I have read many articles on Marketing and setting up. I am a new investor in the Boston, Ma area,
I currently have a website, business cards, and some flyers. I decided to start with a website before my first deal because I wanted it to be my 'storefront' and have a place for people to check out what I do. if you guys want to check it out its here
( I am Stil trying to work on changes)
I am trying to think of where to go to next, I was thinking of doing google ads to drive more traffic to my site, I think I can afford about 400-500 a month. But I have read that google ads if better for higher ranking websites and optimized sites. If I have about 400 dollars to invest in marketing in the Boston mass area (Dorchester, Roxbury, Jamaica plain, quincy) what do you local investors think work best, what companies work best for direction mail if you suggest this.
Is 400 dollars enough for a direct mail campaign, is 300 dollars just to be sure I could commit for 6 months to a year ? I just need some ideas on what would work best in the Boston area, since I know a lot this depends on the area.
Thanks in advance,
Statistically you are not likely to get a deal until you have sent out 1000 to as many as 5000 direct mail pieces. Direct mail although very effective long run is an expensive way to start. All the things you mentioned are pull marketing. designed to get people to contact you. This is expensive.
There are many creative ways to find deals that incorporate you reaching out to buyers that can be less expensive and more targeted. Think vacant houses, rent court, for rent ads, or any situation that might make someone motivated.
What works best in your area, only trying somethings and testing will answer that.
I agree with Ned that direct mail requires substantial (1000 + letters/mo), consistent (min 3-4 touches) investment, and therefore, it is a tough strategy for a new investor to execute on a limited budget. Same is true for an Adwords campaign. A few other ideas:
1. Bandit signs typically work really well for getting your phone to ring. This strategy can be relatively economical if you hang them yourself.
2. Go to as many REIA meetings as possible and make sure you let everybody know what you are looking for.
3. Use Craigslist, Facebook and LinkedIn to find people and companies that wholesale properties or advertise distressed properties in your local market.
4. Go to your city code enforcement dept and get list of all code violation homes in your city. Send a letter to these owners letting them know you are a cash investor looking to buy a home ASAP in their neighborhood.
5. Google "REO agents" or "Short sale specialists" for your area and reach out to this agents; let them know what you are looking for.
6. Create a door hanger (it is very inexpensive to create and get printed) and hang on doors of distressed looking properties in your general market area. You can also hang them on pre-foreclosure properties (get a list from title company or www.listsource.com)
7. Learn how your local county does tax lien auctions and determine if it makes sense to participate.
8. You can obtain probate records from the local courthouse and call (or mail a letter to) the executor of the estate. Let them know you can help buy unwanted real estate.
These are just a few "economical" strategies that can be effective in any market. The key is to be consistent with any strategy you decide to do and be persistent. Good follow-up is critical too. Good luck!
@Sherwin Vargas Make sure everyone you know, knows what you do and what you're looking for!
@Mark Gagner has some great ideas! We came up with most of those and a couple of others at our Movers and Shakers last Firday 1/9:
"I agree with Ned that direct mail requires substantial (1000 + letters/mo), consistent (min 3-4 touches) investment, and therefore, it is a tough strategy for a new investor to execute on a limited budget. Same is true for an Adwords campaign...."
The Jury's still out whether to mail 1000 pieces to individuals or 250 pieces 4 times to 250 individuals???
I believe @Michael Quarles has the Yellow Letter thing down pat!
When marketing to Probate lists do you contact those on Guardianship lists as well as the Deceased lists??
It's pretty impossible to find a deal until you understand what makes a "deal".
Be certain you understand what you're fishing for before you begin fishing. This is your target seller to aim for in your marketing efforts.
If you are looking for off-market properties, in order to refer to a rehabber to fix up and retail, then you'd better understand what kind of numbers they require.
If you understand what numbers are required to make a deal, you need an efficient way to get people to contact you in addition to pursuing principals directly. This is the logic behind a push-pull marketing strategy.
Ultimately, you'll want to have a system that attracts only qualified prospects to your funnel so that you can concentrate only on sellers with viable opportunities.
Advertising includes direct mail, in order to clone yourself, so as to bring a prospect to you to further qualify and close. These are all part of your marketing effort. Lots of variables, too.
@Sherwin Vargas Everone is correct in their opinions about marketing. It is up to you to decide what you want to do and how you want to plan your marketing strategy. Everyone starts at a place that is best for them based on their current knowledge and the action they want to take. @Rick H. offered keen insight in his statement, "Be certain you understand what you are fishing for before you begin fishing."
I am looking for fix and flip and hoping to get into buy and hold in the long run. I was thinking of looking into foreclosures until I can save some funds. I would have enough for the down payment necessary, but would 30 days be long enough to find funding for the deal if it is a deal?
It just seems that marketing is difficult on that tight of a budget. I have been telling everyone of what I do handing out business cards and flyers. I have been driving for dollars and will also definitely check out all the suggestions you guys gave me!
I just feel little stuck
Forget foreclosures - that's complicated for a newbie - you end up mailing to poor people with no equity and waste your $. At $400 you don't have a lot but you could probably mail postcards to about 800 people a month. If you decide to do that, go with absentee owners with at least 50%+ equity. Listsource.com is a good vendor for the list.
Otherwise, I'd set up a nice clean landing page and set up a Google AdWords account with a $15 per day budget. If you write good ads and choose good keywords, this can start to produce decent leads pretty quickly. You pop up in the ads right along with those higher-trafficed sites because you're all paying the same for a click. $15 in AdWords is not going to be a firehose of leads, but you will get a few per month and the quality can be really good if your copy/keywords are solid.
Best of luck to you!
"The measure of who we are is what we do with what we have." ~ Vince Lombardi
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