Finding deals and funding deals. That’s what I’m going to talk about today. How do you fix that problem?
It’s essential for anyone that wants to build a real estate investing business to have a steady stream of leads. Without leads you will be out of business in no time. There is only one way to create that momentum and keep your pipeline full of deals, and that is through consistent marketing. Real estate investors that are successful over time are always good marketers or they have someone on their team that is marketing pro.
For some folks that marketing pro is a wholesaler. It’s important to understand that you don’t necessarily have to be “the marketing person”, but you definitely need to have a system in place for getting leads.
Working the Leads
The next piece of the puzzle is you need to actually work those leads.
I had a conversation with someone recently that readily admitted that he didn’t always follow up on leads. In his defense, he also has a full time job so he already has a pretty full plate. However, it’s a terrible waste of resources to spend your time and money generating leads then failing to follow up on that lead. If you have challenges when it comes to following up with potential motivated sellers personally, you need to figure out how you might get someone to fill this gap in your business.
You need at least 3-5 lead channels in place at all times. Now what exactly is a lead channel? A lead channel is a way of generating leads.
Some common lead generation strategies are:
- Direct mail
- Bandit signs
- Driving for dollars
- Code violations
- Craig’s List
You get the idea. There are a whole lot of different ways you can generate leads, but you need more than one lead channel because at times one will dry up.
A perfect example of that is when investors were working the MLS and working only with REO’s or bank owned properties when they were plentiful. Folks using this lead strategy had a steady stream of leads … until they didn’t.
I heard many stories from folks in my REIA that suddenly had to start doing some of the “old” lead generation methods like direct mail. (Some of us never stopped doing those types of marketing strategies).
Once you decide which marketing strategies or lead channels you will be using, you have a marketing plan in place, the next problem will inevitably will come up. You will run out of sources for money at least the traditional sources.
Funding the Deals
Many times when an investor is just starting out they have a source for cash. It might be an investor friendly bank, a HELOC (home equity line of credit), a relative or another source of cash. If you stay in this business very long, the day will come when you run out of resources. It might be that –
- The bank won’t want to loan you any more money.
- You have multiple properties and all the available cash in your HELOC is used.
- Mom and dad aren’t going to loan you any more cash as you get more aggressive with your buying.
- You haven’t learned how to raise private money.
Trust me, this day will come a whole lot sooner than you expect, so you need to prepare for this well in advance of the time you need more cash.
Seasoned investors almost always reach a point when they have to step outside the box and most often outside their comfort zone and try something different. They will be forced to learn some creative funding strategies (and there are a lot of them) if they want to continue growing their business.
All of these more advanced creative funding strategies are available to you if you take the time to learn them. Learning how to use them will open a whole bunch of options to you for funding your deals. Let me ask you this; does all of this look just a little bit intimidating?
Most people understand mortgages, but when it comes to a lot of the nuances of doing deals in more creative ways folks are lost.
Would You Like to Learn How to Make Getting Regular Mortgages Obsolete?
- What if I told you that you could learn how to confidently use all of these creative funding strategies in just 2 short days?
- How would that change your business if you no longer had to worry about “where the money was coming from”?
- I’m pretty sure you are smiling right now if this is a problem you are currently experiencing in your business.
Creative Funding Workshop
On August 28th and August 29th 2015 financing expert Bill Walston and I will be teaching a 2 day small group event in Nashville, TN on creative funding strategies.
If you would like to apply to come to this event, just click the link below and we will send you an application.
Now you might be saying, “What; I have to apply to come to the workshop”?
Yes you do. This event is not for everyone. It’s only for seasoned investors currently doing deals that need to learn creative funding strategies.
What can you expect to learn at this event? Here is just a sample of what we will be teaching:
- How and when to use conventional lenders
- Conventional vs. Non-conventional loans
- Creative Financing through Institutional Lenders
- The Art of the Wrap
- When (and when not) to take a property “Subject-to”
- How to avoid the “due on sale jail”
- Installment sale or lease and option?
- 4 Reasons YOU Should Be Using Private Money
- How to find Private Money Partners
- The “3 Buckets of Private Money”
- The Half-minute Private Money Hook
- Building Your Credibility Kit
- How to Frame Your Offer
- Presentation Secrets …. and much, much more
Do You Want a Seat At the Table?
Just click on the word “Application” below. Fill out your application and get it back to me. If this event looks like it’s a fit for you, we’ll get you registered so you have your spot. FYI – we have a payment plan if you are interested. We also offer a money back guarantee so you really have nothing to lose.
Get your application here by clicking on GET MY APPLICATION
If you have any questions just hit me up and either Bill or I will jump on the phone and get them answered. We want to be sure this is a perfect fit for you.
Look for more posts coming your way on creative financing techniques.
Let me know – what are YOUR biggest challenges in your business?
If you’re not already subscribed to the “Inner Circle”, be sure to do that today so you don’t miss any of the business building tips I have coming your way. I want this year to be your best year ever! And if you enjoyed this article, please share it.