Following Up With Sellers In Your Real Estate Investing Business Will Make You Millions! By Kathy Kennebrook

Yesterday Jim Ingersoll made an important comment that I’d like to follow up on. The most important “f” word in real estate……follow up follow up follow up. Since I track everything in my real estate investing business I know that following up with semi motivated sellers accounts for about 40 percent of the total deals we do.

I mean think about it for a second….you already spent the marketing dollars to put this person in your pipeline, why would you throw a potential deal away just because your initial offer got refused or the seller didn’t contact you back right away? Your seller’s situation will change with time so we always follow up using residual mailings or an auto responder system until they sell to us or tell us to go away.

When a seller says something like “gee I’m not sure I’m ready to sell” or “are you crazy? I can’t take that offer” all they are really saying is “no not today but could you follow up with me until I change my mind?” This one minor tweak in your real estate investing business will up your income considerably!!! I have lots of great information on my website about how to build a follow up system for your real estate investing business, it’s fairly easy to implement.

For all the information you need on finding all the deals you can handle and all the information you need on following with sellers, check out my website at www.marketingmagiclady.com

Long Term Benefits of Using Direct Mail to Locate Motivated Sellers By Kathy Kennebrook (The Marketing Magic Lady)

 As you probably know if you have been reading my articles, I strongly advocate using direct mail to locate highly motivated sellers for your Real Estate Investing business no matter what market you live in and no matter what your real estate market is doing. With the market being in its current state of affairs, there are more motivated sellers than ever before if you know how to find them.

As a seasoned Real Estate Investor I fully understand that I need to be locating the most highly motivated sellers in order to construct the very best deals. Remember, the profit on a deal is made when you buy a property. In addition, while many investors enjoy working with pre-foreclosures, short sales, REO properties and buying houses on the court house steps, these properties take time to close on and there is a lot of competition for them. In the meantime you need to be able to continue to fill your funnel with cash producing deals in order to keep your business moving forward.

Working with motivated sellers that your competition knows nothing about is definitely the way to accomplish this goal and direct mail is the best technique to draw in these very motivated sellers. In addition these mailings are extremely residual, not only do you have deals coming into your pipeline today but you are constantly sewing seeds for future deals. There is no other marketing technique out there that can produce this kind of a result.

If you are a Marketing Magic Student and you have been implementing my direct mail marketing campaigns regularly to locate highly motivated sellers as I suggest one of the benefits you will begin to notice pretty quickly is the residual effect of your mailings. Over the last few months I have personally had many sellers contact me that I originally mailed to months ago. This is because these sellers have held onto my letters and now they want and need to sell and are unable to. There are lots of reasons for this. Perhaps the property needs a lot of repairs or they don’t live near the property and they don’t know how to get it sold. Or perhaps the property is in probate and they don’t know how long the process will take. They may live in a market where houses aren’t selling as quickly as they would like. These sellers are motivated and they are finding it difficult to sell their properties for whatever reason so I have been able to purchase these properties at lower prices and solve the seller’s problem at the same time. You see, when I mail personal looking letters to prospective sellers, folks who are much more likely to have a property they need to sell, they hold on to my letters even if they are not ready to sell at that very moment. One of the reasons they do this is because I tell them to do so in my letter. Then when their situation changes and they are ready to sell they will contact me first even if they have been contacted by someone else in the meantime.

This market has created wonderful opportunities for me and my students to make even bigger profits from our Real Estate Investing businesses. You see another distinct advantage to using direct mail marketing is that it works no matter what your current real estate market is doing. Many of the properties I acquire are in relatively good condition so I may hold onto them as rental properties, lease/options or I will sell them with owner financing. Or we may fix and retail the property. If a property needs just a lot of cosmetic work I may sell that property as a work for equity. Or you could wholesale these properties; you have lots of options when you are finding deals using direct mail marketing. Then as the market continues to increase, as it has already begun to do, I will then sell these properties or have my buyers or tenant/buyers refinance and make big profits on these deals. In the meantime, I rent, lease/option and owner finance these properties, get a good down payment, make a good monthly income from them and reap the tax benefits that go along with it. Then I will get the big check at the end. You can also wholesale these properties if you need cash right now.

Direct Mail marketing gives you options and continues to feed you great deals on a long term basis. When you are a real estate investor you always need to have between three and five marketing techniques in place at all times and one of those has to be direct mail marketing. For more information on locating more qualified motivated sellers and buyers for your real estate investing business using targeted direct mail campaigns, visit Kathy Kennebrook’s website at www.marketingmagiclady.com.

 

Don’t Lose A Valuable Asset In Your Real Estate Business By Not Having Enough Insurance Coverage On Your Properties

Real Estate Investing Tip- For those of you who live in extreme weather states like I do here in Florida, it’s really important to make sure your properties are properly insured. Property values generally go up each year and insurance policies usually raise in value by about 3 percent each year at renewal which may or may not be enough to cover a catastrophic event on your property.

Check with your insurance broker to make sure you have enough coverage on each of your investment properties and your own home. Make sure you have a complete set of photos downloaded on a disc or a thumb drive for each of your properties so you can prove what you need to replace. A few years ago we had a fire in one of our properties and it burned two sheds that were attached to the back of the house. The insurance adjustor tried to tell us there was no evidence of the sheds so we provided photos and got paid for them.

We also had a break in last year in a workshop attached to our vacation home. Because we had a complete set of photos we got paid for everything that was taken. Keep a hard copy of the declaration pages of each of your insurance policies in a plastic zip lock bag locked away or download those pages on a thumb drive you can quickly grab if you are evacuated during a storm.

Taking just a few steps can insure that you get paid if there is a problem with one of your investment properties. Your investment properties are an asset that you want to protect.

For all the information you need on finding all the investment properties you want for your real estate investing business check out my website at www.marketingmagiclady.com

How To Get Great Realtors Bringing You Deals And Buyers For Your Real Estate Investing Business

You need to find a Realtor who is going to do a good job for you. Make sure the Realtor you pick is at least a broker-salesman. These types of Realtors have usually been in the business for a long time and have a lot of experience in dealing with all kinds of properties and situations. You also want to work with a Realtor who is motivated to bring you deals and buyers. Once you find a really experienced Realtor, they will know how to find deals for you and how to sell houses no matter what market cycle you are experiencing where you live. You also need to find out whether the Realtor works for a big company or if they have decision making power when it comes to negotiations. If you are in the “heat” of negotiations on a deal and each party is working hard toward making the deal work, you need to make sure your Realtor can make a negotiating decision such as adjusting commission without having to stop to contact their broker or office manager for approval. Just this one difference can make or break a deal for you.

There are several services your Realtor should be providing for you. Your Realtor should be helping you acquire leads by supplying you with current MLS listings with key words in them such as “motivated seller”, “handyman special”, “fixer upper” “needs TLC”, “bring offers”, “possible owner financing”, “estate” and other phrases that will tell you the seller is motivated to make a quick sale. These are very good leads for you to follow up and make offers on. You also need to make sure that your Realtor is willing to act on these leads for you immediately.

My Realtor also sends me specific MLS listings daily based on specific parameters I have supplied for him. I look through these listings on a daily basis to find properties I might be interested in making offers on. This is just one of many marketing tools I use in my real estate investing business to find new leads and deals.

For all the information you need to find the right Realtor for Your Real Estate Investing Business check out my website at www.marketingmagiclady.com While you are there take a look at my special product called- Pre-Qualifying Your Dream Team Realtor on CD. You can duplicate this product and hand it to the prospective realtors you want to work with so they know exactly what you expect.

Using Realtors To Sell Houses For You the Auto Pilot Way

As I have discussed before, it is extremely important to have a Realtor on your dream team. Not only can this person be a huge asset to you in growing your business by bringing you quality leads, they can also be a huge asset to your team by helping you get your houses sold quickly and with the least amount of hassle.

Once you have a Realtor you know and trust helping you sell your houses, this part of your business will also become a “machine” and you will be able to get house after house sold even when your competitors can’t. There are several things you need to know when pre-qualifying a Realtor to sell houses for you.

Here are some of my favorite pointers for you. 1. How long have they been in the business and how familiar are they with your local market ? 2. Are they “hungry”? What I mean is- do they have more listings than they can handle or will they take a personal interest in getting your property sold? 3. In addition to taking a personal interest in your properties, will they give you a discount off their commission for volume of listings? If you are working with a Realtor who is “hungry” and who has foresight they will give you volume or “wholesale’ pricing. 4. Do they understand creative financing options such as lease/option, Lease/purchase, owner-held purchase money mortgages, and interest –only balloon second mortgages and are they will to get creative in their offer making process on your properties. One way to sell properties quickly is to offer creative ways for prospective buyers to purchase them. If the Realtor you ask these questions of gives you a perplexed look, he or she may not be the person you are looking for to sell your properties. 5. If you have luxury properties, are they willing to do extra marketing and have open houses to show your homes? Do they have multiple ways to market these properties such as newspaper, website, and multiple Real Estate books? 6. Does your Realtor have a list of prospective buyers looking to purchase certain types of homes? Any Realtor who has been in the business for a long period of time usually has a list of buyers who are already qualified to purchase homes in certain prices ranges, neighborhoods, or school districts. This is a great way for you to work with your Realtor to put the buyer and the home together. 7. Speaking of pre-qualifying, is your Realtor going to make sure your buyers are pre-qualified before wasting your time and theirs by writing a contract on a buyer who can’t qualify to buy the home? If they don’t pre-qualify your buyers, you end up having your property tied up by a buyer who can’t buy the home. Even when a listing says “back up offers needed”, most buyers will move right onto the next property that actually is available for purchase. 8. Is your Realtor also an Investor? Many times when you meet Realtors at your local real estate club they are also investors. You want to make sure that your Realtor is trustworthy and Ethical. You don’t want a Realtor who is going to try to siphon good deals away from you. 9. Ask the Realtor if they are working for a local company or part of a big franchise. You want to make sure you are working with someone who has decision making power when you are in the heat of negotiations. You want to be working with someone who can negotiate a commission adjustment quickly in order to make a deal come together. If they have to stop to ask the permission of someone in their office, you may lose a good potential sale altogether. 10. Make sure your Realtor or someone in their office is able to work with non-English speaking sellers. This is a whole sector of the market that a lot of Realtors don’t and can’t work with.

We just had a closing recently where there were two interpreters involved in the closing because the buyers didn’t speak English. Many of your competitors don’t consider these details when selecting a Realtor to work with. These are all key issues when choosing someone to sell your properties for you.

Usually my Realtor pretty much has the deal all done and in place the way I  want it before he even brings the offer to me. Much of the time, my Realtor will also help prospective buyers get qualified and procure financing to purchase my properties. He also works with other investors and there are times he will bring potential buyers and potential deals to me because he knows we also do hard money lending. So when he sees a deal I may be interested in financing for an investor, he will bring those deals to me to take a look at.

You see, older, more experienced Realtors seem to have a knack for locating alternative sources of funding for their buyers. Unfortunately, some of the new Realtors have no clue about various funding source or special programs that might be available for buyers. 

In the meantime be sure and visit Kathy Kennebrook’s website at www.marketingmagiclady.com for all the information and tools you need to find motivated sellers and buyers in your market.