Best use of time?

Question

I am ready to quit my full time job. I have a part time weekend job that can support me and have about $10,000 to spend on marketing for the next 5 months. My goal is to flip as well as wholesale when i dont have the resource for rehabs. What is the best use of my time if i would like to become a full time investor? I am in the middle of my first direct mail campaign and do not get enough phone calls to outsource screening or to fill my day. As of now i plan on going to the probate court once a week and door knocking leads that are within a 5 mile radius of my house.

Michael Quarles · Answer

imho the best use of your time is tell your COI of your new venture.   Wear I buy houses polo shirts all of the time   Get a thousand business cards and pass them out.  Run an algorithm on your market to determine the geo area and direct market to them like  crazy. Cold call yard sales and used private auto sales.  Visit FSBOers open houses. network with HVAC and plumbing companies who do repairs.

Just a few ideas.

James Wise · Answer

Have you already been making money flipping homes or is this a new venture for you?

If this is new the best use of your time is likely going to be staying at your job and transitioning into this.

Folks who jump in with both feet to something new run a high failure risk. I think it is more prudent to prove out the concept first.

Ericka Parrott · Answer

If your confident that quitting is best for you, I suggest you take some time to read the E-myth revisited ( link) or another business book.

Design and order your business with set goals and objectives, things that are measurable, and goals for your personal life as well.  Take the time to be strategic so you can accomplish your dreams.

And most of the popular business books are available at your local library. Check there first.

Adam Hershman · Answer

I agree with @James Wise, a transition would be highly beneficial. It might mean that you quit your 9-5 job and take part time work 3 or 4 days a week, then gradually decreasing the hours you work, to spend more time on RE. This way you never have to worry about what to do during your down time, because you wont have any, you can really focus on RE on your off days and when you find there isnt enough time to accomplish your RE tasks, you can start to devote more time to it. This way you can also measure your relative success vs the time you put in. For example if you are making 10 deals in 6 months working 4 days a week, and only make 11 deals the next 6 months working 2 days a week, you can start to spot the diminishing returns a little more easily, or you might find that the 11 houses in the 2nd 6 months were twice as profitable as the 10 houses in the first 6 months, and your productivity might not go up, but your margin does. Basically it gives you more options for analysis.

Just my 2 cents.

Adam

Alisa O. · Answer

Michael,

Private auto sales is very smart! Cars are the second most expensive item people buy, so when they get in a challenging situation with a car, the house is just around the corner.

HVAC and plumbers are great ideas as well, as usual!

I would also add that it is wise to contact all the real estate related trades. Besides getting leads, you can get a good list of contractors that you can go to in a second notice. Additionally, but the time you are done talking to them, you would know all the rehab prices and when you go to a wholesale appointment you can more accurately estimate the cost of repairs and make an offer on the spot. It's about preparation and doing your homework. Also, you will get a certain sense of security, or a comfort level, if you will, when you are adding estimates because you know that a specialist told you how much something costs.

Marketing is the most important thing in this business. Even if you are the best negotiator, without leads you are cooked!

Dev Horn · Answer

I agree with all of this!  Except I'm not sure what you mean by "run an algorithm".  =)

Just telling your Circle of Influence (COI) can be the best way to find your first deal or two.

Dev Horn · Answer

There are 3 areas where you should consider placing your marketing dollars:

1) Direct Mail - Absentees w/ Equity is my go-to prospect pool.  Max that out before spending on other groups.  I also like Sr. Citizen owner occupants and probate.2) Google Search (AdWords) - You want to spend all can here (on a properly structured search-only AdWords account).  It can be your best cost per lead, it can start producing quickly, and you can get leads from it throughout the month (vs. the burst of activity you might get from direct mail).3) Outdoor - Signs work.  The leads are often unqualified, but good signs generate calls.

Matthew Skinner · Answer

Good point Alisa,

I appreciate what you said about the contractors. Getting to know a few and seeing different prices for various rehab costs. That is what I have been starting to do and it definitely helps me feel more confident starting out in this business.

Erik Stark · Answer

Your best "to do" list is to find and match buyers, sellers and lenders of real estate. That is what gets you paid. Websites and putting out signs are just steps to get you to the closing table. Focus on the gold and like champions do.

Rick H. · Answer

It would be helpful to have a sit-down with someone and talk numbers. I had done idea what I was getting into in terms of marketing costs and my monthly nut.

After getting fired from my cushy corporate job, I was amazed at how quickly monthly bills same up, both overhead and my personal bills.

A casual comment by an early mortgage broker mentor proved prophetic: a day's delay equals a week, meaning each one day delayin a deal resulted in a week's delay in a payday. That one's still true.

All things considered, I love this business as much if not more than when started my company 30+ years ago. I have a life and lifestyle that I'd never had achieved from my corporate job (and a net worth multiple times theirs because I took risks and received rewards not available in most corporate worlds).

All this aside, the place to focus your resources and energies are in marketing, specifically lead generation. I've studied and worked with the best. Expensive, but well worth it. Copywriting, sales conversion systems and back-end profits come in second and ultimately have made life changing differences for me.

A good place to start in understanding the fundamental is to buy the Dan Kennedy Magnetic Marketing course. It's under $500. Next thing you know, you'll be happily investing serious money with proven marketing people to improve one aspect alone.

Niche marketing has been generous to me. Find the marketing media mix that works best for your style and mail before eating.

Best use of time?

Most Popular Reply