My new Bird-dog/Assignment marketing plan...Tell me what you think
I've lined up 11 investors so far that seem very open to my either sending leads their way (for Bird-Dog Fee) or assigning deals to them after taking my own cut, as in a short sale situation.
Here are my thoughts...PLEASE give me any suggestions or opinions.
1) Fax/Email leads to investors (daily?). I will put leads with details in a word document. Seller info, motivation, comps & current listings, any notes I've taken from phone calls, etc.
I will already have this info since my first step will be to try to find a deal there that I can handle. Of course, even more details would be provided on an assignment deal.
2) The faxed "flyer" will point out that I am also an investor, looking for a cut or fee from the deals. That I WILL be in contact w/ the seller and investor that chooses to pursue each deal. Making sure that the deal is done, the seller is out of their situation, and that I get my fee.
I figured that when I fax the details about each lead, I will also say, "I'm charging $1000 for this lead." or "I have already worked an assignment fee into this deal", per each lead.
3) Would it be better for them to know that they are, in essence, in direct competition w/ other investors since I have faxed the info in several different directions.
OR...should they think that they're my favorite/only and I'm doing this only for them.
I want my deals to go quickly. I don't want them to sit on anything. I figured, the more investors I have a relationship with--the better.
Any thoughts?
woodchuk,
You are way off base here in your plan of action.
You have lost control of your investors in your shot gun effect of marketing to them.
You are telling them you are an investor also, super bad idea.
You have lost the power of negotiation by pricing the lead up front, as you gain experience and know your investors you will know what your investors are willing to pay.
Bird Dogging is a business and should be treated as such, what you are trying to do is become a lead factory without establishing any credibility with your investors.
There are more things I could cover, but this is just a start.
Just the way I see things.
John $Cash$ Locke
woodchuk
Great thought, but as John L said (your missing the boat) here.
As an investor, I get this type of stuff all the time and just discard it.
I deal with bird dogs all the time, but I only deal with folks with results and experience.
If you give them the info based upon your statement in #1, why would they need you?
My bird dogs handle the deal from beginning to close.
I sure hope you know what your investors want.
[addsig]
I guess maybe I didn't make myself clear.
For example:
I have 10 investors. Three of which are interested in any property with a flip potential for them of around 30% profit after resale.
I have a seller that:
Owes $75k
I negotiate $65k short sale.
Repairs needed: $12-15k
ARV: $140k + based on comps in area.
I take $10k assignment fee on my end.
Investor has potentially $50k+ profit in the deal. Depending on his exit strategy. I'm not in a position yet to stick around for the rehab and resale. I need to make something off of this one and move on. Isn't this deal worth assigning?
So I could potentially market it to any of these three investors, right?
Do I call #1 and see if he's interested before moving to #2? Or do I let all three of them know about the property and see which one can move the fastest or w/ largest benefit to me, whatever that may be at the time.
I'm set to make approx 500 calls on pre-foreclosures a month. (I'm just saying that's how many in my area I'm finding valid phone #'s for). Potential calls to make.
So far, I've had about a 40% return call rate. They've heard the voicemail and are interested and at least somewhat motivated at this point. Enough to call me back and see what I can do. Each person so far has been interested in at least the short sale option, and most are fine w/ the trust idea. Bottom line, they just want out.
That being said, at this point in my "newness" I am feeling somewhat fragmented. I need the quick money right now to stay afloat while keeping the end result in mind...longer-term interests for larger results.
What is the best way to disperse of my leads or find investors quickly for my short-sales? If I call investor #1 and wait for him to decide. He says no, so I move on to ask #2, #3 and so on until one of them wants the property. It seems like that would take more time than it should. I'd spend all of my time waiting for answers from other people.
Based on what I've heard others say, they simply give the seller's name and phone # to the investor and earn $250-500. I'm talking about handing them sellers that are qualified, motivated , have already been prepped and they know basically what what type of deal will most likely take place (as much as the seller should know/could understand). As well as giving them comps, current listings and any info that I have aquired from seller, lender, etc.
If that's not worth more than the typical $250-500 then I quit now...hehe. The bottom line is that if one of these sellers doesn't fit into my personal plan right now...I still want to benefit from it as much as possible.
I understand that after working w/ them for a while, I will be able to quickly determine which deal fits the portfolio of which investor. The process will be much smoother then.
In fact, I asked each of them several questions:
What type of deals do you normally do (rentals, l/o, retail, rehad, etc)?
What type of homes do you look for (3/2, SFR, etc)?
What geographic areas?
What type of profit margin would you be expecting on any deals that I send your way?
Would you be open to assignment, partnering, and just bird-dog leads?
Altogether, about 20 questions so far. The end result will be to hopefully find 2-3 investors that I can work quickly and efficiently with. Ranging from bird-dog to partner status in different deals. A cash hog for all involved.
My original question was more like:
How would I market these NOW, in order to quickly determine which investors are serious, trustworthy and would be beneficial to me. I kind of wanted them to know that these deals can quickly be passed along to someone else, don't waste my time, and I do expect to get paid on the first one or there won't be a second one.
Wouldn't I want them to know that I'm not just riding down the road grabbing FSBO phone #'s? And that the relationship (eventually) should be a win-win as well as a need-need? I need them to send deals to but they need me if they want me to keep digging up deals for them. I'm ultimately looking for the kind of relationship that is open for different levels of co-investing with them. Wouldn't I be better off slicing thru the others and getting to the serious 2-3 investors asap?
Maybe I am off base here. I'm having trouble expressing exactly what I'm thinking. Does this make more sense?
_________________
Success and $$$ to us all!!
Sonia (Woodchuk)
[ Edited by woodchuk on Date 02/09/2003 ][ Edited by woodchuk on Date 02/09/2003 ]
just let them know one at a time and see who can move the fastest, as far as giving them comps and all those extras, some investor won't want/need it so be carfeul and don't waste time for those who won't, if you find an investor who loves that then i'd charge $1000 a deal...
then after you get a good $$ base move on up....
Woodchuk,
You really do have a great ideal on the front it sounds really great for you, but on the back end not so good.
It sounds as if you want to be paid upfront for a possible lead, I do not believe any investor would pay you that kind of money up front without actually closing on the deal first.
Woodchuk, I am very upfront and do not like a lot of bull when it comes to making a deal.
You said, "So far, I've had about a 40% return call rate. They've heard the voicemail and are interested and at least somewhat motivated at this point. Enough to call me back and see what I can do. Each person so far has been interested in at least the short sale option, and most are fine w/ the trust idea. Bottom line, they just want out. "
I have been in this business long enough to know that most homeowners are not interested in a short sale and you indicate 100% are interested in doing this????????????????????
You said "I need the quick money right now to stay afloat while keeping the end result in mind...longer-term interests for larger results".
You can make money in REI and good money too! but rei is not a get rich overnight business.
Sorry Sonia, all this sounds made up to me and none of this is factual.
Please forgive me if I'm wrong and if I am wrong and you have all these hot deals then you need to contact me ASAP and let's do the deals together.
I do have a few questions for you.
What training have you done?
What do you know about trust?
Are you dealing with folks in preforeclosure, FSBO or what?
Also, most investors will not pay you upfront for a possible deal, most will pay a bird dog fee once they take ownership of the deal, if you have investors that will pay you fee's as you stated for possible deals then girl you have tapped a market I have never been able to do and if so let's go into business together!
I am not trying to be condescending to you; it just seems that you are reaching here.
Seriously if you already have your investors lined up, I really don't understand why you are questing your market plan, because it works.
[addsig]