Creative Real Estate Marketing

How to Use Creative Real Estate Marketing For Your Financial Success?

Creative real estate marketing revolves around becoming a successful real estate investor.

Creative real estate marketing makes use of certain essential skills, which would be great to master and one core skill is marketing.

Below is a list to help insure your marketing program is successful and makes sure your property investment does not sit empty and drain your bank account while you wait for a buyer…

Creative real estate marketing means actually doing several of these action steps each day until your investment property, rents, leases.

creative real estate marketing
Creative real estate marketing…

1. Put signs in yard (make sure phone numbers are clearly readable)

  • For Sale
  • Flexible Seller
  • Motivated Seller
  • No Money Down

2. Street appeal, clean up yard, make sure landscaping looks great

3. Check out and fix mail box if needed

4. Clean driveway if needed

5. Plant colorful flowers and add mulch

7. Replace front light fixtures as needed

8. Replace house numbers as needed

9. First impression from inside must be pleasant experience / staging really helps

10. Does property smell like apple cinnamon

11. Soft music playing is good idea

12. Keep inside of property looking bright

13. Make sure inside is very clean (especially kitchen and bathrooms)

14. Only use professional pictures inside and out

15. Use flyer tubing on main sign

16. Check tube every few days (keep filled with fresh new colored flyers)

17. If local laws permit, place directional signs from main streets

18. Replace directional signs (as needed every few days)

19. List for sale and lease on real estate property listings with pictures

20. Run “For Sale” ads in newspaper

  • Flexible Seller
  • Make sure your ad gets listed on the internet

21. Run “For Lease” ad in newspaper (make sure ad gets listed on net)

22. Get 800# with number capture feature to call back prospective buyers

23. Run long term rent to own ad in tabloids

24. Place ad with realestate.com.au (as calls come in keep good notes and track for future sells)

25. Trade leads with others property sellers

27. Post ads on free real estate listing sites

28. Post property on real estate association sites

29. Visit neighbours and talk about property (offer a finder’s fee)

30. Blanket the neighbourhood with flyers (include finder’s fee)

31. Have open house every other week (each better than last)

32. Promote open houses with:

  • ads
  • directional signs
  • big balloons

33. Organise lunch at property for realtors the week of open house

34. Get a realtor flyer made for promoting free lunch and door prizes

35. Invite at least three to five realtors from five realty companies

  • Tell them about property
  • Ask for new leads
  • Ask to pass out flyers to other agents in their offices

36. Get real estate agents e-mail addresses from flyers, cards, ads, and booklets

37. Send e-mails to real estate agents, realtors and brokers saying “If you show it…it will sell”

38. Follow up e-mails to real estate agents with a call

39. Offer real estate agents, realtors and brokers a bonus if offer arrives by (a specific date)

40. Set up your own website

41. Do a color flyer with:

  • Pictures
  • Terms
  • Discount coupons
  • Web address and contact information

42. Print up a finder’s fee dollar (to pass out in area and put in all your mailings)

43. Set up a 24 hour recorded message (to use with your 800#)

44. List the property on Gumtree and eBay auction

45. Use a mailing service to mail out:

  • Letters
  • Flyers
  • Finders fee dollars

46. Advertise on other niche local Internet sites

I hope these creative real estate marketing ideas help you in your quest to build wealth through real estate investing.

Creative Real Estate Marketing

Property Investments VS Share Investments

Property investments vs share investments – are you in two minds regarding the best type of investment, whether it be property or shares? All investments would ideally be based on sound research, due diligence and correct investment analysis…

 In reality, getting correct advice is a good investment. However there are differences between property and stock market shares which influence people depending on their financial goals and investment needs.

Property investments vs share investments, so do shares actually perform better than property? The fact is shares perform relatively similar to property…for example, a good property investment in a high performing suburb historically doubles every 7 to 10 years and generates a rental yield of 4% – 6%.

property investments
Property investments vs share investments

The total return from a good property investment can be 13 – 14% per annum. Similarly from 1983 to 2009 stock market shares grew on average 8.4% per annum. Now if you add dividends to the stock, this equals to 13 -14% growth per year.

The fact that the return on investment per year is very similar, there are vast differences in involvement, liquidity and the amount of control you get with each type of investment.

Property…historically has shown to be less volatile and is regarded as a relatively secure investment by the banks, which lend up to 80% of the property cost compared to higher volatility of stocks…banks are prepared to lend only 60% of the market value of shares.

As you already know volatility in the share market is influenced greatly by market sediment, national and global economic factors and media, whereas the property market is influence mostly by local sediment and supply and demand.

Property investments vs share investments…shares are easily liquidated, property can be slow to liquidate. Tax deductions are treated similarly in Australia as both are considered investments.

Property investments make use of tax benefits and depreciation or  tax deductible advantages, which are available on new buildings such as capital work deductions and any costs associated with property. These deductions are not directly available to share holders.

Depreciation is ‘on-paper’ loss in value of the building over time. The Australian Tax Office allows you to claim depreciation as a tax deduction, which can save you thousands of dollars every year.

The only problem is depreciation tapers off as the years go by so the newer the property is, the greater depreciation claim will be…

Property investments vs share investments…both investments can be negatively geared, however the biggest difference is investors ability to change and add value to their investment.

Share investments means an investor has little control over the running of the company, whereas in property the owner/investor can add value and improve the investment.

Why is it better to create a balanced port folio of both shares and property? Firstly you need to carefully consider what you want from your investment before you decide where you invest your money.

If you understand the idea of adding value and how to influence your better lifestyle, you want to put yourself in a much stronger position to improve the value of property investments…

Property Investments 

How to Finance Your Property Investments

Financing Property Investments Now

 

Is your primary goal to add value to property through renovation or development? Why focus on one or two key strategies and specialise? We’ve seen many people try so many different strategies, never really giving any of them the focus required to get results.

Finance property investments for most residential real estate investments…it means you could be in a position to borrow and buy an investment property with a typical deposit (or surplus equity in another property) of 20% of purchase price.

While you can borrow more than 80% loan to value ratio (LVR) with some lenders, you need to factor in higher interest rates, lenders mortgage insurance and higher risks of larger mortgage payments.

Finance or be it raising funds or cash required for a deposit, plus allowing for closing and holding costs on an investment property is probably one of the biggest stumbling blocks, even if you get a 90%+ LVR loan…

Finance property investments is all about knowing how the numbers stack up, taking action and knowing what action to take:

  • Stamp duty
  • Settlement costs
  • Conveyancing costs
  • Bank fees
  • Title transfer fees
  • Other miscellaneous costs
  • Holding costs until rental income begins
  • Others sources of finance

Equity is the difference between your property’s market value and outstanding balance of all loans on property. Recycling equity is  the process where investors leverage/borrow against equity in each existing property they own to help to fund the next deal…

finance property investments
How to Finance Your Property Investments and Maximise Your Returns from Property Investments…

Finance property investments using money gifted, borrowed or pledged from family members as guarantors as a source of finance or your deposit for your next real estate investment.

Superannuation funds (SMSFs) can purchase real estate for investment. Legislation changes made in 2008 mitigated the risk to an individual’s investment portfolio by making property investment possible.

Mortgage brokers and non-bank lenders can either belong exclusively to a particular financial institution or work for a mortgage lending company which can apply for loans on behalf of their clients across various financiers.

Vendor finance – where the seller (also known as the vendor), instead of demanding 100% of the sale proceeds at settlement, accepts terms that allow the borrower to pay an initial amount at settlement e.g. 80% and then repay the balance of the property’s sale price over a fixed term e.g. 20% over 2 years at an agreed interest rate.

Types of finance property investment loans available consist of interest only whereby the borrower only pays the cost of annual interest on the loan each year and does not have to repay the principal until a later date.

Principal and interest loans whereby you’re paying a principal and interest loan means you’re paying the current monthly interest due and progressively reducing the outstanding balance on mortgage and making principal repayments, so you’re progressively paying off the mortgage.

Revolving line of credit enables you to use generally up to 80% of your equity as collateral for further credit to make future purchases. It is an option chosen by real estate investors wanting the flexibility to top-up their mortgage to pre-agreed level without having to take out a separate mortgage each time…

Non-recourse financing means the borrower, in the event of failing to fulfill the terms of loan, has their liability limited to property which the mortgage is secured against only and does not offer other asset security or personal guarantees.

Full doc loans requires the documentation of all income, assets and liabilities and is the most common type of mortgage loan used

Lo doc loans need less for stringent income information than full doc loans, but still rely on a good deal of documentation to get approved.

Low start loans offers borrowers low establishment costs, a very low variable rate for the first 6 to 12 months and no monthly fees.

Refinancing  is the process of re-financing, topping up or consolidating existing and/or new debt with the same or new lender/s. Always check the full cost of doing this and especially break fees on existing mortgages.

Deposit bonds are alternatives to a cash deposit for borrowers who have existing equity in property and want to use bond/guarantee rather than a cash deposit.

This is common when buying off the plan with a 12-24 month settlement as it avoids paying a (borrowed) cash deposit and then paying the interest on the money while it sits in trust awaiting project completion and settlement…

Finance property investments and financial competence as this proves several points:

Please never overlook the discipline of a very good understanding of banking, finance, accounting, tax and importance of cash flow management, financial due diligence, budgeting, tracking and reporting because it’s often easier to get lots of money than a little.

Frequently going after small investors is the most troubling of all and it’s better to aim at people which are more substantial.

The magic word (no) is frequently the best way to make somebody want to get involved with you even more.

Knowing your numbers and business is what makes people want to move forward. Money always follows expertise and when you demonstrate you’re an expert with tactical skills in specific areas, money flows in a big way.

And sometimes so much money flows…you just have to say no.

The loan approval process using conditional and formal approval letters:

If a loan application meets certain broad guidelines at the initial assessment stage, a lender or finance broker may approve the application in principle or indicate pre-approval.

As the application progresses, information provided by the potential borrower such as identification details, salary and overall financial situation is subsequently confirmed and credit check reports are received. The lender or broker will form an opinion of the applicant’s ability to service a loan and a conditional approval letter will be issued if lending criteria are satisfied.

Approvals confirmation – Once all the necessary paperwork has been completed, it’s normally only a short time before approval.

Make sure you read and understand everything before signing up. Keep your conveyancer or solicitor in the loop. Ask questions if there is any confusion – taking on a housing loan is the largest financial decision most people will make.

The bank valuation is a basic part of a property loan approval, which is confirmation by the lender that the valuation of a property being offered as security is sufficient to cover the loan.

Lenders instruct a bank panel valuer to perform a market valuation and analyse what percentage of the purchase price is being financed with risk profile of the loan taking into consideration other factors such as location and average time to sell property…

Finance Property Investments