Fast Cash Buyers List. Real Estate Marketing

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2 Introduction What You Should Know Have you ever dreamed of what it would be like to have a buyer waiting in the wings every time you had a property to sell? By the end of this lesson on building a Fast Cash Buyers List, you ll be able to make your dream a reality. Developing a buyers list is the single most important marketing step you can take in your real estate investment career. Real Estate investor pros know the importance of a well maintained buyers list and there is nothing that catapults you into their ranks faster than building your own customized list. If you are going to spend money on marketing, this is the place to start; any time or money you invest in building your buyers list will be returned to you many times over. Your level of real estate investment activity will determine how important a buyers list is for you. If you are turning three or four properties a month, a buyers list is a necessity. If you are doing only one or two properties a year, then a buyers list may not be the answer you will just market your properties as they are ready to sell using traditional methods. Before beginning this lesson you should understand: The basic principles and terminology used in real estate investing Which properties to look for and why Where you want to buy real estate How to locate motivated sellers Your investment strategy Setting up your business Marketing concepts from the Marketing Overview lesson What You Will Learn Tips for Success By the end of this lesson, you will know: Fast Cash Buyers List Basics Building Your Buyers List Attracting Retail Buyers Attracting Wholesale Buyers Handling Fast Cash Buyer Phone Calls Follow Up is Everything The biggest mistake made in marketing is lack of follow up. New investors often take time to send out a marketing piece, yet do not follow up on it. They send a flyer out or run an ad once and wonder why it is not 2008 Professional Marketing International Page 2

3 working. If the lead is not hot at that moment, they brush it off and forget about it. Even worse, if they receive a lead response, they might not call back for week or more! Is this acceptable in any other business? Of course not. Neither should you allow it to become part of your real estate business. Follow up or Pack It up Make, Follow Up or Pack It Up your motto. Timely follow up is not just part of your business, it is your business. For example, your mailing campaign can offer a lot of residual leads if you follow up with those who respond and continue mailing out to those who do not Professional Marketing International Page 3

4 Fast Cash Buyers List Basics Fast Cash Buyers List Defined What is a Fast Cash Buyers List? In its simplest terms, a buyers list is a list of people ready to purchase a home right now or in the near future. It is a great resource to have when acquiring new properties because it helps you liquidate those properties quickly. It s a time sensitive list, meaning that people on your list want a property today, not 3 months down the road. So you don t want to focus on developing a buyers list for a property that won t be ready to sell for another two or three months. Fast Cash Strategy Remember, Fast Cash is an investment strategy that you use to acquire and sell properties quickly. If you have a list of buyers who are ready and able to buy, you can accomplish your goal of acquiring and selling properties quickly. Retail Buyers vs. Wholesale Buyers Retail Buyers A retail buyer, also known as an owner occupant buyer, wants to purchase the home to occupy it. These buyers are picky about their property because this is where they re going to live. If you re not careful, you end up taking orders and working many hours catering to this type of buyer. When you do this, you are playing their game, and it can be a lot of work. Most investors prefer finding properties they can pick up at a good price, then marketing them to many potential buyers. This is more time effective, usually more profitable, and keeps the investor in control. Your retail buyers list allows you to do this by supplying you with a ready list of motivated buyers. Wholesale Buyers Wholesale buyers are investors. If you are working with several wholesale buyers, you will always have standing orders for properties they re looking for. Whereas retail buyers come and go, wholesale buyers are long term. When you find a property that fits their profile, you pick up the phone and call them. It really is that easy. Why a Fast Cash Buyers List is Important Faster Turn Around The primary reason to use a buyers list is to reduce the amount of time you have a property on the market for sale Professional Marketing International Page 4

5 Increased Profit Margins The sooner you are able to rehab a property and sell it, the less money you will have invested into the property, thus increasing profit margins. Refine Your Target Market You will buy properties based on the wants and needs of your buyers, thus you are buying properties that a majority of people want to live in. It is a great way for a new investor to refine their property search criteria. Fewer Out-of-pocket Expenses This means that you will make fewer payments for the mortgage, electricity and gas as well as insurance and taxes. Stay Current on Market Trends Having an ongoing Buyers List will help you stay current on house trends and market shifts. Prequalified Buyers You qualify the buyers as quickly as possible and know what they can afford and where they can buy. You know in advance if they cannot qualify for financing or do not have a down payment, which can save you from being stuck with a property you cannot sell quickly. You Are Always the Good Guy By referring your buyers to your mortgage lender, the lender is the bad guy if your buyer does not qualify for a loan. No Wasted Effort If a potential buyer does not qualify for a loan, they can be added to your Cash Flow Buyers List rather than your Fast Cash Buyers List. Either way, the buyer is still an active prospect Professional Marketing International Page 5

6 Building Your Fast Cash Buyers List Create a Database If you have completed the Marketing Overview lesson, this is a brief review. You need some type of database to enter information about what the buyer is looking for. Don t let the term database frighten you. It can be a simple Excel spreadsheet, Word Document or any other program you are familiar with. Many find Microsoft Outlook to be a valuable tool in tracking clients. There are also numerous stand alone software programs for client management. Look at your database as the container into which you pour your Fast Cash Buyers List information. It is simply the method of organizing important information about each buyer on your list. The most important thing right now is that it is simple and easy for you to use. For more on building a database for your lists, refer to the Marketing Overview lesson. Workbook Form A paper based system is fine to begin with. You just need a place to record the buyer s information for ready reference. You will not remember the details of your calls! Don t waste your time trying. There is an easy to use Fast Cash Buyers List Form in your Workbook for this lesson, which is probably the quickest way to get started. Make copies and put them in a notebook to form your first Fast Cash Buyers List database. Your Fast Cash Buyers List Information Your Fast Cash Buyers List database should include the following information: Home Information o Square footage o Number of bedrooms and bathrooms o Price range o Time frame for buying o Type of financing needed o Acreage o Any information about the area and neighborhood they are interested in, such as school district, proximity to shopping and transportation Buyer s Contact Information. o Name o Phone numbers always get the cell phone if possible, as well as the home number o address ask permission to send them updates of recently acquired properties that meet their property criteria 2008 Professional Marketing International Page 6

7 Mailing address Follow Up Tips for a Successful List For your list to be productive, it must be kept current. Here are some follow up tips to help you maintain your list. Rule #1: Add buyers to the list immediately as they call in or there will be no one to follow up with. Make sure you ask for contact information each time someone calls. Make it a habit. Follow up once a week if someone is looking to buy within 1 2 months. Follow up once a month for those wanting to buy within 3 6 months. Follow up once every two months with people who want to buy within 7 12 months. For variety, you can follow up via phone, or direct mail piece. These methods are covered in detail later in the lesson. Use a ranking system to mark their level of interest or motivation, perhaps a scale of 1 5, with 1 being highest. If you are not available to answer calls, you should have a professional phone message that prompts them to leave a detailed message. General Advertising Builds a Base Ghost Ads You learned in the Marketing Overview lesson that to build a customer base, you need to advertise. In this case, your Fast Cash Buyers List is your customer base. In building your base, general advertising is best. In other words, you target a type of property rather than a specific property. Following the ghost ad model as outlined in the Marketing Overview lesson, you do not even need an available property to run an ad. As you build your buyers list, you get an idea of what your buyers look for and what you would normally have to sell them, then you run ads based on that knowledge. Prescreened Buyers You should always have an ad running for this general type of property, remembering that its purpose is to bring in prescreened buyers. Your ad should draw a specific kind of buyer to you, so, in a sense, they come to you prescreened. Naturally, you need to talk with them to determine how motivated and qualified they are, but the design of your ad has done some initial screening work for you. You learned how to evaluate and test your ads in the Marketing Overview lesson. You test and adjust, test and 2008 Professional Marketing International Page 7

8 Identifying Property Criteria Marketing Methods adjust, test and adjust until your ads bring you the prescreened buyers you are seeking. You need to identify your general property criteria before you can start building your Fast Cash Buyers List. This criteria will be used to describe the types of properties you sell in your target areas, which is the wording you will use in your ghost ads. Your general property criteria can include: Number of bedrooms Number of bathrooms Location Price for your target area For example, if you were targeting the fictitious area of Wild Oaks, Wisconsin, you d know that people purchasing in this area like 3 4 bedrooms, 2 bathrooms, and pay an average price of $225,000. This is the general property criteria you d use in your ghost ad, which might look something like this one. 3bed/2bath home In Wild Oaks. $225K An internet ad could be much more descriptive because online ad services typically allow much more space for your ad. For an in depth look into online ads and classified ads, refer to the Marketing Overview lesson. There are many marketing methods you can use to build your fast cash buyers list, each with different cost and time requirements. Refer to the Marketing Overview lesson to learn more about each of these marketing methods you ll probably use several of them at any given time during a marketing campaign. The methods that have proven most effective for building your Fast Cash Buyers List include: Building a Referral Network This is the most effective method of building your real estate business, period. Networking is so important, there s an entire lesson dedicated to it. Refer to the Networking & Your Power Team lesson for sure fire ways to build your network Professional Marketing International Page 8

9 Classified Newspaper and Internet Ads This is an economic and effective way of building your list and is a staple even for many experienced investors. Direct Mailers You learn more about the specifics of gearing your direct mail piece to retail buyers later in this lesson. It can be an expensive way to start out. Business Cards If you don t already have them, get them. Today, if possible. Building a Website In today s business environment, a website presence is becoming more and more important. The Marketing Overview lesson contains many examples of how to promote yourself on the web. Posting Bandit Signs These are strategically placed signs with a short, easy to read message and your phone number. You ve probably seen them posted in high traffic areas such as intersections. Vehicle Advertising Make your vehicle work for you! For one upfront investment, your message could be seen by thousands of people every month. Handout Flyers You learn more about how to create handout flyers for retail buyers later in the lesson Professional Marketing International Page 9

10 Attracting Retail Buyers Retail Buyer Profile Power Team Defining Your Target Buyer As mentioned at the beginning of the lesson, there are two types of buyers: retail buyers and wholesale buyers. This section teaches you how to attract a retail buyer. A retail buyer is a person who intends to live in the property and will purchase the property at fair market value or perhaps a bit lower. They typically acquire conventional financing to execute the purchase of the home. Many retail buyers would like to buy a property that is not in perfect condition so they can build equity by doing a few repairs. Once they decide to buy a house, they are usually on a mission to get it done as quickly as possible. Many retail buyers are first time home buyers and are not educated about what it takes to buy a property, so it is important to give them the benefit of your experience and guide them through the process. It helps your cause and theirs if you have a power team in place to expedite the purchase. In this case, your power team includes mortgage brokers and title agents that help your buyer navigate the process quickly and efficiently. Remember, for your Fast Cash Investment Strategy to work, they need to qualify for a loan! Detailed information about finding and using a power team is found in the Networking and Your Power Team lesson. You need to think like the demographic group you are marketing to, in this case, retail buyers. Ask yourself over and over, who is my target group? As you have already learned, many are first time home buyers. This does not always mean they are young families. They might be older, more established couples who have rented for years or single professionals who have not yet made a decision to purchase. You might work with empty nesters looking to downsize, where it is not their first home. Or maybe it has been a number of years since they bought their last home. Questions to Ask Yourself Do you know your target group? To ensure you hit the bulls eye, take time to ask yourself these questions about your prospective buyer: Which keywords describe the buyer s new property needs? The general wording in the ad to attract them and motivate them to call you Professional Marketing International Page 10

11 Identifying Keywords Where does your buyer live now? Newspapers often have certain areas of circulation. Make sure your ad is hitting the right area. Does your buyer rent or own a smaller home? This affects wording in the ad such as, It is time to upgrade vs. Stop paying your landlords mortgage, start paying your own. Will your buyer need to sell their home before they can buy yours? This addresses the time frame in which the home is available and whether or not you should offer your services to buy their home or perhaps send buyers to them so they can then buy yours. How much might they have for down payment on a home? Can they get financing or do you need to let them know of a grant program your mortgage broker can help them with? For your advertising to be effective, you must identify keywords that will attract a retail buyer. Your ghost ad contains general property criteria, but it needs to be refined. For example, you need to pin point whether it should be 2, 3, or 4 bedrooms, 1, 1.5 or 2 bathrooms, basement stated or not, square feet stated or not, number of acres or not, style of home or not (two story, rancher, rambler, etc), specific neighborhood and city or not. Your general property criteria make up many of the primary keywords for your ad, but there are also marketing phrases that jump out at a prospective buyer. Marketing keyword phrases that have been proven to draw people to your advertising include: Buyer pays closing costs Down payment assistance Down payment grant Priced for quick sale Listed $XX,000 below market value Instant equity Quick possession Your TLC builds equity You should become familiar with these types of keyword phrases and use them regularly in your advertising. The idea is to use words that intrigue a potential buyer and make them want to know more about this GREAT DEAL! Using the Wild Oaks ad as an example, you could add the phrase, Down Payment Assistance, if you knew this type of property would qualify, which could help attract first time home buyers or lower income families. Your ad would now look like this: 2008 Professional Marketing International Page 11

12 3bed/2bath home in Wild Oaks. $225K. Down Payment Assistance Direct Mailer Tips Call to Action Every good marketing piece contains a Call to Action which instills a sense of urgency in a buyer. Examples of a call to action include: Call Now! Hurry, won t last long! Don t wait on this one Don t miss this opportunity In writing your ad copy, always ask yourself what your call to action is. If you cannot find it, you probably do not have one. Notice the same ad now has a strong call to action. With the marketing keywords and call to action, you can see how much more appealing this ad might be to a specific type of retail buyer. 3bed/2bath home in Wild Oaks. $225K. Down Payment Assistance There are two kinds of mailers you can use to attract a retail buyer: one that advertises a general property, much like your ghost ads, or one that advertises your services. Either way, focus on using motivational and targeted wording in your direct mail piece, such as these: When you buy a home from us, You buy a home with equity! We have a list of homes available for sale below fair market value! We have the home of your dreams. Call us now to get a list of homes We can help you qualify for a loan We pay your closing costs! Your TLC builds equity In addition to being motivational, notice that every one of these phrases tells a buyer how you can help them. Always gear your ad copy towards helping the buyer and it will be successful! A Brief Review As a reminder of what you learned in the Marketing Overview lesson, your direct mail piece is not time sensitive. You main goal is to get the prospective buyer to give you their contact information. They can call and leave a message or you can give them an incentive to visit your website 2008 Professional Marketing International Page 12

13 Flyer Tips Bandit Sign Tips where they can sign up for a free newsletter or an insider s list of properties in the area. If they re not buying immediately, this gives them an incentive to keep coming back. You should also give them your address so they choose to respond via , you automatically get their address. You can do all this on a simple postcard, which is not only cheaper to produce and send, but also has the highest retention rate in the industry. If you do not use a postcard, include a business card with your marketing piece so they have something to hold onto. In attracting retail buyers, your flyers should not look too professional. As you learned in the Marketing Overview lesson, homemade looking flyers tend to perform better than glitzy, expensive looking ones. Incorporate the same type of wording on your flyer that you would use on a direct mailer. Do you offer properties at below market value? Do you offer foreclosures? Again, if you demonstrate how you can help the prospective buyer, they ll be more likely to call you. Some examples of wording to use on your Fast Cash Buyers flyer might be: I sell 3 bedroom 2 bathroom homes in Wild Oaks for 90% of value. Instant Equity. No Realtors. Call Now! OR I have a list of foreclosure properties. 4 bedrooms, 2 bathrooms. Don t miss this opportunity! OR Newly remodeled home, 3bd/2ba, large yard. Down payment assistance. CALL NOW. JUST REDUCED. The same advertising principles you use in classified ads, direct mailers and handout flyers apply to bandit signs, with a little twist: The message must be short and to the point so it is extremely easy to read. For bandit signs, you may advertise your services, such as: Free Foreclosure Property Lists. Call Your TLC builds Equity. Call Now: Or you can advertise specific properties, like: 3/2 home with equity. Motivated Seller! Call EZ Financing on 1800sq ft 4/2 home in Queens Creek. Call Professional Marketing International Page 13

14 Vehicle Advertising Tips Real World Example Your vehicle advertises your services and you can use wording similar to bandit signs. Remember, you are advertising to people who are in their vehicles. You may have the most attractive ad in the world, but it will not be read or understood if it is lengthy and the words are small. Most people are naturally drawn to cars with advertising on them. What else is there to look at while trapped in your car? But if advertising is hard to read, it just frustrates the driver. You have probably experienced this yourself. Here are some ideas to get you started on your vehicle ads: We can help you qualify for a loan. Call We pay your closing costs! Call All of your advertising is designed to lead to one thing: buyers on your buyers list! Applying what you have learned so far might play out as follows: Place Ad You place an ad in the Local newspaper stating Newly remodeled home, 3bd 2 ba large yard, EZ qualifying, CALL NOW, JUST REDUCED Ad Response Jill and Bill call you. You find out that they have been renters for most of their lives. They are now approaching 45 years old, have no kids, and have decided to buy a home. You get their contact information but then they get nervous and end the call. Follow Up You make a note and call back a few days later to find out why they were so hesitant with you they had been denied a loan in the past, but it s been 15 years ago. You convince them to talk with a mortgage broker you have worked with for years and they agree. Qualify Them for a Loan The mortgage broker is able to qualify them for the home easily and they are so excited that they decide to purchase it for your asking price of $185,000 on the condition that you complete needed repairs. Your Profit You bought the home for $150,000 and put $10,000 into it for repairs. You make a profit of $25,000 from the sale of this home. Jill and Bill bought it within a week of you completing the repairs. What made it happen? Your follow up! They likely never would have called you back after ending the call the first time Professional Marketing International Page 14

15 Attracting Wholesale Buyers Finding Investors What to Look For in an Investor You are now ready to learn about wholesale buyers. A wholesale buyer is an investor who continually looks for properties with profit potential. They re more flexible than retail buyers because they accept property in virtually any area as long as the numbers make sense. They also accept different conditions and types of homes. In many cases, wholesale buyers may have resources that you don t have, allowing them to cut a deal quickly. Yes, your profit is usually less than dealing with a retail buyer, but you are trading time and energy for immediate cash. This is where your Fast Cash Strategies come into play. Investors have their own criteria to determine if a deal is attractive. One investor may want to clear $10,000 on a property and another may want to buy it at a discount for 30% of the comparable amount. It s your job to find out what motivates a particular investor so you know how to present properties to them. There are many ways to find investors, including networking, which is always the most effective method. Refer to the Networking and Your Power Team lesson for detailed and exciting information about building your network and attracting investors. Your screening objectives are very different for investors. You are trying to attract a savvy buyer who knows real estate inside and out. Typical ways to find a wholesale buyer include: Real estate investment clubs Online real estate investor forums or blogs Referrals from mortgage brokers, title officers, accountants, or real estate agents Ads in newspapers to the effect of, We we buy houses, We stop foreclosures, etc. Checking courthouse records for people with multiple properties in their name or their company s name The Internet for example, search Google or Yahoo for real estate investor + Arizona, WE buy houses in Pennsylvania or We stop foreclosures in New Jersey They may call on some of your other ads. You will know they are an investor by the methodical questions they ask In developing your Wholesale Buyers List, the goal is to locate investors who want to buy your properties. In doing so, remember you are 2008 Professional Marketing International Page 15

16 Working With Investors interviewing them to see if they fit into your investment strategy. You provide a valuable service to them and offer a win win scenario. Here are a few pointers in what to look for in an investor: Know What They Want In a Deal As mentioned earlier, investors have their own criteria to determine if a deal is attractive. Your job is to find out what motivates a particular investor so you know how to present properties to them. Know if They Can Turn a Deal Quickly You should understand their ability to turn a deal around fast. How quickly can they fund it? How fluid are their funds? Know Their Experience Level How experienced area they? Experienced investors have access to capital sources and understand all aspects of the closing process. You benefit from their experience but they know that sharing this information makes their job go more smoothly, so the benefit is mutual. They may even refer people you can add to your power team. Are They Willing to Mentor You? Taking it one step further, wouldn t it be great if an experienced investor were willing to mentor you? You could both profit from the process. Do They Like Working With Partners? Finally, do they like working with partners? Would they be willing to partner with you in the future if the right deal came along? This could broaden your search criteria, allowing you to present properties you would otherwise not consider. You should have a pool of several investors you can work with so all of your eggs are not placed in one basket. This allows you to choose who you work with and who you take your deals too. You do not really market to them, per se, but you stay in contact with them via and phone. This provides an inexpensive way to sell your properties quickly with minimal marketing costs. Look After Your Bottom Line Part of your strategy should be to determine your own profit needs so you have a benchmark to determine whether a deal is going to work for you or not. This can be a set amount, a sliding scale, or a percentage. Some deals may have a lot of potential profit in them and if you do not determine a sliding scale amount or percentage, you could wind up practically giving them away to investors. A good question to ask yourself is, How much do I need to make on a deal for it to work for me? Knowing the answer to this question lets you 2008 Professional Marketing International Page 16

17 Qualifying Investors know when it might be best to walk away from a deal. Some investors may offer a set amount or fee for each deal you bring them. This may or may not be worth your time and effort only you can decide. Keep the Door Open Not every investor is a best match for you or your properties. They may not like the area you are investing in, the property type, or the price range. But leave the door open for future contact. You may eventually find a property that meets their criteria and they may also send something your way. It can be a great win win for both of you as over time as you maintain and nurture that relationship. Be Sincere You will want to develop rapport with investors and a little sincerity goes a long way. It s okay to let them know you are newer to the business. A seasoned investor can clearly tell who is new and who is experienced. Save yourself the humiliation and donʹt lie. They will respect you and possibly offer you a few pointers and tips along the way. You need to know your customer, which in this case is the investor. The only way to know what an investor wants is to ask questions! By asking specific questions, you are qualifying them for your list. For example: Would they be interested in having more properties to buy below market value? o If so, which areas do they like to buy in? What types of properties do they look for? Single family, townhomes, condos, mobile homes with land, duplexes, fourplexes? What price range do they like? Know their high end and low end. How much profit do they look for in the deal? What property characteristics are they interested in? List criteria such as square footage, bedrooms, bathrooms, acreage, and so on. How much in repairs or what types of repairs are they looking for? Remodels? Cosmetic only? How quickly would they be able to close on a home? Weeks or months? How do they want the deal presented? o Do they prefer you to buy the home and sell it to them? o For you to assign the contract to them? o For you to bring the deal to them? What should you include in the packets you send them? You need to respect this and not wear out an investor with incorrect or missing information. How much of an assignment or bird dog fee could they give you? 2008 Professional Marketing International Page 17

18 Using Your List Real World Example How many deals a month can they handle? These questions are found in the workbook form, Qualifying an Investor. It is vital for you to know what makes the investor tick. Asking these questions gives you critical insights into how to approach a particular investor and which properties to look for. You are qualifying the investors you work with just as you would qualify any other customer. All of the information you gather must be entered on a Wholesale Buyers List and kept separate from your Resale Buyers List. To use your list effectively, you should write notes for the best times to follow up with each investor and the best way to submit information, which is usually . Follow up Frequency The follow up rules for your wholesale buyers list are vastly different than those for your retail list. If you don t have properties to sell an investor, follow up at least once a month for the first few months, then taper it back to quarterly. If you have properties to sell them, you ll contact them on an as needed basis. It is that simple. You might be asking yourself how this could play out in the real world. Here s an example: Contact a Qualified Investor on Your List You contact Ivan the Investor, who was added to your list 2 months ago. Because you asked him the qualifying questions, you know his preferred method is to pay bird dog fees. He knows who you are because you have already called him twice. Tell Him General Information You tell him you just found a Single family, 3 bed/2bath home in a great location that is for sale on a short sale for less than what is owed. This peaks his interest. If Interested, Give Him Details You then tell him the sales price is $225,000 and $300,000 is owing. It has minimal repairs of about $10,000 for flooring and paint and it is vacant. Decide Whether to Accept His Offer Ivan tells you that he will give you a bird dog fee of $3,000 for the property lead. Would you take it? All you need to do is give him the address and he will write you out a check. There is no right or wrong answer. It is up to you and how you want to handle the deal Professional Marketing International Page 18

19 Handling Fast Cash Buyer Phone Calls Voic Greeting Tips Call Objectives You now know how to cater to both retail and wholesale buyers and what the differences are between the two lists. Everything you have learned so far leads up to a simple phone call. Think about that. The entire purpose of your marketing efforts is to arrive at the point of the phone call. No phone calls, no sales. In the Marketing Overview lesson, you learned the importance of using voic to manage and control your calls. You know how to create a strong, general greeting and maybe you have already created one. Sample Greeting Here s an example of a voic greeting you could use to attract a buyer: Hi you ve reached the office of Buyer Helpers, LLC. We re excited that you called. We have many great homes we d love to tell you about. Please leave your name, phone number and address at the beep if you d like to receive a list of our current properties. Thank you for calling and we look forward to speaking with you soon. 24 Hour Recorded Sales Message There is a comprehensive 24 Hour Recorded Sales Message script included in the back of this guide. The message is written with bullet points so you can choose the phrases you like and build your own voic greeting. You can refer to this for help in recording your voic greeting or use it as a fully self contained message that tells the prospect what action to take next. The Marketing Overview lesson taught you the importance of controlling the flow of the call so you are always heading in the right direction. As a reminder, you want to build rapport and trust by Sounding enthusiastic! Showing excitement for them! Being sincerely willing to help Being honest Warm Up Questions If they are not forthcoming with useful information, you might warm them up by asking questions like: How did you hear about the property? (Track your marketing!) 2008 Professional Marketing International Page 19

20 What are you looking for in your next home? Listen and make not of things like: o Size (beds/baths, square feet, lot size, etc.) o Style (rambler, ranch, split level, etc.) o Area/Neighborhood o School district o Amenities (Garage, fenced yard, deck, A/C ) o Limitations/Exclusions Build a Buyer Profile You should begin building a buyer profile as quickly as possible. If the caller allows you, ask the following questions. For easy reference, these questions are included in the workbook for this lesson: What time frame are you looking to move into your next home? How soon do you have to move? Are you willing to do any repairs? o Cosmetic: new carpet, paint, landscaping etc. o Complex/major: new roof, kitchen/bathroom remodel, etc. How much money do you have to work with? o Down payment/earnest money o Monthly mortgage payment Are you pre qualified or pre approved for a loan? o If yes: Have them fax it to you immediately o If no: Is your credit good enough to get a loan? May I refer you to my mortgage broker? Be familiar with first time home buyer loans and down payment assistant programs your broker can help them with Have you considered rent to own, lease options, or seller financing? Reserve this question only for those who are hesitant and feel they have terrible credit. Transfer them to your Cash Flow Buyers List Get Contact Information Finally, you need their contact information. A good way to ask for it is, Let me get your contact information so when your ideal home becomes available, you can be the first person I contact. Then ask for their name, address, home and cell phone numbers, and address. A good way to ask for the address is, Would you like me to you weekly updates of properties we have available? If they are getting something valuable, they are more likely to give you this information. Now you have a reason to contact them in the future, which keeps the possibility of a sale alive Professional Marketing International Page 20

21 Wrap up Real World Example Whichever method you choose to build your Cash Flow Buyers List, you need to maintain it after you create it. You know by now that follow up is everything. You will lose money if you do not maintain your list on a weekly basis. If you maintain your list, you will always be ready when opportunity knocks. It can happen like this: Start By Running Ads Nancy Newbie is a new investor who has just started her marketing campaign to generate a Buyers List. Nancy is running ads in the local free newspaper and is beginning to get phone calls. Enter Each Caller in Your List Fortunately, Nancy created a Fast Cash Buyers List and can fill in all the fields as she speaks with each buyer. Schedule & Make Follow Up Calls She logs the first contact date and schedules a reminder in Outlook to call back her #1 ranked buyers in the next week to two weeks. When she calls them back, she logs that phone call and adjusts her list as necessary. Reap the Rewards! Two months later, Nancy has her first sale! How? By maintaining her list and faithfully following up with each contact according to their rank. This is how it works in the real world. Most of the examples in this lesson are real, but the names have been changed. Make it a habit to follow up and you will see similar results Professional Marketing International Page 21

22 Assessment You are now ready to assess yourself on what you have learned. Unless instructed otherwise, choose or enter the single best answer for each question. If you get stuck on a question, go back to the relevant section of the guide for help. 1. According to this guide, what is the biggest mistake made in marketing? a. Not running ads b. Not speaking to your audience c. Not networking d. Not following up 2. A Retail Buyer is a. Picky b. An investor c. Interested in a long term relationship d. Usually flexible in home style and location 3. Why is a Fast Cash Buyers List important? (Select all that apply) a. Fast turn around of properties b. Increased profit margins c. Makes you the only resource for buyers d. Gives buyers your contact information e. Helps you refine your market 4. A paper based database system is fine to begin with. a. True b. False 5. Which is the most important piece of contact information to begin with? a. Phone number b. address c. Family status d. Mailing address 6. Match each Retail Buyer follow up rule (numbered) with its proper tip (lettered). 1. #1 Rule 2. Buying within 2 months 3. Buying within 3 6 months 2008 Professional Marketing International Page 22

23 4. Level of motivation 5. Buying within 7 12 months a. 1 call per 2 months b. 1 call per month c. Add callers to list d. 1 call per week e Which of the following is NOT part of your general property criteria? a. Number of bedrooms b. Property address c. Prices for targeted area d. Number of bathrooms 8. Your direct mailer is usually time sensitive a. True b. False 9. Select the characteristics of a Wholesale Buyer. (Select all that apply) a. Long term b. Will occupy the home c. Flexible in properties they will buy d. Like short term relationships 10. Which is NOT a typical way to find a Wholesale Buyer? a. The internet b. Courthouse records c. Flyers d. Referrals Assessment Answers 1. d; 2. a; 3. a, b, e; 4. a; 5. a; 6. 1 c, 2 d, 3 b, 4 e, 5 a; 7. b; 8. b; 9. a, c; 10. c 2008 Professional Marketing International Page 23

24 Action Items Create a Buyers List sheet for: o Wholesale/Investor Buyers o Retail/Owner Occupant Buyers Solidify and record your final voic message Review the 24 Hour Recorded Sales Message script, which is included at the end of this guide. Use the elements that are applicable to your situation Make a list of 10 investors to contact this week. Ask them the questions you were taught Write a ghost ad and submit it to three free online classifieds websites Enter contacts and schedule follow up dates for them Determine if the follow up will be a phone call, or mailer 2008 Professional Marketing International Page 24

25 Summary What s Next? Over time, you will create a Fast Cash Buyers List marketing system that works for you. It will consist of: Marketing techniques and approaches A follow up database Buyer screening questions Follow up time frames or schedules Building a Buyers List is crucial to the Fast Cash Investment Strategy, allowing you to acquire and sell properties to prequalified buyers quickly. You keep your holding costs down and increase your profit potential by developing and maintaining a Buyers List. Your buyers can be retail or wholesale buyers. Retail buyers are going to live in the home and can qualify for a loan. Wholesale buyers are real estate investors that you can sell properties to on a regular basis. With wholesale buyers you usually have less work but make less per deal, which you more than make up for in the volume you can do with a reliable, seasoned investor. As calls come in and you follow up, you need to maintain your list or there is no sense in having it. You add to and subtract from your list over time, always keeping it current. You need a professional voic message that instills confidence in callers and makes them want to leave you their contact information. Make a focused return call with each prospective buyer and build a Fast Cash Buyer profile. A Fast Cash Buyers List is about finding buyers who qualify for financing. If they cannot, you transfer them to your Cash Flow Buyers List. Where you go from here depends on what interests you. You could follow the list lessons, which are, Cash Flow Buyers List, Sellers List, and Renters List, or you can take the Networking and Your Power Team, and Marketing Yourself on the Web Lessons. Each of these lessons gives valuable insights into the subject matter and teaches you how to utilize specific marketing techniques to build a solid, profitable real estate investment business Professional Marketing International Page 25

26 24 hour Recorded Selling Message Select appropriate bulleted phrases to create your own voic greeting or 24 hour selling message. If it is a voic greeting, always ask for the caller s contact information! Hi and thank you for calling about our homes for sale We add new homes to this list weekly, so keep this number for future reference You can also visit our web site at That s (then spell anything odd out) If you re like most people, you dream about owning a nice home in a nice neighborhood. Here s your chance to make your dreams come true If you can afford a reasonable down payment and monthly payments, you could easily qualify for one of our exciting purchase programs We offer owner finance with no bank qualifying and lease purchase We also offer down payment assistance and work for equity programs We are confident that nobody will work harder than us to get you into a home Listen to the following driving directions carefully and call the number on the sign in the front yard when you get to the home. We will give you the lock box code so you can view the inside of the home at your convenience In the future, if you would like to bypass this greeting and go immediately to the directions for a home, you may enter the corresponding # for that home at any time during this message. At any time during the recording for directions, press 0 to return to this main greeting Thank you for calling. We hope to work with you soon! Then, for each house, record a good message about the home, its features, the price, where it is, the directions from several main locations. Go by these guidelines for a recording on a home Where home is located Bedrooms, baths, basements Price Directions to home Repeat the address of the home 2008 Professional Marketing International Page 26

27 Solicit them to take action: Once you are in front of the home, call the number on the sign to get the lock box code so you can view the home on your own Thank them for calling The number that people call on the sign should go to a live person. If they called the information hotline, looked at the outside of the house, and called the number to get the lockbox #, they are serious buyers Professional Marketing International Page 27