Jack of All Marketing…Master of NONE

So it has been a little bit since I have posted last right? All I can say is I am sorry about that but when your full time income is from wholesaling houses and rehabbing houses there is only so much time to sit down and just GIVE AWAY cutting edge real estate investing information…(keep reading for the mini business model I am going to give you)

I bet if you did a poll on the majority of blogs and “gurus” you listen to you will find MOST have not done a deal in YEARS…

Well,anyway on to bigger and better things right? You want some good info so now I am going to give it to ya!

If you are a complete newb to the real estate investing business you are going to want to pay attention to this posting.

You may be thinking to yourself that real estate investing is such a competitive business and how can I ever be successful in such a saturated business?

I will show you how in this post..I am going to give you a real-world-in-the-trenches update on what is going on in the wonderful world of wholesaling.

It is definitely true that there are established investors in your area who have been making it happen for years upon years but this should not discourage you and I will tell you why in a sec.

One thing that I have been reviewing in my business over the last few weeks has been MY marketing for motivated sellers.

A lot of people say that this  business is extremely competitive and they are right.

Do you know why it is competitive?

Because people have found out that this wholesaling houses business works 🙂 !!

I have a deal myself that I have set to close for 12 thousand smackaroonies on Monday (as of right now the deal is closed and I am waiting for my check in the mail) 🙂

So do you think I am satisfied with that??… NO WAY… I need to get some more deals in the pipeline..

How exactly do I do that?

I crank up the marketing!!!

You know it used to be that you could do a few things here and there and you would get flooded with motivated seller calls and quality leads that turned into FAT deals…

But now it is a little different… NOW you have to really focus on your marketing and absolutely CRUSH it

to achieve the same effect (this is probably cuz of people like myself that teach this stuff) …lol

To give you an example I know of a franchise in my market that specialize in marketing and wholesaling houses and while I won’t mention any names–(cough)  shcmomevestors (cough) has been spending over 10k a month in marketing for deals and has not even put a single house under contract for the last couple of months… (I don’t know about you but that is a little freaky to me) … if a national franchise that spends close to thirty thousand bucks a  month in radio, TV, billboard and direct mail can’t put something together… how in the world do you have a ray of hope to make it work?

I am about to tell you how… and this is a constant work in progress for me…

I am sure you have heard that the harder the deal is to find the FATTER the pay check… well it is definitely true… and why are these deals hard to find… because they require painstaking tedious research that most people start to do but cannot finish… that is why most real estate investors never achieve a CONSISTENT deal flow…

They way you have to approach this is kind of like the way you approach building a business in general. Most of the successful people I know that run multiple businesses have found a way to build a business and step out of it and let it run on its own. Then they rinse and repeat..

The key with this as well is to make each business indigenous (big word right).. this simply means self supporting… so the business cash flows or pays for itself.. The business or marketing effort generates 10K a month with expenses of 2K… we take from the 8K a month and invest it right back into the business or form of marketing.

This is what you have to do with your marketing methods… If you don’t you will have lackluster results at best..

So lets look at one simple yet effective method for generating seller leads and apply this principle so that we can achieve consistent results..

The infamous BANDIT SIGNS (please check with your local sign ordinances)

Now I have to admit that I have been very lax when it comes to this form of marketing for a number of reasons. This is not the place to go through them however…

I have to LOL as I am writing this because I am thinking of a great system to implement these in my business again. I find however that it is very easy to get bogged down in the details and just…. well…. NOT DO IT… that is one of the reasons  I have not been that consistent with this form of marketing.

But our goal is to get this setup up so we have MINIMAL involvement… there is NO FREAKIN WAY that I will be out hanging these signs myself. Believe me I have done it and it is NOT FUN!!

How can you get something like that moving on its own? Remember we have to treat it like it is its own little bandit signs business.

In order to get started however we are going to need our own involvement to get things rolling.

1) Bandit Signs (duh… right??)

The best place to get these is to buy them in bulk. Its the best way I know to get them the cheapest. You will have to buy them by the 100’s to get the good pricing though so make sure you are committed here.

If you want to save some money go with the 16X 24 size. Some of the best pricing I have found is at www.PrecisionSignz.com (no that is not an affiliate link)

If you buy 100 of them you can get them for 1.35 a piece which is a great price. When it comes to bandit signs for motivated sellers I think that anything around or over 1.50 is too much money.

2) People to Place the Bandit Signs

Best place to find people to place bandit signs would be craigslist. Do you know how many people are actually looking for work right now? All you have to do is place an ad looking for people who want a part time job placing signs. Get creative with your ad it is definitely going to get you some calls.

I would say the best thing you should do is pay a buck a sign. So if somebody puts out 100 in one night and does it in 2 hours they are getting paid 50 bucks an hour.. If somebody is on the slow side and they can place them in four hours it comes out to 25 bucks an hour. Still not bad for most people.

3) Someone to Manage the People who place the Bandit Signs

Once you have your signs being placed on a consistent basis (which I would say is about 100 or so a week or about 400 a month), you will want to keep your eyes out for one of your sign placers that is really doing a great job and you think will be able to manage another sign placer.

There responsibility will be to map the route to where the signs are going and to make sure the other sign people are doing their job. You can pay your “sign manager” another buck a sign for his time in order to limit your involvement.  Yes you will be paying double for the signs but in order to keep the consistency and organization it is worth it!

Remember all you need is one deal of like 10K  from wholesaling a house and what you are paying to your help really wont even matter.

So hopefully that helps you get an idea of setting up a business system and how if you do this in multiple aspects of marketing you will have a MACHINE.  Marketing like direct mail, post it notes and court house research to name a few.

Also… please know that if you do not get results (deals) RIGHT AWAY you need to keep it going for at least a couple months to let it do its thing… you don’t know how many times I have given up on something because it is “just not working” only to get a 15K deal from it shortly after. Now I have lost all my momentum and have to start all over again. But somehow the 15K check makes me crack a smile 🙂

Ok, so that’s it!

Oh and if you want to check out a really cool and entertaining video on marketing you can go here

Click to check out the Video

My wife would probably kill me for saying this but it would not be such a BAD thing if my marketing had the results these guys did in the Video… 😉

Let me know what you think!

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  • aaron

    What are the numbers (arv, repairs, your contract price) on your wholesale deals?

    The main reason I’m asking is because you seem to consistently get 5 figure wholesale deals. Pretty AMAZING!!!! Thanks for the info1

  • Alex

    Hey Aaron the numbers are all different for each house in each county in each section of the county… lol
    I confused you now didn’t I..
    To give you an example, one of the last deals I did had an ARV of 185 and I contracted it for 75 and sold it for 87K
    It probably needed about 35-40 in work so the investor will end up making good money on it..
    best thing about that lead was that it was from my internet marketing through google..
    You have to approach each deal from a different angle…best advice I can give you is to get to know your market
    that will tell you who is buying and for what.. after a while you will “just know”. Experience definitely has a roll in this.
    Thanks for the comment!