Real Estate Investor · Santa Cruz, CA · Member since 2009 · 267 posts · 73 votes
Here's an agent-investor marketing issue...
I'm a licensed agent and a principal. I'm getting ready to launch a direct mail marketing campaign targeting ugly properties and apartment buildings. The ultimate goal would be to acquire or flip, but inevitably circumstances will likely end up presenting themselves as opportunities to either wholesale or list properties as an agent.
Does anyone have a similar predicament, wherein you may be able to offer multiple solutions to property owners as a buyer, wholesaler and/or agent?
Considering operating in full disclosure as an agent:
How do I approach this from a marketing standpoint?
Do I need to include any info about my RE license in direct mail marketing materials?
When I meet with potential sellers, how do I present myself and what do I disclose and what do I refrain from disclosing?
Investor · Milwaukee, WI · Member since 2016 · 389 posts · 193 votes
10y
I'm trying to find a way to market it to, as I'm in a similar situation. I don't know about your state laws with respect to marketing, but I don't see why it'd be required there, however I would disclose early and make it clear. I've been trying to find ways to approach the situation with some of my leads lately, but I think if you market as a cash buyer (implying discount), they won't follow your conversation towards listing the house.
With one recent lead, however, (off a cold call to a vacant), I made it clear right away and said depending how he would like to proceed we can go two routes, then I clarified them, and he wanted to consider the cash buyer route, so I gave him a picture of that.
Obviously, however, if you go for a cash buy and then say "no, you don't want to sell cheap? Well I can get top dollar for your house on the MLS!" there is a conflict of interest and an immediate breakdown of trust that makes of that an impasse.
Real Estate Investor · Santa Cruz, CA · Member since 2009 · 267 posts · 73 votes
10y
@Joshua Martin Thanks for the feedback. Full disclosure of licensees with regard to marketing is paramount in the state of California. Its a very litigious state.
But I think we're on the same page. I can approach the sellers first as a cash buyer. Then, if they decline the offer, depending on their motivation and based on their feedback I can constructively guide the seller toward listing on the open market.
Just a side note... Good work on the cold calling!!! Certainly helps to increase your conversion rates. Most BPers seem to believe that simply sending mail will get the phone ringing: the shotgun approach. But the reality is property owners are being bombarded with mail marketing all the time. Differentiating yourself with a friendly call is the difference between a 1% conversion rate and 3-5% conversion rate, which probably equates to thousands or millions more in profits. If YOUR phone isn't ringing, make THEIR phone ring!