Looking for someone to help you out in looking for great deals? Look out for the mailman! He knows where you can find them… and more.

While the general public only think that all the letter carriers does is deliver letters and packages, real estate investors know better. If ever there is a person that has a good knowledge on where a vacant house can be located, it’s the mailman. If a person is in trouble with the mortgage company, the mailman knows for sure.

And why is that?

It’s simply because letter carriers have access to the residents’ mails. This means that letters and notices from mortgage companies pass through their eyes and hands. They’ll certainly know when a resident is in trouble with his property. There might even be people who’ll be asking if the mailman knows of anyone buying properties. This would absolutely be a great referral tactic!

Mailmen and letter carriers also have their walking or driving routes. They would know the addresses and the area well. They will know for sure where there is a vacant or abandoned property, or where there is a property that is waiting to be sold and bought.

With knowledge such as these, who wouldn’t want to work with letter carriers?

All you would have to do is make a proposal to the mailman working on your target area to give you some information on properties that you could buy and invest in. Introduce yourself and build a great working relationship with him.

The advantage of having a mailman as a source of information is obvious. He knows where the freshest deals are. He can bring lots of leads for you. All this before some other real estate investor would even know about it. You’ll also be able to monitor where your competition is going. Mailmen would know where real estate investors are going through the letters that they deliver.

Also regarding competition, you are also able to get to a deal wherein you would be the first to offer your services! Basically, in knowing about a lead first (through the mailman), there wouldn’t really be a competition for you. You knew about the lead firsthand, after all.

You will have to be careful about asking a mailman, of course. There are letter carriers that might think of this move as a shrewd one and would not commit to it. Mailmen are also not allowed to take tips for the information. But there are those who do. What is required of you is that you ask them professionally and with no strings attached.

Make it clear to the letter carriers or the mailmen that all you need from them is plain view information about a property. Plain view information means description garnered by sight alone. For example, in telling you about a vacant house, all they’ll tell you is that the lawn hasn’t been trimmed for so long, that there are stacks of mail in the mailbox, and other signs of a vacant house. If ever the mailman wants to give you more information than that, that will be theirs to decide. Don’t hound them for more.

So you see how helpful the mailman in your neighborhood can be? They’re not just your ordinary letter and package delivery guy. To a real estate investor, they’re a great asset to have.

One very popular and commonly used marketing strategy among real estate investors is the use of campaigns in generating leads. With the growing housing market, investors have decided to use different kinds of campaigns to pursue more targeted market while being cost-efficient.

Direct Mail Campaigns

A favorite among many real estate investors is direct mail campaigns. With direct mail, you are able to narrow down your list of sellers. You can narrow down your data and lists and specify what type of market to handle.

Direct mail campaigns require some time and a lot of effort. But time can be handled more efficiently if you hire or outsource some of the minor tasks of the campaign, For example, you can hire a part-time employee to write the letters and put the stamps on the envelope.

What is important in direct mail campaigns is that you are able to find motivated sellers in a cost-efficient way. With direct mail campaigns, you can also manage your time well, focusing on only motivated sellers. The main thing you need to do in direct mail campaigns is to watch over and check every operation being done. For example, you have to check over the written letters and look for errors and misspellings.

Email Campaigns

With the evolving power of the Internet, emails have become relevant in the real estate business. They are accessible and faster for communication.

Email campaigns in real estate marketing is mainly used among those that you have forged a relationship with. For example, email campaigns would be best used when keeping in touch with real estate lawyers or bankruptcy lawyers, and other people that can lead you to finding deals and referrals. Forging and maintaining good relationships with them will help you in generating leads, as they can help in marketing you to their clients.

Fliers Campaigns

Fliers are another way to market yourself and look for motivated sellers. The problem with fliers is that they are not as targeted as direct mail campaigns and they also cost you money.

There is, however, a way to operate a fliers campaign for free!

This tactic is called co-branding. For example, you have a mortgage broker. You can work a deal with your broker wherein you market your properties while the broker pays for the campaign. Chances are the mortgage broker would agree to this proposition, since he will be the one who’ll take care of selling your properties. He’ll also receive a lot of profit from this. You, on the other hand, get to save time, money, and energy!

Success In Marketing

It doesn’t take an expert to see that it is the best marketers who stand out of the crowd and gain more leads and deals. Being unique and creative can be very rewarding. Unique and new ideas can gain you leverage over the other real estate investors. Bear in mind, of course, that ideas aren’t the only tools you need to stand out and be successful. Knowledge, systems, and action are also needed to fulfill your strategies and apply them.

It all comes back to knowledge.

That is how all of the successful real estate investors would describe their path to success. They are the proof! The more your learn about the business, the more you earn in the business.

3 Elements To Success

There are actually three things you need to have and apply to ensure your success in real estate investing. One is, of course, knowledge. Knowledge and education are very important in real estate investing, especially since the market is constantly evolving and becoming more competitive.

The next element would be systems. Many real estate investors have made up their own system of real estate investing. These systems have a surefire way of helping you with the market and keep your actions efficient and effective.

Systems are actually applicable not only to real estate but to all types of businesses. It helps with efficiency and management. Systems naturally involve models, locations, criteria, standards, and a lot more. Lots of factors have to be take into consideration when making a system. But when you have developed a system, all effort in making it would be worth it. Your very own system doesn’t really have to be perfect at first. Systems can be changed and altered according to the changes in the factors, after all. Systems are also being constantly developed.

The last thing you need is action. No amount of words or ideas will be rewarded without action. Words and ideas won’t earn you money and profit if you’re not doing anything. In real estate, if you want to be successful, you have to be decisive, and you have to take chances with your decisions.

It would be reasonable if the fear of failure is present in every one of your decisions. Every real estate investor has failed at least once. Every successful one surely has. Failures help you make more relevant decisions in the future, after all, and every successful real estate investor realized that by making mistakes of their own.

Marketing: Another Important Tool

When in a business, nobody should have to remind you that marketing is just as important as knowledge or systems. Beginners in the real estate business should especially acknowledge marketing as one of the most vital aspects in generating leads and deals.

When you’re a beginner in real estate, you normally would not have that much money to spend for your expenses. Marketing costs. So whatever budget you have for advertisements and marketing strategies, you have to make good use of. One tip for beginning real estate investors it to focus for the time being on a specific niche. They should focus their limited budget and limited time on an important area that can bring them revenue.

Why market on only one niche? Is it possible to look for deals without marketing?

As stated, marketing costs. It would be wise to first market on a specific niche, and generate deals and profit, before spreading unto the other niches. It is possible to look for deals without marketing, but that would take a lot of time, and time is of the essence in real estate. Marketing has become very vital to real estate investing. Marketing can bring you recognition among buyers and seller, generate lots of leads, bring in referrals, and a lot more.

It is said that about 40% of your time should be spent on marketing. Why? Because when all is said and done, as you look back to the start, you will see that it is marketing that is generating you lots of leads and enabling you to find deals.

To be successful in real estate, it’s all going to boil down to your battle plan. What is your battle plan in the real estate market? The competition is fierce and and failure is just on the other side of the road if you give in to your fears. What do you do to cross the wall that separates those who have succeeded from those who failed?

There are generally three ways for a person to get rich:

• inherit money or fortune

• start a business

• get into real estate

An inheritance is only applicable to those who are fortunate enough to have been born into a family of wealth. Starting up a business requires capital and resources. It is evident that the simplest way to generate great profit is through real estate.

It is easier said than done though. Getting into real estate involves a lot of effort on your part, and a lot of effective strategies, to flow with the changing market of the real estate business and at the same time be on top of the others.

One thing that will enter a beginner’s mind is failure. Someone who has never done a deal before will naturally have doubts on whether his or her first deal will become a success or not. And it’s not just the beginners. There are also some real estate investors out there who have made a couple of deals and have gone to a lot of training sessions, but the end result or them is not so good. There are those who have done what they have been told to do but things are just not working out for them.

This is why on entering the real estate market, one really has to have a battle plan. One has to know beforehand what his or her goals are, what strategy to use, and how he or she is going to go about the deal.

When going into the real estate business, you have to focus on getting in, getting out, and getting paid.

In getting in, you first circle around and choose your target market or your area of operation. You don’t necessarily have to cover all the areas and niches. Focus first on a certain market. When this has been established, then you start creating your platform and your strategies. You start finding deals.

Deals are the lifeblood of real estate investing. Finding deals and getting out and getting paid are the primary actions in real estate investing. In getting out and getting paid, you’ll have to profile the people who influence the real estate market. This includes real estate agents, contractors, and many more, but the most important people that you have to keep an eye on are other real estate investors.

Profiling other investors enable you to also see the real estate market changing and evolving. It is through profiling other investors that you can formulate your next battle plan. You profile them and try to beat them to be ahead of them. One of the most commonly used marketing strategy is to be unique and do something different from the competition in order to stay ahead of the herd.

The 3-Step Process

Real estate investing is really just a 3-step process:

1. Recover your training pot!

You don’t get to hear this in several seminars. But you need to recover your training costs to be successful in real estate investing. Trainings and seminars can cost a lot. But if you apply what you have learned and make it big, these lessons will become very valuable to you. Even successful real estate investors continue to study and educate themselves on better real estate tactics to stay on top of the others.

2. Replace the income on your regular job.

No one in their right mind would replace a job that pays so well for a job that will give less. One of the serious decisions that a beginning real estate investor has to make is whether he or she will retain his regular job and do part-time real estate investing, or if he or she will quit her job and be a full-time real estate investor.

When one does decide to be a full-time real estate investor, he or she should make sure that his income would surpass that of his regular job. Otherwise, he or she would be on the losing side.

3. Jump on to the road of wealth!

When one has gotten hold of the wheels on real estate investing, without doubt and without fear, then what other road is there waiting for him other than the road of wealth?

Rehabbing a property is one of the most flexible expenditures in real estate investing. Expenses to fix a house or furnish it can vary according to the extent of what needs to be rehabbed. Most real estate investors usually have a hard time looking for contractors or rehabbers that can give them the lowest cost for the rehab.

But there is a way to lessen the cost of rehabbing up to 40% less!

Lowering the Price

In business, one reason that the prices of similar products are so close to each other is because of competition. If company A, for example, has their product on an average price range, company B would follow the same price range. Most would actually prefer their product to be lower than the usual price. This is because they know that customers would want to save and spend their money on lower-priced products whenever they can.

To get a lower price, or a lower estimate (as rehabs are first estimated), this concept of manipulating competition among the many contractors is applied. Your try to bring in more contractors, more estimates, for more competition, which will ultimately give you lower prices.

Here’s how it exactly works.

Look into the yellow pages for a material supplier, for example a supplier of paint, and then go to that supplier’s store. Ask the supplier whether they know some people who can give an estimate on your property. There is a very big chance that the suppliers know of many people, especially their regular buyers who buy their equipment from the supplier and has built a good work relationship with the supplier.

The supplier would naturally refer you to his friends or his best customers. There is very little chance that he will refer you to a vague customer of his. For one, he’ll get a kickback if he refers his best customer to you. The referrals he made will give further boost his work relationship with his buyers and gain him more recommendations, and possibly a commission.

Once you’ve determined that the supplier has got good contractors buying from him, determine at which time you can catch most of them. In meeting them, you introduce yourself and ask them if they can do an estimate and when. Some of these people may already have appointments for the day and would decide to come to your property some other time. There is nothing you can do about that. But after that first contractor, there may be another one that will approach you and offer his services instead.

You ask for their estimates. On your initial survey, get three contractors to give an estimate on the costs of rehabbing your property. When you’ve gotten these estimates, pick out the lowest of the three and use that as a basis for the next batch of estimates.

Two Groups Of Three

The next batch of estimates?

Getting three contractors to give you their estimates will have naturally toned down the price by more or less 15%. As you pick out the estimates, each one of them will offer a lower price than the other.

Now if this group has given you an estimate at a price that has been lowered to 15%, what do you think will happen if you compare the lowest price of this batch to new one?

After you have surveyed for the lowest price in the first three contractors that you met, you are now set to meet three more contractors to give you their estimates. When they give their estimates, explain that one of the contractors you have talked to have given this estimate and it is by far the lowest among those you have received. Naturally, when the contractor hears of a lower estimate than his, he would be tempted to compete with it.

Again, you meet with three more contractors and get the lowest estimate. Then you compare and talk of the contractor in your first batch that he gave you a lower estimate. As the competition tightens, the contractor would give a lower estimate.

By this time, you would have already cut your costs for about 30-40%! It’s a simple tactic that’ll take time, effort, and simple analysis. But it will result in less costs for your estimates.

You’ve heard their stories, you’ve heard of their paychecks, and undoubtedly you think that real estate investing will make you rich in just a short amount of time. Well, this isn’t really the case.

Most beginners want to become real estate investors because of the prospect of making more money and making it fast. While there is a chance that this can happen in someone’s early tries in his or her career, ordinarily it takes a lot of time and effort to be successful in the business.

It is not easy to be successful in real estate investing. For one, it takes some time to understand the needed requirements in starting and finishing a deal. Another reason is that it takes months to settle your first deal. It also takes up a lot of time, effort, and some money.

When you want to invest in real estate, you will also have to invest in educating yourself on how the business works. There is not a single successful real estate investor that will tell you that he or she did not spend money on attending sessions or buying guides and audios about real estate investing. And they do so even until now when they’re already at the top. Real estate investing has its basics, but it also has its flexible strategies and tactics and to use these strategies one has to know what goes on in the business environment. Just by researching and gaining knowledge, you can see how much you have to invest of yourself in the business.

While it is true that you need to know the basics and how things start in real estate investing, it is not true that you need to know everything before getting started. You don’t need to stuff yourself with every information there is on real estate first before finally looking for your first deal. All you need for your first deal is to know how to find it, how to talk and negotiate to get it, and how to finish it. Along the way, you can ask help from mentors and colleagues on some pointers. Gain more knowledge and more tips as you work on your first deal!

Don’t Waste Time!

Time is very important to a real estate investor. On your first deal, it would take some time for you to finish it. But as you go over many more deals, you will quickly learn that there are some things and habit that you have to let go of in order to optimize and not waste your time on the deals.

• Avoid overpreparing

Many are guilty of this. Worrying over things that might go wrong tend to make us get more absorbed in the preparations. Preparing is good. But focusing too much in the preparations will cost you time that you can use for better purposes.

This is why successful real estate investors make use of systems. These systems are made by themselves, something that they use over and over to optimize their time working on a deal. In making your own system, make sure you spend time, money, and effort well. Balance your priorities and do something. Do something! Preparing isn’t enough when you’re not doing it.

• Allocation of tasks

You do not really have to do everything that needs to be done in a deal. For example, creating websites and stamping envelope for your mail doesn’t have to fall on you.

In a deal, you are not the only that is working. Learn to cooperate with the seven important people in real estate investing:

• your real estate agent

• mortgage broker

• appraiser

• home inspector

• escrow agent/closing attorney

• contractor

• staging professional (sells the property)

Learn to recognize that there are thing that you may not be good at. You may not be an expert at looking for a house’ defects, for example. You’ll be needing a home inspector for that. In creating a website, you might want to outsource or hire a temp.

Some More Pointers

Learn the value of your time. Making your own system, a system that you are comfortable with and can encourage you to be more efficient, will greatly help.

Don’t worry too much. Fear will stop you from being successful. When the fears start getting to you, focus on you end goals and immediately brush the fears aside.

Look around and observe how the market fares. There’ll always be something new for you to learn about and use for real estate investing.

The real estate business can be scary to a beginner. The idea of completely embarking on real estate is overwhelming. Real estate investing, after all, isn’t really just like any other job you have had over the past years. In a normal job as an employee for a company, all you had to do was do as you are told to do by your boss and get a regular salary. In real estate, however, you’re going to be the one calling the shots and making a deal that will give you a profit.

So it is only natural that a beginner in real estate investing would be having fears, and that they would have to overcome these fears in order to ensure their success in the business.

Knowing What Type of Investing To Do

In your first deals as a real estate investor, focusing on a certain real estate niche is best. When you’ve found your way in this niche and mastered the strategies to be successful in it, you can venture into the other niches and learn about them too!

But choosing an initial niche and knowing what type of investing to do can be tricky when you know little about the different niches and strategies to use.

There will be a lot of factors to consider in making up your mind. Make your personal decision base upon these:

• core competencies

• goals and desires

• time and money available

• knowledge of the real estate business

• type of market

• comfort level

Examine your goals and desires and why you want to enter the real estate business. Examine the time and finance that is available to you too. Do you need more money in a specific period of time? Can you afford to wait for a few months for a paycheck? Can you afford to hire consultants or get help from successful real estate investors? In evaluating your goals, you’ll be able to straighten out what you want the business to do for you. When it aligns itself to a real estate niche, then you’re off to a good start!

Once you’ve settled these things, the next step is to take a look at the real estate market. Determine which market you are comfortable with and which aligns itself closely to your needs. For example, if you’d rather have a monthly income and you’re not that keen on selling properties just yet, you can start off with landlording a property you just bought. Or you can opt to lease the property.

Once you’ve found the right niche for you, all you need to do is learn about that niche and get to know some of the real players in that area. Asking for help from the successful real estate investors will give you a boost on where and how to start.

How To Find the Deals

There are a lot of ways to find deals. You can first drive around your area and look for properties that are within your market. For example, if you want to focus on abandoned properties, then drive around town and see if there are abandoned properties that you can invest in.

Other ways can be through marketing strategies such as referrals and direct marketing. Many real estate investors nowadays do direct mail marketing and campaigns as a way to look for deals.

How To Negotiate and Structure the Deals

One thing you need to build on when you’re a real estate investor is your manner of conversation and communication skills. The words you choose, the delivery, your mannerisms, and the way you speak are great factors in settling a good deal.

It is not only the words. You also have to generate an aura of confidence and respect. It will not do if the seller, or the buyer, thinks you’re not up to the job and that you’re not sure what to do.

There is also the issue of the documents and necessary papers involved in making the deals — the deed, the contract, legalities, etc. These are important components in making a deal and making the deal successful. When in doubt of how to proceed with the documents, you can always ask for assistance from your mentors, real estate lawyers, or other professionals.

How To Fund the Deal

Successful real estate investors would say that funding a deal should not be an excuse why you can’t do a deal. Get this into your system. There are a lot of financial resources for real estate investors out there — banks, hard money lenders, private money lenders, line of credit, etc. Funding a deal should not be a major cause for worry.

Selling the House

Real estate investors don’t usually hold on to a property they bought. Sell what you buy. With this, keep in mind that you’re making a profit at the very beginning when you’ve bought a property. You don’t buy what you can’t sell.

There is not that much to fear in selling a house. Check on the house if it needs further rehab and furnishings. When you’re finished with the outside of the home, you can start advertising (the interior of the home can wait to be seen by the public when its done).

Advertising the house would require some effort and money. There are a lot of options, too. You can advertise on the Internet, or send out flyers, or do word-of-mouth advertising. In any case, you can choose which would fit with your time and money.

Finding the Next Deal

A beginner’s worry isn’t over with the first deal. You may have let out a relieved sigh when you’ve finished your firs deal ever. But that doesn’t mean you’re not fearful of what comes next.

What if I’ll have no such luck on my next deal?

What if I can’t keep this up?

Will I even get to find another deal that can be successful like this?

There’s no need to fret that much. Sure, the worries won’t cease. You know that there are still things you need to learn and catch up to. There is also the probability that you can make a deal that will even be more successful. And you’re afraid to blow these chances.

Stay calm. Wrapping up the first deal has surely given you some pointers and guidance on what to do when you get your next deals. When new questions arise, you’ll find that your mentors haven’t abandoned you. There’ll always be new things to learn about in real estate and they know it as well you do.

Part-Time or Full-Time

The most common problem that beginners ponder on is whether to be a part-time or full-time real estate investor. You would think, “Is working for a boss worth some of my time when I can invest in real estate?”, “What will happen if I quit my job and I won’t be successful in real estate investing?”, “Can I afford not to have a regular salary and instead depend on the deals I have to make?”

Such questions, and many more, are most likely swimming around the mind of a beginner. With this problem, you can always go back and base your decision on your end goals — what you want in life and what you want from your business. If you have decided to be a full-time real estate investor, then embark on lots of education to learn how real estate investing works. Once you’ve taken the basics to heart and continuously take in advice from your mentors, then there’s a big probability that you will succeed in real estate investing.