FAQ
Marketing Plan
We have one primary goal in our marketing efforts: to generate leads from motivated property owners that result in our purchasing their properties for wholesale prices.We use several strategies to generate leads from motivated property owners. A marketing budget for each strategy is included in the Profit and Loss forecast in the Financial Plan section of this business plan. Our six primary marketing strategies include:
FAQ,S
Maintaining a Property Database:
We maintain a database of all leads generated, allowing us to manage information for a large number of properties and maintain contact with the property owners. The database includes detailed information on each property that we collect from the property owners. We also subscribe to a local foreclosure service and import their weekly reports into the database. Each property entered into the database includes all relevant information regarding the property, including the Maximum Purchase Price worksheet and information on any offers we’ve made on the properties.
Automated Letter-Writing Campaign:
We actively utilize the database in our on-going marketing efforts by generating letters to property owners that have contacted us and to property owners in the region that are in preforeclosure or foreclosure.
If we’ve identified a target property and submitted an offer to the property owner which was not accepted, we continue to pursue the property through an automated letter writing campaign. The letters are a reminder to the owners that we are still interested in the buying the property and are available to discuss the property at any time.
Additionally, we generate letters to local property owners that are in preforeclosure or foreclosure. These property owners are highly motivated to protect their credit ratings and rid themselves of a property they cannot afford. Typically, these property owners have been notified of default by their mortgage lenders. We locate these property owners through a list provided for a fee by a local preforeclosure service. The list is imported into our database and we send letters to the properties owners on the list, typically one per month for three months during the preforeclosure and foreclosure period. We target property owners in specific neighborhoods that fall within the median to above-median house prices in our region.
All marketing letters are automatically generated from the database, triggered by predetermined mailing dates based on the preforeclosure and foreclosure timelines specified in our state. Letters are automatically personalized for each property owner and mailed directly to the owner.
Website and Internet Advertising:
The company maintains a website that’s primary purpose is to generate leads. The website generates leads by driving highly targeted traffic from keyword searches on primary search engines, such as Google, and through regional Pay Per Click (PPC) advertising programs. When motivated property owners arrive at the website, the owner is encouraged to fill out a simple online questionnaire that provides the company with essential property and contact information. The form is then automatically mailed to the company and recorded in the company’s property database. We immediately contact the owner, research the property, and determine whether an offer is appropriate.
Signs:
We place signs in targeted neighborhoods to constantly remind the community that our company is available to help them sell their home quickly for cash should the need arise. The signs are left in place and checked once a month. Before paying for and installing the signs, we checked our city’s sign ordinance to make sure we complied with the city’s signage codes.
Investor Networking:
We believe that our competition can also be one of our strengths. By actively networking with the investor network in our community, we’ve built a list of investors to whom we can market our properties. We seek out good deals on buying properties and tap the network when we’re marketing properties to sell. Additionally, because we have an ‘and/or assigns’ clause in our sales contracts, we can assign any sales contract to another investor without ever taking possession of the property. We are active members of our community’s real estate investor association and take advantage of their education courses and industry contacts.
Collateral:
We maintain printed marketing collateral that supports our marketing efforts, including business cards and brochures. We freely distribute our marketing collateral at every opportunity. All of our marketing collateral prominently displays the company’s website address, which is our least expensive and most productive source of leads.