Real estate entrepreneurship helps in making money without investing a great deal of time or money. It requires no formal education or experience to start the business. The steps involved are to identify the right property, rehabilitate it with the help of local craftsmen and resell it in the retail market. The property with its improved looks attracts buyers and also helps to improve the community. Real state investing is a profitable business provided you have the requisite skills and techniques to sell the property to prospective customers. The best way to sell the property is by effective marketing through various channels. These can be the local newspapers, radio, TV or the Internet. Real estate postcards are a novel and very effective method of real estate marketing. They are addressed directly to customers unlike flyers, which at times do not even command a second look before being trashed. 

Tips For Sending Real Estate Postcards

In the initial stages of managing your real estate business, the following tips will help while mailing real estate postcards:

• Identify areas within a specific zip code, which you wish to cover. 
• Take the addresses of every house owner within that particular area from the local directory.
• Identify a good neighborhood printer who can undertake to print good quality postcards for you.
• Design an attractively worded postcard with your address, contact number, timings for meeting, specific job details, etc.
• Print a few thousands of these self-explanatory postcards, within your budget.
• Post them to all homes located in the identified area to advertise your services.
• After the initial business, as your credibility increases, you can post a second round of the postcards. This ensures an added effect for your business.

Real- Life Examples Of A Few Deals
Real-life examples of some deals concluded are given below to highlight how real-estate postcards helped an entrepreneur earn relative large profits while investing a comparatively small amount of capital. This real estate entrepreneur printed ten thousand oversized real estate postcards for less than $3,000. He posted them to each and every home of his identified zip code with an elaborate message of his business. In the first attempt itself, he got calls from 35 customers. After evaluating and prospecting the properties for sale, he bought as many as five of them for resale. This worked out one out of seven houses for sale in the initial period itself of setting up the business. Even this sale gave him a massive profit of $150,000, which was extremely encouraging. 

· House#1: This house was valued at $134,900 fixed up. It needed a new carpet, fresh paint and some trims. The seller owed $89,000 plus $6,000 in back payments. The entrepreneur bought it for $95,500. He held it under contract with a tenant/buyer for $132,000 on’ as is’ basis. He got in the buyer with the first month’s rent, $3,500 non-refundable purchase plus some repairs to be done prior to occupancy. It was a very positive cash flow. Equity gained on first deal: $35,500

· House#2: The entrepreneur bought the second house with great looks and located in good neighborhood from a retired university professor for $153,000. He paid the professor $65,000 in cash from the private loan of $124,000 taken at the rate of10%. The remaining $88,000 was paid from four-second mortgages on different properties he held. After rehabbing, the property was sold for $180,600. The equity gained on second deal was $27,600. 

· House#3: With the help of response to the real estate postcards, he purchased the third house from a guy who owed $110,700 in various debts. He paid the cash $59,000 from the leftover loan taken for second house and settled debts with the back payments. He spent additional $16,000 to spruce up the house with some essentials. The house then sold for $158,000. The equity gained on his third deal was $31,5000.

· House#4: The fourth house was bought for $110,4000. It cost him $11,900 in repairs and was sold off for $148,000. The equity gained from this deal was $25,7000.

· House#5: The fifth home cost him $130,000 and was in very good shape. It did not require much in the way of repairs etc. except cleaning worth $600 only. It sold off for $160,000. The equity gained on this deal was $29,400.

The total equity earned on the sale of the five houses added up to $150,000 with the initial expenditure of $3000 only on the real estate postcards. The dollar ratio 1:50 is much more profitable than even returns on the stock market. Needless to say, the real estate postcards had a major role in generating the profits.

 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win $100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com               

 

 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page