On our Monday night Training Webinar, I was asked a question from one of our students about driving traffic to their free website that everyone receives with their free account at Real Estate Promo. I gave them a suggestion to find another investor who has a property for sale right now and get their permission to market that property(s) on their websites. Then start creating ads on craigslist, kijiji, backpage and other online / offline marketing medias. This sparked a lot of interest and questions, so I decided to post a blog about the idea for everyone.
One of the struggles new investors have is activity. They spend all their time learning how to invest in real estate, but they don’t take a lot of action right away. This is probably due to fear and their misconception that they need to learn everything before they take any action. I am sure a lot of you seasoned investors can relate to this feeling of a newbie. Our Free Weekly Webinar Training is designed to not only to educate the new investors, but also to encourage them to take action, even if it is just small little baby steps to get started.
One of the struggles for seasoned investors is selling/renting their inventory. Personally from my own experience, my biggest struggles is when I have a property for sale, I spend all my time trying to fill the property that I stop doing what I am good at, which is locating and negotiating good deals. After I have that property filled, I then get back to finding more deals. All that time I have been marketing and driving traffic to my website. But if I don’t have any properties for sale on my website for a month or two, I am wasting good traffic from buyers, so I occasionally will market properties from fellow investors, just so that I have activity on my website.
That is where this whole idea came from for the training on Monday night. Once I mentioned it on the training everyone was interested. This concept can create a win win situation for everyone. First of all the new investors can take action right away without the fear of losing anything, because they have nothing at risk at this point. The seasoned investors who have inventory to fill will have additional resources to market their properties and potentially reduce their holding time and costs.
So how does a new investor make some money with this approach? The answer is quite simple, find a tenant/buyer for another investor and get paid for your marketing efforts. Do not collect or pay a commission unless both parties are real estate agents and the commissions flow through your brokers. In most states, you cannot pay out or collect a commission unless you are a licensed real estate agent.
Here’s how I do it. Let’s say you have agreed to allow me to market your property and find you a tenant/buyer. All I am doing is marketing the property. If I find a tenant/buyer, I will have nothing to do with the transaction; I will simply give you the prospects name and number. It is now your job to put the transaction together. In exchange, if you are successful in closing the deal, I will send you an invoice for the amount of money we have agreed upon. That amount is usually equivalent to one month’s rent/mortgage payment. Since all I did was marketing, we both classify it as marking. For you it is a marketing expense. For me it is income for a service that I provided, in this case, marketing.
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If you have a property that is for sale/rent and you want to use this approach, go to our facebook fan page and let everyone know that you have a property and were it is located so that new investors in your area can contact you directly. Also leave your comments below. |
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