Archive for August, 2009

Effective Real Estate Marketing: How to Attract Motivated Sellers to Call You

Friday, August 7th, 2009

In science, as with all things in life, there are laws that govern how things work. For any endeavor, when you apply these laws, there will be identifiable results. It’s no different with attracting success in real estate. There are Five Key Steps to becoming wealthy in real estate investing. These are very specific strategies that, if you follow them, will guarantee a successful return. If you have these five steps in order, you’ll buy and sell 25 houses or more per year, and earn at least $500,000 a year, all while working 15 hours a week or less. The first step to follow is having Effective Marketing in place that attracts motivated house sellers. There are two ways this will happen:

  1. They find you.
  2. You approach them as a buyer.

Which way would be more efficient? Of course, it’s much easier for them to call you as opposed to your labor in finding them. Additionally, when you are soliciting them, they are in control from a psychological point of view. You are demonstrating a need, and that puts them in a position to leverage that need.

We’ll look at two low-cost, effective marketing mediums to attract motivated sellers to call you:

  1. Newspaper Classified Ads (Real Estate Wanted Section—Daily)
  2. Bandit Signs (Yard and/or Road Signs)

Classified Ads in the Real Estate Wanted Section
Run an ad daily in the Real Estate Wanted section of your local newspaper(s) 365 days a year. If your local newspaper doesn’t have a Real Estate Wanted section, ask them to create one. If you tell them that you will be running an ad every single day, it’ll be worth their effort. Also, this ad will buy more houses and definitely outweigh any cost that you initially put into it.

In some places, it costs $300 a month, and in other places it cost$1500 a month. Quite honestly, it doesn’t matter what it costs. If you buy and sell just one house, that ad just paid for itself and then some. Here’s what the ad should look like:

Sell Your House Fast! Quick Sale – Fair Price (707) 555-1212.

The first letter of each of these words is capitalized. Make sure you specify House in the first line and not Home. People are attached to homes, not houses, and we want people who want to get rid of their house. Do not capitalize everything because it’s harder for the eyes to see. It is psychologically proven that when you only capitalize the first letter, and the rest of the letters are in normal type, it’s much easier for eyes to capture when people are only looking at it for a second or two. This is proven marketing.

With numerous ads in the Real Estate Wanted section of the newspaper, how are house-sellers going to notice yours? Simple. Put a blank space at the top and bottom of the ad, so you’re actually going to be paying for a six-line add, even though you only have words in the middle four lines. A reader’s eyes will be drawn to that ad automatically. Your ad sticks out like a sore thumb.

Bandit Signs
The second most effective way to attract motivated sellers is bandit signs. These are the little road signs everyone’s seen driving around. The signs should be yellow with black lettering, 18 inches high by 24 inches wide, and you want to use the entire space of the sign for the information to stand out. And they are going to come with a little wire stake. The bandit sign is going to say exactly the same thing as your classified ad.

The downside to bandit signs is that some towns and cities may have ordinances that don’t allow them. You’ll have to check your local laws to see if this applies to where you live. I suggest you still order 100 bandit signs, put them up, and if there’s a problem, someone will let you know. You can claim ignorance, and you will definitely get a lot of calls from homeowners looking to sell. Bandit signs are worth the minimal risk.

Most people do not have the courage or the vision to put out the money to apply marketing strategies, and that’s why they don’t buy and sell houses, and make more money than they fear to lose. But one ad or bandit sign alone will get you at least 10 to 15 houses bought and sold per year, and it will save you the time and effort of going out
and looking for prospects.

Chances are, if you’re reading this you’re looking for an edge in real estate investing. If so, sign up to attend my free webinar and learn why 97% of real estate investors fail; and how to fix it by visiting, Webinar.TimTaylorSuccessCoach.com.

About Tim Taylor Real Estate Success Coach

Tim Taylor real estate success coach and author of both “Wealth with Purpose” and “The Compass Guide to Real Estate Fortunes with Tim Taylor” is an accomplished learner. He has been mentored by Robert Kiyosaki, Robert Allen, Ron LeGrand and James Ray and is now passing on the secrets he has come to know and practice onto select individuals with a burning desire to become successful real estate investors.

To request a Free 30 minute consultation to find out if you qualify for Tim Taylor’s Success Coaching Program go to http://www.TimTaylorSuccessCoach.com.

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Real Estate Investing: From Fear to Focus

Friday, August 7th, 2009

What do you really think of when you hear the term “real estate”? Do these words conjure images of luxurious dream houses and expensive cars, the fruits of wealth through successful investing? Do infomercials promising the life of your dreams come to mind? Or does real estate remind you of today’s headlines, with words like “crisis” dominating the discussion?

The truth is that no matter what the market, real estate investors with confidence and skill will still make money. For anyone considering entry into the real estate business, however, or for those who want to step up their game, the question isn’t how well one can possibly do in a down market. The real question is: do you believe that you can be a successful real estate investor? Do you know that you could become a millionaire within 3 years working less than 15 hours a week?

When it comes down to it, every human being has fears that hold us back—fears so innate within us that we’re barely aware of how much they control our decisions. I know, because for 12 long years, I did nothing about my dream of becoming a real estate investor. I chose not to pursue something that I was passionate about because following in my dad’s footsteps seemed like the more “logical” choice. Why take risks in real estate when you can get a job earning a steady paycheck?

Instead, I had followed my father’s path step by step through corporate America, earning several promotions in a steel manufacturing company. Within three years of starting, I grew the company’s profits eight times over. I was earning a great salary and had what seemed like a bright future ahead of me.

That is, until life gave me a clue that there really is no such thing as certainty. My father, after giving 33 years of his life to the same company he had always worked for, was FIRED. That hit me hard—I had mirrored his career almost exactly. If something like that could happen to him, it sure as heck could happen to me too. What I learned at that moment is that anything you do in life can be risky, especially if it entails putting your financial future in someone else’s hands.

If your chances are just the same, why not take actions toward the things that would really get you stoked in life, the things that you know would bring you happiness, wealth, and freedom?

When I was 18 and dreamt of a career in real estate—yet did nothing about it—I told myself all kinds of things; the same kinds of things people tell themselves today: “This won’t work for me. It may work for them, but it will never work for me. The market’s too tough. Prices are going down. How would I sell? I’m not good enough. I won’t succeed, I’ll look foolish and be embarrassed if I try this and fail.”

It took me 12 years to find the courage to go for it. And for the next 13 years after that, I studied under successful millionaire mentors, used every kind of buying and selling strategies, and have bought and sold over 300 houses during up and down markets. For those who know anything about real estate, a so called “crisis” can often signal a time of opportunity. It just takes getting over the fear factor and learning the most effective strategies to buy and sell (as well as when to apply them).

There are still plenty of reasons why real estate investing is a viable way to make tons of money and live a better quality of life. You still get more financial leverage than you would from other types of investments. You can be your own boss and make your own schedule. In fact, I became a millionaire in less than three years through real estate investing, putting in less than 15 hours of work per week while working a full-time job. Imagine what anyone can do if they put more time into it. I’ve narrowed down the process of developing a turnkey real estate business into Five Key Steps of Real Estate Investing, including:

  1. Effective Marketing that attracts motivated sellers to call you.
  2. Prescreening Sellers so you’re only spending your time working on qualified leads.
  3. Buying & Selling Strategies—construct and present offers to buy homes, all six of which do not require any of our own money or credit.
  4. Automated Follow-up System for leads that may have potential at a future time.
  5. Sell Your Homes Quickly.

Many people have turned to this industry as a full time career, making millions of dollars in the process, including myself. Real estate investing is potentially the most rewarding option that provides excellent returns on your investments of time and energy, and the freedom and satisfaction of turning
your dreams into reality.

To learn more about turning your fears into focus, attend one of my free upcoming webinars by visiting Webinar.TimTaylorSuccessCoach.com.

About Tim Taylor Real Estate Success Coach

Tim Taylor real estate success coach and author of both “Wealth with Purpose” and “The Compass Guide to Real Estate Fortunes with Tim Taylor” is an accomplished learner. He has been mentored by Robert Kiyosaki, Robert Allen, Ron LeGrand and James Ray and is now passing on the secrets he has come to know and practice onto select individuals with a burning desire to become successful real estate investors.

To request a Free 30 minute consultation to find out if you qualify for Tim Taylor’s Success Coaching Program go to http://www.TimTaylorSuccessCoach.com.

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Learn How to Become a Successful Real Estate Investor by Pre-Screening Leads

Thursday, August 6th, 2009

Attracting motivated house sellers is one thing, knowing which leads are more likely to turn into deals is another.

You may get hundreds of leads coming across your desk every month. Obviously, not all of them are going to be worth your while. So it’s imperative to have a quick system in place to evaluate whether or not the caller is truly serious about selling their house.

Remember: the goal is to spend 15 hours a week or less on this real estate business, and still be able to reap hundreds of thousands of dollars in profit within a year. That mission becomes more difficult when you don’t have systems in place that allow you to maximize your time. So we want to be able to know which of the three piles these leads are going to go into:

a. This lead needs my immediate attention.

b. This lead doesn’t need my attention, but I should send it to my realtor.

c. This lead is going into the trash and is not worthy of my time and focus.

The ability to quickly evaluate leads will determine if a phone call is even necessary. We’re not going to waste any time on non-motivated sellers.

Three Questions:

While there are multiple variables that we can look at as to whether or not a profitable deal is possible on a lead, there are really only three essential questions to consider when evaluating the potential of a lead:

1. Is this lead on the “pretty” house side of the business, or the “ugly” side?

Even if you don’t have a picture of the house in front of you, you can tell if the house is ugly or pretty, which will then determine what your buying and selling strategy will be. You roughly know the values of the houses in the area that you live in. If you live in an area where the average house price is $200,000, and you get a call for a house selling for $270,000, you know that’s a pretty house. But if it’s selling for, say, $125,000, then you know it’s a fixer-upper.

2. Is there immediate equity built in the day I buy this property?

Equity is the difference between the value of the house and what the seller is asking for it. If we have a $200,000 house, and the seller wants $200,000 for it, there’s no profit to be made. Even if they sell it for $180,000, that’s not much equity given closing costs, taxes, fees, holding costs, marketing costs to sell, etc. You’re worth more than that. You want to ask yourself, “How much equity are they willing to hand over to me?” That will tell you whether they are highly motivated, somewhat motivated, or unmotivated.

3. What is the degree of the seller’s motivation?

While having an understanding of psychology helps to determine a house seller’s motivation, we need only follow this simple acronym, what I call the WWOW:

  • How much is the house Worth?
  • How much does the seller Want for it?
  • How much do they Owe?
  • Why are they selling it?

If Kathy’s home is worth $260,000, and she wants to sell it for $184,000 because her husband found a great job across the country, and they have to move by next month, you know you’ve got a motivated seller. She’s willing to give up $76,000 in equity, if the deal can be done immediately. What she owes on it will, again, affect more of your buying and selling strategy than whether or not it’s a good lead. In this case, the seller’s motivation is strong, and the deal certainly worth pursuing.

A little bit of focus can go a long way. More than anything, what we all really want to focus on is enjoying life to the best of our abilities. A real estate business is a tool that can help you maximize your career, financial or life goals, but you need to have systems in place that allow you to quickly ascertain where you focus your time and energy, particularly in your career which is going to generate your income: leads. We want to spend as little time as possible figuring out a good lead from a dead lead, so we can maximize our business, work quickly and efficiently, then focus on the things that really matter to us in life.

Chances are, if you’re reading this you’re looking for an edge in real estate investing. If so, sign up to receive a free 30 minute success coaching consultation or to attend one of my upcoming webinars and learn why 97% of real estate investors fail; and how to fix it at http://www.timtaylorsuccesscoach.com

About Tim Taylor Real Estate Success Coach

Tim Taylor real estate success coach and author of both “Wealth with Purpose” and “The Compass Guide to Real Estate Fortunes with Tim Taylor” is an accomplished learner. He has been mentored by Robert Kiyosaki, Robert Allen, Ron LeGrand and James Ray and is now passing on the secrets he has come to know and practice onto select individuals with a burning desire to become successful real estate investors. Every client that followed Tim’s advice earned $1,000,000 in less than three years, could you be next?

To request a Free 30 minute consultation to find out if you qualify for Tim Taylor’s Success Coaching Program go to http://www.timtaylorsuccesscoach.com/free_consultation.php

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