STRICTLY SUB 2 ! ! ! ! ! - Posted by Littleguru

Posted by Jim FL on October 29, 2003 at 22:39:17:

Nice to meet you.
A name just feels better responding to.
Glad to offer my input.

Take care,
Jim FL

STRICTLY SUB 2 ! ! ! ! ! - Posted by Littleguru

Posted by Littleguru on October 29, 2003 at 13:37:37:

Those of you are are sub 2 pros i need your help please.
I need a deal soon or my dream of being an rei mAy be crushed. It’s been 6mths AND NOTHING TO SHOW.

How effective would it be to start marketing strictly to expired MLS, People with defaulted loans sheriff date set, and divoring couples. Along with my already bandits and cards. I’m looking strictly for sub2 deals what are u doing?

Also i feel i really need to talk to someone about the business that is an active SUB 2 investor. I feel lost. If anyone would be kind enough to talk it would mean the world to me.

As a real estate entrepreneur, it helps to have… - Posted by Pat Bruner - IN

Posted by Pat Bruner - IN on October 30, 2003 at 05:13:36:

many arrows in your quiver (multiple ways of acquiring real estate/properties) to be successful in this business.

The key is SURVIVAL! Learn as many techniques as you can, so that when different opportunities (good deals) present themselves, you are prepared to capitalize on them. You may get Lucky!

Luck - when preparedness, meets opportunity.

Pat Bruner - IN

Majority Sub2, but not by choice per say(LONG) - Posted by Jim FL

Posted by Jim FL on October 29, 2003 at 16:19:37:

First, I’ll be honest, some folks might take you more seriously with a real name.
“LittleGuru” just sounds funny, and is hard to take serious, plus anonymity makes folks a little shy sometimes.

Sorry, been wanting to say that for a while.

Now, whateveryourname is, on to your post.

I am a full time investor, have been for a while.
I’ve done, and continue to do all kinds of deals, everything from cash, smaller rehabs, sub2’s, afd’s, options, what ever works.
The majority of my deals however, are purchased sub2.

I’m not the traditional sub2 investor as described here.
I sell a few with lease options, as most folks seem to teach.
But, since I buy WELL below value these days, I am retailing most, conventional, after a little fix up, or none.
I am not marketing specific to get subject to deals.
In fact, my marketing is rather generic in overall nature.
I simply tell folks that I buy houses, and where to get ahold of me.
The reason I do more sub2 deals than any other, I suppose is because it works well for me.
I’ve done my fair share of them now, so getting them negotiated is really not a challenge.
Does this mean I’m a high volume buyer?
Used to be, but that was WAY too much like a J.O.B.
Not my cup of tea.
Now I buy a few here and there, all with large equity spreads, and am satisfied to less deals, for the same profits.

Now, with all that said, I market like a madman most times.
When I have a bunch of houses in inventory for sale, I used to slow down my marketing for sellers.
Thia gave me more time, energy and money to get my houses sold and profits pulled out.
That was a problem.
Guess why?
All my houses do eventually sell, because I buy right.
Sure, I’m getting paid, but with no new seller calls, the pipe line runs dry.
Since marketing cannot just begin and instantly get calls by the hundreds, it takes time, repitition, and consistentcy in effort to make the phone ring every day.

I’ve learned, and still need to remind myself on occassion, to NEVER, EVER shut down the buying machine.

So, let’s see if we can jump start yours.

You said you have been at this for 6 months with no deals.
So what?!?!
Some of us took WAY longer than that to get deals.
Me personally, about 2 years.
However, there is one consistent factor with EVERY person who signs their first deal, whether it is right away, or a long time coming.
They worked for it.
Sellers called them, because they could not help but to call, probably.
The investors message was readily available, and easy to remember for the seller.

So, tell us what you’ve done for 6 months, and be specific.
If we tear apart your action plan a bit, we might be able to point you toward what is wrong.

It sounds like from other responses in this thread, and your post, that you use signs and cards?
I like those, as well as the ideas you have for other marketing.
I say do them all.
Expired listings are a good source, as are cards, and signs.
No matter what method you use to market, and it should be more than one, with the SAME message in all forms, you need people to see it, over and over.
20-25 signs is NOT enough.

You are better off using those to cover your garage floor and catch oil, than to put them out at that pace.
Oops, was that harsh?

See, I’ve been doing this REI thing for a while now.
I’ve learned along the way, with some BIG LUMPS to show for it.
One thing that has ALWAYS worked for me, is to market aggressively.
There have been times when I blew it big time, nearly went broke…bad judgement calls, over eager, too trusting, and just plain stupid.
EVERY SINGLE time I’d face a hardship financially, I knew the answer.
“Go buy a house, or several”.
Works every time.
The key, was to get my marketing out there.

Do some checking around.
Most beginning investors I see coming into my area and others, begin with signs…a small amount.
They don’t shop around, and after all, are getting into REI to make money, because they don’t have much, or enough, whatever.
They get cheap with signs.
A quick purchase of 50-100 signs, and they have blasted their marketing budget with a big hole.
So, they trickle out those signs, a few at a time, hoping they’ll last longer. (BAD move!)
Because, again, they did not shop around, and probably paid a few hundred bucks for 100 signs or less…a total rip off by the way, there are WAY better prices for signs out there if you look hard enough.

Those first signs go A.W.O.L., with little results, and the newbie often quits.
My point.
Don’t kill your business before it starts.
There are those of us who call ourselves RE investors, when in reality, we should be calling ourselves, real estate entrepreneurs. See, to me, a true investor puts money into a property, to get a return.
Since I never put my own money into a property, and create profit from situations and brain power, the word, “entrepreneur” fits better.
The only REAL investment in my business is my marketing budget.
When you invest money, time and effort, consistently to get seller calls, you are “investing” in your business.
Treat your marketing that way, and you should get results.
A good investment needs attention, meaning, you need to make sure your marketing is out there day and night.

Those times when a good television show catches the eye, or you want to surf the web, and are a little tired, forget it.
Go market.

I’ve said this a million times before, and still think it applies.
If you market beyond your comfort zone, the calls will come.

And if call volume is not the problem, then yes, perhaps some guidance from another investor on phone skills is in order. Share what your activity in detail here and several folks will help I’m sure.

Good luck, and sorry this was so long.
Been on hold the whole time with a lender, while writing this…oh what fun!:slight_smile:

Jim FL

You also need to be prepared for when sellers do call.
That is easy, just talk to them.
Have them tell you about the house, and why they need to sell.
If they do have an immediate need to be out, move on to screening more, you can research that here.

Re: STRICTLY SUB 2 ! ! ! ! ! - Posted by Doug Pretorius

Posted by Doug Pretorius on October 29, 2003 at 15:26:34:

Everyone seems to be assuming you aren’t getting calls…are you? If so, then your solution is to improve your sales skill, not change your marketing.

Why are you limiting yourself? - Posted by Tim (CT)

Posted by Tim (CT) on October 29, 2003 at 14:56:13:

The best thing you can do for REI is to learn as many different techniques as possible. Would you pass up on a deal with 40k in profit just because the person doesn’t want to do a sub2 deal? Of course not. You need to find out the problem and then try and solve it utilizing one of the many different techniques within your arsenal.

Re: STRICTLY SUB 2 ! ! ! ! ! - Posted by CL2

Posted by CL2 on October 29, 2003 at 14:53:28:



Re: STRICTLY SUB 2 ! ! ! ! ! - Posted by eric-fl

Posted by eric-fl on October 29, 2003 at 14:11:53:

To answer your question, “how effective would it be…”. The most effective thing you are going to be able to do with your marketing is to be consistent with it. One letter to expireds might not do much, but 5, spaced apart, should. How often are you putting out your signs, cards, etc.?

Re: Majority Sub2, but not by choice per say(LONG) - Posted by Jim FL-name - Jon

Posted by Jim FL-name - Jon on October 29, 2003 at 18:59:26:

Thankyou Jim so much for your input. I look up to you since you seem to be where i would eventually like to be. I just graduated from Michigan State with a degree not related to real estate. All i’ve done since i’ve bee out of school is study REI.

I’m like a million other newbies trying to get going the only different is i don’t have a job or need a job at this time i live at home zero expenses. I have backing from pops on rei the only problem is i don’t have a deal yet. I want to prevent the RAT RACE before it happens, I Know i can do it.

I’m taking calls and could of signed up a few sub 2’s but was reluctant becuase the unsurity of the exit of l/o if it would work and be profitable. I definately NEED MORE MARKETING your exactly right. But remember when you were just starting and didn’t know exactly how to move forward. I am educated in buying houses sub2 and feel thats what i should express to sellers even though it would be nice to have a huge arsenal of buying techniques , i just not there yet.

I guess my next move should be to either buy a MARKETING course or construct some sort of post card to send out to divorces,preforeclosures,and expired MLS. THANKS FOR YOU HELP EVERYONE

STARTING OUT IS HARD but i know the rewards are huge in the future,i know my time will come

Thanks Jim - this post got me going. - Posted by JeffGinFL

Posted by JeffGinFL on October 29, 2003 at 17:20:23:

Thanks for this post Jim.

You always manage to wake me up and help me see the opportunities in my marketplace.

I have one rehab going and just signed up some tenants into a new rental today and was foolishly wondering how I would go about getting my next deal.

Thanks for reminding me that if I’m sitting here wondering, I’ve done something drastically wrong - not properly communicated my message that I am ready and available to buy houses from people who need to sell today!!! You’re right - I’ve got to insure that message is in my marketplace EVERY SINGLE DAY.

Some day I’m going to drop you a note and tell you how your insights on marketing changed my investment approach this past summer and what it has meant to me - but today is not that day - I’ve got to go and get my message back out there full force!!!


Re: STRICTLY SUB 2 ! ! ! ! ! - Posted by Littleguru

Posted by Littleguru on October 29, 2003 at 14:26:51:

20-25 Bandits once every 1-1/2 weeks bus cards whenever i leave home.

Sorry above post from me - Posted by LittleGuru (Jon)

Posted by LittleGuru (Jon) on October 29, 2003 at 20:50:34:


Re: STRICTLY SUB 2 ! ! ! ! ! - Posted by Tom (MI)

Posted by Tom (MI) on October 29, 2003 at 14:34:35:

Step up the bandit signs then. Doesn’t seem like a lot to me. I have been putting out at least 50 per week to keep the calls coming in. I also a couple of mailing campaigns in the works as well.