Real Estate Investing with Brian Evans Jr.
"Unique Selling Propositions"
Marketing is extremely important for any type of business to be successful. In order to keep your real estate investing business going, you have to keep the phone ringing! This is why you must learn how to target your marketing.
Targeting your marketing is important to find the type of buyer that best fits your exit strategy. Are you trying to target to find owner/occupant buyers who can cash you out? An owner/occupant buyer is someone that can write a check to close or can get a new loan to close. Remember, you buy on cash terms you’re going to sell basically with a cash terms type buyer as well. Someone’s going to cash you out or need to buy on terms.
Are you trying to find a lease option buyer who needs a little help? A lease option buyer may have some money to put down, but no credit or they may be interested in seller financing as well. The only time I would do a seller finance is if someone’s going to put down at least 20%. And even when they are willing to do that I still try to push for lease option and say, “You show me payments for six months or a year and I’ll do it.”
I would never do a seller financing unless they’re at least giving me 20% down of my sale price. Remember, keep the deed any time you can. You don’t buy like you sell. But if somebody’s putting down 20%, that’s a heck of a lot of money and you know what, I will take that risk.
Investor buyers, are you trying to find investor buyers who want to make a profit? Investor buyers are clearly people that are not going to live in the house. They plan to fix it and flip it, fix it and rent it, or they plan to wholesale it quickly by sticking a sign in the yard and selling it next week for $15,000 more (which is what happened to me on my second real estate deal because I didn’t put a sign in the yard!)
As long as you like the numbers and as long as you can see a spread in there from how you buy it to how you sell it, then let’s do the deal. That’s money. That’s how you do it. Simple stuff.
Next is marketing unique selling propositions, USPs. Not to be confused with my UPS sheet or my UPB sheet. This is just marketing slang. Always think, “What is the best USP that will get my phone to ring with the buyers that I am targeting?”
A few things you can put on your signs are “Lease to own, no banks needed.” When I’m trying to find a lease option buyer, that’s my favorite, no banks needed, lease to own. You could also say “no money needed.” I know you may be thinking, “How can it be no money needed?” If the lease option candidate has good credit then they won’t need to put any money down, because we can probably get them a darn good loan.
Some other ideas to find lease option buyers are “Owner will help, easy terms. Flexible seller, motivated seller. Will accept trades.” Here’s another reason there may be no money needed. If the individual has a car or boat or something else of value to trade, then I will let them do that instead of putting money down.
Other USP’s I use are, “Handy man’s special home for sale. Make offer. Investor special. All offers considered. Fixer upper. Seller will finance. No bank qualifying. Immediate occupancy. Free recorded information, Your credit is approved.”
Many people may ask you how you can sale a home to them if they have terrible credit. The answer is simple. If they have a hefty down payment, then their credit doesn’t matter.
Hopefully this article gave you tons of great ideas you can use to get your phone ringing. Have fun with this part because the only part that matters is that you get your phone to ring! Just get your phone to ring. That’s what it’s all about, and to have a little bit of fun.