7 Criteria to
Make Massive Profits From Absentee Owners!
By Jason R. Hanson
Listen; before you read any further go grab a
pen and pad of paper, because this is going to be one of the most valuable
articles you've ever read. You're going to learn how to dominate your local
niche of absentee owners and easily make six figures a year from this group.
Now, I'm sure that you know there are several
niches you can target such as absentee owners, free and clear, bankruptcy and
probates. Here's why the most profitable niche to target is absentee owners:
1. There are many statistics which show the
average landlord lasts only 3-5 years. This means that there's always going to
be a huge number of landlords wanting to sell their property (this large
turnover means money in your pocket).
2. Most landlords are amateurs and have no idea what they're doing. They buy
their first rental property as dollar signs dance through their head. They
quickly realize they needed to treat the rental as a real business. Perhaps
they didn't screen tenants very well, or perhaps they've had a vacant property
for months. Whatever the reason, the rental property quickly turns into a
nightmare and they want to quickly off load it to someone like you.
3. Since landlords don't live in the property they have very little emotional
attachment to it. They didn't raise their children there and spend the last 25
years in the house. Because they're not emotionally involved it's much easier
to do business with them.
4. As we know, during the boom several years ago, 25% of home purchases were
second houses. Right now, there are hundreds of thousands of landlords who you
could be assisting.
So, you're probably wondering how to locate and
market to these landlords so you can start making money off of them? Well, my
favorite way to target landlords is through direct mail (letters and
postcards).
The first thing you need to do is decide what
zip codes you're going to invest in. And thanks to technology you can choose to
invest all over the
1. Only houses built after 1950
2. Houses over 1,000 square feet and no more than 2,500
square feet
3. Properties must be at least three bedrooms
4. Only single family houses, town houses, duplexes, triplexes and quads
(absolutely no condos)
5. Houses that are at least 10 years old
6. A total assessed value of under $250,000 (you want houses on the
lower end of the value for your area. In my area it happens to be $250,000,
however, in your area it might be $150,000).
7. Purchase 2,000 names. You need at least 2,000 names if you're serious about
closing deals. The more names you order the better because remember this
business is simply a numbers game. Obviously, the person who sends out 20,000
letters a month is going to close more deals than someone who sends out 1,000
letters a month.
Once you've ordered your list it will be emailed
to you in an excel spreadsheet. Next, you need to plan your marketing campaign.
With absentee owners, you're going to want to mail the list a total of eight
times, sending them mail every 2.5 months. It's extremely important that you
mail the list at least eight times every 2.5 months. On each mailing your
response rates will go up and I know many investors who get 75% of their deals
after the seventh mailing. Think about it this way: Most people don't follow up.
You'll join the top 5% of real estate investors by sending out eight pieces of
mail.
Now, you need to know what to mail these
landlords right? Well, do a combination of letters and postcards. The first
time send a letter, the second time a postcard, the third time a letter (you
get the point). Before you run off and just use any letter or postcard, you
need to have marketing materials that work. Both your letters and postcards
need to have powerful headlines that grab your prospects attention: Here are some
of the headlines from my postcards and letters:
"Would you like to learn how to eliminate
tenant problems forever?"
Are Your Tenants Giving You A Headache?-Here Is Your Prescription For
Eliminating Tenant Hassles Forever!
Sell Your Rental Property And Close In 30 Days
Or Less!
After you have a headline that is going to get
your readers attention, make sure that in the body of the mail piece, you list
all of the benefits or working with you, such as:
-you can eliminate
tenant hassles forever
-you're not a Realtor and don't charge any fees or commissions
-you'll buy their house "as-is"
-you'll close on the date of their choice
-you'll buy the property whether it's tenant occupied or vacant
One of the most important parts of a direct mail
piece is to give a reason for your prospect to respond. This can be a Free
Special Report or Free audio CD. Personally, I prefer the Free Special Report
and the ones that I offer people are:
"The 5 Little Known Ways to Eliminate Tenant Hassles Forever!"
"How to Sell Your House in 11 Days,
Regardless of Your Current Financial Situation"
"The Five Biggest Mistakes You Can Make
When Selling Your House To A Real Estate Investor And
How To Avoid Them"
Don't mail a letter or a postcard if it doesn't
have a strong headline, lists the benefits of working with you and offers
people something free when they respond.
Alright, so you have your lists, you have your
direct mail piece and it's time to send it out. So how do you get your direct
mail in landlords' mailboxes without licking thousands of stamps and driving
yourself crazy? Use click2mail.com. You can upload your postcards and letters
in just a few minutes and you're done (remember, you want to be able to spend
your time the way you want, so automate everything you can). When it comes to
postcards, use the large, yellow card.
In this brief article, I've given you enough
information to start profiting from landlords within the next 30 days. As
always, remember the key to success is implementation (an idea without action
is worthless).
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Jason R. Hanson is the founder of National
Real Estate Investor Month, author of "How to Build a Real Estate
Empire" and mentor to students all across Article Source: http://EzineArticles.com/?expert=Jason_R._Hanson |