Self Confident Offer Campaign Pricing (CFFL 564)
Self Confident Offer Campaign Pricing (CFFL 564)
Transcript:
Jack: Jack and Jill here.
Jill: Hi.
Jack: Welcome to the show today. In this episode, Jill and I talk about a subject near and dear to my heart: self-confident offer campaign pricing. It will make or break your real estate career.
Oh, that sounds heavy Jack.
Jill: It does sound heavy.
Jack: Oh no.
Jill: I know.
Jack: It’s actually a really positive thing.
Jill: Right.
Jack: Before we get into it, let’s take a question posted by one of our members on the LandInvestors.com online community. It’s free and fun.
Jill: Free and fun. Yes, making money is fun. That’s true.
Matt asks-
Jack: What’s more fun that making money?
Jill: Not much. I agree.
Jack: And doing it on your own terms and stuff.
Jill: Yeah, if you don’t get a kick out of watching your bank balance go up, there’s something goofy there.
Jack: Yeah .
Jill: Alright, hey guys. I did a few searches on the forums and couldn’t find anything specific about the topic of how to build a buyers list.
Jack: What?
Jill: I know. I’ve heard mention of manually pulling emails of LandWatch users, those are the signature people, in your areas and asking if they’d be interested in being buyers. I personally don’t ask by the way, I just kind of put them in-
Jack: I send a deal to them.
Jill: Thank you, there you go. I just kind of assume it.
I’ve heard mentions … There’s one of the answers right there. I’ve heard mention of people systemizing the process of scraping those emails. Yeah. It looks like it may be a good idea to keep one property up on eBay at all times. This is not crazy, too. And adding those people to the buyers list.
Jack: Isn’t it great where these … Matt you are so smart. You’re answering your own questions.
Jill: You’re answering your own questions.
Jack: I love it.
Jill: I know. It looks like managing your buyers list through Aweber is currently the best option. Again, right on. I wasn’t able to find any definitive this is the best way to do it, other than the thing that you just wrote, or do these three things every week.
Jack: That’s it.
Jill: I’m sure I’m not the only one who would benefit from this thread. Hopefully the group is getting some good actionable items from this thread. So my question to everyone is, if you were to build a buyers list from scratch today, how would you do it and how would you structure emails to your buyers list?
Jack: First thing I want you to do, Matt, is go into our YouTube channel and type in how to build a buyers list. I have a couple videos on there, and they are very short and very effective, on how to pull email contact information out of LandWatch, number one. That will get you a lot of world class investors, land buying investors. Number two … And everything you said is correct, by the way. I want you to memorize this concept, alright. Stop what you’re doing and please listen. People who buy real estate, the vast majority of the people who buy real estate, already own real estate in the area where the property is. If you’ve got a 40 acre property in Mojave, Arizona, and you send a little note to everybody that’s 1, 2, 3, 4, 5 mile radius around there that says something like, I notice that you have real estate near my property that I just bought, and I just paid way less than you did. Please let me know if you are interested, or go back to this website and check it out and let me know. There’s an extremely likely chance … This works like a dream with houses, by the way. Extremely likely chance that someone is going to buy that property right then.
There’s a reason Jill and I don’t talk about sales too much. We always talk about buying property, and it’s because we just don’t have problems. And neither do the members that I know of. The vast majority of our members don’t have problems selling it. You buy it so cheap, it’s going to find a way.
Jill: Yeah, that’s the thing. When you say, alright … I can’t talk right now. Buying it right … When you have a half priced asset, it’s going to sell.
Jack: That’s right.
Jill: That’s really the bottom line. And if it doesn’t sell, it’s because you are not telling anybody that it’s for sale. That’s it.
Jack: Yeah, it’s worth mentioning the two reasons that property does not sell, any type of property is number one, it’s priced too high. Number two, the right people don’t even know it’s for sale.
Jill: Exactly.
Jack: So building a buyers list, the people who own property, every single time I do a mailer the exact same thing happens. I pull up county data … This is for land, not houses. I pull the county data, and it’s extremely apparent that one, two, or maybe three people own a tremendous amount of properties in that county. Those are your buyers.
Jill: You’re on the right thing, too, though. I want to circle back to Matt saying if you did once a week, did these three things, like you just said. Scrolled the signature people on LandWatch, or something like that picked them out. Especially the people that pay to be on LandWatch, they are investors. Them getting an email … They are not going to remember whether they subscribed to your thing or not, because you are one of 10 that come in every week. I know for a fact that I’m on peoples, I know for a fact people do this with us. Because I get constant properties coming at me, and I don’t say oh, you’re on my … I don’t keep track of it. I look at them. I want to know what’s going on and what’s out there. And if I really didn’t want to be on their list, I click unsubscribe. That’s it. Big deal. There’s nothing to get mad about, or I’m an investor. That’s what we do.
Jack: Right.
Jill: You are right on.
Jack: I agree, you’re right on.
Jill: If you scrape all those people, put them in your Aweber list and have that unsubscribe turned on so they can should they want to, and start sending them deals assuming that they know that they are in your group kind of thing. That’s the way to do it. And they will appreciate you. No one wants to go, hi my name is Jill. You don’t know me, but I’m a brand … Could you imagine?
Jack: Jill, this is priceless information, by the way. This is good stuff.
Jill: Could you imagine if I sent out this email? Hi, my name is Jill and I’m a brand new investor in your area. Because you know what, people actually do this with me, too, and they are doing it all wrong, and it kind of makes me mad. I’d like to add you to my buyers list. Is this okay? No. Just do it. Delete. I don’t reply to those. I don’t have time to reply to those. Just put me on your list and start sending me deals. That’s it. If I don’t like them, I’ll opt out
Jack: Yeah, the other thing too is make sure you list your property everywhere. On LandWatch, Land and Farm, and then keep track of the people inquire about it. You’re going to have a buyers list in no time.
Jill: Yeah. What he said.
Jack: If you have a question or you want to be on the show, reach out to either one of on LandInvestors.com.
Today’s topic: Self-confident offer campaign pricing. This is the meat of the show. I wrote the title to this show because the vast majority of the Thursday consulting calls that I do, deal review and data review calls, I noticed the last six or eight months doing this, that people who are utilizing the service that we offer are almost just like the question today. They have all the answers. For some reason, and I don’t know why, lack the self-confidence to get the damn thing in the mail.
Jill: Get the damn thing in the mail. That’s going to be … That’s our new logo.
Jack: I’m not saying everybody. I’m just saying they just need somebody’s approval, and I guess it’s me. I’m happy to talk about it. I’m happy to talk to people about pricing, but I really think that it deserves a tremendous amount of attention and meticulous attention in the beginning.
Jill: Do you know why I think this is coming up?
Jack: Go ahead.
Jill: Because, and this is what I think is coming up, and I think this is what needs to be defined. I think that individuals here, you say the sentence, which is true, you need to spend tremendous amount of time on this. Because this is important. Getting the pricing right, knowing the area.
Jack: It is.
Jill: But that’s what I’m saying. So I think that some people accidentally spend more than a tremendous amount, or they don’t know when to cut it off, is what I’m thinking that may be why this comes up. That they are not confident, they are not sure that they’re … I spent a tremendous amount of time, is it a tremendous amount as far as Jack is concerned? So, Jack, what is a tremendous amount of time, and when do you know that you got it?
Jack: I personally spend a week, almost a week pricing a mailer.
Jill: For one county?
Jack: Yeah, and for houses it’s probably a little bit less than that. But I’ve talked to somebody recently in our group who is really, really successful, probably more financially successful than we are, and they say, oh, no I just price it all at one and throw it all out there.
Jill: I know.
Jack: So, it’s a to each is own kind of thing.
Jill: Well, then let me run this-
Jack: But I’ll tell you what both of us have. Confidence.
Jill: That’s what I was going to say. Here’s the thing, both of you just want the phone to ring with motivated people coming back at you and will figure it out.
Jack: And we’ll figure it out, Jill.
Jill: And if we made a mistake and priced it all wrong, like way too high or way too low, we’ll recover. And I think that’s part of this.
Jack: You took the words out of my mouth.
Jill: I’m sorry.
Jack: No, not sorry. I’m glad we agree.
Jill: Thank you.
Jack: I don’t care if I fail. I am not afraid of failure.
Jill: I am too.
Jack: I have no fear of failure. In fact, every single time I do it, and I do it often, I say to myself, oh got that out of the way. Next time it will work great.
Jill: You know what, here’s the thing, like you said about confidence. So here’s how it could go and how it should go. Ring, ring. Hi, you know we’re having the conversation. Oh, I’m sorry. This is me. Did I price it at 500 when it’s really worth 500,000? Whatever it is. It’s worth 50,000 and I priced it at 500. Okay, we obviously missed a couple of zeros there. Hey, tell me more about this property. There you go.
Jack: That’s it. Now you’re in.
Jill: That’s one. And if people are really afraid, like if I really set it too low, are they going to call me back mad, I’ve insulted them and I’ve totally screwed up. No you didn’t. You recover from it. It’s okay. And then the opposite is true. Your phone is ringing off the hook because you sent out offers for $5,000 and they are all worth $500. And they are calling you and they can’t wait to sell fast enough. A lot of the people are afraid, well I have to honor that. No you don’t. But I sent them an offer? It’s a purchase agreement, I’m committed. No you’re not. There are six things in there that we all know, and if anybody wants to see our template go get it off our websites. It’s not a secret. But there’s a bunch of things that are in there for you to verify. You have an out, and there’s no reason … And boy have I done this, too.
Jack: I’ve done both of those things multiple times. We don’t too it too much anymore because we’ve got a lot of experience. Both times if I under priced or overpriced, we still bought property.
Jill: Yeah, and there’s no problem calling back. You know what, hi, Mr. Jones? Yes, this is Jill. So I went back and I looked at your property again, and I see why you’re excited about $5,000.
Jack: That’s a great way to put it, Jill.
Jill: You like that? Hey, you know, by golly, I would be too. Because here’s the reality of this property. It’s really worth $50, and here’s why.
Jack: But you already know that Mr. Jones.
Jill: Yeah, Mr. Jones, you already know that.
Jack: So what do you say-
Jill: Have you looked at it lately? [crosstalk 00:11:33] Look, you and I both know there’s no access. It’s on the side of a mountain, and it’s the size of a postage stamp.
Jack: Listen to you with the [inaudible 00:11:45] usually I’m the one who is [inaudible 00:11:51]
Jill: So, yeah, I’m not really interested in $5,000 and I am sorry to break this to you / however, if you were in the ballpark of $500 or 550, and I saw the back taxes on it, too. I saw the $800 of back taxes, which really even makes me less excited, but here’s what number I would pay, and if that interests you, great. If not, I understand. It’s nice talking to you. We’ll stop right here. That’s it.
Jack: Yeah.
Jill: That’s all you do. So you don’t have to be that worried about the pricing. You are not going to get in that much trouble.
Jack: Confidence comes from not being concerned about failing. That’s the takeaway from this whole show.
Jill: That’s good. You are right.
Jack: What’s the worst thing that could happen on a 1,500 unit mailer? Jill just described it. Let’s say you price it wrong. You price it too low, and you get some people that call you back and they are angry. Let me tell you something about the hate. You need it. If you don’t get some people calling back saying, you guys are off your rocker, this is insane that you would send me an offer like this, then you didn’t price it right. It’s very necessary.
I had somebody say to me one time, who raised you? Like it was such a bad thing that I did, that I offered … Oh, excuse me, I offered to buy your property. You don’t like the property, and you don’t like the price. Come on. Crumple the thing up and throw it away like everybody else, except for the five people that I actually bought property from at that price.
Jill: Right.
Jack: What’s the worst thing on the other end? You offer too much, you have a barrel of laugh conversation with 25 people. And you let them down easy, and say, you know what? I made a mistake in the pricing. But I am prepared to offer you X.
That’s why we designed Parsum Fact, where you can sit there in front of a computer or on your phone while you are talking to these people, and you can look at the property and make them an appropriate offer in case the one that you sent out wasn’t exactly right.
There is a lot of talking that goes on in real estate. I’m famous for saying I don’t like talking. There just is.
Jill: Isn’t that funny?
Jack: Alright. If you want people to sign your offer and send it back and just do a deal, send it to escrow and be done with it, you can do that. And here’s how you do that. Send out 10,000 offers instead of 1,500. And the ones that come back in the mail, you buy it. So now you’re going to spend $0.50 an offer to buy some property. Your yield is going to be a lot lower, but if you are really interested in not talking at all and just buying property, then send out more mail. It will happen.
There should be no lack of confidence. The lack of confidence is all in your head.
Jill: Aw.
Jack: That’s it.
Jill: That’s good. You’re right.
Jack: It’s all in your head. Just get the stuff out in the mail.
Jill: It’s true.
Jack: And sit there in front of the mirror and tell yourself this: You are going to fail at this.
Jill: You’re going to make a mistake.
Jack: You are going to fail. Get over it.
Jill: Right.
Jack: Who cares?
Jill: Yep. If you’re not ready for some mistakes, and some good ones.
Jack: Yeah, costly ones.
Jill: Yeah. You will. Well, you’re like, I screwed that up. But you know what, we had this conversation with somebody the other day. Said you know what, you’ll only do that once. You learn.
Jack: Yeah, that’s right, Jill.
Jill: That’s it. You will know, I will always check the back taxes now before I buy a property. Oops, I forgot. That’s okay. You recovered, you learned, and you won’t do it again.
Jack: I’ll tell you, if we had the tools that we had available now when I started. We make this bulletproof if you use all of our tools correctly. We’re about to release Escrow Perfect, which is we close the deal for you. So if you really don’t want to talk to somebody, or you only want to talk to them once, send the deal to us. We’ll close it for you.
Jill: We’ll get it done.
Jack: Yeah. If you have a full time job and you’re scarce on time, this is going to save you a tremendous amount of time and effort. I guess I’ve said it. Just get over it.
Jill: Exactly.
Jack: Failing can be fun. You can laugh at yourself, just like Jill and I do all the time on the show.
Jill: Right.
Jack: If you have a question or you’d like to join us in the next episode … See? I just failed at reading the script.
Jill: Oh no. Look at your self-confidence.
Jack: Did we lose a bunch of listeners?
Jill: Oh no. Probably. Just kidding.
Jack: Join us next.
Jill: Join us in our next episode where we discuss how to behave when you become a millionaire week. Ooh. I love it.
Jack: Let’s read some of those shows next week.
Jill: I love it.
Jack: Here’s the title of the show. There are five shows next week. Millionaire: What to expect. Millionaire: Pay it forward. Millionaire: Define your next goal. How much is enough. Is there any such thing as too much money? Yes. I’ve been there. Millionaire: How to stay on top. Millionaire: Own it.
Jill: I love it. I can’t wait. You are not alone in your real estate ambition.
Jack: Good show, Jill.
Jill: That’s was fun. That’s good stuff.
Jack: Information and inspiration to buy undervalued property.
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