As an investor how do you feel about bandit signs?

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As an investor how do you feel about bandit signs?

Victor U. Mbah
Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes

Done a dozen stick built wholesale deals and finally started purchasing some lots. Starting small with mobile home flips. Several of my deals have come from bandit signs. Is it worth it or should I be spending more time elsewhere?

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Jonathan GreeneBusiness Member
Real Estate Consultant Ā· Madison, NJ Ā· Member since 2016 Ā· 6k+ posts Ā· 7k+ votes
5y

I don't know how bandit signs are even an option. Most towns don't want them anywhere and they have so little information (I will buy your house for cash - wow, great) that it's a shock that they get any calls anymore since the same people probably have their mailbox stuffed with assets. Sure, people are then coming to you, but who? Mostly desperate sellers and problem sellers because if not, they would already have been contacted.

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  • Jaron WallingPro Member
    Rental Property Investor Ā· Indianapolis, IN Ā· Member since 2018 Ā· 4k+ posts Ā· 4k+ votes
    5y

    @Victor U. Mbah Bandit signs are for the birds. You'll get a few deals that way but it's an outdated way to get leads. 

    I'm not wholesaler but if I was I'd focus completely online to get leads coming to you, texting, skip trace, and sending letters to older property owners. 

    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant Ā· Madison, NJ Ā· Member since 2016 Ā· 6k+ posts Ā· 7k+ votes
    5y

    I don't know how bandit signs are even an option. Most towns don't want them anywhere and they have so little information (I will buy your house for cash - wow, great) that it's a shock that they get any calls anymore since the same people probably have their mailbox stuffed with assets. Sure, people are then coming to you, but who? Mostly desperate sellers and problem sellers because if not, they would already have been contacted.

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    Thank you @Jaron Walling just looking for a little insight on the matter. I agree that my main focus should be online. Recently started a couple FB ads to at least collect some data and maybe some leads in the process šŸ¤žšŸ¾

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    Appreciate the insight @Jonathan Greene. I get that itā€™s probably not the best method. Starting out without much capital, it has been the most cost-effective approach for me. Lately I have been using other marketing methods. Which ones would you recommend for a solo operation?

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  • Preston Donahue
    Real Estate Agent Ā· Canton, OH Ā· Member since 2017 Ā· 42 posts Ā· 23 votes
    5y

    I would say it depends on your area. I see both sides of the spectrum when it comes with how people feel about them. If you do use them, combine it with google adwords to maximize their effectiveness. If your sign says "we buy houses in _____ (city)" use the same exact wording in google adwords to get more leads from people who drove passes the sign, but didn't get a chance to write your number down.

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    That's major @Preston Donahue. Great idea!

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  • Preston Donahue
    Real Estate Agent Ā· Canton, OH Ā· Member since 2017 Ā· 42 posts Ā· 23 votes
    5y

    Good luck, hope you get some great leads! @Victor U. Mbah

    1Reply
  • Dan Schwartz
    Real Estate Investor Ā· Tempe, AZ Ā· Member since 2012 Ā· 874 posts Ā· 648 votes
    5y

    As an investor, I chuckle at them.  If itā€™s at all effective (I have no clue whether it is or isnā€™t), then itā€™s likely to be effective for finding motivated and distressed sellers, not investment buyers.  You need a different way to build your buyers list.  

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    Appreciate the insight @Dan Schwartz! I did put them out in hopes of securing some motivated sellers, but every once in a while Iā€™ll receive a call from a cash buyer. Canā€™t be upset when that happens šŸ˜…

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  • Dan Schwartz
    Real Estate Investor Ā· Tempe, AZ Ā· Member since 2012 Ā· 874 posts Ā· 648 votes
    5y

    @Victor U. Mbah added bonus!  You donā€™t get anywhere by doing nothing, of courseā€¦.


    ā€¦..which means itā€™s about time for me to get off BP and complete a task that will earn me more than kind words :-)

    2Reply
  • Josue Vargas
    Real Estate Agent Ā· San Antonio, TX Ā· Member since 2017 Ā· 814 posts Ā· 466 votes
    5y

    I would say, try a different way to see if you get more leads.

    Regarding the yard signs, they look ugly and cheap.  And just my personal opinion, this is what I think about bandit signs:

    1) The name is just right: BANDIT signs

    2) Company starting off with a very tight budget, I would think they are lacking experience

    3) Company cutting off costs for advertising, they most likely will cut off costs for other essential things like manpower with experience (I'm not saying this is always true, just what I think)

    4) If not allowed without a permit, is disrespectful for the neighborhood.  Someone else could just take them away, have seen this before with my onw eyes. 

    5) I can understand bandit signs for services like "Joe Lawn Service, We cut your grass the proper way!", or "Joe the Unclogging Service Co., We fix your toilet issue for $50!". On the other hand, a REI offering "I buy land lots and houses" is another thing.

    However, it may be the type of neighborhood and clientele who is not interested to pay extra for the cost of advertising and they are just happy to call the company to see what they can offer.  

    None the less, expect a lot of calls from people just desiring to get a lot for the actual value, or people who have issues trying to get rid of their property.  

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    I see your point @Josue Vargas. Definitely something to think about!

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  • Daniel SmythPro Member
    Rental Property Investor Ā· Rockford, IL Ā· Member since 2019 Ā· 471 posts Ā· 342 votes
    5y

    Use as a last resort, or in areas where you just want to feel out those willing to sell without a realtor. 

    I might place them in an area you are familiar with, but then only when I see some from competition.

    Then you make your signs attractive,  and answer the phone, prepared to do an instant cash offer, subject to your visual inspection. 

    Get the contract, find your number, and make sure you leave a way out.

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    Youā€™re the man @Daniel Smyth! Appreciate the insight. I know theyā€™re unsightly so I try not to abuse them. They have connected me with some great people, and allowed me to find solutions for people with none. That makes me a little reluctant to abandon them completely.

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  • David Frandsen
    Real Estate Agent Ā· San Diego, CA Ā· Member since 2014 Ā· 205 posts Ā· 123 votes
    5y

    I pretty much disagree with every post on here. If you are getting calls from them 10x your efforts. I wouldn't open up a new marketing stream until you have mastered 1. I would maybe start with text campains/cold calling next. Find those motivated sellers. 

    2Reply
  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    I appreciate all perspectives @David Frandsen. Thank you for your input!

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker Ā· Houston | Dallas | Austin, TX Ā· Member since 2018 Ā· 5k+ posts Ā· 2k+ votes
    5y

    Using Bandit signs as a marketing strategy can be tricky. They can be costly and depend on the area signs are up for less than a week. Even my agent signs occasionally get removed. However, if that has been working for you then why not test it out?

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  • Wale LawalBusiness Member
    Real Estate Broker Ā· Houston | Dallas | Austin, TX Ā· Member since 2018 Ā· 5k+ posts Ā· 2k+ votes
    5y

    @Victor U. Mbah Stick to it if you have been getting great returns on your investment. 

    Any marketing strategy will work if you stick to it long enough to see the results.

    Goodluck

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    Thank you @Wale Lawal! I know there can be some drama involved with them. Have experienced them being taken down in some areas but Iā€™ve been trying to be smart about it.

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  • Matt Greer
    Real Estate Agent Ā· Mesa, AZ Ā· Member since 2017 Ā· 237 posts Ā· 170 votes
    5y

    I actually got one of my first deals as a wholesaler off of a bandit sign. I didn't want to use them, because personally I think they're tacky. Then I had an opportunity to get 100 of them of them for $100 so I figured I'd at least try. I put up 10 of them and got a deal. I couldn't believe it. I used the money to move to other lead sources. I do feel like that deal I got off of just having 10 signs up was dumb luck though, because I put up the other 90 and nothing other than a few calls from angry neighbors and one from the town. 

    I prefer to find clients through other methods. Also I'm a licensed agent now and bandit signs could get me in a lot of trouble.

    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant Ā· Madison, NJ Ā· Member since 2016 Ā· 6k+ posts Ā· 7k+ votes
    5y

    @Victor U. Mbah I would be all in on back data research and then personal letters with a half-sheet on who you are and your investing journey. Much higher chance of a call back from someone who is not desperate to sell, but someone you can build a relationship with.

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  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    Well said @Matt Greer. I feel the same way. It was always a means to an end for me and now Iā€™m shifting my focus. Thank you for your insight!

    1Reply
  • Victor U. Mbah
    OP
    Rental Property Investor Ā· Raleigh, NC Ā· Member since 2020 Ā· 24 posts Ā· 11 votes
    5y

    I like that @Jonathan Greene. Getting my best penmanship ready and starting the task! Appreciate the insight.

    1Reply
  • Frank Chin
    Investor Ā· Bayside, NY Ā· Member since 2017 Ā· 1k+ posts Ā· 1k+ votes
    5y

    @Victor U. Mbah

    Where I am in NYC, bandit signs are subject to fines, each sign for several hundred dollars.

    I had a business once where someone nailed a bandit signs for his used car business on a utility pole near the front of my business. Later on I found out he hung many more of them in the neighborhood while driving around, one a block.

    I didn't know who it was, as the sign only had a phone number. The city encouraged people to call in complaints on it's "311" line, and I called it in, citing the phone number, and it's someone buying and selling used cars. Then city inspectors will check it out. Sometime later, I found the sign belonged to a customer of mine, and he was ranting and raving about someone turning him in. He said authorities came to his home at 6:00AM to serve him a summons with the accompanying fine to be over $13,000. He said the fine was $300 per sign, and he was ordered to take them all down in a week. He paid someone to nail the signs high up on utility poles, and had to pay someone to go around on ladders to take them all down.

    Finally he said he couldn't wait till he finds out who turned him in and get him. I don't know, should I feel sorry for him? But the end result was I don't see bandit signs around anymore. I just smiled and shook my head when he told me the sad story and I commented finally with a loud "wowwww".

    Did I do the right thing???

    1Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent Ā· Buffalo, NY Ā· Member since 2017 Ā· 2k+ posts Ā· 2k+ votes
    5y

    @Victor U. Mbah the same way I feel about door knocking as a sales person... No thanks.  

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