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
United States using the Internet, email and fax. Once you've identified
your zip codes it's time to order your list of absentee owners. The list
company that I use is Melissa Data. When you order your list you'll want to
call them on the phone and have one of their representatives assist you.
Don't order the list over the Internet (you'll see why in a minute). You'll
want to order the list over the phone because there are seven very
important criteria you'll want to follow. So when you have the
representative on the phone, tell him/her that you want to purchase a list
of absentee owners in the following zip codes (name your zip codes) and
then give them the following criteria:
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
Are Your Tenants In Giving You A Headache?-Here Is Your Prescription For
Eliminating Tenant Hassles Forever!
Sell Your Rental Property In 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
"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 http://www.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).