Posts tagged: real estate

Digital Marketing brings about great evolution in the field of marketing and regardless of what industry the concept is interpreted, there is always room for innovation and creativity. Unfortunately, this concept is not well adopted by Dubai Real Estate in the recent times, and a Pied Piper (of Hamelin) approach has been followed by most of the digital marketers which is losing the true essence of Digital Marketing. Most marketers try to copy the concept of one another and sometimes unlawfully even disguise their artwork concepts to catch leads online which although works great for numbers but it is almost zero when it comes to conversion because of quality.

In the basics of marketing, it is taught that every product has its own unique selling proposition (USP) and thus has a different target audience, where one marketing strategy cannot be applied to all. The setback of not following this concept has brought about digital marketing to such a stage where almost the same advertisements are being exposed to same audience over and over again via social media, emails, SMS and online portals which dilutes the interest and confuses a genuine client to what should be opted for amidst this war of similar offerings around all digital channels. Additionally in this process there has been a huge wastage of resource occurred that could have been capitalized better if an optimal utilization approach was adopted. One of the major reason witnessed behind this scenario is the gap that exists between marketing team and their on-ground experience of real estate. Generally, the organizations when they outsource their marketing campaigns to external agencies the objective of both the parties are different where the organization intends to save cost for the marketing campaign and on the other hand the marketing agencies focus on generating more numbers in leads so they can argue on their next contract renewals. In the whole process the essence of advertising the USP of the property is deprived and instead of targeted marketing, the approach goes to mass marketing concept which then again goes against the literature of digital marketing. The only party happy in this scenario is the service provider that are Google and Facebook as their business earns more revenue as the competition gets intense and companies are willing to pay more for the same campaign.

The digital marketing especially social media, SEO and SEM works mainly on bidding structure for a certain set of audience, and of course the mightier bid wins the race, but a well experienced marketer would always opt for an optimal bidding strategy on a specific target segment which would reduce down the cost per qualified lead significantly and eventually would utilize the concept of digital marketing to the fullest. It is high time now that marketers and especially digital marketers should realize the full potential of digital marketing and bridge the gap between knowledge of Dubai Real Estate and marketing approach which would immediately provide better results. The second step includes researching on the appropriate target audience for a specific property and justifying the time spent on this research which would discriminate quality versus quantity at large.

The culprit of this situation cannot be solely blamed upon digital marketers, rather the industry leaders and deciding management have also contributed to a large extend where they have missed out on allocating the right resources at the right time on the right places. Firstly, it is highly suggested to conduct digital marketing in-house since the stakeholders involved in the campaign are many at times exposed to sensitive data of clients and an in-house marketing resource would be not only be focused more upon generating quality leads, but would abide by the values of the organization and would not put up fake or flashy ads which in the long run only results in wastage of monetary resources. Additionally, there should always be an experienced real estate personnel working closely with the marketing team to ensure the research and messages are appropriate and accurate. In the event that organization intends to outsource marketing campaigns, it is highly advised to allocate an experienced personnel as a point of contact for the agency who would not only monitor the progress but would work closely to devise campaigns and messages which only would ensure success in the long run.

Although, the current situation depicts not a very good picture for digital marketing in Real Estate, but if this Pied Piper approach is not followed and right tools are used by the right person with the right resources, there is still a lot to be extracted from the benefits of digital marketing.

How Can HUD-1 Help You Generate Business?

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HUD-1 is a standard form you use very often. The form serves not just as a settlement closing statement, but also as a proof of payment of different tax deductions. Understanding the form and the tax deductible items and communicating them to your clients will help your clients to minimize their taxes and help you to build trust and get more business exposure.

What is the HUD-1

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HUD-1 is a form used by the settlement agent (closing agent) to itemize all incoming funds and all charges paid and accrued by a borrower and seller for a real estate transaction.

When is the HUD-1 Issued?

The Real Estate Settlement Procedures Act (RESPA) requires that the form be issued in all real estate transactions in the United States which involve federally related mortgage loans. RESPA states you should be given a copy of the HUD-1 at least one day prior to settlement.

When Do Clients Need HUD-1 For Taxes?

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Clients use the information included in the form when they file their annual taxes. The filing deadline is normally April 15 of every year for the proceeding year. To allow the client enough time to file taxes using the HUD-1 information, it is recommended that a copy of the HUD-1 will be sent to the client in January.

Because the real estate transaction takes place during the year, usually long before filing the tax return, the HUD-1 given to the client at closing time could be lost or misplace. Sending the client a copy of the HUD-1 with a cover letter will be very helpful and time savings to the client.

HUD-1 Client Sample Letter

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The following is a sample letter you can use to send your clients:

TAX TIME IS COMING

Dear [Client’s Name]:

Tax time indeed is just around the corner, and the first thing you will need is a copy of the Closing Statement on your property. Moving can be a very busy time, and you may have misplaced this very important document.

I would like to be sure you avail yourself of all the tax advantages possible from our transaction. If your accountant has any questions, please have him or her call me (if you need a referral to an accounting you can trust, I’d be happy to provide you with one).

I look forward to continuing as your realtor and providing you the highest level of service possible.

Yours sincerely,

Oh, by the way… If any of your friends or relatives are thinking about buying or selling a home, I’d love to be of service to them. So, when you think of these people, just give me a call with their name and number. I’ll be happy to follow up and tend to their Real Estate needs.

Which HUD-1 Information Is Important For Your Client’s Taxes?

The information reported in the HUD-1 relates to the following tax statements and schedules:

Tax form HUD-1 line

Schedule A (itemized deductions), Line 10 – Annual mortgage interest deduction Line 901

Schedule A (itemized deductions), Line 10 – Points deduction Line 802

Schedule A (itemized deductions), Line 6 – Real estate taxes deduction Line 1003, 1004

Schedule E (rental income), Line 20 – Depreciation (cost of property is required) Line 101, 102

Schedule E (rental income), Line 12a – Mortgage Interest Deduction Line 901, 802

Schedule E (rental income), Line 9 – Insurance 903, 1001, 1002

Schedule E (rental income), Line 16a – Real state taxes 1003, 1004

Schedule E (rental income), Line 18 – Other deductions 703, 801-811, 1005, 1101-1110, 1201-3, 1301-1302

Schedule D (capital gain) Part I, II, Column d – Sales Price 401, 402

Schedule D (capital gain) – Part I, II, Column e – Cost or other basis 101, 102

Form 6252 (installment sale), Line 8 – Selling price 401, 402

Form 6252 (installment sale), Line 8 – Cost or other basis 101, 102

Form 4797 (sale of business property), Part I, Column d – Cost or other basis 401, 402

Form 4797 (sale of business property), Part I, Column f – 101, 102

HUD-1’s two sections

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Section J, Summary of Borrower’s Transaction

This section contains 6 sections, and basically summarizes the entries made to the section L (Settlement charges, see below).

o Section 100, Gross Amount Due from Borrower

o Section 200, Amounts Paid By or In Behalf of Borrower

o Section 300, Cash at Settlement From/To Borrower

o Section 400, Gross Amount Due to Seller

o Section 500, Reductions in Amount Due to Seller

o Section 600, Cash at Settlement To/From Seller

Section L, Settlement Charges

That’s where many entries are tabulated before being brought forward to page 1. Columns contain charges that are paid from either the borrower’s or the seller’s funds. Your closing statement probably won’t have entries in all lines.

o Section 700, Agency Commissions

o Section 800, Items Payable in Connection with Loan

o Section 900, Items Required by Lender to be Paid in Advance

o Section 1000, Reserves Deposited with Lender

o Section 1100, Title Charges

o Section 1200, Government Recording and Transfer Charges

o Sections 1300 & 1400, Additional Settlement Charges and Totals

Line By Line Description

Section 700, Agency Commissions

701 Commissions paid to real estate agencies

702 Commissions paid to real estate agencies

Section 800, Items Payable in Connection with Loan

801 Processing or originating loan fees. If the fee is a percentage of the loan amount, the percentage will be stated.

802 “Points” charged by the lender. Each point is 1% of the loan amount.

803 Appraisal fees. If paid with loan application before closing, it should be marked “POC,” (paid outside of closing). The amount would be shown, but would not be included in the total fees you bring to settlement.

804 Cost of the credit report if it is not included in the Origination Fee.

805 Inspections fee, done at the request of the lender.

806 Private Mortgage Insurance (PMI) application fee.

807 Assumption fee, when buyer takes over seller’s existing mortgage.

808 Miscellaneous items connected with the loan, such as fees paid to a mortgage broker.

809 Miscellaneous items connected with the loan, such as fees paid to a mortgage broker.

810 Miscellaneous items connected with the loan, such as fees paid to a mortgage broker.

811 Miscellaneous items connected with the loan, such as fees paid to a mortgage broker.

Section 900, Items Required by Lender to be Paid in Advance

901 Interest collected at settlement for the time period between closing and the first monthly payment.

902 Mortgage insurance premiums due at settlement. Escrow reserves for mortgage insurance are recorded later. If your mortgage insurance is a lump sum payment good for the life of the loan it should be noted.

903 Hazard insurance premiums due at settlement. It is not used for insurance reserves that will go into escrow.

904 Miscellaneous items: flood insurance, mortgage life insurance, credit life insurance and disability insurance premiums.

905 Miscellaneous items: flood insurance, mortgage life insurance, credit life insurance and disability insurance premiums.

Section 1000 Reserves Deposited with Lender

1001-1007 Funds used to start the borrower’s escrow account, from which the lender will pay next year’s premiums. Each mortgage payment includes an amount that covers a portion of these recurring expenses.

1008 Escrow adjustment calculated by the settlement agent by comparing different escrow formulas to assure the lender does not collect more escrow funds than allowed.

Section 1100, Title Charges

1101 Settlement agent’s fee.

The fees for the abstract or title search and examination are entered in lines

1102 Abstract / title search fee

1103 Examination fee

1104 Title insurance binder (also called a commitment to insure). Payment for title insurance policies is entered later.

1105 Deed preparations record charges and work on mortgages and notes

1106 The fee charged by a notary public for authenticating the execution of the settlement documents

1107 Attorney’s fees.

1108 Title insurance (except the cost of the binder).

1109 Informational lines disclosing costs for the separate title insurance policies (Only line 1108 is carried forward.)

1110 Informational lines disclosing costs for the separate title insurance policies (Only line 1108 is carried forward.)

1111-1113 Other title-related charges which vary by location: tax certificate fee / private tax fee

Section 1200, Government Recording and Transfer Charges

1201 Recording fee

1202 City or County recording fee

1203 State recording fee

1204-1205 Miscellaneous recording fee items

Section 1300, Survey and inspections fees (for pests, lead-based paint, radon, structural inspections, inspections for heating, plumbing, or electrical equipment) and home warranty.

Line 1400 Total settlement charges paid from borrower’s and seller’s funds. They are also entered in Sections J and K,

lines 103 and 502.

Section J, Summary of Borrower’s Transaction

Section 100, Gross Amount Due from Borrower

Line 101 Gross sales price of the property.

Line 102 Personal property charges (draperies, washer, dryer, outdoor furniture, and decorative items purchased from the seller)

Line 103 Total settlement charges to borrower (from Line 1400 section L)

Lines 104-105 Amounts owed by the borrower or previously paid by the seller (include balance in the seller’s escrow account if the borrower is assuming the loan and uncollected rents borrower may owe the seller)

Lines 106-112 Item paid in advance by seller (Prorated portion of city/county taxes)

Line 120 Gross amount due from borrower. Total of Lines 101 through 112

Section 200, Amounts Paid By or In Behalf of Borrower

Line 201 Buyer’s credit for the earnest money paid when the offer was accepted.

Line 202 The new loan paid to the borrower by the lender.

Line 203 Loan borrower assumes or takes title subject to an existing loan or lien on the property.

Lines 204-209 Miscellaneous items paid by or on behalf of the buyer (allowance the seller is making for repairs or replacement of items or a note seller accepts from borrower for part of the purchase price)

Lines 210-219 Bills seller has not yet paid, but owes (taxes, assessments or rent collected in advance by the seller for a period extending beyond the settlement date)

Lines 220 Total for all items in Section 200. The total is added to the borrower’s proceeds.

Section 300, Cash at Settlement From/To Borrower

Lines 301 Summary of the total amount due from the borrower.

Lines 302 Summery of all items already paid by or for the borrower.

Lines 303 The difference between lines 301 and 302 representing the amount of money the borrower owes at closing. If negative number the borrower will receive funds back at closing.

Section K, Summary of Seller’s Transaction

Section 400, Gross Amount Due to Seller (amounts added to the seller’s funds)

Line 401 Gross sales price of the property.

Lines 404-405 Amounts owed by the borrower or previously paid by the seller (escrow account’s balance or uncollected rents)

Lines 406-412 Items paid in advance by the seller (prorated portion of city / county taxes)

line 420 is the gross amount due to the seller. Total of Lines 401 through 412.

Section 500, Reductions in Amount Due to Seller (amounts are subtracted from the seller’s funds)

line 501 When a third party holds the borrower’s earnest money deposit, and will pay it directly to the seller.

line 502 Total from line 1400, the seller’s total charges as computed in Section L.

line 503 When borrower assumes or takes title subject to existing liens which are deducted from the sales price.

line 504-505 First and/or second loans which will be paid-off as part of settlement (including accrued interest).

line 506-509 Miscellaneous entries

line 506 Deposits paid by the borrower to the seller or third party other than the settlement agent

line 510-519 Bills unpaid by seller (taxes, assessments or rent collected in advance )

line 520 Total of all items in Section 500. The total is deducted from the seller’s proceeds.

Section 600, Cash at Settlement To/From Seller

line line 601 Gross amount due to the seller, from line 420.

line 602 Total reductions in seller’s proceeds, from line 520.

line 603 Difference between lines 601 and 602. Cash amount paid to seller (if a negative number the seller owes money at closing)

So many luxury real estate marketing professionals attempt to differentiate themselves from their competition by claiming that they have integrity in their advertisements. The majority of real estate professionals who have enjoyed longevity in their field have integrity or they would not still be in the business. And, those few unscrupulous ones are often the ones who use the “I” word in their collateral material and ads.

Integrity is just the price of admission in the highly competitive landscape of marketing luxury real estate. Those who have achieved market leadership in their area simply could not survive at the top f integrity were not a fundamental building block of a highly successful practice.

The urge to be less than forthright, up-front, straightforward and frank with ones clients comes from a scarcity mentality. That is, the idea that there are not enough clients and, therefore, not enough business to meet ones income goals. This is small thinking!

At the core of this scarcity mentality and small thinking is simply a small contact database of potential referral sources. Believing that there is not enough business causes people do things they would not do if there was plenty of business.

Four Ways to Think Big and Get Prosperous While Maintaining Your Integrity

To build a thriving practice while maintaining your integrity it is necessary to set the ethical standards of integrity for yourself that you would expect of a very competent and highly success professional. Think of someone in your profession that you respect and set the goal to emulate that person’s level of integrity.

Here are the four best ways to start thinking big with integrity:

• Extrovert! Get out of your office and meet more people. Build a huge database of potential referral sources. Get over your shyness. The most successful professions have figured out a way to overcome their shyness.
• Delegate! It becomes easy to hide behind the excuse that you do not have enough time in a day to accomplish what you want and still have a life. Delegate everything you can possible think of to an assistant or virtual assistant and free up more time to meet more people. Build a huge contact database. Just about everyone is shy and lazy when it comes to meeting new people. Successful people overcome this obstacle to success.
• Expand! Exponentially expand the boundaries of your marketplace.
• Stay In Touch! Keep in touch with your expanded database of contacts.

This is part of a series of articles entitled, Luxury Real Estate Marketing Essentials. It is dedicated to luxury real estate marketing professionals worldwide.

Frequently sellers insist that their agents put ads in the local paper. Is this means of advertising still legit? While newspapers are still running For Sale and Open House ads in the paper, these sections are not what they used to be a few years ago. Buyers just aren’t utilizing the newspaper classifieds like they used to.

Reasons? Here are two reasons that I’ve come up with based on what I’ve seen and done. First, newspapers have a definite shelf-life. Newspapers are very current and only last for that day. If you don’t see the paper on a given day, chances are you will not see it at all, unless you take a trip to your local library or newspaper archive. And who looks for a new house in their newspaper archive? Online advertising, however, has a much longer applicable period. With good search engine optimization, a single site can draw many visitors…for as long as you keep the site up. I’ve heard agents say that they sometimes get inquiries after a home has sold as the website is still live.

Second, if I were looking to purchase a home, I would want as much information about the property as I could find. A newspaper ad might show a photo of the home (if that) and the basic details: bedrooms, baths, sq. ft., etc. The internet allows Realtors to put up a multitude of information about a listing, and allows prospective buyers a chance to “see” the property virtually through photos and 360° panoramic shots.

Having said all that, sometimes print ads are beneficial. Occasionally, newspapers run special sections just for real estate ads, open houses, etc. and you can reach a large, targeted market that way. A person who typically doesn’t search the paper for real estate will purchase the paper on that day for the special section.

So, when you do create a print ad, whether for a newspaper or a magazine, here are some things you definitely want to do:

• Address: Make sure to give the address of the home in the ad. If you have a website URL that is the house address, use that here….double duty!
• Photo: At least display an exterior shot of the house, and a good one of the inside if you can.
• Description: The room for a description is rapidly shrinking, but at least get the vitals (bedrooms, baths, sq. ft., etc.) in. A good sentence incorporating a key selling point or two is ideal.
• Price: Be open and honest about the listing price of the home. Hiding prices to force folks to contact you isn’t worth it.
• Contact: Of course you want your name and phone number. But make sure your website is there too!

For my part, if the above information isn’t in an advertisement, I won’t bother to look any further. In doing research on a property, buyers want to know where it is (address), see it (photo), know how much (price), and learn more about it (website). The rest is just icing on the cake.

The Real Estate business… what could be less online oriented? Sure you can look at pictures, but your clients have to see the home, walk around, get the feel of the place. How can Social Marketing tools help you there? What’s Facebook or Twitter got to do with selling property?

Lots!

Every real estate professional knows that selling homes isn’t about buildings, it’s about people. And between advertising and networking, the pros spend 50-75% of their time trying to reach and interact with them. Present clients, potential clients, and past clients form the core of a realtor’s social network. Naturally, every active agent wants that network to grow.

But how?

Even at the most basic level, a site like Facebook lets you reach out to, contact, and interact with many more people than you could ever see face to face. It simply has a wider reach even than your phone. Something as simple as creating a Facebook Page instantly puts you in the pool where you can swim with lots of others.

Expand your web presence and build an online community through Twitter and Facebook Pages for your business. Then reach out. Explain what you do, and do it in a way that shows your Facebook Page fans how you can help them. It’s not about you, but your clients.

Hit that theme in a dozen ways. Create a Poll to find out their biggest gripes when shopping for a home. Post relevant news stories, offer photos, use the discussion board to generate buzz. Let everyone know about upcoming events.

Nothing wrong with self-promotion, though, done the right way. Tell your Facebook Page fans how you just closed a deal and made a young newlywed couple ecstatic over owning their first home. Talk up your town, about how it has unique features. If it’s made a Best Places to Live list, even better. Tell everyone!

Social Marketing Ideas to Promote your Real Estate Business Now – take it to the next level with Twitter. Twitter is much more focused on real-time interaction.

You’re in the middle of an exciting deal. A family has just moved to your area and you’re showing them some of the unusual properties that are newly on the market at historically low prices. Tweet your enthusiasm to everybody out there. Passion breeds passion.

Invite all your online friends to visit at the first opportunity. Give free tips on how to find a great carpenter or gardener or plumber. List open house information. Inform everyone of local market trends. Everyone today is interested in how the economy impacts real estate and vice versa. Be the go-to guru on Twitter for those insights.

Real Estate pros can keep in touch with their current client list, and considerably expand it, by taking advantage of the latest social networking tools. Real life, meet virtual reality. See how one enhances the other.

Both Facebook Pages and Twitter are where you can –

• Build a community surrounding your business and gain extra exposure
• Share valuable content about DIY resources and ideas. What’s new in the “green housing” arena? What are the biggest benefits of using a real estate agent over doing it all yourself.
• Inform fans of what’s going on in the real estate industry. Are home prices going up? Down? Is it a buyer’s market or a seller’s market. Tell them how they can best approach house-hunting in the current market. How can they best stretch their dollar? Don’t forget about sellers – let them know the top 10 things they can do to increase their chances of selling their home in the current market. Or what they can expect when they first put their house on the market.
• Ask fans for input and comments about their house-hunting experiences. What have been the biggest obstacles, and how did they overcome them? Could they list their best resources they used for their renovation projects?
• Create contests and special offers
• Get a little crazy and creative – loosen up and have a bit of fun
• Announce your upcoming events, such as Open Houses, etc.
• Upload your videos and pictures of homes you’re selling. Encourage your Facebook fans to upload “Before and After” renovation pictures and videos.
• Announce your new products / services
• What’s going on in your town and nearby areas? Get people excited about moving to your town. Think about the different ways you can do that. Explore what the various neighborhoods are doing for fun and excitement. Why not share these with your social network visitors?
• What about other related topics your audience is interested in? Could you provide information for them about: home decorating tips, green home project ideas, flooring options, diy resources, ROI for typical renovation projects, how to recycle their old material from renovation projects – both inside and out in the garden. The list goes on and on when it comes to topics dealing with home and garden.

In, most types of real estate markets, the quality and insights of the marketing plan, is, often, a significant factor, and difference, in the results, in terms of price, potential buyers, etc! Although, this may not be as significant, in an extreme, sellers market, such as what we are presently, witnessing/ experiencing, as it is, in others, it still has some impact! The finest quality, best, real estate professionals, often, differentiate themselves, from the rest – of – the – pack, by the development and significance of their plans, and approaches, in this area! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 key steps, towards creating, truly, successful ones.

1. Overall plan: How does the specific property, differ, from its competition? What, exactly, is its competition, and why? Which, specific, niche, if, any, might this house, fit – into? An agent owes it, to his client (the homeowner), to, thoroughly, explain, his reasoning, and how, he plans, to create, the necessary degree of buzz! Homeowners and agents, must proceed, on the same – page, from the onset, to maximize desirable results, etc!

2. Table of responsibility between agent and client: If, you want the desired result, begin the process, in a mutually, informed, manner/ way! Each must understand, realize, and agree to his specific duties, as they relate to this Table of Responsibilities! When the owner, and the agent, he chooses, and hires, are comfortable with, and agree, from the onset, the plan, is better performed. For example, the homeowner must keep the house, neat and clean, and ready, to be, shown, on short – notice, to achieve the finest possibilities! They must discuss items, such as showing, advertising, Open Houses, etc!

3. Timeline: Most people, selling their homes, are concerned, with the stresses, tensions, and hassles, etc, which, often, accompany this period! Frequent discussions between client and agent, help to create, a viable, timeline, and often, a more realistic, prepared, homeowner!

4. Review/ discuss: The best – laid plans, of mice and men, often go astray! How many times, have we heard that, yet, continue, not to learn the key lessons? Since, it is impossible, to precisely, predict the future, usually, there must be a pre – scheduled, weekly time (at the minimum), where the parties, fully discuss, results, showings (or lack of), and, whether, there is a need to adjust/ tweak the plan and approach!

5. Modify/ tweak, as indicated/ necessary: Avoid being inflexible, but, maintain, a balance, between, what one hopes for, and reality! There may be a need to modify, and tweak, the plan/ approach, if, and when, it’s necessary, and indicated!

Smart agents and homeowners depend upon a quality marketing plan! Doesn’t it make sense?

In order to be successful as a real estate investor or basically in any other market, you must know how to market. Marketing is the pulse of your business, without a pulse, you flat-line and you DIE, no really, you are dead, or you might as well be because you aren’t doing anything in the business. You can be a newbie investor or a weathered one but if you “act” busy, it doesn’t necessarily mean that you are doing the things that count to increase your leads.

MARKETING IS LIFE. You are not a real estate investor, well not precisely; real estate is just your vessel, your means of becoming financially independent. In essence you are a marketer. Learn this craft well; study it day in and day out. You must become the World’s Greatest Marketer, but in your farm area first. Baby steps, come on!! All of you insist on getting coaching, products, courses and real estate books. Those are all good and well but what about marketing? When does that come into play? Invest in some marketing books, they go a long way, even if they are in a different market, they all have great ideas and useful techniques to put into good use.

I use many different types of marketing strategies on a day to day basis, but what helped me the most which I highly, highly recommend is… Guerrilla Marketing!! That is right, how I launched myself onto the scene was with several subtle but extremely creative and powerful Guerrilla tactics that can help any investor, especially the newbie investor. Oh man, I felt like a little boy at Christmas once I started getting my phone to ring off the hook!

Shhhh, do not say anything, but what I am about to share with you are some of my secret, but really not so secret techniques that helped me get my phone ringing off the hook!! With this approach you can make $10,000 within the next thirty days if you start right now! Unfortunately some of the strategies I used involved hitting the streets, that’s right… you have to hit the pavement and I mean hard, hard like “curbing” as in American History X hard. Uncomfortable going out and about, well you might as well stay comfortable in your lousy life. In order to succeed you have to just do what it takes, remember, pain is only temporary but victory is forever.

As I was saying, yellow signs, the oh so lovable 18″ by 24″ yellow corrugated plastic, how I loathe thee. Two ways to use them, the first is to attract sellers and the second is to attract buyers. Like anything else in the world, this is a numbers game and you must stay persistent. Every month, if your budget allows for it, shoot to purchase 300 yellow 18×24 corrugated signs, a pole stapler and either a red or black “KING” sharpie. You are going to write on 200 of them:

WE BUY HOUSES

FAST FOR CASH

XXX-XXX-XXXX

Every week you will place 50 signs in high density areas, but use common sense guys. Do not put these signs on a highway!!! You are most definitely going to cause a car accident but most importantly you aren’t going to get any calls. For every 50 signs you put out, you will get around 5 calls of the highest motivated seller you will come into contact with, but in the end it will only result in a deal or two which is very good.

At the same time, you grab the left over 100 signs and write:

HANDYMAN SPECIAL!!

HOUSE 4 SALE

MUST SELL QUICK

XXX-XXX-XXXX

Or,

CHEAP HOUSE 4 SALE

4 BEDS/ 2 BATHS

MUST SELL QUICK

XXX-XXX-XXXX

Most of you at this point are going to whine, “But Lou, I do not have a house to sell, isn’t that wrong?” After I am done smacking you, I will remind you that you are a Guerrilla Ninja and that you need to have an ever expanding Cash Buyers List. The beauty of this is that you will get tons and tons of calls, I mean tons. About 40% are tire kickers, 40% retail buyers, 10% wholesalers and 10% legitimate CASH BUYERS!!!!

So once you have a deal under your belt you can quickly call and email the cash buyers to sell it quick! And since you placed all these signs in the same area, you will not have an issue matching them up to a property that they want. Also, since you have gotten in touch with some of the local wholesalers, try to get one of the deals they have and Joint Venture with them. It is the quickest way to make $1,500 and up for being the matchmaker between the two. And the more Cash Buyers you talk to, the more confidence you will have in shooting them out a deal when you are on a friendly basis with all these wholesalers. Wholesalers may be a little hard to get through the first time around but trust me, they only care about one thing and that is moving a property, and moving it quickly.

But wait, there is more, I highly recommend you save all those phone numbers you receive so that you can market to them in different ways. It does not matter if the calls are coming from either Seller signs or Buyer signs, but save them and you can market to them as well. But those strategies are for another time. Anyway, this was a quick but simple overview of one of my favorite Guerilla Marketing methods, the Yellow Sign.

Cheers!

P.S. If you want to get some cheap signs I recommend you going to signwarehouse.com, they are very inexpensive there as opposed to the local sign shop.

If you want some great books as well, I highly recommend the following books:

– Guerrilla Marketing by Jay Levinson

– Word of Mouth Marketing by Andy Sernovitz

– Selling The Invisible by Harry Beckwith

– Do It by David Newman

Instagram’s simple platform and focus on photos makes it the perfect app for real estate agents to share their listings. However, agents who aren’t familiar with the platform may not know what kinds of pictures to post. Simply posting a photo of your listing with the address and a description isn’t going to get much attention. You need to create a story around the listing and share multiple photos to tell that story.

The easiest way to start “Instagramming” your listings is to use Instagram during an open house. Below are 7 different pictures you can take to create and share your open house story.

Start with a selfie

A “selfie” is a photo that you take of yourself. Take a selfie in your car, in front of the sign or by the front door. Caption it with something like “Excited to host an open house at 12345 Main Street.”

Your favorite room

Take a photo of your favorite room in the house. In the caption, get your followers to imagine life in that room. For example, if your favorite room is the bathroom with the huge soaking tub, say something like “Can you imagine coming home from a hard day’s work and getting to soak in this tub? Glorious!”

Your favorite outdoor feature

Photograph your favorite outside space. Again, get your followers to imagine themselves living there. “Check out this built in BBQ. Would you love to host summer BBQs at this home?”

Give a shoutout to other agents

A shoutout is a social media referral. If a real estate agent you know comes by the house with clients, snap a picture with them and give them a shoutout in the caption (be sure to use their Instagram handle if they have one.) Your caption could read something like this “Look who stopped by my open house today! Thanks for bringing your buyers @realestateagent.”

Share your “to-do list.”

Write or type a list of things you need to do to prepare for the open house then post a picture. This gives people an idea of the services you provide when hosting an open house. You can also share the owners to do list to educate people on how they should prepare for an open house.

Tools of the Trade

Do you always bring a specific water bottle to open houses? Do you often bake cookies or bring a vase of flowers? Lay out your items and snap a photo. The caption can read something like “Here’s my open house survival kit!”

Get the owners in on the fun

If the homeowners are around, take a photo with them. Tag them and ask them to share the photo on their Instagram and to tag you!

Instagram is easy to use and the perfect platform for real estate agents who are unfamiliar with social media but want to use it to market their listings. With a few clicks of your smartphone camera and some witty captions, you’re next buyer could be one of your Instagram followers.

All too often I see small business owners missing the mark with their marketing. Sure, it’s easy to do when you specialize in a specific industry niche and you spend your time engulfed in industry sector jargon. However, it’s best to put yourself in your potential customer’s shoes and think your marketing through from their perspective, addressing their most important questions. Your customers want to be able to trust you, to know you are looking out for their interests and that you don’t just see them with Dollar Signs in your sunglasses.

Below is a sample page, perhaps good for a website, brochure, email, or letter. Why not look this over and consider how you might form your own message. Use your own voice, your own style and remember you are talking to your customer across the table for the first time. You know what questions they will ask. Show that you care, that you are working for them, and will go out of your way to get them the best rates, and great service. Here is the sample:

Commercial Real Estate Loans

Are you looking to purchase an income property such as an apartment building, small office building, or retail center? Would you like to put several rental properties in your real estate portfolio into one commercial mortgage? Wish to find a suitable piece of land and develop that property? Do you need a loan for acquisition and construction?

Do you want to buy a business property with a business on it; a restaurant, carwash, service station, laundry mat, hotel, etc.? Are you looking for a commercially zoned property with a warehouse or industrial building on it? Are you expanding an existing business and/or want to own the property under your business rather than paying the monthly lease?

Are you in the agricultural sector, looking for specifically zoned farming property; land for a vineyard, orchard, or crop such as berries, vegetables, or flowers? We have significant experience to make this happen. Our area in Southern CA has one of the best climates in the world, and incredible top soil for growing almost anything.

We can assist with all types of commercial real estate loans including government-guaranteed loans such as FHA, USDA, and HUD. If you are looking for an SBA 7(a) loan or a CDC/SBA 504 loan for commercial real estate we can get it done.

We can assist you with traditional commercial mortgages, commercial bridge loans, or commercial hard money loans. We also have lines on non-traditional sources for hard money commercial real estate loans, which are custom tailored to you needs for complicated projects outside the normal scope of typical commercial real estate loans and mortgage offerings.

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Why not try something like this? Just because the Federal Reserve has raised rates doesn’t mean you have to let new deals and new clients move to your competitors. I hope you will please consider all this and think on it.

Because of the challenges involved in today’s tough real estate market, more and more realtors are leaving the business. This exodus is causing an unprecedented opportunity for those realtors skilled at marketing to move forward in gaining large amounts of market share! The simplest way to focus your marketing efforts is to select a niche and focus on that group. Here are some niches that you may want to consider:

A Farm – This is the easiest niche for most agents to understand. A farm can be a subdivision, an area like waterfront homes on a certain street or even a county if it is small. Some great ways to start to become an expert in an area are to visit all the homes currently listed for sale in the neighborhood, visit all the FSBO’s who currently have their homes available, and offer to do open houses for agents who have current listings. Let the FSBO’s know when you are going to have your house open so you can coordinate with them to have theirs open also. Send postcards to the homeowners and also start a neighborhood newsletter giving sales information and relevant neighborhood info.

First Time Homebuyers – These are people who need the expertise and connections that a realtor can provide. To reach these buyers you can send postcards or walk apartment complexes, renters make great first time homebuyers! Offer to hold “lunch and learns” to large area employers who have younger workforces that need to find housing solutions. You can partner with the affordable housing government agencies in your area, finding out the requirements for buyers to qualify. Offer to send them “hot” listings that are in great shape and meet the pricing requirements of their programs. Make sure you preview and hold open all the houses in these price ranges that you can get your hands on so that you can know the ones that will be worth taking your clients to!

Luxury Home Buyers and Sellers – This one can feel like a farm but it is a little different. Targeting high end buyers and sellers will result in larger commissions AND larger expenses! Make sure your marketing materials are professionally designed to appeal to people in a top tier demographic. Target international buyers by displaying high end properties on your website and blog (if you do not have your own listings “borrow” some from the other agents in your office after asking for permission). Make sure you list information about marinas, yacht clubs, tennis clubs, country clubs and golf courses on your website. If there are high end retail areas in your market list those shops and also any five star restaurants that may be nearby. Join the local country club and support the regional arts councils.

Baby Boomers – If you live in a warm climate this group is for you! Find out all the retirement and 55+ communities in your area and list them on your website or blog. Become familiar with the restrictions of the different communities (some allow pets, some don’t, some allow one person to be under 55, some require everyone to be over 62). Advertise in the senior magazines in your area, focusing on your expertise as a benefit to finding the perfect retirement home. Have a group of vendors that you can recommend if they need property management services while they go north for the summer or visit family for extended periods of time.

Those are just four of thousands of different niches you could choose! Whether you like boating or golfing, like working with buyers or sellers, love children or dogs, there is a niche for someone like you. Pick something today and focus on it with all your energy and you will be able to capture more of the market than you ever thought possible!