Kathy Kennebrook is a speaker, author and has been actively investing in real estate since 1999, Kathy currently resides in Bradenton, FL and is known as the “Marketing Magic Lady” because she is the country’s leading real estate marketing expert on finding motivated sellers using direct mail.
31 Articles Found.
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Attracting Even More Motivated Sellers in an Ever Changing Market – Part 2
By Kathy Kennebrook on January 31, 2016
You can also control the types of sellers who are contacting you and the types of properties you want to purchase. In a changing market, this ability to be flexible is especially important and using direct mail is the only marketing tool available that gives you the opportunity to pick and choose the types of sellers you want to deal with.
The more direct mail campaigns you do, the higher the response rate gets. So the more you do it, the less direct mail costs per lead and per deal. Direct mail is the only marketing technique out there that allows you to have these controls. I provide my students with a number of different types of direct mail campaigns to make sure they have the best opportunity to create more deals in their real estate investing business on an ongoing basis.
In addition, you are using your available marketing dollars to target specific types of sellers as opposed to other types of marketing like signage or an ad where you are hitting a much broader market area and hoping someone in that group has a property for sale. You should always have between three and five marketing techniques working for you at any given time and one of those needs to be direct mail marketing. I have lots of great information about other types of marketing tools on my website. Read More >>
Attracting Even More Motivated Sellers in an Ever Changing Market – Part 1
By Kathy Kennebrook on January 4, 2016
I am often asked whether or not there are still good real estate deals out there with the market constantly changing like it has been. The real estate market will always experience ups and downs and as real estate investors we need to be trained on utilizing the best tools to locate the motivated sellers within those markets. We also need to learn to be flexible in our marketing in order to bring in the highest number of new deals.
I often hear comments like, “you were just lucky” or “you got in on the real estate game when there were still lots of deals out there, it’s just not that way anymore”. Those folks couldn’t be more wrong in their thinking. This is just “stinkin’ thinkin’” as my friend Ron LeGrand would say. There are always deals to be made if you know where to look for them no matter what your local real estate market is doing. This is just a matter of having a marketing mind.
Using direct mail to attract motivated sellers is always one of the best tools in the real estate business for locating highly motivated sellers on a regular basis. I also utilize other tools along with my direct mail, such as lumpy mail pieces to make my direct mail stand out or I will send CDs to my sellers explaining to them why they should work with me. Using a little creativity with your direct mail campaigns will increase the response rate significantly. There are several reasons for this. Read More >>
Long Term Benefits of Using Direct Mail to Locate Motivated Sellers
By Kathy Kennebrook on December 6, 2015
As you probably know if you have been reading my articles, I strongly advocate using direct mail to locate highly motivated sellers for your Real Estate Investing business no matter what market you live in and no matter what your real estate market is doing. With the market being in its current state of affairs, there are more motivated sellers than ever before if you know how to find them.
As a seasoned Real Estate Investor I fully understand that I need to be locating the most highly motivated sellers in order to construct the very best deals. Remember, the profit on a deal is made when you buy a property.
In addition, while many investors enjoy working with pre-foreclosures, short sales, REO properties and buying houses on the court house steps, these properties take time to close on and there is a lot of competition for them.
In the meantime you need to be able to continue to fill your funnel with cash producing deals in order to keep your business moving forward. Working with motivated sellers that your competition knows nothing about is definitely the way to accomplish this goal and direct mail is the best technique to draw in these very motivated sellers. Read More >>
How to Locate Highly Motivated Sellers Using Business Cards
By Kathy Kennebrook on November 8, 2015
Finding ways to attract motivated sellers to your Real Estate Investing business is probably the most important element in your business, since without the motivated sellers, there are no deals to be made.
There are several different ways to find motivated sellers for your real estate investing business using a shot gun type of approach to locate as many sellers as you can. A shot gun approach is where you “blast” your message out to your market and hope that there are motivated sellers among the bunch. Some of these techniques include yard or vehicle signage, business cards, t-shirts and hats, door hangers, pens, buttons, business card magnets, flyers and auto shades. What I really want to focus on today though, is using business cards to locate motivated sellers.
When having business cards printed, there are a couple of things you want to keep in mind. One is that your business card needs to have a grabber headline and it needs to catch people’s attention by looking different from every other business card out there.
Use bright colors and a benefit driven message on your business cards. List the reasons on your card why that seller should work with you and how you can help them. Remember business cards are a highly effective inexpensive lead generating tool for your business. On your business card, you want to provide your potential seller with a couple of different ways to contact you so they can contact you in the way that is most comfortable for them. So for example your card might include your phone number, your email address and a website for them to check out. The more ways you give a potential seller to contact you, the more of them will. Read More >>
More Unique Strategies to Locate Motivated Sellers
By Kathy Kennebrook on October 20, 2015
I am always excited by the opportunity to share as many ideas as I can with regard to locating motivated sellers for your real estate investing business. After all, without the sellers, there are no deals. I also like having the opportunity to share ideas for both the beginner investor and the seasoned investor alike within a variety of budget constraints. One of my favorite techniques is using flyers to get the message out there that I buy houses.
Flyers are a great way to target and locate motivated sellers. They can be used to target specific neighborhoods and subdivisions where you want to buy houses. You can either hire a company to hang them door to door for you, or hire older children to hang these flyers for you.
Do follow up by driving by the area to make sure the work got done. When using a company to lay flyers for you, make sure you get references from satisfied customers first. There are some companies out there that will take you money and not get the work done, so you want to check their reputation before hiring them. Flyers are a wonderfully inexpensive way to locate sellers and this technique can be repeated either monthly or quarterly depending on your time and budget. When we used to lay flyers door to door ourselves, we would take one weekend morning to do this. My husband and I would each take one side of the street and lay flyers door to door. We would keep a chart of the neighborhoods we had done so we could track our results. You always want to be tracking where your leads are coming from so you know which of your marketing campaigns are working best. Interested potential sellers will hold on to these flyers until their situation changes and they are ready to sell, so laying flyers door to door becomes one of your long term marketing techniques. Read More >>
There are many creative ways to find motivated sellers and promote your business. One of the great ways to get positive exposure for your business and give back to your community is to sponsor events or teams. There are lots of great ways to do this.
You can sponsor sports teams such as soccer, softball, bowling or track. You can also participate in a local golf tournament for charity. One of the ways to do this is to provide uniforms or shirts which of course have your company information on them. Walk-a-thons are another great way to achieve this goal. This is a good way to get advertising out for your real estate investing business and support your community at the same time.
Another way to promote your real estate business in a positive way is to sponsor events or take part in local functions by donating promotional items. For example, if your community is having a local fair or parade, you could donate balloons to be given out to the children which have your company name and logo on them. These are always appreciated and it's a good way to get your company information out to the public. These events usually get press or television coverage as well. Imagine a news shot of a parade where every child is holding a balloon with your message on it! Or, imagine the winning team getting their picture in the paper wearing shirts with your message on them. What better advertising could you ask for! And what better way to let people know that you buy houses! Read More >>
The rental business can be very lucrative for the real estate investor. It can also be a pain in the neck. The trick to an effective rental business is the management. We have many rentals as a part of our real estate investment business and we have always said that managing tenants is like raising another set of children unless you do it correctly.
The first thing you should do is to decide if you are going to manage your properties yourself or if you are going to have someone else do it for you. There are ways to automate these systems either way and I will discuss both. You just need to choose the system that works the best for your own needs.
You can use a property management company and run your rental business pretty much hands-off. Just remember that there are costs involved in doing it this way and you don’t have as much control. If you do choose to work with a property management company check references before doing so. In the beginning, keep a closer tab on what’s going on with your properties. Some property management companies are definitely better than others and some will take better care of your properties than others.
When using a property management company who is going to place tenants in your properties, make sure they are using a reputable tenant check company and make sure you look at the applications and tenant check reports of prospective tenants before they are placed in your property until you are sure that you and the management company are “on the same page” regarding the tenant requirements you want for your properties. Make sure your property management company understands your personal parameters when placing tenants in your properties. Read More >>
Signage is an important tool for you to use in your real estate investing business. Using signage is another inexpensive way to draw motivated sellers and deals to you. Many real estate investors find that signage can produce more deals in a year than some of the other methods they use in their businesses. Once again, you need to test and track the results in your own business. There are several different types of signage you can use. Some are permanent, some are temporary. Some are very inexpensive and some will cost more. I will discuss several different types of signage I have used in my own business.
One type of signage you can use is magnetic signs or vinyl lettering that goes on your vehicle. You can also "wrap" a vehicle with signage. Wrapping a vehicle means signage all the way around it. There are sign companies who will design this type of signage for you. This is a little more expensive and a little more permanent; however, it can be easily removed should you decide to sell your vehicle. Magnetic signs work very well, especially if you only own one vehicle. Sometimes you will be working with a seller who doesn’t want their neighbors to know they are selling their house and you will need to remove your signage before going to see that seller. Make sure your message is short and to the point since other drivers have only seconds to see your message unless your vehicle is parked. Read More >>
One way a lot of real estate investors use lumpy mail is when they are working the pre-foreclosure market. These people are getting stacks of mail and post cards every day from mortgage companies, attorneys and other investors. There is a lot of competition for these properties so you need to do something to make your mail stand out and look different from the others so it gets opened first. Since there are fewer foreclosures these days getting noticed is even more important to your success.
There are several ways to do this. One is to simply insert something into the envelope if you are mailing a letter. It might be a piece of candy or gum with information about your business with a tag line of "In a sticky situation? Call us first". Or, if you are using a piece of candy it might say, "Call us first, we can make you a sweet deal". It just needs to be something that makes your mail piece look different, and makes it stand out from everyone else’s.
You could also use a lumpy mail piece like a penny, then within the body of your letter; say something like “a penny for your thoughts on selling your home”. You just need to be using something that grabs the seller’s attention. Anything that feels different or makes noise will accomplish this for you. Be creative with your mailings and you will create more leads and do more deals. Read More >>
Diversifying Your Business With Multiple Streams of Income
By Kathy Kennebrook on April 30, 2015
One of the best ways I know of to grow personal wealth is by creating multiple streams of income in your life and in your business. In an uncertain economy, it is important not to place “all your eggs in one basket.” In order to protect your income long term you need to consider diversifying your investments so whether in a bad economy or a good economy you still have income from some of your investments.
As a real estate entrepreneur, there are several ways for you to accomplish this goal. One way to create multiple streams of income has to do with the way you purchase properties and structure your deals. You can wholesale properties for immediate income, or you can lease/option properties so you get some money today, some each month and a big chunk of cash at the end. When you do a lease/option with a tenant buyer, just remember to increase the initial asking price of the property by at least ten percent so you realize the gain in property values over the year. If you extend your lease/option for a second year, you get another chunk of cash; you increase the price again and continue to get a monthly income from it.
You can also hold onto rental properties and have someone else manage them for you. This way, you get to go the mailbox, get checks and not have to do any of the work or deal with the tenants. Apartment complexes and storage units are another great stream of income, especially when they are managed by someone else. Not only do you realize the gain on the property long-term but the monthly checks are even bigger. Read More >>
I actually added this to our lease after a tenant called us at 6:30 one evening to tell us her kitchen sink was stopped up. It turned out that her small child had stuck a cup down into the garbage disposal. It just needed to be removed. The way my lease reads now, that tenant would be charged a fee of $65.00 to have my repair guy go out for something that wasn’t a repair. This one clause will save you from a lot of unnecessary trips to your units for repairs.
I also have someone who checks my rental units every sixty days or so to make sure they are being cared for properly and that the tenant has not added animals that are not on the lease. We also make sure they have not moved in any more people who are not on the lease. This is grounds for immediate eviction. Within the body of our lease, we also cover how long visitors can stay as well so there is a clear definition as to what a visitor is and what an extra tenant is. You can also hire a property management company to handle your units, but I just feel like our units are better handled by my staff. I also send letters to the neighbors surrounding my rental units letting them know that we are interested in any input they may have about my units and my tenants. The neighbors become kind of a watchdog for me to let me know if there are any problems I should know about. Read More >>