Don’t Forget The Simple Things!

Every real estate investor knows that having a website is important. Having more than one website is much better. One for sellers, buyers, private money lenders and each niche of the business presents you as much more knowledgeable and professional.

The technology today makes it so much easier for real estate investors to build a website without having much html (programming code) knowledge at all.  In fact, more real estate investors are building their own websites than ever before.

I’m a real estate investor and marketer and I visit a lot of real estate investor websites to see how real estate investors use their own website as a lead generation gathering tool.  Of all the problems I see, one of the main problems would have to be, not bringing the viewer to a “definite conclusion.” This will always kill their conversions.

Not Having A “Call To Action” Is A Conversion Killer!

Too many things happening on a web page and poor design are also a conversion killer. Don’t make it confusing for the viewer. When someone arrives on your website, according to the research that’s been done, you’ve only got about three seconds to “capture” their attention and make them continue on. If they read the content there and decide that they’d like to get in touch with you, do you have a “clear call to action” for that visitor to take.

Make Your “Call To Action” VERY Clear…

Put up a big colored button on there that says “Click To Get Your FREE Report” or “Click Here To Sell Your House.”

People usually won’t read everything on the page. They scan. Attention spans are short, and you need to capture their attention within that first three seconds. Along with a big colored button, spell it out what you want them to do, with a strong call to action. This will increase your conversions greatly.

Only Make One Offer Per Page…

Be clear and don’t give them several choices. If someone has to make a choice, even if it’s something as simple as telling them to contact you by phone, email or sign up form, they’ll be less likely to take action. Why? Because they’ll have to make a choice between calling you, emailing you or filling out the form. People don’t want to have to choose when they’re tired and looking for something easy.

Use the standard form on your page that only asks them for their name and email address. Make sure you tell them that their info will be safe and that you’ll NEVER share or distribute their information with anyone. That way, they’ll take the action of contacting you and you can follow up with them.

The Details Matter…

There are so many “details” involved in a great real estate investor website that it’s easy to leave out any one of them. I do know some html code, (not a programmer by a long shot), but I still prefer avoiding the hassle and time it takes to really do it right.

There is one company that has been a little under the radar with such a top notch product, but I believe it will blow the others out of the water when it comes to “features and price.” You can see what I’m talking about here.

There are too many other things for a real estate investor to be thinking about, without having to put all his/her websites, landing pages, forms etc. together. Let the pro’s do that and you can focus on making money! Happy investing!

Great Website Offer HERE

Probate Investing Is Gold!

What Exactly Is Probate Real Estate Investing?

When a person dies, their estate – all their worldly belongings – often goes into a probate court where a judge appoints an “Executor” to oversee the administration of the estate. It is the Executor’s job to make sure that the belongings are divided fairly, according to the decedent’s wishes. Depending on the state, the judge may also give the Executor different levels of power.
Why Are The Owners Of Probate Property Any More Motivated Than Others?

Many times, when an heir (relative or family member) inherits property, they inherit a burden. There are estate taxes to pay, repairs that have to be made, in some cases a mortgage or second mortgage that has to be kept up to date. These are all expenses to them. Ready cash may be more important to them.

Also, there are often multiple ‘heirs’, some may live far away, and you have a situation where selling the house is the best option, sometimes the only option to make sure that everyone gets their fair share of the estate.
Is It Legal To Sell Property That Is Being Probated?

In most cases, the Executor has the power to make a decision to sell – as long as he has the agreement of all the heirs to the estate. In some cases, he/she may also need the permission of the court, but even if that happens, the agreement of all the heirs will usually be all the judge needs to approve a sale of real estate. Some states require that the property be listed through a licensed realtor.

If you’re looking for a great market of motivated home sellers who are most often willing to sell at a deep discount — a market where you’ll have little to no competition, then probate real estate investing is your answer!

Many investors agree, probate real estate buys are the most profitable area of real estate investing.
How Do I Find Properties In Probate?

Wills in probate are a matter of public record. A little research at your local courthouse will get you a list of all wills present for probate. Research to find properties whose owners are eager to sell, and sell quickly.
How Do I Contact People About Buying Their Inherited Property?

Unlike foreclosure sales, where the owners are being forced to sell when they don’t want to, many heirs are eager to sell their property quickly so that they can use the cash realized. You can send out letters or postcards, make a phone call, and even pay a personal visit. Just keep in mind that you are offering a solution that they may not have considered – ready cash. In many cases, they’ll be happy to accept an offer for as little as 75% of the market value of the house just to get it sold quickly, and will do anything they need to do to help the sale go through.
HERE’S AN ACTUAL CASE STUDY: One real estate investor, claimed a student he mentored, would make over $400,000 on a single probate real estate deal this year.

“She mailed out a few probate letters and found the owner of a free and clear house he inherited. He complained about having to maintain the property and he really wanted to sell it now but the market was slow. The house was worth about $250,000 and needed only minor clean up. It has a good floor plan and sits on a small lake in a desirable residential community.

Since the house was free and clear, she offered to buy the house for $200,000 with terms to pay him $1000 a month until paid. Because the house needed a little work and she needed time to find a buyer, payments would begin 90 days after closing. You read that right, she asked for the payments to begin 3 months after closing and he agreed. Do you see what happens when you ask? You can negotiate anything!”

Her plan is to rent this property at $1300 a month for the next 10 years and then sell it with 40 year owner financing for about $350,000. In that time, rents and values will rise and by that time she will only owe the original seller $80,000 and have a house worth $350,000. She’ll have created $270,000 in equity. And when she sells it for $350,000 with the owner financing it, she’ll collect over $2,500 a month but only pay out $1,000 a month. That’s right; she will clear about $18,000 a year for about 7 years. Once the underlying mortgage is paid off, she will still collect $2,500 a month in revenue with no outgoing payment. That’s $30,000 income a year for the remaining 29 years.

But let’s say her buyer sells the property in 80 months, which is the same time the underlying mortgage is paid off. It would look something like this:

• Rent spread first 10 years $ 15,250*

• Interest spread next 80 months $120,000

• Remaining equity due $322,563* *

Total $457,813

After taxes & insurance, assumes a 3% annual rent increase

Based on a 7.75% interest rate paid by the buyer

A couple other benefits include the fact that her profit will be taxed at the long term capital gains rate. Her other income will be offset by the expenses and depreciation during the period she holds the property as a rental, and she now has an excellent income stream to supplement her retirement. That’s what I call maximizing her intellectual capital!

If you’re interested in Probate Real Estate Investing, I recommend you check out Ron’s material. HERE It will give you what you need to jump into the Probate biz.

Depending on the complexities and circumstances, probate can last between six months to three years. If the decedent has an outstanding mortgage on their real estate holdings, the estate is responsible for making payments. Insurance, taxes and utilities must be paid through the estate, as well as property maintenance. The bills keep rolling in as far as that goes and now the executor of the estate is responsible.

Probate real estate investing provides an option to beneficiaries who are struggling to make ends meet, facing the constant upkeep of a property. This is particularly true for estates which are managed by a probate executor who resides out of town. Property maintenance and mortgage payments can cause tremendous financial burden for estate administrators.

Investing in probate real estate can yield a nice return on investment. Usually, real estate can be purchased well-below current market value when beneficiaries are in need of cash. Purchasing probate real estate doesn’t require special training. However, real estate investors who engage in purchasing probate properties should have strong communication skills and a strong sense of compassion. Probate investors work with people who have lost someone they loved. Therefore, it’s important to approach estate administrators in a kind and gentle manner. It’s a little different than foreclosures. They actually want to talk to you.

When an estate is placed into probate it becomes a matter of public record. The first step of probate real estate investing is to visit the local courthouse or get a list from a reliable company that provides current info. If you’re short on funds, you can locate potential real estate deals by researching probate records yourself. In most cases, the decedent will have executed a Last Will and Testament which outlines how they would like their property and personal belongings distributed.

This can be downloaded as a FREE eBook “Probate With Marketing Gold”
which includes the resource list: Click HERE

The 5 Danger Words NOT to Use in Advertising

Private Lending for Real Estate Investors: Learn the 5 Danger Words NOT to Use in Advertising…

We’re going to learn the five words NEVER to use with your Private Lending marketing pieces. There have been cases out there where a state SEC has interpreted these words to be fraudulent statements.

Let’s go through the five words and why they could potentially be misinterpreted.

Guarantee/Guaranteed

The first of the five words that we should not be using is guarantee or guaranteed. You are not guaranteeing these investments with a personal guarantee. So don’t use the word guaranteed. The only person that can guarantee anything is the US Federal Government.

I would stay away from the word in pretty much all contexts, unless you’re talking about something completely different, meaning, “I guarantee to call you back in 24 hours. I guarantee to send the report to you in 24 hours. I guarantee to provide you with a great dinner at the seminar.” That’s all fine. That has nothing to do with what we’re talking about.

Low Risk

The word “low risk” is also something to stay away from. Low risk could be construed as being like a CD or money market. It could be interpreted to be a fraudulent statement.

Obviously, everybody believes that these types of private loans are fairly safe. I understand and they are for the most part relatively low risk. However, low risk may be interpreted by the other person as meaning, “I thought they were a low risk like a money market” or “I thought they were low risk like a CD”. I didn’t know they were high yield securities. I would stay away from this word.

Secured

Do not use the word “secured”. You have to be very careful here. You can use the word secured in some instances. You can say, “Private mortgages secured by real estate.” That is a factual statement. It is secured by the real estate.

So you can use it in that context, but be careful how you use it. Don’t say, “well secured” or something of that nature. Again, this one of those words I’d just be very careful with. Think them through a little bit and think of somebody potentially misinterpreting what you’re meaning.

Safe

Don’t use “safe”. Again, I’ve used the word safe in some cases. I’ve used it in my postcards and flyers. Today, I would not recommend you use the word safe. Find some alternatives. Again, safe can be interpreted as being like a money market safe, like a CD safe, a savings bond safe. All of these types of things could be mis-interpreted.

Risk Free

Do not use “risk free”. I would not use the words “risk free” because there IS risk in this type of investing. No matter what you say investing in real estate mortgages has some risk. Don’t tell people these are risk free and stay clear of misleading people.

To get a FREE “Private Money Sales Tool,” Get the NEW REIM Complete Package Today! http://real-estate-investors-marketing.com/REIM-Complete.html
It’s part of the best direct mail marketing package a real estate investor can have!

Hard Money Is Back

Hard Money Is Back In The Picture Again…

The lenders in this country have changed the rules on real estate investors. Underwriting guidelines  are increasing the minimum down payments from 10% to 20%, sometimes higher.  With low interest rates, an unprecedented buying opportunity for investment homes has arrived. In spite of this buyer bonanza, acquiring real estate has become expensive.  This leaves many real estate investors asking themselves the question, “How do I maximize the cash I have?” This has “re-energized” creative real estate investment financing.

Hard money, private money, short-term capital, re-hab loan or whatever you call it, hard money seems to be the most common. Using hard money seems to be coming back for a couple reasons; flexibility in deal structuring, and the speed and ease of acquiring it.

Usually it’s been used to purchase and renovate a home in order to hold for cash flow. This process usually involves two loans. The first is the hard money loan. It’s used to purchase and renovate the home, then it’s usually refinanced out within a short period of time (within 180 days). After refinancing, the hard money lender is usually paid off and the investor is left with no real investment in the home. The purchase price, re-hab costs, neighborhood, market will dtermine that final price.

The Process of Getting Hard Money Financing

1) Investor identifies a property in need of re-hab with substantial equity since most hard money lenders lend about 65-70% of the After Repaired Value of the home.
2) Investor purchases the home with hard money, which includes purchase price and all, or most all, repair costs.
3) Improvements are completed on the home through draws to a contractor.
4) On completion of the improvements, a refinancing of the hard money loan is initiated.
5) A new appraisal is ordered and an new value (After Repaired Value or ARV) is used to value the property.
6) The permanent lender underwrites the loan and pays off the initial financing, giving the investor new terms on a 30 year loan. (Usually giving the investor a positive cash flow on the property.)

Some Factors to Consider Though

This kind of loan usually involves a higher origination fee of 3% to 5%, and a high interest only payment of 1 to 1.5% a month. You’ll also pay closing costs again when the loan is moved to the permanent lender. This can cost around 10% of the equity to structure the deal in order to minimize your out of pocket investment. Many investors still choose this method of “using other peoples’ money,” due to the ability to purchase more properties and increase the “cash on cash” return.

Here’s an example:

After Repair Value(ARV):   $145,000

Purchase price:    $84,700

Cost of improvement or rehab:   $16,000

Hard money origination cost:   5% or $5,075

Transaction closing cost:  $1,600

Total due at close:    $107,375

In this case the short term lender loaned 70% of the ARV or  $101,500

Cash due from buyer $5,875

The buyer was then able to refinance with a permanent lender at 75% of the ARV using a typical no-seasoning Fannie Mae lender. The difference of 5% covers the investors refinance cost on the investment home.

The investor ends up with a permanent loan at $107,300 with a 6% interest rate, with a 30 year fixed payment for principle and interest of $643. In this example the home was rented for $1,195, leaving $552 in gross cash flow. After  taxes, insurance, management fees, vacancy and maintenance, this particular home will still cash flow positive for $110 a month. This leaves the investor with $1,320 net cash flow annually on a $5875 investment, creating a “cash on cash” return of 22%.

Even though the process is more involved than the standard 20% + closing costs,  the result is the buyer now owns the property at 75% of the ARV and saved over $25,000 of cash which can be used to purchase more homes.

The key to this strategy is making sure you qualify for the permanent financing first! As an investor you need to maintain a 700+ credit score and have 6 months of reserves for the 30 year loan payment.

Hard money financing can be found on the internet, your local real estate investing association,  and even locally. Just make sure you’re pre-qualified for permanent financing…

Probate For Profits

Probate real estate investing is a little known secret that can yield substantial return on investment.  Maybe you’ve heard that Probate Real Estate Investing is still a largely overlooked and untapped market.  One of the things about property investing I’ve found is that Probate real estate investing is one of the most reliable approaches for making real money in today’s ailing real estate markets. Probate Real Estate Investing is difficult for ninety nine percent of Investors.

Probate real estate can be located by visiting the local courthouse.  Probate estates are a matter of public record and can be viewed by anyone. Probate real estate investing does not require any special skills or training.  Probate is the legal process used to distribute the estate of a person who has died.  Probate investing can provide a solution to heirs who need to sell their property before probate settles.  Probate is the process used to determine rightful heirs, validate the decedent’s Last Will and Testament.  Probate can be tied up in Probate Court on an average 18 to 24 months.

Probate real estate may not be the best option for a first-time real estate deal.  Probate property investing is much easier if you’re dealing with super motivated sellers; almost every time.  Probate is the legal process of liquidating an estate’s assets after debts and creditors have been satisfied.  Probate real estate investing, is an unemotional motivated seller and one of the great benefits of probate real estate investing.

Probate real estate: The benefit is usually that the owner is from out of town, not familiar with the property and therefore not emotionally attached to it.  Probate property investing will require you to sort out ready and willing heirs from those who are not ready to sell just yet; that is a whole lot easier for a new or seasoned investor.  Probate real estate investing can be very easy if you always treat the seller with respect and guard your reputation.

This is what probate real estate investing is all about.

*If you want to profitably market in the Probate arena: Get the REIM Letter Series!

The “It” Factor

I’m going to say something that I don’t think anyone has ever mentioned to newbie’s or people that think they would like to make money in real estate investing…

Before you get all pumped up, (and it’s not difficult to get there quickly when you hear of all the money being made), there’s one little “factor” that all the gurus forget to mention….

Passion! (As defined, emotion, feeling very strongly about a subject or person, usually referring to feelings of intense desire and attraction, (be very passionate about something.) This is the missing ingredient that many have about what they’re doing and the REASON they fail or have very limited success.

No one mentions that! If you’re going to be successful, in anything you do in life… even if it’s just for the money, you have to love it. You have to be “into it” all the way.

“How do I know if I’ll have a passion for it…. I’ve never done it before?” OK, good question. Do you have any previous experiences or passion for real estate and dealing with people? Are there any characteristics that are similar to what you love now?

Real estate investing is HARD work and without the passion and drive to “get to the prize,” you’ll go as far riding that bike, as a guy (or girl) on a “stationary bike.” Lots of motion without getting anywhere!

It’s like saying that you want to be a “doctor,” but hate working all the time. Do you know how many hours a day a doctor works??? Or, “I want to be a NFL footbal player, but I don’t want to have to work out EVERYDAY!

The first question you should ask yourself before you spend THOUSANDS of dollars and hours of study, learning how to be a successful real estate investor, is, “do I have the passion for the business?” “Do I have a “passion” for doing all the things related to the business, in order to be successful?” Is it a “passion fit” for me?

If the answer seems to be a definite YES, then real estate investing IS for you!

Otherwise, keep taking those “singing lessons, dance classes, accounting courses or whatever else it is you have a “passion” for!

Happy Investing,

Steve/REIM Letter Series

#8 In the 8 Critical Components of A Sucessful Direct Mail Marketing Campaign

Here’s the final lesson on the 8 critical components of a “successful” direct mailing campaign.

Lesson #8:

Send multiple mailings to the same list..

Alright, I don’t mean to offend you, BUT…

Don’t waste your money on postage if you’re not going to send “multiple” mailings to the same list. I’m sorry, but it’s a fact. One letter, generally won’t get a response. (Unless it’s from the Publishers Clearing House Verified Winners Dept.)

FACT: the direct mail marketing industry says that at least 7 mailings to the same list will produce the best results. This is the reason that I’ve created a series of letters to be used in a direct mail marketing campaign.

By contacting your prospects multiple times, you build credibility with them, and you stay on their minds.

Think of the first mailing you send, as an “introduction”… and then each following mailing establishes your credibility a little further, builds on your message, and increases your chances of getting the reader to take action.

It’s like going up the stairs in a two-story house.. “You don’t get to the second floor till you climb all the steps.”

If you’d like to get your hands on the most powerful direct mail marketing letters a creative real estate investor can use, then Click here!

Thanks for reading “The 8 Critical Components For A Successful Direct Mail Marketing Campaign”

#7 The 8 Critical Components of A Successful Direct Mail Marketing Campaign

Here’s the seventh lesson on the 8 critical components of a “successful” direct mailing campaign.

Lesson #7:

Grab the readers attention with a headline…

Do you think headlines are put on a newspaper for a reason? ABSOLUTELY!

It’s the reason we go any further in reading the article. And if it’s a great headline… well, we’ll read it first!!

HILLARY CAUGHT WITH HER PANTS DOWN! (I’d bet you’d read this, wouldn’t you?) It’s like a tease on a TV station. “What made this frantic Mom drive her car through the front of a Wendy’s?” “Tune in at 11 to see!”

Yes you would, because, it doesn’t say “exactly” what, where, when, how or any other of the details that you’d like to know about…. SO, you’ll read the article to find out!

One of the reasons we all toss direct mail out so quickly is because it doesn’t interest us at all. Don’t use boring headlines and gimmicks. Use a headline that catches someone’s eye without insulting their intelligence.

You only have a few seconds to grab their interest, so you need to really think about what impact your headline will have. Ask yourself the question.. Would it interest me?

If you’re looking for powerful direct mail marketing letters for real estate investors… Go here!

#6 The Critical Components of a Successful Direct Mail Campaign

Here’s the sixth lesson on the 8 critical components of a “successful” direct mailing campaign.

Lesson #6:

Proof read the copy…

Let me tell you a little story… I sent out a resume for a job that I wanted to get; not to a specific company, but a type of job to many companies. After several weeks went by and NO response ever came (NONE), a friend of mine asked me if I wanted him to look at it and see what he could find. I said, “sure.” He said, “Do you realize, you forgot to put your phone number on this resume??”

I think you get my point!

You may have seen great direct marketing pieces that were missing “key information” like phone numbers, addresses, or other key information. Missing those key pieces of information just defeated the purpose of the mailing. Proof reading is a very important aspect of all of your marketing campaigns. Mis-spelled words look very unprofessional too!

If you feel that you lack in those skills, hire someone to proof your copy. Or ask someone who has a way with words to take a look at your text.

Proof read your copy!!!! At least 3 or 4 times!

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#5 The Critical Components of a “Successful” Direct Mailing Campaign

Here’s the fifth lesson on the 8 critical components of a “successful” direct mailing campaign.

Lesson #5:

Personalize your letters …

I don’t think I can “over” emphasize this point!

Leave out the hype and commercial sounding wording. Personalize the letter as if you were writing to a friend. Your copy/letter should not sound like a car commercial. Don’t use words like people, folks, or any other words that indicate the “masses.” Remember, write in way that sounds like you’re talking to a friend.

Hi Susan.. How are you John?

Don’t use words that you don’t use when you’re talking everyday!

What do I mean???? “It is a very hot day today, don’t you think so Tom???

NO, NO NO!!! That’s NOT the way you talk and it’s not the way I do either.

I might say…”Hey Tom, don’t you think it’s a scorcher today? I’m burnin up!”

You might say, “Yeah, but I don’t even know the people I’m writing to”…. That’s right you may not, but if you ever want to get to know them, you must write in a personal way!

People hate form letters. WHY? Because they feel like they’re being treated like a number… NOT a person. There’s NOTHING Personal about an “impersonal” sales letter!

Personalize your letters and watch the response go way up!