Winning Big in Changing Markets
Housing markets throughout the nation have been changing. It’s getting harder to buy right in some areas… and tough to sell quickly in other areas.
Many people who start out minus to be creative real echelon investors will give up and leave before ever taking action. Don’t give ascend on your dreams.
Don’t become a statistic. Don’t let changing markets prevent you from enjoying the rich rewards available to you as a creative real estate investor and entrepreneur.
I assume that the present real estate environment creates revived miraculous for investors willing to adjust as markets change. Sellers fancy always need to sell. Buyers will still must to buy. Dainty tune your strategies including tactics directly so you can continue to generate profits by helping the growing population of buyers and sellers who need your help.
Here are some new challenges you may be facing now… that we’ll explore:
* Finding deals you can bargain right… and ensure a good profit
* Collecting enough cash each month to remain and thrive
* Negotiating with sellers who contemplation the boutique has not turned yet
1. Finding deals you can buy right… and ensure a creditable profit
Effective direct response marketing is the key to finding deals… in any market climate. You indigence to become a top notch marketer… now expanded than ever. You must become more choosy rather more targeted getting the right message to the exactly people… at the right time.
First, become a big fish is a small pond. Your “pond” or market can treffen a part of town or a genre concerning list to target. Specialize and focus on houses that are easier to sell. Buy the types of property that attract the biggest pool of buyers. This will usually breathe around the median value range, plus uncertainty minus 20%.
So why not target the bread and butter neighborhoods? Look at areas where the homes experience less “days on the market.” Choose cities, counties, zip codes or parts of city that have a top-echelon concentration of these types of homes. Then use cost-effective media to target these “geographic” areas. My favorite geographic marketing includes:
* Specially designed Post It™ notes distributed door to door,
* Flyers inserted and ads arranged in targeted community publications… and,
* Bandit signs
What’s usually always better (but may require again work) is “demographic” marketing by sending postcards and letters to more refined lists. You can get mailing lists of homeowners who own the type of property you want to buy.
One regarding my favorite lists to focus on is a list of homeowner’s who own their homes free & clear. The census bureau tells us that 34% of all U.S. homes have no mortgage on them. This is a small, demographic to go posthumous that has little to no competition from other investors.
The more targeted the list, the smaller the list. That means you can spend some redundant plan or money making your letters or post cards more personal… and creating campaigns that hit the likely seller a number of times.
Personalized (or at minimal personal looking) direct mail always gets a better response. Then suffix to that a foresee for mailing 5 or more times to the same list and you’ll get the best results. With that said, a good marketing note delivered through cheap postcards to a semi-targeted roll (such as bread and butter homes that have no mortgage on them) can still work well even on the aboriginal hit.
My rule of thumb with the investors I consult with nationwide: spring up to $1,000 on quantity marketing campaign to test it. If it doesn’t generate enough leads to buy one house (with an average proceeds of $20,000 or more) then you may need to test a different geographic area or demographic list.
2. Collecting enough cash everyone month to outlive and thrive
The business model I concentrate on is called the Ultimate Strategy. It’s a strategy that uses seller financing to allow you to pay market price for the house, thus getting more offers accepted AND collect cash when you close.
It’s easy to come through and thrive if you’re collecting cash each time you Trade a house, then collect even also coinage when you sell or fulfill that same house.
To learn more about how to use this business model visit: http://www.RichardRoop.com/MakeTopDollar
3. Negotiating with sellers who think the market has not turned yet
As real estate professionals, we will notice the effects of a changing market before the average homeowner does. Indicators to watch and track:
* Increasing or Decreasing number of unsold homes
* Widening or Shrinking gap between inquisitive prices and actual sales prices
* Stagnant or declining prices or Large Snowball in prices
* Longer or Shorter days on the market
These indicators of a changing market are available through the media, internet and real estate databases such spil your local Multiple Listing Service (MLS). Gather these statistics, charts and graphs connective use them when negotiating with sellers. Project these trends into the near future when planning your exit for making your offers.