses.com

=================================================

See you next time.

Best regards,

Michael Barrett