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How to Get Signed Offers
Buyers for Life
By Jack Butala
There is a very specific tool set and data scrubbing process required to make this work effectively and consistently.
Here is what has worked for us after refinement since 1999:
1) DATA: Get the data from Real Quest Pro. Its the most comprehensive data-set available and costs about 8 cents per downloaded record. Every county is in the same format so you only need to learn once.
2) OFFERS: Complete a Mail Merge and mail an offer with a specific price and time to respond. Sign the offer and ask that the owner sign and return the offer.
3) PRICING: Scrub the data for property type and remove any and all properties with liens including mortgages (at any LTV). For land, use assessed value and APN scheme to create an equation to price each property individually. For SFRs, use an APN scheme based price per square foot.
This stuff helps also:
4) ORGANIZATION: Get organized before you send out your first campaign. It is imperative to have a functioning website with professionally shot pictures of yourself on the front page to make yourself “human”. Hire an established, U.S. based service to answer the phone, live 24/7, with a script. Return every call personally. Sellers research you before they pick up the phone.
5) CASH BUYER: Make it clear in the offer that you are a cash buyer and will close within 30 days and will waive all contingencies. Leave yourself “an out” in the agreement. Send the message that seller gets a check for X in Y days, with no funny business and make good on the promise if the asset fits your criteria. If it does not, be respectful of the seller and let them know very quickly. Loans, agents, inspectors, contingencies, access, lawyers, and disrespect for a sellers, all kill deals. It should be you (buyer), title agent/notary, and seller closing the deal; three parties total who are on the same page.
6) YOUR BUYER: Know who will buy the asset from you before you purchase. For houses, find a reputable flipper. For land, find a retailer. For commercial, find an Acquisition VP for a REIT or equity group. All three of these groups live and die by the pricing of their acquisitions and desperately want to hear from you. Make them say some version of this sentence; “If I had 4 houses in 85258 for less than $80 per square foot before renovation, I could clear $100K.” Then send well planned, well executed offers $10K below that flipper’s $80/foot price.
7) MARGIN: Always make way less than your buyer and fully disclose how much you are making. On SFRs cap your take at $10K. On land, double your money, no more. Commercial is less consistent. You will have buyers for life after the first set of deals.
8) DON’T BE an IDIOT: Be an intelligent, fun, and consistent person to work with. When your sellers/buyers hear your name or know you are calling them, make them want to speak with you.
THE FOLLOWING KILLS MAILER YIELD:
Postcards, yellow letters, letters of interest, hand written letters, mailing without using a bulk mail service, sending less than 1,500 units at a time, sending mail to specific groups of owners; absentee owners, back tax properties, foreclosure properties, probate properties, and general lack of respect for a seller like “this is your final warning, we will foreclose.”
All these antics generate exactly what senders are looking for: problematic sellers with problematic real estate and tire kickers. Get signed offers back in the mail instead.
Forget the property itself, you are looking for a situation. A perfectly good slice of real property where the seller, for one of many reasons, wants to sell that day.
Every morning, let them come to you, don’t go out looking for them. It’s inefficient and after two weeks, really good “would-be” real estate investors get discouraged.
Rumor Alert: End of Year Special Coming LIVE from Jill
Check out the live event coming TOMORROW, Thursday December 8th, at 1pm PST/4pm EST from Land Academy’s Facebook page.
Rumor has it – Jill has ONE LAST, GREAT, END OF YEAR OFFER.
“(Sent) another 1500 to the same expensive area, but this time priced it better and bought three properties; one we paid $7,500 and sold the same day for $19,999 owner financed; one we paid $5000 for got it under contract to sell at $9,999 the same day and one we are paying $10,000 for and we have under contract to sell for $20,000 cash.”
Current Member Updates
1. Weekly member calls. Are you joining in each week? It’s a full hour of live, Q&A time with Jack & Jill. This month’s call dates: 12/8, 12/15, 12/22 . No call 12/29. All scheduled for 3pm MST and email invites sent out on Tuesdays.
2. Member Dashboard. Coming along and we are excited to share with you next month!
3. LandStay posting properties. Still on track to be available and ready to load up with all your available properties this month. Watch here and email for details when released. We expect this site to be bigger and better than LandWatch. After all, we are in the business of selling property like you.
Next Week’s Podcast Lineup:
12/12 Good Bad Ugly of Land Investment
12/13 Land Diaper Change or Consulting?
12/14 Time and Patience are Required in REI
12/15 Person Specific Offers to Buyers are Best
12/16 When Auctioning Land is Best
Tip of the week: Don’t accidentally become a version of an agent spending all your time helping one nice customer find their dream property. We see folks think there are helping by posting notices of what a seller desires all over social media. You want to be working on your business and using your valuable time on you.