Making money in real estate has gone back to the way it was years ago.
No longer can real estate investors locate and put a deal together with little to no marketing skills. Real estate investors used to be able to browse sites like Auction.com, HUDhomestore.com and the MLS to find a listing. They were able to do an analysis on it, make an offer and move on to closing. Gone are the days of running an analysis-based investing business. It’s now now back to a relationship-based business.
Now, real estate investors have to market and locate people in desperate or motivated home-selling situations that need a solution of a pro like you. In order to find these motivated sellers real estate investors need marketing skills to generate money making leads.
This might sound like bad news because you can immediately see that this will require a lot more direct mail marketing and capital.
It’s not bad news if you’re willing to change with the market or learn something new.
For those of you who are willing to learn something new about marketing and deal structuring, here’s how to make money doing this:
Example: A real estate investor meets with a homeowner to make an offer on a property. The homeowner pretty much wants full asking price.
Based on their situation and their motivation, the real estate investor can see how to turn this into a win for everyone involved.
The real estate investor decides to draft four options for the homeowner. All include a sales price that was at or close to full asking price, with upfront down payment also in there.
Here’s where it gets creative – because the real estate investor leveraged situational marketing, they knew the seller’s motives and tied that into the creative offers they presented.
Out of all the offers listed below guess which one the homeowner will pick?
The option with the second highest down payment and overall price, and the highest monthly price. But in reality, it’s the option that allows the real estate investor to buy the house with ZERO interest. That’s right, $1500 a month not only allows them to cash flow and have money left over to put in their pocket every month, but it also has every red cent that they pay to the seller going toward paying down the principal.
They will make more money on the back end of this deal AND they solved this seller’s pressing problem.
Give it some more time but situational marketing will eventually become more prevalent in the market. It allows you to get way more creative in your marketing and your deal structuring, so break out those thinking caps.
If you want to start learning it now, while everyone else is still scratching their heads about it, then come learn how to use Situational Marketing to make money.
Take Care comb your hair,
Cody Sperber out.
P.S. Don’t forget to check out my YouTube Channel for free real estate and mindset trainings.