With your real estate investment business what is at the top of your “frustration” list?
Could it be trying to determine if a certain property is a good deal not? Trying to determine if your offer prices is “low” enough for you to make a profit in this market place.
For most real estate investors, this dilemma causes a lot of confusion and frustration. This is may be because your definition of a “good deal” may be skewed.
What makes a property a good deal? The answer is: one that has a ready buyer at a profit.
As long as you have a buyer ready and willing to buy that property and there is room for your profit, then you have a good deal on your hands. You can actual predict what your profit will be with the knowledge of the buy and sale price.
For example, if you know you have a property under contract for $120k and you can have a ready buyer lined up to buy from you at $130k you have a $10k profit locked in.
But the obvious question is how do you get a ready buyer?
You do this by building and maintaining a “buyer list”. Building a list of ready buyers is the key. If there is a buyer from your list of buyers, who is in the market for the property you are looking at – then voila you have a good deal!
The way to build your buyers list is through aggressive marketing and here are 5 simple ways to start your list:
- Post an ad on Craigslist, Backpage.com and other local internet bulletin boards with ads like “I sell ugly houses” or “Fixer Homes Available”. Do this once per week and be sure to capture everyone’s email address for future follow up.
- Write down the phone number when you see “I Buy Houses” signs, ads, and websites. Call these investors and get their info, and let them know you’re an investor and would like to bring them properties that are available. Add them to your list, and don’t forget to get their e-mail address for when you automate!
- Hand out at least 24 business cards at REIA meetings and be sure to go to as many REIA meetings as possible. If you not sure about where meeting are go to Meetup.com and search your local area for real estate investors.
- Talk to everyone and tell them what you do and ask them to spread the words to their friends, family and coworkers.
- Advertise in small local newspapers that you have “Fixer” homes available for sale and provided a phone number and email address.
I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.
Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.
