"Why Beaters Are The Kiss of Death To Financial Freedom...!

It's takes the same amount of time and money to find cheap deals, as it does to find expensive deals. When I say, "cheap," I'm talking about "low-profit.' When I say, "expensive," I'm talking about "high-profit." If we can make $25,000 on one deal, in the same amount of time it takes to make $5,000 on one deal, why in the world would we be spending time working on $5,000 deals...? That's craziness. One of my students told me that he was working low-end deals, and spending a lot of time and money on marketing (in the old days).  He could find a $5,000 deal every month, but after paying all his marketing and business costs (and taxes), he would only 'take home' about $1,500. At this rate, he would need at least five deals a month to replace his current income. Well, scaling up a business, five times it's current size, IS a HARD slog, especially if you don't have... A large nest egg to begin with... A lot left over to plow back into the business... And a job to back you up... Meantime, scaling up five times, not only requires an increase in marketing and time spent, but requires five times the delegation, if not organization skills... Worse... maintaining that level of production, month-in and month-out... ignores market fluctuations... ignores the ebb and flow of the competition... ignores our energy levels... That's why I don't mess with $5,000 deals.    It requires too many of them to make things work... I'll leave those for my competition.   Meantime, I want one deal to push off five times that ...or $25,000.  How's that done, you ask? You can find out by subscribing to "Screw The Bank!" Five Times More Money - Same Effort Your Sub2 Coach, Jay (and Wolfie, the Sub2 Chihuahua) P.S.  You can imagine how fast I could scale my business, once I started focing on bigger deals in the first place...

 

 

"Using Bandit Signs To Screen Out The Sub2 Losers...!

"Jay, is there a way to eliminate "trash calls" on my bandit signs?" Hmmm. So, we don't want to sift prospects after they call on the phone.  I get that. The problem is, when our advertising isn't targeted enough ...we get calls from time wasters, and competitors, and looky-lous. Part of the solution is to highly target our ad copy.  For example, we separate the hot prospects from the warm ones with a choice on how to get a hold of us ...and when. Most folks are doing this wrong.  For instance, bandit signs that say "I Buy Houses," have about the most generic, unfocused, ad copy possible. There's a place for these, I'm sure, but it screens out nobody. As an aside ...it offers no obvious benefit to the prospects.  So what, "I buy houses?"  And..? Ad copy needs to show/offer/demonstrate explicit benefits.  Why? Because we're always dealing with A.D.D. victims. So, if we don't want to screen out the idly curious, trash calls, crank calls, competing investors, other bird dogs, and looky-lous, then we just use the "I Buy Houses" ad copy. On the other hand, if we're ready to target a niche of prospects that needs to do 'something' today, we use ad copy that reads something like, "Sell Your House Today." Meantime, the key word phrase here is "Selling Today." This offers a more obvious benefit to a seller who needs out, than making a statement that we buy houses. Even more specifically, we can give options  on how to contact us, depending on what situation(s) the prospect is experiencing.  For example for those that are ready to do a deal today, we invite them to call us directly.  For those that 'want more information' we send to a web page.  For all others we send them to phone-tree hell.  Just kidding! Meantime, no ad copy will guarantee to weed out all the trash calls, of course, but using qualifying ad copy is still better than using a generic headline. If we wanted to really sift the prospects, we could include more qualifiers. Before I give you an example of that, think about all the negative qualifiers that drug advertisers include in their TV ads.  Most would think these negative qualifiers would turn off would-be buyers to their medications.  For example we'll hear... Beware that "Vagirash® " can cause... explosive diarrhea thoughts of suicide nightmares vivid dreams sleep walking strokes heart attacks headaches "Please consult your physician before using Vagirash®, and tell him if you've ever had kidney disease, voted democrat, if you regularly shop at Wal-Mart; and had an erection lasting longer than four days." After hearing all these negative, if not fatal, side effects, people still demand their doctors prescribe this crap to them. What's happened here?  The advertisers know that sifting out the prospects that would get hung up over these downsides, won't call and waste their time.  The rest are so hung up on the benefits being promised that they're willing to accept the risk that their sex lives will resemble a limp piece of spaghetti; that they're likely to begin drooling out the left side of their mouths from a stroke; and will develop blinding headaches where suicide is a welcome relief. Meantime, they trust Vagirash will get rid of their infection ...and that their dating life will improve, as a result.  Yay! OK, here's a sample of more qualifying on RE signs: Sell Your House Today Want Out..?  Need Cash...? Call Jay Now For Cash At 555-555-5555 We could add more qualifiers, if we wanted to.  This goes against the grain of most marketers, but we could add, "If You're Not Ready To Sell Today, Don't Call Us. We're Only Taking Calls From People Who Want To Sell Today." I have seen this.  This sifts out the option weighers, and puts us in control of our negotiations.  Anyone who calls, had better want to sell today, huh? Well, all this was an answer to a question I received about how to screen time wasters using the OLD ways of finding motivated sellers. This is the time-consuming method of scaring up prospects. The great news for you is that I offer a much more elegant, efficient, and time-saving way to get your phone ringing with motivated, anxious, sellers ...that are ready to rock and roll today ...without depending on bandit signs. However, if you prefer pounding in signs, and driving around picking them up, and writing them over and over again... my system is NOT for you.  But if you want the most pre-sifted, anxious, exhausted, and motivated sellers making your phone ring, just click the link below.    Getting Your Phone To Ring With Motivated Sellers The Easy Way Your Sub2 Coach, Jay (and Wolfie, the Sub2 Chihuahua) P.S.  If you have a 'bandit sign' success story that I can use in one of my posts, email me with your phone number and email address, with "bandit sign story" in the headline, and I will give you a $100 discount on my advanced training.  Be prepared to provide your photo and a picture of the actual bandit sign you've used, that I can post.  jay-palmquist@sub2marketdomination.com  http://sub2marketdomination.com/

 

Think of it as a persistant, interminable cough ...that spews cash...!

There's one direct mail, marketing principal, that trumps crappy headlines, and poor ad copy, and just plain, old, bad real estate marketing...

Before I tell you what it is, let me first say, that after I 'got' my mind around this principal, I stopped beating myself up over 'bad ad copy.'

Even better, my response rates climbed, and more importantly, so did my conversion rates.

So what is this principal?

It's the principal of "consistency."

OK, before you tune out to that overly familiar, and boring-sounding term...stick with me for a few seconds...
I'm not talking about mailing out every three months kind of consistency... But every last Friday of the month kind of consistency...

OK, why Friday, exactly, you be askin'?

Because the peoples be payin' more attention to the mailz they be gettin' on Mondayz.

Just acceptz it.

I can't even remember who I learned that from, so ignore it at your peril.

-------------------------------------------------
The very most important part of this
principal, is that it naturally focuses
emerging prospects on our solution.
-------------------------------------------------

For instance, the month we skip a mailing, is the month that the competition 'doesn't skip' and snags our ripe, falling fruit, because the prospect only saw our competition's message that month. People forget us that fast...

Recently, I was on a call with a fellow investor who was sending every 90 days with fairly mediocre results, according to him.

He wasn't a newbie, and had about 25 deals under his belt.

OK, not a world-blowing stat, but twenty five deals times $10K a deal is um, $250,000 ...pre-tax.

The point is that he needed better results. We talked about his ad pieces. He had great copy.

His problem was two-fold.

First the amateur competition was coming out of the woodwork around him.

All the fresh seminar graduates were swamping his farm with 'yellow letters' and "Mary letters" and your average junk mail.

Well, of course this amount of competition drove the prospects to THEM, not him, and his response and conversion rates tumbled.

The second problem was, obviously, he wasn't sending often enough.

His cards would come now and then, but the competition was stealing his deals out from under him, only because they were in the prospect's face, month-by-month, by comparison.

As those prospects emerged, they were being caught up in the competition's more 'consistently-cast' net!

Since our ads are all about getting attention, he wasn't getting enough with 90-day mailings.

Which brings me to say that the best way to get attention, is to keep our message in front of our prospects eyes, more often than our competitor.

This does two things:

1) Makes us familiar
2) Makes us the first choice to call.

Which brings me to the main point.

Mailing (exposing the message) consistently, separates the sheep from the goats in this business.

For example, again, if we only mail like four times a year, the prospects will forget who we are in the meantime, and will call the guy that sent mail for the last, five, straight months, first!

Now what?

Well, now we're 'also rans' in regards to those deals.

Well, those folks go home empty-handed, or worse, get a pat on the back, for "participating."

Yeah, well those pats are reserved for marketing cripples.

Forget that!!!!!!

Bottom line is that consistent, timely advertising, trumps bad ad copy, and the competitors that try to market on the cheap.

By refusing to send enough mail, they get a ride home, with a warm pat, on the "also ran's" short bus.

Hey, let's encourage them!! Let's spread the word that 'one-off' mailers are the crème de la crème of advertising shizzle!

We want to keep that 'short bus' full...!

Meanwhile, if you think that mailing out once a month is hard work, since you've got to 'think up' ad copy, you will love my training, because I already give you time-tested, profit-generating, ad copy, that turns out more like a "mail and make money" kind of deal.

Click Here >>>> How to beat the marketing cripples back to their short bus, and make money doing it...!

Your Sub2 Coach, Jay.

"Call Me When You're Ready To Sell, Or Don't Call Me...!"

One of my students called me last Tuesday and shared his version of an objection-meeting gambit that I wanted to share with you.

Here's what he told me:

He advertised in the "real estate wanted" category of craigslist for income property. He didn't mention any creative financing. He just said "I want to buy income property [in his city]. Call me if you're ready to sell."

Simple.

His call to action screened for sellers who were "ready to sell', and screened out the dreamers and temperature takers.

He got a call. The seller told him that he 'just wanted out,' and that he was "sick of being a landlord."

The seller added that he, "wasn't interested in any seller financing, or master leases, or any creative financing, and that he was firm on his price."

Really? Well....!

Some might respond, "I understand. Good luck with that approach ...in this market" and hang up.

Not my student. He just plowed forward and confidently told the seller this...

"Mr. Seller, you told me what you wanted; that you were firm on your price; that you wanted out; and you weren't interested in seller financing.

That's fine, but there are many cash flowing REO's selling all over the place, for much less than what you're asking.

If you're not willing to negotiate price or terms, then I'll continue looking for something more sensible to invest in. If you change your mind let me know."

That's a great response to someone who's telling you how inflexible they are.

But this approach is more than a rejection of the seller's position.

This is a gambit called the "take away." It's an effective bluff-calling strategy. This put my student in firm control of his negotiations, even if the seller stood fast, because my student was qualifying the seller. Meantime, he told the seller the truth without apologizing for it.

So, what did the seller do?

The seller changed his tone and position so fast it was as if he had a personality disorder.

All of the sudden he was curious what my student had in mind. It was no longer a 'my way or the highway' situation. It allowed my student to instantly reframe the negotiations to include the possibility of a master lease, getting the deed (sub2), or adjusting the price for cash.

The question arises, "Could the 'take away' work as well in a 'seller's market?'" Absolutely, and you'll see how in a later post. Stay tuned.

Meantime, look for ways and opportunities to practice the "take away" and see how it improves your control of your negotiations. It's nearly magical.

That's it for now...!

Your Sub2 Coach, Jay

P.S. If you would like to use the same system that my student used to maintain total control of his negotiations, Click Here. Controlling My Negotiations

My Sub2 Deal Won't Sell...!

A newbie flipper couldn't find a buyer for his "rent to own" deal despite following "all the advice" he'd received on marketing with "Bandit Signs." 

I asked him what his ad copy said.  I discovered he wasn't focusing on the "benefits" and wasn't focusing on the right buyers.  Here's what I advised:

"Oh, blezz gawd, that's too much information for any kind of bandit sign...!!!!!!!  Of course, I know you're not putting all that on a yard sign, right?  I do know that, right? 

Let's trim this baby down to something effective...

Assumptions:
1.  You own/control a house.
2.  You're offering "seller financing" via a lease/option/rent-to-own.

Backing up the trail a few feet...we need to analyze the amenities of property to determine the exact buyer that will most want this house.

Every house was designed to appeal to a certain buyer.  Custom built homes are especially designed to appeal to one buyer.  So what buyer is your house going to appeal to most?  To answer that, let's review the features and amenities the house offers.

List of features and amenities:

3 beds, 2 baths
Corner lot on culdesac
x streets of Crest###, Mountain #### and East#### Villages
Close to all the shopping and restaurants
Sidewalks
Mature landscaping line these streets
Child safe
Detached storage
Large trees
Excellent shade
Azaleas Nobody
Japanese Maples
Holly Trees/Bushes
Detached storage
1-car garage
Low down
Under-retail price
Call Bob at  205.602.#### 
Price $172,500 Comps $205 to $250k
Rent $1295.00 

OK, this house is going to appeal to a family with pre-teens that are moving up from a 3/1 or 2/2, or moving in from another area.

It's not going to appeal to:

1. Empty nesters, because there's too many bedrooms, too many noisy, bratty kids and teenagers, and it's a corner lot with "lots" of maintenance issues, and only a 1-car garage. 
2. Large families, because there's only three bedrooms, not four or five bedrooms and only a 1-car garage. 
3. Single persons, because there's too many bedrooms, too many noisy, bratty kids and teenagers, it's a corner lot with "lots" of  maintenance issues.
4. Newly marrieds,because there's too many bedrooms, too many noisy, bratty kids and teenagers, it's a corner lot with "lots" of  maintenance issues and only a 1-car garage. 
5.  Retirees, because there's too many bedrooms, too many noisy, bratty kids and teenagers, and it's a corner lot with "lots" of maintenance issues. 
6.  Families with small children, because neither the front or backyard is fenced (despite the neighborhood being "safe for kids."  There's no such thing as "safe neighborhoods" today; only safe, fenced backyards.  Then there's the mention of poisonous plants. The mere mention of Holly trees conjures up a dead five-year old on the front lawn, frozen, reaching for Holly Berries, with his now-rigormortised arm.  And (drum roll please) there's only a 1-car garage.   

Conclusion on Analysis:

We want to appeal to the family with two kids between 9 and 12 years old that won't "need" a fenced yard, and won't eat Holly Berries.

The one-car garage situation is "fine," because mom and dad both work, and they're always using the car, so a garage is only critical for storing crap, not parking cars.

The fact that the streets are lined with mature trees, and there are colorful flowers and the rest is just "extra" but not deal makers.  Those are things we reserve for our long form advertisements.

The actual deal makers here (after the amenities have been sifted through) are: 

1. Seller financing offer to a credit challenged buyer...
2. The payment...
3. The down payment...

I could go through all the elements of a bandit sign, but I'll just cut to the chase and offer what I know works, based on my analysis of what you've outlined.

Rent To Own!  No Qualifying!
3/2, 1,309 sqft. $1295/mo.
$8k Option Fee, Great area for kids. 
Mature landscaping. Roomy Family Room
Call Jason Today at 205.602.####

Notice I didn't mention the sales price?   I don't want "bargain hunters" calling me. In fact, I'm setting the price to today's retail value of $250,000.  Otherwise why give a bargain price, to someone needing help financing? 

The ones with fewer options, are the ones that only pay attention to the payment and the down payment.  If these are workable, they'll give us the rest of what we want.  Buyer's that fit our profile, don't care about the price (at least the ones we want to attract and pitch). So, the price is "retail."

I want people who...

1. Want to own a 3/2 home
2. Want room to live
3. Want a place for their kids to spread out
4. Can afford $1295/mo
5. Have $8K in Option Money
6. Needs temporary seller financing
7. Appreciate bargain terms (for a credit challenged buyer)

I don't want...

1. Tire kickers with only $1000 for Option Money...
2. Folks who can't afford more than a $1000/mo.
3. Credit dead beats...

Now the question comes up, "Why advertise "no qualifying" if you're going to "force" the tenant/buyer to get his own financing in just a few months.  What happens if he can't qualify for a loan?

Few buyers are going to give us $8K unless they're fairly confident that they will get financing.  Once the prospect knows that we are offering this deal for only 24 months, he'll have to determine if this is worth the risk. 

That said, if our option price is not over-retail (in this case it should be "retail," and not a discount) then any tenant/buyer with OK credit should be able to qualify for his own financing and exercise his option. 

Of course, the types of financing he's going after is a clue to his success.  FHA, or conventional have different qualifying requirements.  So this has to be accounted for in both the terms and advertising ad copy, if not the overall expectations.

We think it's wrong to knowingly put a tenant/buyer into a house, that  he'll never qualify for.  Failed buyers spread the word about our businesses, and then it just pours sand in our gears long term.  So, even though we don't do a credit check, we do ask some questions, and then move the deal to where it will work for everyone. 

That all said, we should be sending our buyers to our mortgage broker for an evaluation, to make sure our buyers can perform in a timely manner, and give us an idea of what to expect.  It's all about negotiations in this business."

If you would like to know the system I use to find, finance, and sell houses, within days, and pocket more than a few thousand in cash, subscribe to this, and watch this presentation...

"How To Flip Pretty Houses For Fast Cash With No Job, Credit, or Down Payments"