I officially became a real estate investor at age 18, when I purchased my first business: a pizza restaurant! Real estate investing was something I had always wanted to do, but I started with the restaurant because I knew the business - I had the experience. 9 months later when I sold my pizza place, I completed my first real investing deal - a 3 for 1 bonus, with 3 houses on one lot - that I bought from my uncle. Very, very exciting, got my feet wet and gained some experience. And from that one deal, I've built my own real estate 'empire' that's worth almost $12 Million, and growing steadily every day! But I learned that if I wanted to make serious money in a serious business, I needed to create a simpler way, a better system. I created a system based on a simple, tried and true strategy: direct mail! And no - direct mail is NOT dead. It works so well for me actually, that I haven't spent the effort to look for the right deal in a long time - they always find me! The one piece of this system that has made me the most money is the piece I want to share with you now. In fact, it's the piece that has made me more money than any other strategy I've ever used. I call it: Catching The Whale! If you don't know what a whale is, let me tell you that they are typically sellers who own more than one property, usually more than 3. And a Killer Whale is a whale that owns LOTS of properties. Why is this important? Because when you choose your 'farm area' (the neighborhoods you're targeting), you're really looking for whales. It takes time to build the trust that you need with your sellers, so why not create long term relationships with sellers that can bring deal after deal after deal? Continuously. With a minimum of effort. And that's what the direct mail campaigns will do, if you choose your target market correctly. Now here is the one piece that you must remember - even if you forget everything else, you must remember this piece... The key to finding Killer Whales is in the target market: You want to target home owners who have owned their property for a minimum of 10 years, preferably 15 - 20 years. People who have owned their properties for less than that are typically not in a position to sell. Or if they do want to sell, they need the money for their next house, or their asking price is too much. You want to target owners that don't live in the properties. That fact alone tells you that the property is an investment property. And people that have owned the property for that long of a time are in a perfect position to offer seller financing. That my friend is the BIG bonus. Usually people who have owned their properties for 15 - 20 years are either getting ready for, or have already entered into, some kind of retirement. And that means that income and tax consequences are important to them, more important than getting the actual money. They want the tax breaks. Ok, so here's how it goes: - You target individuals who have owned the property for longer than 15 years and who don't live in the property.
- Create a direct mail campaign. Let your prospects know you are in a position to help them, that you're in the market for a property just like theirs!
- And wait for the calls to come in!
The beauty of the system is that the deals come to you! And because you're targeting a specific market, you're reaching individuals who are in a better financial position to own more than one property. You complete your first deal with your whale, and if you've done your job right, you've established a long-term relationship based on trust and mutual respect. And those kind of relationships are the ones that will continue to produce for you - over and over again! Sustainably, profitably, and consistently. Congratulations - you just caught your first whale! |
