How To Sell Your House In Days Without A Buyers List

Transcript

1. HOW TO SELL YOUR HOUSE IN DAYS IN A NEW MARKET WITH ZERO BUYERS MICHAEL NYSZCZOT REO AUCTION ACADEMY
2. HOW MICHAEL GOT STARTED • 2006 bought my first investment property. • Multi-Unit Property – I lived in one unit and rented out the others • Worked in my day job and put real estate investing on hold. Only investing was stock market. • 2009/2010 – Started educating myself again in wholesaling and fix & flips. Partnered up with someone else to do wholesaling and with an occasional fixing and flipping properties. • Became Marketing, Sales, and Business Systems Expert • 2013 - Partner had quarter live crisis and decided to moved to West Coast • 2014 – Paul asked me to join his real estate investing operation
3. • The 5 M’s of Marketing • Insider secrets that come from years of experience from selling houses as a For Sale by Owner • Selling homes in days in a NEW Market with ZERO Buyers • Save thousand in real estate agents commissions for each house! • No need to show the property yourself! • Blueprint on how to build a cash buyer’s list What you will learn:
4. THE 5 M’S OF MARKETING • What makes a great marketing campaign  The 5 M’s • Market • Message • Media • Money • Multiple hits and Months
5. • Identify your target market • In order to do this you need to ask these key questions: • Who am I marketing to? Are you marketing to the right people? • Is your house and price point ideal for a real estate investor or a home owner? • What type of real estate investor is your property ideal for? • Landlord vs. Rehabber (fix and re-sell) • Would you offer owner financing? • How will you reach your ideal buyers (target market)? • You can purchase marketing lists with your target market Market –Who am I marketing to?
6. • What am I going to say to my target market? Message –What am I going to say to them? An old principle that applies is AIDA. Grab their Attention Peak their Interest Build their Desire Get them to take Action P – A – S identify the prospects Problem then Agitate the prospect’s problem provide a customized Solution to the problem 10 Things a Direct Response Sales Letter Should Have: 1. Attention Grabbing Headline 2. Clearly defined prospect 3. Enter the conversation in the prospects head 4. Unique Selling Proposition 5. Testimonials 6. Photos 7. Clear Call To Action 8. Strong Guarantees 9. Deadline 10. Strong Offer
7. • Below is a list of marketing media you can use to get your message across to people. • Signs – bandit or in front of house you are selling • Door to door -- post it notes, flyers, door hangers, door knocking • Cold/Warm calling • Ads – newspapers, magazines • Direct mail – letters, postcards, Every Door Direct Mail (EDDM) • Social media – Facebook, Meetup, LinkedIn, real estate forums, etc. • Online Ads – Craigslist, E-bay, FB Marketplace • Your Website - SEO for search engines or Pay Per Click • Referrals • List with a real estate agent Media –What marketing channels will I use to get my message to the right people?
8. • Your time versus your money • Do you have enough work to hire a virtual assistant? • Most effective marketing costs money (newspapers, direct mail) • Know your marketing Return on Investment (ROI) • Your marketing needs to be traceable and measureable. • Create a marketing plan and checklist for each house you are selling Money – How to create a marketing plan that works best for you?
9. • Be persistent • Email cash buyers you find via ads and websites and follow up with a phone call • Mail to a target list 3 times • Email and call your in-house database of cash buyers • Ask for referrals • Keep reposting online ads, newspaper ads, etc. • Follow up after potential buyer visits the house Multiple Hits & Months – How many times do I market to them?
10. WHAT IS VIRTUAL WHOLESALING • The concept of traditional wholesaling but you are in a different market • Are you seeing these trends in your current market? • Response rates lowering on your direct mail campaigns • Sellers are not as motivated as they were a year ago • Sellers stating they are receiving too many marketing pieces
11. WHAT IS VIRTUAL WHOLESALING • Congrats you won a house at auction and you want to wholesale (buy & re-sell) the house, Now What? • Determine Target Market: who is the best ideal buyer for the house? • Landlord, Rehabber (fix & flip), non-investor • What is your Message to your Target Market? • If landlord show cash flow analysis on how profitable the deal would be • Do you want cash offer or would you consider owner financing? • What is the best Media to get my Message to my Target Market?
12. HOW I SELL HOUSES IN DAYS WITH ZERO BUYERS IN A NEW MARKET • Determine a Target Market, then create a Message, and use different Media • Marketing Systems & Checklist • Have templates for all messages with all the different media for different target market (ideal buyers) • Work off a checklist to sell all my houses • Delegate tasks  be the Chief Marketing Officer
13. • When I virtual wholesale a house I have 3 ideal buyers: • Landlords – buy and hold Real Estate Investors • Rehabber – buy, fix & re-sell Real Estate Investors • Retail Buyer - non-investor. They are buying as a second house or to live in the house • Is the house you are selling mortgage-able? • Do you want only cash offers? • Would you offer owner financing? • You need to know the above to determine the message and media to use in your marketing Target Market
14. • Attention Grabbing Headline for Craigslist, Real Estate Forums, Postcards, & email subjects • Know your Numbers • After Repair Value (ARV) • $Amount and type of Renovations / Repairs needed for the house • Monthly Rents and real estate taxes • Bedrooms, baths, square feet, water, sewer, type of heating and cooling • Your owner financing requirements • Don’t be a boring house for sale Ad with address and asking price • Create a message gets a person to call you, visit the house and make an offer. • Use 10 Things a Direct Response Sales Letter Should Have • AIDA or P-A-S • Let’s assume your ideal buyer for your house is a Landlord and you want a cash offer • Your message should have attention grabbing headline, basic info about the house, describe the renovations and repairs needed to make the property rent ready, provide cash flow analysis and ROIs so the landlord clearly sees this house would be great to add to the landlord’s rental property portfolio. Message
15. Offline • Call real estate investors from your database • Find & Call new real estate investors • Local REIAs • Newspaper classified Ad • Mail to target list • List with a real estate agent • Wholesalers & real estate agent with buyers • Follow up Media Online • Your Website • Zillow / Trulia (FSBO) • Craigslist • Facebook Marketplace • Post on your social media accounts • Join and post to REI groups and house for sale groups • Email real estate investors from your database • Find & Email new real estate investors • Post on REI forms (BiggerPockets) • Follow up
16. You need a Marketing System on how to sell your house as a for sale by owner • Use a checklist for each house to know what you did and what task is next • Create templates for all messages with all the different media for different target market (ideal buyers) • Newspaper ads, emails, phone scripts, postcards, craigslist ad, Facebook ad, etc. • Keep track of what media brings in the most calls and converts to sell a house • This allows you to refine your message or know which media is better in certain markets • Be organized and that will make follow ups much easier • Use a notepad for phone calls. If a real estate investor collect contact information and other notes and add to your cash buyer’s list database. • Use a calendar and set reminders to follow up with people • Plan your day or week out on what marketing task from your checklist you need to complete • Marketing Systems allow you to hire a Virtual Assistant and delegate some or all marketing tasks • Frees you up to bid on more house and negotiate over the phone to sell your houses or enjoy more free time • Document how to complete everything (video and text) Marketing Systems & Checklist
17. CASE STUDY OF HOW TO MARKET YOUR PROPERTY • Case Study #1: ideal buyer is a landlord (buy and hold real estate investor) • Case Study #2: ideal buyer is a fix and re-sell real estate investor • Case Study #3: ideal buyer is a non-investor
18. • Location: Niles, OH • Target Market: the ideal buyer is a Landlord and non-investor with owner financing. • Message: the message targeted landlords & mentioned owner financing • Media: offline and online. Craigslist Ad is what sold this property. • Results: after visiting the property the buyer submitted a cash offer. The buyer kept it as a rental property. At closing we deposited into the bank $7,152.90 on this house. We were the highest bidder in December, started marketing immediately, found a buyer in less than a week. We did a back to back closing. Case Study #1
19. • Example of Craigslist Ad and Email to my buyer’s list Case Study #1 Marketing Examples
20. • Location: Willingboro, NJ • Target Market: the ideal buyer is a fix and re-sell investor • Message: the message targeted rehabbers • Media: offline and online. Facebook Marketplace is what sold this property. I had a back up buyer for the house via cold calling real estate ads. • Results: after visiting the property the buyer submitted a cash offer. The buyer purchased it to buy, fix, and re-sell. We deposited into the bank $13,117.47 on this house. We were the highest bidder in early February, bought it end of February, started marketing immediately, and found a buyer in two weeks. We closed with the buyer end of March. I continued to market the property to grow my buyer’s list and I had a back up buyer. Case Study #2
21. • Example of Facebook Marketplace Ad • I found the back up buyer cold calling real estate investors from online ads and websites Case Study #2 Marketing Examples
22. • Location: Sharon, PA • Target Market: the ideal buyer is a non-investor or a landlord. • Message: the message targeted non-investor & landlords. Cash or owner financing. • Media: offline and online. Newspaper Ad is what sold this property. I had a back up buyer for the house via Newspaper Ad as well. Rural or less populated areas offline media works best. • Results: after visiting the property the buyer submitted a cash offer. The buyer purchased it as their primary residence. We deposited into the bank $11,376.93 on this house. We were the highest bidder in end of December, bought it mid-January, started marketing immediately, and found a buyer in three weeks. We closed with the buyer end of February. I continued to market the property to grow my buyer’s list and I had a back up buyer. Case Study #3
23. • Example of Newspaper Ad Case Study #3 Marketing Examples Owner Financing
24. PROOF MY MARKETING SYSTEMS WORK FOR OTHER REAL ESTATE INVESTORS • Students that are part of our coaching program have learned to Virtual Wholesale using our Marketing Systems • Seasoned Real Estate Investor friends asked for help with our Marketing
25. • Ted is a seasoned real estate investor we know from an invite-only platinum mastermind group • He was buy, rehabbing, and re-sell house across the country • In addition, he added virtual wholesaling to his business • He was trying to sell two house that he listed with a real estate agent • Ted contact us to see if our Marketing Systems would work • Cash offer in one week for New Jersey house • Cash offer in three week for Mississippi house Seasoned Investor Example “Michael and Paul have an awesome marketing system for properties. I sent them a few properties to virtually wholesale for me one in Mississippi and the other in New Jersey. Within days they had solid buyers locked up to purchase these deals. Their marketing system is definitely an asset to my business and I look forward to doing many more deals with them.” Ted S. California, Empiria Homes a real estate investment company
26. • Dale took our coaching program • He is a part time real estate investor looking to increase his retirement accounts and supplemental income • Dale uses us our Marketing Systems to sell his houses in Michigan • He became successful immediately buying houses at auction and re-sell them as FSBO (virtual wholesaling) Student turned Part Time Real Estate Investor Example
27. • Marco took our coaching program • He is a full time real estate investor looking scale his business in new markets across the country • Marco uses our Marketing Systems to sell his houses across the country • He became successful immediately buying houses at auction and re-sell them as FSBO (virtual wholesaling) Student turned Full Time Real Estate Investor Example
28. BLUEPRINT ON HOW TO BUILD A MASSIVE CASH BUYER’S LIST • Three ways to build a list • Online • Offline • In Person
29. How do you capture leads online for your buyers list? • Lead capturing website • Standard website with a form • Squeeze page with Irresistible Offer (Free Report, book, video, etc) • One option, to enter your name and email to get free report or watch a video and you’ll be added to someone’s email list. Once you submitted your info, you usually are re-directed to another website. Online
30. How do you drive people to your lead capturing website? • Podcasts • Video Ad • Blog Sites • Social Media • Online Ads Online
31. How do you find cash buyers using offline media to add to your buyers list? • Radio or TV • Newspaper or newsletter advertisements • Buy different lists (out of area owners, cash buyers) or use MLS and pull cash transactions • Mail to recent cash buyers or Landlords (out of area owners with multiple properties in an area) • You can mail them a property you have for sale or let them know you have future house deals coming • When marketing your current property make sure you tell people to join your buyer’s list • Example from a postcard Offline
32. How do you find cash buyers in person to add to your buyers list? • Network or speak at Local REIA • MeetUp.com & other REI groups • Might not be in person but you can call people and introduce yourself • Call the bandit signs • Sherriff & Tax Sale -- talk with the players and find out where they buy and what they buy for • Mastermind or coaching groups Before you attend any networking event I recommend you have goals. For example “I want to meet at least 7 active cash buyers tonight and add them to my list”. With anything in business and marketing and sales you need goals. In Person
33. THE IMPORTANCE OF CONTINUOUS NETWORKING • If you want your business to truly grow and continue to succeed year after year you must attend multiple networking events. Whether it is a mastermind group or whether you are active in your local REIA; you must always work to grow it. • I am also a big fan of education. I have purchased education systems for real estate, business, marketing, sales, etc. They have been very helpful to grow my business. I have spent many thousand of dollars on these programs and they really do work if you follow through and implement them! • Don’t just focus on real estate education and networking groups. I recommend attending non-real estate groups that focus on business growth and systems, marketing, and sales. You get great ideas from other industries to grow your business.
34. Change your mindset You must change your mindset if you plan on investing outside of your current market. This may require you actually getting on a plane and visiting the market and meeting with realtors to learn different areas. This experience will really help you understand different markets and allow you to do something that 99% of other investors don’t do. I get the excuse all the time from investors that if they can’t jump in their car and get there in 45 minutes or less they won’t consider the property. What a limiting mindset, first of all why would you want to jump in your car and visit a rental? If you plan on growing a business you shouldn’t be involved in the repairs of the home other than simply overseeing them. In today’s day and age where everyone has a smart phone that takes great pictures you can hire a project manager to oversee these projects. In addition to buying rentals and virtual wholesaling, Me and Paul currently do 6-10 minor rehabs in different markets across the US each year but we live in the Philadelphia, PA market and we manage to get them done. The reason is because we keep the rehabs light and easy, mostly paint, carpet, and light carpentry work. This ensures a 30 day or less rehab.
35. TYPICAL SITUATIONS YOU WILL RUN INTO Wholesalers • Don’t put your house under contract with wholesaler • Use marketing agreement • Don’t split the profits • Offer two payment options • Small percentage of wholesaler are good and work with them Real Estate Agents • Real estate agents will call on behalf of their buyer (client). Offer agent a commission. • Other agents will call to try to list the property. Ask if they have buyers and offer a commission. Non-Investors • Certain media attracts buyer’s asking for owner financing. • See what they can afford for monthly and down payments. • Could be better than cash offers.
36. EMPLOY SEVERAL EXIT STRATEGIES • Don’t just Virtual Wholesale for cash. Think about offering owner financing for recurring monthly income. It’s like being a landlord without all the headaches for minor repairs. • “Whole-tailing” or budget rehabs. Put a few thousand into the house so your end buyer is a non-investor with a mortgage. • Add rentals each year for a steady stream of monthly income and longer term wealth.
37. Recent Virtual Wholesale Deals 1.) Duplex in Phillipsburg, NJ Purchase Price $34,500 Sale Price $55,000 Net Profit $20,500 2.) Philadelphia, PA Purchase Price $19,960 Sale Price $30,000 Net Profit $10,000 3.) Tobyhanna, PA Purchase Price $22,000 Sale Price $28,000 Net Profit $ 6,000 4.) Hammonton, NJ Purchase Price $16,500 Sale Price $40,000 Net Profit $23,500 5.) Shreveport, LA Purchase Price $ 4,000 Sale Price $ 7,600 Net Profit $ 3,600 6.) Delta Junction, AK Purchase Price $40,000 Sale Price $75,000 Net Profit $35,000 7.) Kansas City, MO Purchase Price $ 6,500 Sale Price $16,000 Net Profit $ 9,500 8.) Kannapolis, NC Purchase Price $10,000 Sale Price $20,000 Net Profit $10,000 9.) Florissant, MO Purchase Price $16,000 Sale Price $20,500 Net Profit $ 4,500 10.) Maxton, NC Purchase Price $ 9,000 Sale Price $17,000 Net Profit $ 8,000 11.) Tobyhanna, PA Purchase Price $16,000 Sale Price $60,000 Net Profit $44,000 12.) York, PA Purchase Price $ 9,000 Sale Price $19,000 Net Profit $10,000 13.) Newtonville, NJ Purchase Price $ 8,790 Sale Price $18,000 Net Profit $ 9,000 14.) Tucson, AZ Purchase Price $56,000 Sale Price $65,000 Net Profit $ 9,000 15.) Memphis, TN Purchase Price $11,500 Sale Price $13,500 Net Profit $ 2,000
38. CONGRATS ON TAKING THE TIME TO LEARN MARKETING • Now go and starting implementing what you learned • For your houses for sale start with the 5 M’s to improve your current marketing plan • If you don’t have any houses for sale or would like to learn more about our Marketing Systems, contact me about our coaching programs