Posts Tagged ‘Estate’
If your real estate investing marketing mail piece gets opened, what drives the motivated sellers to call you instead of the competition?
The message delivered by the mail piece makes all the difference. Successful sales messages generate billions of dollars.
Your marketing message must stick out and force them to call you or visit your website.
This articles give you tips of how to write effective sales copy that gets results.
Motivated sellers get tens of letters and postcards especially when they face foreclosure. They cannot read all the letters!
They are also in distress, and these letters add to the agony of their experience.
Suddenly everyone promises to change the world for them. Who should they believe?
It follows that your marketing message must grab their attention, appeal to their emotional needs and have a strong call to action they cannot ignore. And certainly, it must stick out more than the others.
Let us look at each in turn.
1) Grab attention
Your mail piece will go to the trash in 20 seconds if it does not grab their attention. Your mail piece must grab instant attention of your motivated sellers.
This is what gets them to read the rest. It should be bold, direct and address a need the motivated seller holds dear emotionally promise to resolve a need the motivated seller holds emotionally.
In other words, your opening should deliver relief – which is what the motivated seller needs.
You must be careful not to be aggressive, or it all backfires on you. Motivated sellers are going through tough times and it is important that you are sympathetic to their situation.
This applies whether you use letters or postcards in your real estate investing business.
In order to drive your real estate investing business to the next level of success, it is necessary to do most if not all, good deals that come your way.
This is made possible by having a ready supply of cash you can use whenever you need it.
This article looks at why you need private money to finance your real estate investing deals as opposed to other types of financing.
In the current downward real estate market, most lenders have tightened their lending underwriting requirements. Currently, you need a good credit and verifiable income to qualify for a mortgage.
If you are self employed, such as real estate investors, chances are you cannot qualify for traditional financing by getting a mortgage to do your deals.
For those who can qualify for a mortgage, you can only do a few deals financed through banks. As a real estate investor, you must be able to do any type of deals without limitations to succeed in the business.
And even if you can qualify for a mortgage, there are lots of deals you cannot do if they do not meet the lender’s requirements.
Nowadays, a lot of hard money lenders have also tightened their lending requirements, with some having some credit score requirements to lend money.
This means that your real estate investing business is limited by financing more than ever before.
Private money solves this problem because it removes most of the hassles imposed by other means of financing real estate investing deals.
Negotiating with mortgage lenders to accept less than the mortgage balance for a property can make you lots of money in real estate investing. Not all short sales are potentially profitable, while some can make you lots of money.
This article walks you through the best sources of profitable short sales.
Even though all short sales involve negotiating for a discount, some of them are a pure waste of time
As a real estate investor, you should aim for those deals that will make you more money.
1) Work directly with motivated sellers
The best properties for real estate investing come from motivated sellers.
This must happen before a bank forecloses on the properties.
The motivated seller must be at least 2 months behind on their mortgage payments to qualify for a short sale.
You can find motivated sellers by targeting people who own real estate and they are in legal trouble. These include people going through divorce, burned landlords, people with liens, people who have inherited properties, vacant houses, expired listings etc.
These people probably have properties they would like t sell, even though they are not listed on the market.
2) Make sure time is not limited
In some states such as Texas, you only get 3 weeks from the time a foreclosure notice is filed to the time foreclosure happens. In other states you may have several months before foreclosure happens.
Ensure there is enough time before foreclosure happens. It can take weeks to months just to get the bank’s attention.
3) Target deals that have more than one mortgage
Real estate investing will turn out to be as a nightmare for you if you have not dealing with right kind of person. It is a single investment which will give you a huge success. Risk is certainly involved in this kind of investment. However if it is planned out in a well manner the concept of risk will be eliminated.
The very first rule of real estate investing is to be very careful with the person with whom you are going to deal with. Even before selecting the type of land and the location for such you are required to be very conscious with the agents, brokers or any person who claims you to be as a dealer for property. If we look upon the activities of promotion today there are many agents who are claiming to make you as a millionaire person within a night’s time. This might be true only in few cases but not always. They try to lure innocent investors through such activities. The ultimate aim of such promotional activities is to brainwash the minds of investors and to cheat them once they have invested their hard earned money.
To safeguard yourselves and your investments it is necessary for you to avoid such situation. If you are serious about real estate investing it is very essential for you to update your understanding on the following issues:
Your success depends on how wise and how you handle your clients. Like all other businesses real estate investing requires definite skill, you must have the drive on it and be sharp. Though it is never taught in school it is one of the most prolific careers in real world.
Be systematic because it involves many different legal and interpersonal aspects.
In real estate deal, interpersonal skills are very important. To attain positive effects and result you must have the intellectual and communicative algorithms applied during negotiations with your clients. Establish trust and agreement to potential sellers and provide them the feel of worth and value in making deals with you, they might recommend their friends houses to sell it to you. Remember that selling is about solving problems, making win-win situations, honesty, integrity, knowledge, and creating relationships that serve everyone.
Do simple study of your monthly cash flow and make plans for longer term prospects on investing properties that you are interested in. You can approximate the house’s likely appreciation or augment the price over time and calculate ROI or the anticipated value of your deals. Analyze every deal so that you’ll know when to continue and when not to proceed with the transaction.
There are instance that you would want to improve the property you purchased. Always spare time to do the calculation on how much the renovation and repairs will cost you can bring a contractor or an architect to help you estimate. Upgrading your assets can eventually help you sell your home faster and at a better price.
Investing is about making your money work for you. For many of you the latter part of 2008 and the first five and a half months of 2009 have seen you trying to salvage the funds that you worked so hard to get rather than building your wealth.
Many people in the financial sector have undoubtedly been telling you not to panic. The economy is cyclical. It will recover and over time you will get the money back that you have lost. Look at the charts and graphs. They don’t lie. There have always been high and low cycles and recovery has always occurred. Holding the line probably will get you back to where you were. However, what is going to move you ahead and help you get to where you should have been through the months lost to the recession and recovery?
Loyalty to one’s financial planner, broker or banker is admirable. However, what would you do if you had a job where every payday your employer was to tell you he couldn’t pay you and then asked you to keep on working on the hope that someday you will get all of the money that is owed to you for the work completed? You need to be able to stay in your comfort zone and therefore you need to be proactive whether it is with your job or your investments. Working for someone who doesn’t pay you or having investments that are losing money is not acceptable, especially when there are safe alternatives available.