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How to Sell Houses in Depressed Economy by jennyyingdi

VIEWS: 5 PAGES: 28

									                                          February 2009
                               Support Site: www.richardroop.com/feb2009

                                               Password: transform




     How to Sell Houses in a
      Depressed Economy
                Sell or Occupy Faster to Buy More
                  Houses Now with Confidence

Challenges and Benefits .............................................................................................. 2
5 Ways to Sell or Occupy All Your Houses Fast! .............................................................. 5
Resource Directory
    Business cards and printing .................................................................................. 10
    Comparable sales and property data ...................................................................... 11
    Live answering service ......................................................................................... 12
    24 hour recorded info lines ................................................................................... 13
    800 number and call tracking ............................................................................... 14
    Buying and selling websites .................................................................................. 15
    Online advertising to buy and sell .......................................................................... 16
Ad examples ............................................................................................................ 17
Real Estate Blowout Strategy ..................................................................................... 18
How to Use Cheap Ads and Direct Mail to Sell Houses ................................................... 21
Headlines & Benefits for Selling Houses ....................................................................... 23
Features for classified ads and flyers .......................................................................... 24
Examples of signs .................................................................................................... 25
Tips from Members ................................................................................................... 26
What’s next for you?................................................................................................. 28




1
                How to Sell Houses in a
                 Depressed Economy
                        Sell or Occupy Faster to Buy More
                          Houses Now with Confidence



Challenges today…

       If you lack confidence in selling, you’ll be too cautious in buying
       If you take too long to get a house occupied, holding costs will eat into your profits
       If home sales are slow, buyers make the rules
       If you don’t have a marketing advantage, you’ll compete with all other houses for
        sale
       If you are under pressure to cash out, your options will be limited
       If you get desperate, you’ll put the wrong person in your property


This training will help you overcome and avoid those challenges.




You will discover…

       How to compete for the limited number of buyers
       How to create multiple paydays when selling
       How to avoid getting stuck with hard to sell properties
       How to get higher prices, larger down payments and more cash flow
       How to sell fast using cheap ads, signs, postcards and flyers
       How to enjoy a strong marketing advantage when selling any house
       How to consistently get all your houses sold or occupied in 60 days or less




2
Benefits of occupying fast
       Collect some cash
           o Down payment and prepaid interest
           o Purchase deposit and first month’s rent
           o Security deposit, first month’s rent and last month’s rent

       Cover   your holding costs on a vacant house
           o    Housing payments
           o    Utilities
           o    Marketing expenses

       Protect the property against casualties
           o Frozen pipes
           o Vandalism
           o Inadequate or expensive insurance rates

       Focus   on the next deal
           o    Capture equity buying
           o    Collect cash when buying
           o    Collect a positive cash flow

       Direct multiple buyers to your other properties




Benefits of offering to sell to a -- tenant buyer
       Collect a purchase deposit larger than a security deposit
       The purchase deposit is non-refundable
       Collect extra purchase deposits each month
       Enjoy ownership mentality
       Buyer takes responsibility for maintaining the property
       Lock in a purchase price based on today’s values
       Retain the tax benefits of owning
       Avoid ordinary income or short-term capital gains rate




Benefits of offering to sell to a -- wrap or contract buyer
       Collect a down payment bigger than a purchase deposit
       Down payment is non-refundable
       Collect higher interest than you are paying underlying
       Collect interest on your equity
       Increasing equity spread or more rapid principal reduction
       Pass on the costs taxes and insurance
       Collect more monthly income than market rent
       Service note payments verses managing a property
       Avoid relying on bank financing




3
Challenges with a slow housing market or economy
       Buyers are pickier
           o Especially buyers who are qualified to borrow now

       There are fewer buyers are shopping for homes
           o Because the think they cannot buy or borrow

       Buyers may be waiting to see what happens next
           o Hoping to get bailed out other there existing home
           o Thinking prices may be lower later

       Home prices are depressed when there are a lot of houses for sale
          o Sellers who must sell will lower their asking price
          o Banked owned properties sold cheaply create lower comps

       Buyers want or need lower housing payments
           o No more “liar loans”
           o Buyer’s must prove income
           o Lending criteria has tightened
           o Unemployment is rising
           o Personal incomes are falling

       Buyers have less money to put down
           o Losses in pension funds and stock market portfolios
           o Losses in real estate equity
           o Reduced business profits




Benefits of a depressed economy
       Qualified buyer’s can get better deals
          o You are a qualified buyer
          o You can buy much better today

       Buyer’s need owner financing
           o You can offer rent-to-own or lease option
           o You can offer wraparound financing
           o You can offer sweat equity program

       Buyer’s need time before getting a bank loan
           o You can give buyer’s time to clean up credit
           o You can give buyer’s time to build up equity or down payment
           o You can give buyer’s time to refinance
           o You can give buyer’s time to establish or prove their income

       Buyer’s who cannot buy must rent
           o You can offer rental opportunities




4
             5 Ways to Sell or Occupy
               All Your Houses Fast!

1) Buy the right house

       Target the right price range
           o More affordable

       Target the right areas
           o More desirable
           o In higher demand

       Target higher equity deals
           o Subject to with 40% or more equity
           o Free and clear
           o Bank REOs all cash that can cash flow

       Avoid   bad financing
           o    Avoid negative cash flow
           o    Avoid near term balloon payments
           o    Avoid adjustable interest rates
           o    Avoid hard money lenders
           o    Target 0% seller financing
           o    Use private investors

       Avoid short time frames
           o Get 6 years or more
           o Avoid 6 to 12 month financing
                  Pay off with private investor in needed




5
2) Have multiple exits

       Retail   buyer
           o     Don’t rely on it
           o     Attract with great price or seller concessions
           o     Know about the available loan programs
           o     Flat fee list offering 4% commission
           o     Move mortgages with 0% interest

       Wraparound or contract buyer
          o If you can get enough money down
          o Get higher income
          o Can’t rely on it
          o Offer ownership with 5% down?
                 Must know what it takes to get back if default

       Tenant buyer
           o 2% or more down
                  Better job, credit = less down?
                  Shaky income, credit = more down!
                  Pets = more down
           o Build up their down over time
           o Move them toward wrap financing
                  Incentive for additional monthly payments

       Sweat equity buyer
          o Let tenant buyer or contract buyer fix up house for part of down
          o Get enough consideration before occupancy
          o Be prepared to fix up if needed

       Tenants
           o Use 25% vacancy factor
           o Get at least a breakeven cash flow
           o Get 7 year financing or longer when buying
           o Why not get a tenant buyer with 1-2% down instead?

       Contingences
           o You might close only when you have found the right buyer
           o Payments to seller might begin when income starts
           o Use inspection period to confirm your private investor funds
           o Relying on finding a qualified retail buyer may be frustrating




6
3) Make sure the house is ready for sell

       Repairs
           o Haul trash
           o Make safe
           o Offer as is?

       Remodeling
          o To get top dollar
          o Make comparable

       Curb    appeal
           o     Landscaping
           o     Trash
           o     Exterior paint
           o     Front door

       Price   right
           o     Below market for cash buyer
           o     Below market for terms buyer?
           o     Top dollar for sweat equity buyer

       Staging
           o Signs
           o Flyers
           o Lockbox
           o Minimum staging
           o Full staging




7
4) Use proven marketing systems
       Unique selling proposition
           o Owner can finance
           o No bank qualifying
           o Rent to own
           o Lease with option to buy
           o Fixer upper: Owner can finance, Make offer as is
           o (see list of Headlines & Benefits)

       Ads

       Flyers
           o On sign
           o In window
           o On counter
           o On bulletin boards
           o To neighbors

       Web site
          o Online flyer
          o Benefits
          o Photos, maps and video
          o Buyer’s list opt in
          o Application
          o (see list)

       Postcards
           o To neighbors
           o To buyer’s list
           o To contact list
           o To real estate agents and mortgage brokers
           o See module 7 of The Ultimate Strategy
                  www.RoopDoran.com/tushub

       Signs

       Photos
           o The more the better
           o Online
           o On flyers

       Videos
           o www.youtube.com
           o Post link or embed on web page
           o Add music or narrative?

       Maps
          o http://maps.google.com/
          o Check out “Street View”




8
5) Be a creative and flexible seller

       Handling buyer leads
          o Web site submission forms and emails
          o Free recorded message and voice mail box
          o Taking calls live
                  The person responsible for selling needs to be:
                        Friendly, flexibility and excited
                        Familiar with available financing options
                        Focused on generating leads
                        Following up on qualified buyers
                        Frequently on top of the loan process
                        Fast at updating the marketing systems
                  You
                  Someone else
                  (see list of resources)

       Prescreening
           o Send them to the property on their own
                  Use a lockbox
           o Don’t over prescreen
                  “If this is the home for you, I will do whatever I can to get you in it.
                    Go see it and call me back.”
           o Let the house sell the house
           o Pre-qualify over phone and meet if the want the house
           o Negotiate and build rapport during your meeting

       Offer financing and rent until close

       Allow time to build up down payment

       Offer concessions
           o Up to 6% with FHA

       Consider trades
           o Land, houses
           o Gold, jewelry, vehicles, etc.
           o Lien on their property for sale

       Know   the best you can do
          o    Minimum income you need
          o    Minimum price you can consider
          o    Best interest rate you can offer
          o    Your ballooning obligations

       Don’t give anything away
          o Get something in exchange for a concession
                   Even if it is meaningless to you

       Follow up
           o Add to you buyer’s list if they do not buy
           o Give them a game plan if they are not qualified




9
                               Resources
Business cards and printing:
Top picks from our eLetter subscribers

BanditSigns.com
VistaPrint.com

overnightprints.com
planitpromo.com
Sales Team Live – Post it notes
TheDiscountPrinter.com – Post it notes
Local vendors

Other

businesscards.com
cheapyardsigns.com
digitalroom.com
dirtcheapsigns.com
ebay.com for blank yellow signs that can be hand written
image32 - Signs
iprint.com
Markots.com
nextdayflyers.com
proprologo.com – Promotional products
supercheapsigns.com
VictoryStore.com
witnesssigns.com
xpressdocs.com




10
                                 Resources
Comparable sales and property data
See MMTS: How to Determine Current and Future Home Values

Top picks from our eLetter subscribers

Zillow.com
RealQuest.com

cyberhomes.com
sitexdata.com
investorcompsonline.com
propstreamdata.com
realtor.com
MLS – Multiple listing service
County tax assessor

Other

city-data.com
compass.homevaluebot.com
crsdata.com - Courthouse Retrieval System
dataquick.com
facorelogic.com
housefront.com
loopnet.com
profitgrabber.com
realestateabc.com




11
                               Resources
Live answering service:
Top picks from our eLetter subscribers

patlive.com
Sales Team Live

voiceconnectinc.com
continentalmessage.com - CMS
voiceconnect.com

Other

1800weanswer.com
800link.com
automaticleads.com
eliteprecisions.com
voicenation.com




12
                             Resources
24 hour recorded info lines:
Top picks from our eLetter subscribers

patlive.com
FreedomVoice.com
VoiceNation.com
Sales Team Live

voiceconnectinc.com
adtrakker.com
Gotvmail.com
Grandcentral.com – from Google
kall8.com

Other

americanvoicemail.com
archtelecom.com
automatedmarketingsolutions.com
automaticleads.com
evoice.com
inteliphone.com
pbnext.com
quickvoicemail.com
realestategrowth.com
ringcentral.com
solaxis.com
voiceconnect.com




13
                            Resources
800 number and call tracking:
Top picks from our eLetter subscribers

Sales Team Live
FreedomVoice.com
patlive.com

tollfreenumbers.com
kall8.com

Other

1800weanswer.com
archtelecom.com
automaticleads.com
callsource.com
continentalmessage.com
Gotvmail.com
inteliphone.com
megatelcominc.com
pbnext.com
quickvoicemail.com
ringcentral.com
tollfreelive.com
voiceconnectinc.com
voicenation.com




14
                              Resources
Buying and selling websites:
Top picks from our eLetter subscribers

Financial Freedom Network - FFN
inetUSA

investorpro.com
supersmartwebprofits.com
godaddy.com
virtualinvestorplus.com


Other

Aweber.com
homes.com
ipower.com
loopnet.net
lunarpages.com
marketamerica.com
marketplace.sitepoint.com
myrealestatesites.com
networksolutions.com
RealEstateWebprofits.com
Realeflow.com
realfreedomwebsites.com
realtytrac.com
rehablist.com
Soldez.com
zillow.com




15
                                 Resources
Online advertising to buy and sell:
Top Picks

CraigList.org
postlets.com

oodle.com
MLS – Multiple listing service

Other

adwords.google.com - Google AdWords
backpage.com
classifieds.info.com
home-for-sale.com
homesbyowner.com
homesellassist.com
Hoobly.com
hothomenetwork.com
kijiji.com
Yahoo! Search Marketing
zillow.com




16
                    Ad examples:
OWNER CAN HELP FINANCE dwn pmt & closing costs. Buy this
home w/little or no $ down! 3bd/2ba, great condition, desirable
Westside location. $247,500. 24 hr recd info 1-800-XXX-XXXX
Box XXXX or www.YourSellinSite.com

FIXER UPPER: Cheap, all cash. $247.5k fixed up. Will take
$167k if quick. Desirable Westside location. 24 hr recd info 1-
800-XXX-XXXX Box XXXX or www.YourSellinSite.com

FIXER UPPER: Owner can finance or rent-to-own w/o lrg dwn
pmt. $247.5k fixed up or make offer as is. Trade remodeling for
equity. 24 hr recd info 1-800-XXX-XXXX Box XXXX or
www.YourSellinSite.com

PRE-FORECLOSURE: Must sale. Owner can help finance.
3bd/2ba, great condition, desirable Westside location. $247,500.
24 hr recd info 1-800-XXX-XXXX Box XXXX or
www.YourSellinSite.com

BUY A HOME without bank qualifying or large down payment.
Call 24 hr recd msg 1-800-XXX-XXXX Box XXXX to hear details
and list of homes or www.YourSellinSite.com

FLEXIBLE OWNER FINANCING or rent-to-own. 5 nice hms to
choose from. Down pmt assistance program. 24 hr recd list 1-
800-XXX-XXXX Box XXXX or www.YourSellinSite.com

RENT-TO-OWN and no bank qualifying owner financing. Several
homes to choose from. 100% rent credit. Pet OK. 24 hr recd list
1-800-XXX-XXXX Box XXXX or www.YourSellinSite.com

LEASE NOW W/OPTION TO BUY: Several homes to choose
from. 2 months free rent. Pet OK. Flexible dwn pmt. 24 hr recd
list 1-800-XXX-XXXX Box XXXX or www.YourSellinSite.com


17
                    Real Estate Blowout
"Real Estate Blowout" technique
Selling houses in a slow moving market can sometimes require a creative approach. In my
area we experience a slow down in Nov and Dec. When offering terms does not attract
enough buyers, then the other option is an attractive price.

In the past (last year) I used this "Real Estate Blowout" approach to sell 9 out of 11 homes
in 5 weeks. Only 2 out of the 9 were sold for the cash price advertised. The other 7 went for
the normal price with terms. The "hot deal" got more buyers looking and calling. Then those
who feel in love with the house but could not cash us out fell back into our owner financing
program, agreeing then to full price.

This then allowed me to turn back up my buying machine which was notched down because
we had of too many homes to get occupied.

Here is this year's ad in the Thifty Nickle ($475) for a week. Other versions were ran as
similar ads, flyers and email blast to buyer list. Use it as an example to get ideas when use
this approach on your own.

To scale the ad to a small size I would eliminate the bottom portion offer the free report.

DOWNLOAD or view Adobe PDF document here
Or http://www.richardroop.com/files_custom/270_758.pdf




REAL ESTATE BLOWOUT! Must sale this nice 3bd/2ba Westside
home valued at $247,500. Will take $221,358 for quick cash out.
Hear 24 hr recd msg 1-800-XXX-XXXX Box XXXX or
www.YourSellinSite.com/blowout

REAL ESTATE BLOWOUT! Local owner gives away $127,465 in
total equity. 7 nice homes to choose from. 24 hr recd details 1-
800-XXX-XXXX Box XXXX or www.YourSellinSite.com/blowout




18
                     Real Estate Blowout
Doing a “real estate blowout” on one or more
properties:
        Determine your bottom line ($0 profit) cash price good for 90 days
            o Purchase price
            o Add expenses out including repairs, closing, holding, etc.
            o Add projected holding costs for 90 days
            o Add 3% commission
            o Add closing costs to sell

        Be willing to accept this low price and use it as your “USP”

        Let buyers know you also offer flexible owner financing

        Once a buyer wants the house but needs help financing, fall back on normal price…
         but make “cash out price” good for 60 days

        Announce using ads, postcards, flyers, website and real estate hotline

        Use total discount in headline when using this promo with multiple properties

            o   See example flyer below




19
     Real Estate Blowout




       Example large ad or flyer


20
            How to Use Cheap Ads and
            Direct Mail to Sell Houses

                                      Cheap Ads
Purpose of your ad

        Get prospects to respond
        Incite curiosity
        Systematically deliver details of your offering

How to Make Classified Ads Work

        Gather rate sheets
        Examine publication
        Use a good, well-formed ad
        Use 2-step process
        Consider added options
        Run it ASAP in the right publications
        Run Til Further Notice (TFN)
        Get discounted contract rates
        Check it for accuracy
        Check it for economy
        Handle response efficiently
        Grow your buyer’s list
        Track all your responses
        Sell fast and cancel ad ASAP

Where to run

        Daily
        Weekly
        Shopper
        FSBO magazines
        Monthly
        Annual

What section

        Homes for Sale
        Rent-To-Own




21
How to Create Good Classified Ads

Ad Structure Simplified
        Headline
        Features & Benefits
        Call to Action

Use a Good Headline
        Strong – Attention Grabbing
        Bold or CAP 1st 3 or 4 words
        Could be double-line headline
        No reverse type
        ALL CAPS only for a few words

Add a Few Benefits
        Only best features
        Use second step of 2-step to elaborate and tell all
        Only beneficial features
            o One bath is not a benefit

Include Clear Call to Action
        Call (hotline) or (sellsite)
        Call Tiffany (phone)
             o To see
             o For lockbox code
             o For personal assistance
             o For details
        Call 24hr rec’d msg (hotline#)
        24hr rec’d info (hotline#)
        Hear 24hr rec’d list (hotline#)
        View at (sellsite)
        Visit (sellsite)
        Drive by (address)
        Pull flyer at (address)




22
                   Headlines & Benefits
                            for Selling Houses
        100% rent credit
        2 Months Free Rent
        All credit OK
        Buy for bank balance
        Buy for mortgage balance
        Buy for note balances
        Buy this home no money down
        Buy this home without bank qualifying
        Buy this home without large down payment
        Cheaper than rent
        Estate sale
        Fixer upper
        Fixer upper: Owner can finance or rent to own
        Fixer upper: Valued at $___. Make offer as is
        Fixer upper: Valued at $___. Will take $____
        Flexible owner financing
        For sale for what’s owed
        Foreclosure
        Foreclosure pending
        Foreclosure stopped
        Free equity
        Great rental house
        Handyman special
        Home for auction
        I can finance regardless of credit
        I’ll loan you money to buy my house
        Lease option
        Lease with option to buy
        Lender repo
        Move in now, close later
        Must sell
        No bank needed
        No bank qualifying owner financing
        No money down
        Owner can finance
        Owner can help finance
        Owner can help finance down payment and closing costs
        Owner financing
        Pre-Foreclosure
        Public Bid Sale
        Real estate blowout
        Rent to own
        Seller can finance
        Steal my house
        Take over these payments
        Trustees Sale
        Why rent? Buy this home for just
        You can this home
        Your credit is approved



23
          Features for classified ads and flyers:
        Pets OK
        Horses OK
        Down payment assistance
        Flexible terms
        Free utilities for a year
        Free cable and internet for a year
        Free set of new appliances
        Incredible views
        Easy access
        Great location
        New carpet/paint
        (Square footage) if a benefit
        (Lot size) if a benefit




24
                             Examples of signs
We scan handwritten artwork and send to the sign printer, or you can handwrite yourself on
blank signs fro smaller quantities. I recommend professional typesetting of signs when
buying, and handwritten when selling.




18" x 24"




18" x 24"




12" x 18" (2 up per sheet)




We place a buy sign, Rent to Own sign and Owner Finance sign at each property for sale.
We attached a flyer box to the Owner Finance sign. I prefer 4 foot wooden stakes, attached
with roofing nails. We then post 8-12 pointer signs from all directions leading prospects to
the house.




25
Tip from member Bob Scarino:
Try www.vflyer.com

Similar to www.postlets.com
    automatic posting on back page
    Google, etc.,
    html compatible ads for craigslist
    printable flyers
    etc.

But may offer a few things that Postlets doesn't offer
    automatic creation of single property websites

“The more we learn about this business, the more
we appreciate how you and Dan conduct business.
We look forward to working with you in the future.”




Tips from member Susan Breidenbach:
As some of my existing tenants go deadbeat and have to be replaced, here are some things
that have worked:

1) Advertise a rental as "recent foreclosure okay; just must prove income" and charge
a premium above the market rate for rent. Some of these folks think no one will want to
rent to them, and you can get up to 20% more from them.

2) If the house needing new tenants is showing some wear and tear, instead of fixing it up
do a zero-down, you-fix deal. That's working especially well right now. Just make sure
it's in the contract that they have to get certain things done by a certain time, etc. A down-
and-out handyman makes a particularly ideal tenant for this type of deal.

3) Offer realtors finders' fees for sending you lease/option tenant prospects -- people who
almost bought through them but whose funding didn't come through...

Question:
“One puzzling thing, though. Where are all the people who are losing their houses going?
The rental market should be booming, and it's not. Are they moving into their parents'
basements? There has been article after article in the paper about how the local rental
market is such a renter's market right now. Looking forward to the call tomorrow!”

Richard’s reply:
Many are still living in their properties, waiting to get kicked out. Many lenders are waiting
to do that.




26
Tips from member Jeff:
1) We don't buy anything that we HAVE to cash out of.

2) Use 20 signs per house and replenish signs every Tuesday and Friday.

3) Direct buyers to call the sign in front of the house in order to get the lockbox code to the
house. Have that number go directly to you or your salespersons cell and ANSWER every
call (or call back every missed call the same day).

Our biggest challenge: Getting people who say they want the house, say they have the
money that we would require, but disappear. We have always done all of our selling of
homes over the phone, so we are clearly just not building rapport and uncovering the REAL
objections. Therefore, we are creating a sales credibility kit and I will be training my
salesperson to identify the buyers who need to meet and how to sell them in a face -to-
face meeting. I believe this will also dramatically lower our time on market...
I would love your tips on how we could best accomplish this.




Tips from coach Keith Young:
#1: What has worked best for me in the past (and
I am actually signing a contract on occupying a
house Thursday) is signs.

        I usually sell or occupy most of my houses
         on signs.
        The 2 top headlines that pull the best is
             o Owner Financing
             o No Banks Needed
        Probably 80-90% of occupying my houses
         comes from signs

#2: www.Craigslist.com or some of the other
free websites

#3: Newspaper ads




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