It’s been a crazy couple weeks, but it’s time to get back to John’s cash challenge. Remember, here’s the problem:
- John L. needs $60K by July to pay his brother back
- John is strapped, and has limited funds to work with
- John wanted a plan to achieve his goal
We set up his goal, talked about the importance of tracking inputs, and I gave you resources for national averages to use as a starting point
Then I gave you 3 strategies for generating large sums of cash quickly:
1. Wholesaling
2. Pull cash out of an existing deal or a new one
3. Put a 2nd on an existing deal or a new one.
When we left off, I told you we would next get into my 4-step process for creating cash deals:
1. Finding the Deals
2. Building Your Buyers List
3. Selling Your Deal
4. Closing Your Deal (aka Getting Paid)
Today we’ll cover Step #1, Finding the Deals. This is clearly critical, as a HUGE rookie mistake is not generating enough leads, and then trying to “make a deal.” If you buy a house this way, the deal is not a deal.
Instead, you need to generate a LARGE number of leads from which you can cherry pick the real deals… “From quantity comes quality.”
Understand that this is a numbers game. The number of qualified sellers (those with enough equity to do a deal if properly motivated) who also have the proper motivation to sell at a HUGE discount is small. How do we deal with that? Generate more leads.
Also along those lines, you need to get REALLY GOOD at pre-screening, because the worst thing you can do is spend time with sellers who can’t sell you the house if they wanted to. They must have sufficient equity (don’t worry about motivation up front… not everybody wants to spill their guts to a stranger they called from a bandit sign).
Basics out of the way, let’s talk specifics. I am going to share my top 4 tips here, but rather than going into an entire marketing lesson, I have something WAY better for you. I recently taught a 3-session telebootcamp with Richard Roop and Dan Doran, which was broken down into marketing, buying/selling, and funding. We sell the course, but I’ve arranged to let my blog readers download the first session on marketing for FREE, as it’s 2 hours of solid marketing training. No strings attached… my gift to you. You can access it all at:
http://www.whatsworkingbest.com/blogreader
Top 4 Marketing Tips for Finding Quick Flips
1. Find geographic areas with a high
percentage of ugly houses. They don’t hide…
they’re UGLY, and the grass (or snow) is up
to your knees.
2. Find demographic lists with a low value to
surrounding houses (I look for a certain
percentage or below of median sales price
for the zip code or MLS area).
3. I have had more success using post-it notes
stuck door-to-door than with any other media.
I have had over 250,000 put out in my
farm areas. They give you the opportunity to
cut through the clutter and guarantee face time
with the homeowner. Use local delivery
companies, or hire your own delivery people.
4. Stick with “bread-and-butter” homes – those
with the largest buyer pool and most
appeal. For me, that’s a 3-4 bedroom house
with 1-2 bathrooms, at least 900 square feet
on the main level, and a garage – plus or
minus about 10-20% of median sales price.
Ok. If you take what I’ve given you here, add the 2 hour training I’ll put up tonight, and take some action, you have a very solid plan to get leads coming in. In the next entry we’ll talk about Building Your Buyers List.
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