Tag Archives: Market

Farming For Real Estate – How To Effectively Use A Blog To Market To Your Farm In Real Estate

If you have been farming an area with traditional methods you have probably been trying to service an area of two to three hundred homes. You probably send direct mail pieces several times a year, offering a free home evaluation or other marketing offer. Maybe you even go door to door a few times of year. Most of the people are either not at home or do not answer the door and you leave your card or notepad on their front steps.

Welcome to the new millennium. Farming can now be done using technology that will enable you to reach thousands of homes more easily and efficiently than you could reach just a few hundred previously. One of the very best ways to do this is by starting a farming blog.

A blog is a website that lets you write, or post, as often as you wish, and deliver your message to anyone who has either subscribed to the blog’s feed or who visits the website. With the click of your mouse your message can be in front of the homeowners in your farm at a time that is convenient for them to read what you have written in your post.

It is relatively simple to start a blog. They are available for free from some places or for a fee of less than five dollars each month from others. The blogs that have a monthly or annual fee will generally offer more choices and features than the free blog services. It is up to you and you should experiment with the ones you are considering.

You will want to give your blog a name that has meaning to the people who live in your farm area. Do not use your name unless everyone in the area knows you. It is better to use a name that is relevant to the neighborhood. My farming blog is called Plum Canyon Neighbors. When people receive an email message with this subject line they know that it is important information from me about happenings in their area.

Give blogging a chance as a way to market to your farm. You will find that it is so easy and effective you will be glad that you started one.

Tips to Market Your Home

Selling a home online is the simplest way for an owner to sell his home himself. Like in any kind of sale, online selling also warrants extensive marketing. Marketing techniques used to reach the target market help in the quick sale of the property.

Effective marketing techniques are those that make the deal seem lucrative to the buyer. Online facilities offer the seller a lot of flexibility for marketing the property. However, one should use these facilities to bring out the features of the property in an attractive manner.

Here are some useful tips for marketing a home:

1. Property portals allow the seller to post descriptions about the property. Generally, there is no limitation on the number of words that can be used. However, it is beneficial not to go overboard and write lengthy descriptions. You should write brief, precise description of the property. This is because the prospects lose interest in lengthy descriptions and may opt to read about a different property.

What should you include in the description of the house?

• Location of the house

• Number of bedrooms

• Number of bathrooms

• Square-foot area

• Highlights such as the type of flooring, if kitchen sinks are made of steel or any other features, etc.

• You should also highlight if public transportation system is close-by.

• It is also beneficial to mention nearby malls, schools, etc.

The description should be worded such that the seekers can easily find relevant information.

2. You can post a number of pictures on the website. You should take care to capture attractive images with a proper lighting of the home. You could also consider home-staging before taking the photographs. Photographs should be taken from vantage points so as to make the home look spacious.

3. Online listing offers you the opportunity to post a virtual tour of the property. This enables the seeker to get a fair idea about the house. Before you record the video you should ensure that the home looks attractive. For this, it is essential to de-clutter and organise the house. Home-staging also helps in enhancing the appeal of the home.

4. Although the trend is for buyers to search properties online, it helps to advertise in the newspaper also.

5. You can also distribute e-flyers.

6. You can put up ‘Home for Sale’ boards in your yard.

7. You can send direct mails to neighbours, agents of buyers and to buyers in other locations.

Though not exhaustive these are some useful pointers which help in marketing a property effectively. In addition to these, you can use your creativity to market your home. Effective marketing will enable you to sell your property without an agent. This will help you in enhancing your gains.

How to Effectively Market Your Rental Income Properties

Anyone who has been engaging in real estate investing for any amount of time has surely tried to sell an investment property at one time or another.

It’s called marketing. Over my thirty-year real estate career, I certainly did my share. And though my attempts didn’t always produce a successful outcome, the experience taught me a few things about marketing rental income property I would like to pass along.

Most are common sense, but mentioned as a reminder because there are realtors and sellers out there who need to hear it. The remaining tips are more subjective, but included to help you consider what might be a more effective marketing approach than you’re using.

Foremost, never make your marketing packages too vague. When you omit important financial data, it makes it very difficult for a buyer to adequately determine whether or not it presents a good investment opportunity. And this will typically lead to a further exchange of data with a buyer or agent that, at the very least, will be time-consuming, and at the worst, could cause a buyer to lose interest in the deal altogether.

Secondly, resist the temptation to skew the property’s financial data to appear overly optimistic. Perhaps rents can get raised, for instance, and you want to reveal that. But if you over-inflate what you deem could be future rents, you risk losing your credibility with the buyer, or may end up wasting your time in a deal that never has a chance anyway, once it’s subjected to the buyer’s due diligence. Keep your estimated assumptions realistic.

Thirdly, and this is a bit more subjective, don’t present marketing packages that contain everything but the proverbial kitchen sink-at least not in your initial presentation. In my opinion, distributing more than a three-page property report at your local investment club meeting or in response to a telephone inquiry, is overkill. Remember, you’re just trying to generate a response from credible investors with a valid interest; a more comprehensive set of reports can always get presented during subsequent exchanges.

Okay, now let me show you the essentials that worked for me. For simplicity, I’ve organized them by category: the numbers, and the reports.

The Numbers

Aside from sale price (which is a given), you’ll want to provide an itemized break down for the property’s annual cash flow, and computations for at least two rates of return.

1. Cash Flow

Cash flow is crucial because it’s essentially what the real estate investor is purchasing in the rental property. So compute it for at least the first year of ownership by focusing on the following three financial elements:

  • Gross Rental Income
  • Operating Expenses
  • Debt Service

2. Rates of Return

The rates of return (at least the two listed below) are important for the investor to determine whether or not his or her yields get met as well as providing a good way to compare the property’s financial performance and value to other similar-type rental properties in the market area.

  • Cap Rate
  • Cash-on-Cash

The Reports

Here are two reports I commonly used for initial inquiries. Both clearly show the rental property’s cash flow, and each include the cap rate and cash-on-cash rates of return. So they are informative, easy to read and understand, and straight to the point. Consider them as examples.

1. Marketing flyer

This announces the listing to the community-at-large (i.e., investment meetings, call-ins, and inquiries from colleagues). (Sample available on my site).

2. APOD

This enables you to show your own investor-customers a likely scenario during the first year of ownership. (Sample available on my site).

In a Nutshell

An effective way to market rental income property is to consider the process in two stages: the initial presentation, and the subsequent follow-up. Keep the initial presentation concise; even one report with enough data to reveal the property’s description, estimated cash flow, and investor’s rate of return should be adequate to garner interest from credible buyers when they exist. And reserve all the other reports (e.g., acquisition funds, proforma income statement, rent roll) to the subsequent follow-up exchanges.