When most of us start out in this business we have no idea what we’re doing. I sure didn’t. I still laugh about how a buddy and I would go around making offers and if someone had a house for $250,000 and we were able to talk them down to $230,000 we thought we were getting the deal of the century.
One of the major problems about not knowing what you’re doing is wasting a lot of money on marketing. Yes, marketing is the most important activity of your business but if you don’t market properly then all that money is going to waste.
For instance, if you’re looking to buy houses from landlords and you were to send 1,000 letters to people who lived in an apartment building then most likely none of them are landlords and you would have wasted 1,000 letters.
The scary thing is new investors do this all the time and still wonder why they aren’t getting any deals. Thankfully, I got myself a mentor early on and I figured out all of my mistakes and learned how to market properly.
However, if you’re someone who doesn’t figure out how to market properly until after you’ve run out of money, then what should you do? Well, you have to keep marketing, I’ll tell you that much. The only way you’re going to close deals and make a lot of money in this business is by marketing, getting the phone to ring, and closing deals.
Luckily, there are plenty of ways to market when you’re on a tight budget.
First off, network as much as you can. Visit every REIA meeting in your local area. If possible, you should be attending at least one networking event a week. At these events try and find out who the “players” are. For example, find out who the rehabbers are so you can wholesale deals to them, find out who the people who love subject-to’s are so you can wholesale to them too.
You see, if you’re broke you need quick cash and the best method to do this is with wholesaling. Once you’ve made connections and have plenty of people to wholesale to the next step is to find or write an enticing flyer. In other words, you find someone who knows a lot about marketing and have them help you create an irresistible flyer. The flyer should be very specific and say something like “Attention homeowners living in John Smith Subdivision: Free report reveals how to sell your house in 11 days or less and save $30,000 in the process.”
Once you’ve made the flyer head over to Office Depot…
And make a minimum of 500 copies. That will cost you $45. I realize you don’t have much money, but as a creative investor I’m sure you can come up with $45 bucks. Just stop going out to eat as often, or buying all those things you know you don’t need.
With your 500 flyers, head out to your neighborhood about 6am on a Saturday morning and put them on people’s doorsteps until you’re all done. If you actually do this, I promise you your phone will ring and this is one of the most cost effective and easiest ways to get a deal if you don’t have much money. Plus, it’s also one of the fastest. (When you get those calls you also call the people you met at the REIA to wholesale to them.)
So, if you happen to be broke and would like to change that fact, then make it your goal to pass out the 500 flyers this weekend so you can close a deal or two within the next month.