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Learn the secrets of using private lenders to fund your real estate deals
For more info visit: http://www.privatelendingfunding.com
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PRIVATE LENDING MINI-COURSE LESSON 1: SOURCES OF FINANCING
There are many sources of financing available for us to use as real estate investors. Being informed of the options available is important for structuring your real estate business.
Conventional Financing - This is the type of financing provided by banks and conventional lenders. It is long term and requires a lot of paperwork and qualifying. In addition, conventional lenders will only let one individual acquire a certain number of properties before they won't finance any more.
Hard Money - This is also referred to as rehab financing. It is short term and high interest and is intended to be used only for acquiring and rehabbing a property. It usually requires less qualifying on the part of the investor because it is loaned at a very low LTV.
Creative Financing - This is a blanket term for techniques such as lease options, subject to, and owner financing that will allow you to acquire control of a property without putting money down. These techniques are great when you can use them but are not applicable when the seller needs to sell for cash.
Revolving Credit Sources - These are sources such as business lines of credit and credit cards. While these can be flexible sources of financing, the interest rates tend to be high, and they require monthly payments to be made to service the debt. They also limit you to the size of your available credit line.
Business Partners - You can partner up with a wealthy individual or funding partner to get the cash for your deals, if you are willing to share control of your business.
Cash - If you have sufficient personal cash you can use it in your real estate deals, but why not put it into more passive investments and leverage the power of other people's money in your real estate business?
Private Lenders - These are private individuals with money to lend for investment purposes. They may or may not be wealthy but they do have excess capital available, over and above what they need to live on, that is earning a lower return than that which you are willing to offer. The advantage to working with private lenders is that you can set the terms by which you borrow.
Monday, June 30, 2008
Tuesday, June 24, 2008
S&P/Case-Shiller U.S. Home-Price Index Falls 14.4%
The headline number is down by 14% but when you look at the details there is some good news (not much but some) - new home sales are up in April and Charlotte is actually up for the last 12 months - however the bottom is not in for the real estate market
Mike
By Bob Willis
May 27 (Bloomberg) -- Home prices in 20 U.S. metropolitan areas fell in March by the most in at least seven years, pointing to weakness in the housing market that will constrain economic growth.
The S&P/Case-Shiller home-price index dropped 14.4 percent from a year earlier, more than forecast and the most since the figures were first published in 2001. The gauge has fallen every month since January 2007.
Prices continue to slide as record foreclosures put more homes on the market and stricter lending standards make it harder to get loans. Falling home values are slowing consumer spending, threatening to halt the six-year expansion.
``There is excess supply, weakening demand, prices are falling and will continue to fall,'' said Kevin Logan, senior market economist at Dresdner Kleinwort in New York. ``Housing sales are still trending lower.''
Prices dropped 2.2 percent in March from a month earlier, after a 2.6 percent decline in February, the report showed. The figures aren't adjusted for seasonal effects, so economists prefer to focus on year-over-year changes instead of month-to- month variations.
New-Home Sales Rise
A government report showed new-home sales unexpectedly rose in April after readings for the prior month were revised down. Sales increased 3.3 percent to an annual pace of 526,000 from a 509,000 rate the prior month that was the lowest in 17 years, the Commerce Department said today in Washington.
Another report from the Conference Board indicated confidence among U.S. consumers fell this month to the lowest level in more than 15 years.
Treasuries fell, pushing yields higher. The benchmark 10- year note yielded 3.91 percent as of 10:09 a.m. in New York, up 6 basis points. Stocks were higher.
The index was forecast to drop 14 percent following a 12.7 percent drop in February, according to the median estimate of 9 economists surveyed by Bloomberg News. Estimates ranged from declines of 12.9 percent to 15.1 percent.
The group's 10-city composite index, with a history back to 1987, fell 15.3 percent in the 12 months ended in March, also the most ever.
Charlotte Up
Nineteen of the 20 cities in the index showed a year-over- year decrease in prices for March, led by a 26 percent slump in Las Vegas and a 25 percent decline in Miami. Charlotte was the only area showing a gain with a 0.8 percent increase.
Compared with February, homes in 18 of 20 areas covered dropped in value.
Prices remained under pressure in April, a report last week showed. The median price of existing homes sold last month fell 8 percent from April 2007, the National Association of Realtors said. Existing home sales fell 1 percent and were 33 percent below their peak in September 2005. The number of unsold homes rose to its second-highest level on record.
Most economists and investors say housing prices have further to fall after more than doubling in the early part of the decade to a peak in 2006.
``The decline in housing prices is still accelerating and is going to overshoot on the downside the same way it overshot on the upside,'' billionaire investor George Soros told a conference at the London School of Economics last week. ``We are not yet halfway in the decline in housing prices.''
Recovery in Demand
The slide in prices may have contributed to a recovery in demand in some areas. Sales in the San Francisco region jumped 29 percent in April from the previous month, the biggest March- to-April gain in at least 20 years, according to DataQuick Information Systems in San Diego. The median price was $518,000, down 22 percent from the $655,000 peak in June and July 2007, the real estate data company said.
The two-year housing recession has reverberated across the economy, hurting job growth, investments and consumer spending. Falling home prices leave Americans with less equity to tap for spending on appliances, cars or home-improvement projects.
Retailers have been hard hit. Home Depot Inc., the largest home-improvement retailer, last week said first-quarter profit fell 66 percent as consumers cut back on remodeling.
``The housing and home improvement markets remained difficult in the first quarter,'' Chief Executive Officer Frank Blake said in a statement. ``In fact, conditions worsened in many areas of the country.''
Declining home prices also leave Americans with mortgage balances that are more than their houses are worth, pushing up new foreclosures to an all-time high at the end of 2007, according to the Mortgage Bankers Association. Record foreclosures threaten to drag out and deepen the downturn.
The government is seeking to reduce the foreclosures and limit financial losses. Lawmakers at the Senate Banking Committee last week approved legislation to create a program at the Federal Housing Administration to insure as much as $300 billion in mortgages for struggling borrowers after lenders agree to reduce the loan amount.
Mike
By Bob Willis
May 27 (Bloomberg) -- Home prices in 20 U.S. metropolitan areas fell in March by the most in at least seven years, pointing to weakness in the housing market that will constrain economic growth.
The S&P/Case-Shiller home-price index dropped 14.4 percent from a year earlier, more than forecast and the most since the figures were first published in 2001. The gauge has fallen every month since January 2007.
Prices continue to slide as record foreclosures put more homes on the market and stricter lending standards make it harder to get loans. Falling home values are slowing consumer spending, threatening to halt the six-year expansion.
``There is excess supply, weakening demand, prices are falling and will continue to fall,'' said Kevin Logan, senior market economist at Dresdner Kleinwort in New York. ``Housing sales are still trending lower.''
Prices dropped 2.2 percent in March from a month earlier, after a 2.6 percent decline in February, the report showed. The figures aren't adjusted for seasonal effects, so economists prefer to focus on year-over-year changes instead of month-to- month variations.
New-Home Sales Rise
A government report showed new-home sales unexpectedly rose in April after readings for the prior month were revised down. Sales increased 3.3 percent to an annual pace of 526,000 from a 509,000 rate the prior month that was the lowest in 17 years, the Commerce Department said today in Washington.
Another report from the Conference Board indicated confidence among U.S. consumers fell this month to the lowest level in more than 15 years.
Treasuries fell, pushing yields higher. The benchmark 10- year note yielded 3.91 percent as of 10:09 a.m. in New York, up 6 basis points. Stocks were higher.
The index was forecast to drop 14 percent following a 12.7 percent drop in February, according to the median estimate of 9 economists surveyed by Bloomberg News. Estimates ranged from declines of 12.9 percent to 15.1 percent.
The group's 10-city composite index, with a history back to 1987, fell 15.3 percent in the 12 months ended in March, also the most ever.
Charlotte Up
Nineteen of the 20 cities in the index showed a year-over- year decrease in prices for March, led by a 26 percent slump in Las Vegas and a 25 percent decline in Miami. Charlotte was the only area showing a gain with a 0.8 percent increase.
Compared with February, homes in 18 of 20 areas covered dropped in value.
Prices remained under pressure in April, a report last week showed. The median price of existing homes sold last month fell 8 percent from April 2007, the National Association of Realtors said. Existing home sales fell 1 percent and were 33 percent below their peak in September 2005. The number of unsold homes rose to its second-highest level on record.
Most economists and investors say housing prices have further to fall after more than doubling in the early part of the decade to a peak in 2006.
``The decline in housing prices is still accelerating and is going to overshoot on the downside the same way it overshot on the upside,'' billionaire investor George Soros told a conference at the London School of Economics last week. ``We are not yet halfway in the decline in housing prices.''
Recovery in Demand
The slide in prices may have contributed to a recovery in demand in some areas. Sales in the San Francisco region jumped 29 percent in April from the previous month, the biggest March- to-April gain in at least 20 years, according to DataQuick Information Systems in San Diego. The median price was $518,000, down 22 percent from the $655,000 peak in June and July 2007, the real estate data company said.
The two-year housing recession has reverberated across the economy, hurting job growth, investments and consumer spending. Falling home prices leave Americans with less equity to tap for spending on appliances, cars or home-improvement projects.
Retailers have been hard hit. Home Depot Inc., the largest home-improvement retailer, last week said first-quarter profit fell 66 percent as consumers cut back on remodeling.
``The housing and home improvement markets remained difficult in the first quarter,'' Chief Executive Officer Frank Blake said in a statement. ``In fact, conditions worsened in many areas of the country.''
Declining home prices also leave Americans with mortgage balances that are more than their houses are worth, pushing up new foreclosures to an all-time high at the end of 2007, according to the Mortgage Bankers Association. Record foreclosures threaten to drag out and deepen the downturn.
The government is seeking to reduce the foreclosures and limit financial losses. Lawmakers at the Senate Banking Committee last week approved legislation to create a program at the Federal Housing Administration to insure as much as $300 billion in mortgages for struggling borrowers after lenders agree to reduce the loan amount.
Sunday, June 15, 2008
URGENT - REI Summit 2008 - I am Speaking
I've got something special for you, but it's rather time-sensitive:
On June 19th, at approximately 9 PM (EST), my friend and millionaire real estate coach, Susan Lassiter-Lyons, is kicking off the 2008 REI Summit Teleseminar series… and it's going to be a real eye-opener.
To quote Susan:
"This is your once in a lifetime opportunity to listen in to the most profitable ways to position your REI business for massive success in 2008 from 11 of the world's foremost real estate investment strategists and authorities all FREE!"
---------------------------------------------------
Here's where you can
sign up:http://www.reisummit2008.com
---------------------------------------------------
You see, if you're like most of us, you've probably had your doubts about REI and the "state of the market" over the past 12 months.
Maybe you even "hung it up" and went back to your day job for a bit… until things settle down.
Well, I'm here to tell you…
+++THIS TELESEMINAR COULD CHANGE THINGS FOR YOU+++
Look, when you did your first deal, did you give up at the first sign of trouble?
Heck no.
And if you would have, you wouldn't be where you are today.
Well, it's the same with changes in the market.
You simply side-step the hurdles, and adapt to what DOES work. And thankfully, Susan has lined up 12 speakers (including ME) who are absolute experts in this market right now.
For YOU to learn from and "replicate"
---------------------------------------
Here's where it
all starts:http://www.reisummit2008.com
---------------------------------------
In addition to learning which REI strategies are working RIGHT NOW, you'll also learn:
+++ How to Eliminate the Banks in 2008...and Raise All the Private Money You Could Ever Need for Your Investments!
+++ How to Create a Continuous Flow of Motivated Sellers Online and Off for Your Real Estate Business for Next to Nothing!
+++ How to Pay Off a Mortgage in as Little as 3 to 9 Years, Without Increasing Your Monthly Expenses!
+++ How to Find Hundreds of Discounted, Competition Free Properties in Your Own City!
+++ How to Break Into Commercial Investing Without Fear! (and without cash or credit)
+++ And much MUCH more!
------------------------------------------
Head on over and
sign up now:http://www.reisummit2008.com
------------------------------------------
But you have to act TODAY …
Here's why:A similar email is being sent to 45,000 OTHER savvy real estate investors just like you.
So what's the big deal, you ask?
Well, unless something changes, there are only about 1,000 spaces available for each summit call, and that means you'll have to fight and kick your way over RIGHT NOW to make sure you get a spot.
--------------------------------
Here's the link
again:http://www.reisummit2008.com
-------------------------------
I hope you'll take this opportunity to join Susan (and myself!) on this one-time only event.
You can get the full details and list of speakers here:
http://www.reisummit2008.com/
I'll talk to you soon
Mike Lautensack
http://realestatewealthtoday.com/
On June 19th, at approximately 9 PM (EST), my friend and millionaire real estate coach, Susan Lassiter-Lyons, is kicking off the 2008 REI Summit Teleseminar series… and it's going to be a real eye-opener.
To quote Susan:
"This is your once in a lifetime opportunity to listen in to the most profitable ways to position your REI business for massive success in 2008 from 11 of the world's foremost real estate investment strategists and authorities all FREE!"
---------------------------------------------------
Here's where you can
sign up:http://www.reisummit2008.com
---------------------------------------------------
You see, if you're like most of us, you've probably had your doubts about REI and the "state of the market" over the past 12 months.
Maybe you even "hung it up" and went back to your day job for a bit… until things settle down.
Well, I'm here to tell you…
+++THIS TELESEMINAR COULD CHANGE THINGS FOR YOU+++
Look, when you did your first deal, did you give up at the first sign of trouble?
Heck no.
And if you would have, you wouldn't be where you are today.
Well, it's the same with changes in the market.
You simply side-step the hurdles, and adapt to what DOES work. And thankfully, Susan has lined up 12 speakers (including ME) who are absolute experts in this market right now.
For YOU to learn from and "replicate"
---------------------------------------
Here's where it
all starts:http://www.reisummit2008.com
---------------------------------------
In addition to learning which REI strategies are working RIGHT NOW, you'll also learn:
+++ How to Eliminate the Banks in 2008...and Raise All the Private Money You Could Ever Need for Your Investments!
+++ How to Create a Continuous Flow of Motivated Sellers Online and Off for Your Real Estate Business for Next to Nothing!
+++ How to Pay Off a Mortgage in as Little as 3 to 9 Years, Without Increasing Your Monthly Expenses!
+++ How to Find Hundreds of Discounted, Competition Free Properties in Your Own City!
+++ How to Break Into Commercial Investing Without Fear! (and without cash or credit)
+++ And much MUCH more!
------------------------------------------
Head on over and
sign up now:http://www.reisummit2008.com
------------------------------------------
But you have to act TODAY …
Here's why:A similar email is being sent to 45,000 OTHER savvy real estate investors just like you.
So what's the big deal, you ask?
Well, unless something changes, there are only about 1,000 spaces available for each summit call, and that means you'll have to fight and kick your way over RIGHT NOW to make sure you get a spot.
--------------------------------
Here's the link
again:http://www.reisummit2008.com
-------------------------------
I hope you'll take this opportunity to join Susan (and myself!) on this one-time only event.
You can get the full details and list of speakers here:
http://www.reisummit2008.com/
I'll talk to you soon
Mike Lautensack
http://realestatewealthtoday.com/
Saturday, June 7, 2008
Should I Buy Another Rental Property
In my last post I discussed the opportunity costs associated with making investments. Inevitably you are forfeiting one opportunity in favor of another. I'm I'm seriously contemplating pulling money out of the stock market in order to invest in my second rental property - despite the fact that I'm young, that I just bought my first rental 4 months ago, and that I'd be putting a serious dent in my liquidity.
Analyzing opportuntiy costs is only relevant in terms of what risks and potential upside the new opportunity has to offer. So here is specifically what I'm considering:
WHAT I'D GET:
My realtor let me know about a development of new construction duplexes and single family homes in a rapidly growing and developing suburb about 20 minutes away from where I live. They are brand new 3 bedroom 2 bath units on each side with an attached 2 car garage, granite counters, nice appliances, full size washer dryer connections, the works. A recent appraisal for the builder valued each side at $124K for a total deplux value of $248K.
The rent would be $1,150 on each side, for a total of $2,300 per month. Cash flow would be $466 per month after mortgage/tax/ins and HOA (for lawn care) but before vacancies and maintenance (this assumes a 20% down payment and an interest rate of 7%).
Maintenance costs would be minimal for years, given that the units are brand new and warranties will be in place for everything. And vacancies should be minimal; apparently people are lining up to lease these units; some that aren't even finished are pre-leased to tenants. And the area population and job market is growing at a sharp pace.
WHAT IT WOULD COST:
The builder's price is fixed and non-negotiable (allegedly) at $229,000 per duplex. Assuming a 20% downpayment I would have to put down $45,800. Sure, I could put down less, but that might make my rate higher, and it would affect my cash flow as well. Plus I'd have to pay PMI. Including closing costs and miscellaneous start-up costs, I'd count on $50,000 out of pocket for the purchase.
There are 6 properties left out of approximately 40 that were built. You must buy the whole duplex, though the units can subsequently be sold individually as single family residences. Additionally, there's a property management company you can (but don't have to) use who are charging a relatively low 5.5% of gross rent for that development. If I ever did move or get sick of landlording, I could get them to manage it and still at least breakeven.
So the question is - where is my money better off??
RUNNING THE NUMBERS
Stocks: Assuming 8% annual appreciation, that $50,000 would grow to $54,000 in one year, $73,466 in five years, and 107,946 in 10 years. In the meantime I literally wouldn't have to do a thing - no research, no maintenance costs, no stress (unless the market tanks).
Real Estate: Assuming 4% annual property appreciation, breakeven rent, and a 30 yr fixed mortgage at 7%, I'll start with $45,800 in equity - a $229M property on which I owe $183.2K (until I get an appraisal of my own I'll assume the property is worth what I pay, not what the builder's appraisal says). After one year I'd have $56,756 in equity, after 5 years I'd have $106,160, and after 10 years I'd have $181,762.
And the winner is...Based on these assumptions my $50,000 investment would be worth more through real estate in 1, 5, and 10 years based on appreciation alone. This is the power of leverage. You can quibble over my assumptions, but 4% for real estate over a decade is conservative, especially in the Dallas - Fort Worth area. And 8% for stocks is a big fat maybe; if stocks average 6% a year over the next decade, my $50K will turn into only $89K - making the real estate even more appealing.
Naturally I don't invest in real estate solely for appreciation - in fact I never plan to sell my properties, so the appreciation is moot. The real upside is the cash flow - which in this case starts out positive and should only increase as rents go up and my mortgage payment stays fixed over the years. Once the property is paid off then it really turns into gravy.
Even after assuming 5% vacancy and 2% maintenance, my cash flow would be $300 a month. That's $3,600 a year. That's a 7.2% return on my $50K in the first year alone, not including the above mentioned property appreciation and principal reduction. Plus that figure will increase with rents (and in light of the foreclosure situation, demand for rent in this demographic is likely to remain very strong and/or increase).
Note: I haven't considered taxes for purposes of this superficial analysis. But suffice it to say that the tax advantages that come with purchasing a rental are very enticing. Check out a previous post for the top 10 rental property tax deductions.What do you think? Any insights as to what I may not be considering?
Analyzing opportuntiy costs is only relevant in terms of what risks and potential upside the new opportunity has to offer. So here is specifically what I'm considering:
WHAT I'D GET:
My realtor let me know about a development of new construction duplexes and single family homes in a rapidly growing and developing suburb about 20 minutes away from where I live. They are brand new 3 bedroom 2 bath units on each side with an attached 2 car garage, granite counters, nice appliances, full size washer dryer connections, the works. A recent appraisal for the builder valued each side at $124K for a total deplux value of $248K.
The rent would be $1,150 on each side, for a total of $2,300 per month. Cash flow would be $466 per month after mortgage/tax/ins and HOA (for lawn care) but before vacancies and maintenance (this assumes a 20% down payment and an interest rate of 7%).
Maintenance costs would be minimal for years, given that the units are brand new and warranties will be in place for everything. And vacancies should be minimal; apparently people are lining up to lease these units; some that aren't even finished are pre-leased to tenants. And the area population and job market is growing at a sharp pace.
WHAT IT WOULD COST:
The builder's price is fixed and non-negotiable (allegedly) at $229,000 per duplex. Assuming a 20% downpayment I would have to put down $45,800. Sure, I could put down less, but that might make my rate higher, and it would affect my cash flow as well. Plus I'd have to pay PMI. Including closing costs and miscellaneous start-up costs, I'd count on $50,000 out of pocket for the purchase.
There are 6 properties left out of approximately 40 that were built. You must buy the whole duplex, though the units can subsequently be sold individually as single family residences. Additionally, there's a property management company you can (but don't have to) use who are charging a relatively low 5.5% of gross rent for that development. If I ever did move or get sick of landlording, I could get them to manage it and still at least breakeven.
So the question is - where is my money better off??
RUNNING THE NUMBERS
Stocks: Assuming 8% annual appreciation, that $50,000 would grow to $54,000 in one year, $73,466 in five years, and 107,946 in 10 years. In the meantime I literally wouldn't have to do a thing - no research, no maintenance costs, no stress (unless the market tanks).
Real Estate: Assuming 4% annual property appreciation, breakeven rent, and a 30 yr fixed mortgage at 7%, I'll start with $45,800 in equity - a $229M property on which I owe $183.2K (until I get an appraisal of my own I'll assume the property is worth what I pay, not what the builder's appraisal says). After one year I'd have $56,756 in equity, after 5 years I'd have $106,160, and after 10 years I'd have $181,762.
And the winner is...Based on these assumptions my $50,000 investment would be worth more through real estate in 1, 5, and 10 years based on appreciation alone. This is the power of leverage. You can quibble over my assumptions, but 4% for real estate over a decade is conservative, especially in the Dallas - Fort Worth area. And 8% for stocks is a big fat maybe; if stocks average 6% a year over the next decade, my $50K will turn into only $89K - making the real estate even more appealing.
Naturally I don't invest in real estate solely for appreciation - in fact I never plan to sell my properties, so the appreciation is moot. The real upside is the cash flow - which in this case starts out positive and should only increase as rents go up and my mortgage payment stays fixed over the years. Once the property is paid off then it really turns into gravy.
Even after assuming 5% vacancy and 2% maintenance, my cash flow would be $300 a month. That's $3,600 a year. That's a 7.2% return on my $50K in the first year alone, not including the above mentioned property appreciation and principal reduction. Plus that figure will increase with rents (and in light of the foreclosure situation, demand for rent in this demographic is likely to remain very strong and/or increase).
Note: I haven't considered taxes for purposes of this superficial analysis. But suffice it to say that the tax advantages that come with purchasing a rental are very enticing. Check out a previous post for the top 10 rental property tax deductions.What do you think? Any insights as to what I may not be considering?
Wednesday, June 4, 2008
Business Cards! Learn the 10 Secrets Every Successful Real Estate Investor Must Knows To Make An Ordinary Business Card Into A Marketing Machine!
The purpose of any business card is to get potential sellers to call you. It is not to impress your family and friends, show off creative art work or flash an impressive title you gave yourself. But simply to get motivated sellers to call or email you that they are interested in learning more about how you may be able to solve their real estate problems.
Here are 10 things every real estate investor should include on their business card to be truly effective in getting motivated sellers to call.
1. Business cards should always be two-step marketing; offering a FREE Report or FREE Consulting in exchange for them calling, emailing or going to your website. You cannot make a direct sale with a business card. It is only the first contact in the sales process. You are simply trying to get the potential seller to call, email or visit your website where you can capture their contact information for future follow up.
2. The business card must feature your Unique Selling Proposition (“USP”) as a headline such as “We Buy Houses – FAST” or “How to buy a new home without bank qualifying or a large down payment.” Be compelling with the USP and it will attract attention. The worse thing you can do is to bore your prospect with your headline.
3. The FREE offer or FREE consulting should be of such value that the potential seller actually treats the card like a “gift card” versus a business card. If they do not take immediate action, they will actually make a mental note to save the card for later use if the offer is compelling enough.
4. Attract attention with a business card by making it stand out, such as a $100 bill or use bright fluorescent yellow or orange card stock. You can also make your card stand out by making it oversized, an odd shape or with rounded corners. Again, do things that make your card stand out from other business cards.
5. Tell people what you have to offer, such as a full price offer, quick sale or take over back payments – but always put it terms of benefits to the prospect. Tell them what’s in it for them, and not all about you and the awards you have won.
6. Provide multiple ways to contact you including cell phone, office, fax, toll-free, email, website and snail mail address. Not everyone prefers to communicate in the same way, so be sure to allow them their preferred method.
7. Add social proof by including testimonials from customers, sellers, tenants, or anyone in your network. Just be sure it shows a great customer experience and is clear and concise.
8. Do not waste space telling people how great you are, how long you have been in business, how you offer “great service”, announce an award you won or show a photo of yourself. These are all a waste of valuable space. People do not care about this stuff. They want to know how you are going to help them solve their own problems.
9. Tell people exactly what to do next. Do not assume they will figure it out on their own. Tell to them to “Call xxx-xxx-xxxx” or “Visit http://www.xxxxxxxx.com/ for your FREE Report!”. You can also add a post script such as P.S. Don’t forget to get my FREE Report!
10. Lastly, the single most important thing to do with business cards is to get them out to potential sellers. I have never seen a business card create any business sitting in its original box.
About the Author:
Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lender PowerPoint Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Real Estate Wealth Today or visit our blog at Real Estate Investment Blog.
Here are 10 things every real estate investor should include on their business card to be truly effective in getting motivated sellers to call.
1. Business cards should always be two-step marketing; offering a FREE Report or FREE Consulting in exchange for them calling, emailing or going to your website. You cannot make a direct sale with a business card. It is only the first contact in the sales process. You are simply trying to get the potential seller to call, email or visit your website where you can capture their contact information for future follow up.
2. The business card must feature your Unique Selling Proposition (“USP”) as a headline such as “We Buy Houses – FAST” or “How to buy a new home without bank qualifying or a large down payment.” Be compelling with the USP and it will attract attention. The worse thing you can do is to bore your prospect with your headline.
3. The FREE offer or FREE consulting should be of such value that the potential seller actually treats the card like a “gift card” versus a business card. If they do not take immediate action, they will actually make a mental note to save the card for later use if the offer is compelling enough.
4. Attract attention with a business card by making it stand out, such as a $100 bill or use bright fluorescent yellow or orange card stock. You can also make your card stand out by making it oversized, an odd shape or with rounded corners. Again, do things that make your card stand out from other business cards.
5. Tell people what you have to offer, such as a full price offer, quick sale or take over back payments – but always put it terms of benefits to the prospect. Tell them what’s in it for them, and not all about you and the awards you have won.
6. Provide multiple ways to contact you including cell phone, office, fax, toll-free, email, website and snail mail address. Not everyone prefers to communicate in the same way, so be sure to allow them their preferred method.
7. Add social proof by including testimonials from customers, sellers, tenants, or anyone in your network. Just be sure it shows a great customer experience and is clear and concise.
8. Do not waste space telling people how great you are, how long you have been in business, how you offer “great service”, announce an award you won or show a photo of yourself. These are all a waste of valuable space. People do not care about this stuff. They want to know how you are going to help them solve their own problems.
9. Tell people exactly what to do next. Do not assume they will figure it out on their own. Tell to them to “Call xxx-xxx-xxxx” or “Visit http://www.xxxxxxxx.com/ for your FREE Report!”. You can also add a post script such as P.S. Don’t forget to get my FREE Report!
10. Lastly, the single most important thing to do with business cards is to get them out to potential sellers. I have never seen a business card create any business sitting in its original box.
About the Author:
Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lender PowerPoint Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Real Estate Wealth Today or visit our blog at Real Estate Investment Blog.
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