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MAREI MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS
In photo Damon Remy is enjoying life at the lake while his system generates leads, follows up with leads & nurtures leads into profitable deals Learn More at the July MAREI Meeting.
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what's coming up 14
July 14th, MAREI Meeting Join us for our monthly meeting on Zoom, with special guest speaker Damon Remy discussing Marketing, Lead Capture, Follow Up & Systems. Virtual.
23
July 23rd. Virtual Career Fair. MAREI is partnering with several corporations in the Kansas City Area to host a One Day Career Fair Featuring Jobs that all Pay over $15. Join us as an Employer or a Job Seeker. Details will be posted at www.CareerFairKC.com Virtual.
See MAREI.org/Calendar for more events across the Kansas City Metro from the local landlord groups and events hosted by MAREI Members.
MAREI Staff Chapter
Executive Director
Kim Tucker: Kim@MAREI.org - 913-815-0111
Newsletter
Staff: Newsletter@MAREI.org - 913-815-0111
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The Devil is in the Details & the Follow Up
At several training events, the experts shared how they got the list. How they scrubbed it and skip traced it. How the sent direct mail. And how they uploaded the list into this fancy software that checked it against the do not call list and then using an autodialer they spent several hours a day or had their virtual assistant spend several hours a day cold calling all these random phone numbers that were found in the skip trace. They got tons of deals. I attended another event, this guru had this amazing software that would again skip trace the list and send ringless voice mails (RVMs) to all those numbers. There was another guy who could do text blasts. All of last year, we received numerous texts, RVMs, and cold calls on all of the phone numbers in the house about one of our sons properties, strangely he never got any of these, just us. It just seemed like that these automated systems were very annoying, very incorrect, and things I really would not want to do to people . . . BUT, I wanted more deals so why not. Sure it's annoying, but if it's effective, maybe, just maybe we will give it a shot. That's why I was at the event to see how it worked. Then we learned about REI Blackbook, a marketing and contact management system for real estate investors. It had a ton of cool features, some I would use, some I would not and it it did WAY more than the current system I had tested out in 2019 and it cost exactly the same. Ten times the features for the same low costs. So we switched. With that system came a TON of training on how to properly use all these automated calling tools and what the gurus were telling us was really grey or flat out illegal or soon to be illegal. A question I asked myself was did I want to revamp our marketing system on a house of cards? The system also had some new ways to put up Google Ads and to create Facebook Ads . . and more
importantly, it had several case studies on what a follow-up system should look like and if done correctly, namely following up with a lead that had contacted me, then I could use all those automated contact systems. We started our process by cleaning up our direct mail system. Then we were in the process of working on a very simple (read short) follow up system for old cold dead leads and COVID hit. Lockdown started and we stopped any and all marketing. Our website was still up and running, but nothing else. We turned on the follow up system for our deal leads, and we got a deal. We sent it to more old dead leads. We implemented their suggested lead capture process and follow up systems for new leads that our website was generating. We followed up and we got another deal. About a month into lock down we started sending a few letters and turned the Google ads back on for very limited times. We followed up, We got more deals. Now, we are not talking 100s fo deals, just enough to tap out our Private Money Lenders and have our rehab manager pulling his hair out trying to keep up. So this week as I am going through some of the training videos from Damon Remy, the founder of REI Blackbook and our July speaker I realized something very important. That by implementing processes that make sure no leads get lost, that they all get followed up with correctly, that we are doing more deals this year, with way less marketing that we did last year or the year before. So before you blame your lack of deals on your bad marketing, maybe you need to revisit your system for capturing leads and your processes for following up. Have a great July, may we see each other in person soon! Kim Tucker Co-Founder of MAREI
IS YOUR FOLLOW UP SYSTEM DOING ITS JOB?
This past January I had a goal to totally revamp our marketing program. In 2019 we just didn't do the number of deals we wanted. And we tried a lot of new ways of marketing. This year was going to be different.
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Marketing isn’t part of the real estate business, marketing is the the real estate business.
DO YOU HAVE A PLAN B Y
D A M O N
Reprinted from REGoddess.com
R E M Y
I have three truths to share with you. 1. You cannot compete with Big
motivated sellers, qualified
automation – unless you want to work
buyers, renters, and lenders without
more, make less, and not enjoy life.
sacrificing your time and sanity.
Brand Marketing
Which we know, you don’t.
2. You shouldn’t even try.
Before we get into the how’s, I want
3. You can do it better and see
you to understand, marketing
greater results for less effort (truly)
So, you have to market.
isn’t part of the real estate business, marketing is the the real estate
But maybe you think marketing is
business.
expensive?
first stop on the lead generation line,
The success of any business hinges
How do you compete with a $46,000 a
but, rather, what is.
on traffic and conversions. It’s true for
month marketing budget? (that’s the
every business, but it’s especially
monthly marketing budge for one of
critical in real estate.
the nations largest home buyers
Stick around, this entire article centers around why your brand is NOT the
If you follow this approach, known as lead generation marketing or direct
in the St. Louis Market alone)
response marketing, you will crush the
The only way to generate enough
big boys without a big marketing
leads so that you have more deals
How do you get your slice of the pie, so
budget and flood your business with
than you can handle is through
to speak?
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The success of any business hinges on traffic and conversions. Well you have to do it differently. The
When you know the return for every
and desired solution; your job is
approach that will work for you doesn’t
marketing dollar you invest, you’ll
to identify what they want, and give it
begin with your brand, it starts with the
feel a lot more confident investing in
to them.
specific problem your prospects
your marketing (which, like I said, you
have that you can solve.
must do).
It starts with them. Not with you, and
Marketing has to be:
not with your brand.
Some Example Target Markets Absentee Seller Bankruptcy Lease Option
Measureable
Cash Buyer
You want to be asking this question:
Trackable
Distressed Seller
How do I attract the right people who
Testable
Free And Clear Sellers·
need the solutions I offer?
Able To Be Optimized For Higher
Lease Option
Results
Renters
The big boys market with a commercial
Lead To A Clear Call To Action
fishing net, you need to market with a surgeon’s scalpel.
Once you’ve identified your target It’s that last one, lead to a clear call to
market, you’re going to drive
action that I’m going to focus on
them to get more information about the
That will make all the difference.
now. This is where it really gets good.
solution you provide. This step is where
What’s more, traditional marketing like
There are 4 Steps To Successful Lead
billboards, radio commercials, TV spots,
Generation
so many people get it wrong. So, where do you drive your traffic?
& brand building isn’t accurately measureable. In the industry, they
Select A Target Market
Do you send them to your main
call it “fuzzy analytics”. Fuzzy analytics
Compel Them To Identify
website? Or do you send them to a
is what makes marketing feel like an
Themselves
landing page (also known as a squeeze
expense.
Educate And Motivate Them To
page)?
Meet You Let me ask you a question. Do you feel
Land The Appointment
comfortable about building your business around “fuzzy analytics”? I didn’t think so. In order to turn marketing into an
why: At REI BlackBook we emphasize the power of niche markets, because, if
You’ve identified this micro market, but
your market is too large, how do you
when you send them to your branded
know how to compel them to identify
website there are too many options,
themselves?
and it’s mostly about you and all the
investment and not an expense, you need to know where your time and
The answer is the latter, and here’s
things you do in your business. You can’t.
money is being spent; then you can
If you drive somebody at this stage to
track what’s getting the greatest
There are tons of target markets out
your overall website, there’s so much
results.
there, and each has its own problem
information that it’s too overwhelming
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for them to take action (except maybe
That’s why, at this stage in the game,
to click off your site and launch
your brand doesn’t matter, the
Facebook, which is obviously not the
solution does.
desired action). Now, once you’ve captured the lead Whereas, if you send them to a landing
your job remains to educate and
page that speaks directly to their
motivate the prospect to meet you.
problem and offers a specific solution (in the form of a lead magnet)
It’s called a follow up campaign,
for which they will exchange their
usually done through a series of
email, then you’ve successfully sourced
autoresponders.
a lead. This is where we introduce your After identifying your market, your job
brand.
is to discover what they want and offer it to them in the form of a lead magnet
At this point we are building trust,
so that it’s their choice to take action.
establishing credibility, starting a
Get inside their heads. What’s the #1
relationship, and showing your
problem that they have that they’d like
unique solutions.
solved yesterday? That’s the focus of your lead magnet.
The ideal result of this step is to have built enough of a relationship and
Lead Magnet Examples
established enough rapport to lead to landing the appointment.
Special report Educational video
This process is a typical marketing
Webinars
funnel, and it’s how the small guy
Pricing guides
wins. It’s how you will win. And it’s
E-book
the only way you’ll be to be able to track your results. Because, if you
Let me ask you another question, just
don’t track, you can’t know for sure,
to drive home the branded website vs
and you need to know.
lead page point. Marketing this way is… If you have a problem, do you care what brand is solving it?No! You just
Simple
want it solved.
Scalable Trainable
If you’re in the desert and you’re thirsty,
Repeatable
do you care what kind of drink is
Delegable
offered, whether it be Gatorade,
Systematized
Powerade, or a glass of tap water?
Automatable
No you don’t, you’ll take whatever’s on hand; you’re thirsty!
…And highly effective!
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It’s what we at REI BlackBook specialize in so that you can be cherry picking your deals, spending time with family, and removing the shackles of your desk job. It’s powerful, it works, and it will work for you. To Your Success, Damon
special bonus Get your free copy of
The Real Estate Investor's Guide to Generating Motivated Seller Leads Go to www.MAREI.org/Guide
K C R A R
&
H E A R T L A N D
M L S
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Current as of July 7, 2020. Report provided by the Kansas City Regional Association of REALTORSŽ. All data from Heartland Multiple Listing Service. Report Š 2020 ShowingTime. |
June Market Update While much of the country was working on a phased reopening of the economy in June, real estate activity continued to strengthen as well. Nationally, June showing activity as tracked by ShowingTime was up notably from the COVID-19 depressed levels in recent months but was also up from June 2019, reflecting pent-up demand by prospective home buyers. Closed Sales decreased 5.3 percent for existing homes but increased 17.7 percent for new homes. Pending Sales increased 15.3 percent for existing
homes and 72.2 percent for new homes. Inventory decreased 48.4 percent for existing homes and 29.9 percent for new homes. The Median Sales Price was up 4.6 percent to $230,000 for existing homes and 6.8 percent to $389,925 for new homes. Days on Market increased 3.2 percent for existing homes but decreased 2.5 percent for new homes. Supply decreased 47.8 percent for existing homes and 32.3 percent for new homes. While buyer activity continues to be
robust, seller activity continues to be a bit softer, with fewer homes being listed for sale than a year ago. Many housing experts believe sellers remain reluctant to list their homes due to continued concerns over COVID-19, which was beginning to see a resurgence in June. Until sellers regain confidence, housing inventory will continue to be constrained during what is expected to be an active summer selling season. See full report at www.KCRAR.com/Statistics
R E V E I L L E
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How to Turn an Abandoned House Into $50,000 in Profit through Flipping
Abandoned to $50k B Y
D A N
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I hear from investors all over the US
Should you buy a house in this
Then move on to the next step.
and especially here in Kansas City that
condition?: A project of this scope and magnitude
Our process:
they want to flip to gain capital and experience, but they can’t find a deal or the numbers never work out. Here is how our company, Rev Homes, turned this neglected, abandoned house in Gladstone, MO into $50,000 in profit in eight weeks. Acquisition: How can you find a great deal in a market this hot? The answer is easier than you think. Through networking, we have built our reputation, and people know we are always looking to buy distressed properties. We were called about this property through someone my wife, Michelle, had met and chatted with months ago. We tell everyone we meet that we buy properties, for cash, any condition, and close quickly. When the opportunity presented itself, we acted quickly, made a fair cash offer, and closed in under a week.
would scare most new investors. The water was not on. The sewer main couldn’t be inspected. Termites. The house was a mess. A family of raccoons had previously vacationed there. Where many investors see issues, we see opportunity. We have flipped over 60 properties, 11 BRRRs for out of state investors, six BRRRs for ourselves that our now our rentals, and 47 actual flips. Through education, mentorship, and a ton of on-the-job training, we have learned how to address any and all issues on a rehab and acquired a large network of investor friendly contractors. A lack of know-how shouldn’t limit a new investor. Many seasoned investors would be happy to partner on a deal of this magnitude or provide fee-based consulting services. The key in this market is to procure the property at a great price.
Safety and quality are paramount to Rev Homes, these two factors aren’t negotiable for us, and they shouldn’t be for any investor. The first step was to gut this house down to the studs and replace the entire HVAC and ductwork in the crawl space while also removing all of the excess trees over the roof and in the front yard. Next, a new roof and gutters were installed to prevent water penetration. Once the new roof was installed, we started demolition, reframed damaged wood and subfloor, and installed new windows and doors. We wanted to maximize the amount of liveable square footage and make the house as open as possible so we removed the partition wall in the kitchen and reconfigured the bathroom, moving the water heater out of the bathroom and into the garage creating more space.
D A N
K R U P A
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Right now everything is selling and selling fast! Following the framing, we ran all new
right. For us that means thoroughly
About the author:
electrical and plumbing. After the
cleaning everything, great staging,
Dan Krupa and his wife, Michelle, are
rough-in was complete, we had the
ensuring every piece of trash is out of
full-time real estate investors who have
house inspected. Next, all new
the yard, and finally having amazing
renovated and sold over 60+ properties
insulation and sheetrock were added.
photographs taken. Never skimp on
in the last 36 months. They have been
photos or staging.
investing for 15 years in buy and hold
The house is starting to take shape and
properties. Dan is also the managing
transition to a cosmetic rehab. All new
Risk:
broker and owner of Krupa Realty.
interior and exterior paint, flooring, tile,
We bought this property without
Krupa Realty is a boutique investor-
electric finish, and new cabinets were
being able to inspect the sewer main.
focused brokerage that specializes in
installed. Once countertops were
Normally, we would build the cost of
helping investors purchase single and
installed, the kitchen is able to be
replacing a portion of the line
multi-family properties. Dan and
completed with tile backsplash, faucet,
because the house sat vacant for
Michelle also own and manage
and appliances. The bathroom had
years into the budget. In this case, we
Fountain City Property Solutions, a
everything replaced; tub, tiled
gave the seller the best price we
property management company “for
surround, vanity, and plumbing
could and didn’t include that cost. It
investors, run by investors.” For more
fixtures. Finally, the hardwood floors
did turn out we had two minor breaks
information contact:
were refinished. Meanwhile, the final
which will cost a few thousand
dan@kruparealtykc.com
landscaping and repouring the
dollars to repair but that was an
sidewalk was completed since no one
acceptable risk to us with the current
could be in the interior for five days
market conditions.
while the hardwoods were refinished. This is your time to put the final
Lessons learned:
touches on the exterior.
We have historic low mortgage rates and historic low inventory in Kansas
At this point, you will have to have your
City, creating the most favorable
local municipality conduct final
sellers market we have ever seen. We
inspections and complete your final
knew that prior to purchase and we
punch list. Final punch list items
used that to our advantage. We listed
include minor touch up paint, house
at the top of the price point and we
numbers, etc. Clean, stage, photos,
knew we would not have to settle for
high five, crack a beer
anything below asking price, the house would be purchased “as is”,
Make it stand out:
and we would get a quick close.
Take a tip from full-time flippers and
Know where you are in a market
never rush to get your house on the
cycle and factor that in on either the
market. I understand every day costs
sale or procurement. Right now
you money. However, rushing a house
everything is selling and selling fast.
on the market three days early could
The market won’t stay this way
cost you thousands of dollars. Do it
forever, so make your sales count.
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M A R E I
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T E A M
Build Your Team with MAREI's Business Directory M A R E I . O R G / B U S I N E S S - D I R E C T O R Y
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Julie Anderson & Jamie Walker
816-797-6875
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MOKSLaw.com
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816-931-2207
913-777-4862
See site for Free Forms
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