As a real estate investor, once you’ve taken care of business, your focus will shift to seeking out prospects and marketing to motivated sellers. Who are they and where can you find them? They’re usually somewhere in the vicinity of a specific class of properties.
Learning how to identify motivated sellers will help direct your marketing efforts. Keep in mind those efforts have dollars attached, so making the most of your marketing budget is critical. Click here to read about how to set your marketing budget.
Once you’ve put together a marketing plan, your next step is locating potential investment properties. Do you know what to look for? Read on!
Distressed Properties and Distressed Owners
Abandoned or vacant properties usually indicate a state of limbo. They often lead to uninvolved owners willing to part with them, if only they knew how. Distressed properties, such as those badly in need of repair, or tax delinquent homes are prime targets for your marketing efforts. Oftentimes properties with out-of-state owners have been inherited by death, divorce or otherwise and the owners find themselves paying property taxes or maintaining homes they have no interest in. Talk about motivated sellers!
On the other hand, some property owners are unaware selling is an option. These are people you want to reach with your marketing efforts. They are most likely emotionally and financially distressed. When you locate a potential property, research and discover the owner’s name and then dig up contact information. There are various ways to make contact. We’ll talk about them in future articles. Be sure to subscribe to our blog so you don’t miss a single tip. Let’s talk about marketing materials next.
If you start small, this is a business you can get into with relatively low funding. Partner with an investor and you can move a little quicker. At the very least, an investment of $100 on marketing materials can get you into the game.
Here are 5 things you’ll need:
Buy a Domain Name
A domain name will cost under $10 in most cases, and it’ll cover you for a year. After you’ve secured a domain name, assign it to a website. It doesn’t need to be a fancy website at first; just something that establishes your business so those you market to can more readily trust you. There are free templates available or you can hire it out.
Order Business Cards
Probably the best marketing tool you can have is a simple business card saying what you do and how to get ahold of you. You can order them online for about $10 per 500 cards or ask your local printer about a gang run; a process that prints several orders at once making it less expensive for all.
Order business cards by the thousands and don’t be afraid to pass them out. Tuck them in with your bills and outgoing mail. Leave them with the tip when you dine out. In fact, leave two.
Create and Distribute Flyers
An 8.5” x 11” flyer on white or colored paper, printed with black ink is inexpensive. You can make an original on your home computer and then run off more at the neighborhood print shop for anywhere from .04 – .10 cents each. Once you start making money you can create a fancier design. Distribute the flyers anywhere that will allow you to post: grocery stores, bulletin boards, and coffee shops. You can even place them at the front doors of potential investment properties.
Social Media Marketing
Be sure to retain a digital copy of your flyer to email or post on social networking sites. Facebook groups that allow businesses to market their products and services are a great place to let potential sellers know you BUY HOMES. If your business is one that buys homes for cash, be sure to open a twitter account and tweet your good news and marketing announcements a few times a day.
Marketing your business via signage works well, but can be a little tricky if you post your signs in high traffic areas on public property. There’s a specific strategy for this type of marketing. Research it before you spend a lot of money on signs.
Marketing is an essential part of your investment business. In fact, your marketing materials should be your first investment.