Are you part of a Mastermind group?
If not, you should be. If there isn’t one in your area, start your own.
Anyway, so I’ve been to some great Mastermind groups recently, and I kept getting asked the same question:
What’s working for other investors in other markets?
And that right there is why I LOVE these groups. They’re so valuable… in my groups, everyone is working together and co-wholesaling deals and also sharing information.
So, speaking in generalities—because every market is different—here are some things I’ve noticed that I’d like to share with you…
- Direct mail still works – just not as well as it used to
DM is getting a lot more competitive… mailing to absentee owners definitely doesn’t work as well as it used to.
What’s the solution?
Mail on a bigger scale. Send more direct mail than any other investor.
My good buddy and fellow investor, Tom Kroll, says if you’re averaging $5k profit per deal, you should be spending a minimum of $5k per month on direct mail marketing. So that’s about 10,000 postcards a week.
Not too many people are doing that, folks.
Don’t stop DM—ramp it up. Do more. Consistently. Stick with it, direct mail does work.
- Google Pay-Per-Click is not providing quality leads
So, it used to be that when someone typed in “sell my house now,” it was a person who was really motivated… even if you call them back right away, it seems like there are a lot more tire kickers now.
Now, I’m not saying don’t do PPC—just be aware you might not get the best results. And, I suggest that you only look into doing PPC after you’ve done all the direct mail you can.
- Auction sites are doing really well
So, here’s what I think happened…
The MLS began to get too competitive, so all those investors went to direct mail. Then DM started to get more competitive, so they looked for something else…
That something else is auction sites.
And there’s more than just HUDHomeStore.com and Auction.com. I mean, in any market, you’ll easily find 4, 5, 6 good auction sites…
Just remember, you’ve got to have cash for those or a private money lender if you don’t have the money yourself.
But there’s lots of opportunity on the auction sites. Take a look.
- Networking with agents and property managers
See, because direct mail is drying up a bit, a lot of investors are going back to the MLS to find deals.
So don’t forget about the Realtors…
Search online for properties that are listed for over 180 days and start making offers… but DON’T make blind offers.
Call the listing agent and let them know you’re an investor and you’re interested in the property, and ask for some more info about it.
If it sounds good, tell the Realtor that you’re not represented and they can write up the offer for you and scoop up both sides of the commission. (#EveryoneWins)
And, it’s just common courtesy—to NOT go around the agent and straight to the seller. That goes a long way in this business…
And, you could establish a great working relationship with that agent and continue doing deals together. Tell them that if they come across a deal that they can’t list because it needs too much work, for example, they can call you right up.
You’ll likely buy it for cash, close in a week with no contingencies, and they’ll get the commissions…
So, ask to email the agent your contact info—and BAM! You’ve got their email address and you can follow up with them regularly.
- Finding seller leads on Facebook is super targeted
You know that FB is a little big brothery, right? It’s kind of scary how they know everything we do online… but it also works to our advantage as investors…
My investor friends across the pond in England have said they have good success with this idea… placing ads on FB that target people with interests in:
- payday loans
What you do is put those keywords in when creating your ad, and Facebook will place your ad in front of people who are facing those situations in your target area.
So, that’s what I’ve been seeing and hearing in the investing world these days…
Remember, markets are definitely cyclical but everything evens out eventually. So no matter what you do… it’s crucial that you remain consistent.