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Article Title: |
Marketing, Marketing, Marketing |
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Author: |
Claude Diamond | ||
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None | ||
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There are three basic concepts to having a successful and profitable business in Lease Purchasing or any type of Creative Real Estate. They are Marketing, Marketing and of course, Marketing. (I had to fit the title in somewhere).
I define Marketing as anything you do that results in an eventual and profitable deal/transaction. Many people consider marketing strategies as the key to success and wealth creation no matter what cookie cutter methodology is used.
Advertising is the most often used method of marketing. The majority of creative real estate investors use the newspaper in order to find and sell real estate. There are some major (and costly) problems with advertising, however. It is expensive, the desired results are not always achieved, it frequently does not give a return on the investment, and the target may be too broad (ambiguous) resulting in too many phone calls or it may be too narrow and you'll receive no calls whatsoever.
By specializing in the niche of Lease Purchasing (a method of controlling homes with a long term lease and an option or right to purchase) I needed to develop a common sense approach to finding people and properties. In order to accomplish my financial goals (yes, I wrote them down) I have to spend about 50% of my time doing the stuff that makes the phone ring. I have developed and use 26 distinct marketing strategies in order to find properties and Tenant/Buyers.
Here are several ideas for getting results with your marketing program:
- Newspaper Ads:
I get great results with the small classified ads that run on Sundays in the ‘homes for sale' and ‘homes for rent' real estate sections. I have spoken with too many budding real estate moguls who went broke with splashy and costly ads that some Guru told them to run. I always use the Sunday edition because that's the highest circulation day. I avoid the cheapo freebie papers that can be found in the supermarkets. I find them costly and they seem to attract people who don't have the money for option consideration and assignment fees.
- Timeliness:
Your ads must run consistently if you are soliciting for a regular stream of clients. I have run an ad in the USA Today for the last four years. A common response that I hear from people is that they kept seeing my ad and were curious. I also believe that a long term running ad lends to the credibility of your business. A final word on timeliness; don't run ads on major holiday weekends unless there are mega sporting events (i.e.: the superbowl, etc.), people tend not to read the paper on these weekends.
- Content:
Have a great eye catching title. For example: No Qualifying, 100% rent credited to purchase, Rent Now Buy Later, Rent to Own, Rent with Option to Purchase, Free Lease Purchase Report, Sell your home in 24 hours! Be creative, take some chances and use capitals or bold type for your introductory or top line.
- 800 Number:
I know this is an area for debate, but why quibble over an inducement that will remove any hesitation for a buyer or renter from calling you?
- Phone Technique:
Keep it professional. Answer your phone like Donald Trump. (Does he answer his own phone?) No cute kid messages on the answer machine. I love kids (got 2 rug rats myself), but I hate cutesy children recordings on business lines. I usually can't understand the message or get impatient with the babble and hang up.
- Signs:
Nothing beats a good old cheapo homemade sign. Post them by the property and busy intersections. For example: Rent to Own Your Home (970) 726-7979.
- Budget:
Operate on a shoe string budget. Don't blow the potential profit on your marketing program. Remember you're in this business to profit. Don't become a saint!
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