There is a lot you can do as a real estate investor right now to position yourself for success, even if you are stuck at the house. Deals are still happening every day, and you’ll want to count yourself among those of us making that happen. To do that, it’s more important than ever to adapt your strategy and make sure you’re positioning yourself (and your deals) to appeal to potential buyers. How do you do that? Sellers and wholesalers, pay attention! This one’s for you.
If you’re like 90% of Americans under social distancing or shelter-in-place guidelines right now, this is the reality you are having to contend with:
- Most potential buyers cannot currently leave the house, which means they are not able to visit your property in person
- Potential buyers might have a hard time getting an inspector to inspect your property
- Potential buyers might not be able to get a contractor or someone from their crew to go and take a look at your property
- Potential buyers might be delayed with lenders which may, in turn, delay appraisals
So how can you get your deal sold given these conditions? These factors undoubtedly complicate dealmaking but they can be overcome if you’re nimble and adjust to changing conditions. Here’s how you can position your deal for success…
Master Your Marketing
The way you position your deal online has always been important. It’s even more important now that your deal will be judged almost entirely on what potential buyers see online.
There are several online platforms and marketplaces where you should already be posting each of your deals as a habit (shameless plug alert! As a member of our tribe, we hope you are posting them to MyHouseDeals first. It is always 100% free for our members to post deals for sale.) In addition, you’ll want to post the deal on your website and email it to your own buyers list and network. Exposure is key. The more eyeballs on your deals, the more potential buyers you’ll be reaching.
Here’s how to make your deal stand out online…
Write a compelling headline highlighting the most important aspects of your deal
Your headline is the first thing a potential buyer will see, so make sure you grab their attention with an engaging headline. What is it about your deal that makes it stand out from other deals on the market? Communicate this compellingly and concisely so potential buyers will want to read more. Think less “4/1 Bungalow in Elm Street” and more “Great opportunity for creative investors in a hot neighborhood: rent or flip for a big upside.”
Write a description that highlights all of the key points of your deal
Think of your description like the ingredients that go into a recipe. Not only will you want to describe the property itself (the more detail you provide, the better), but use this as an opportunity to highlight the opportunity the deal offers too. Put yourself in the shoes of a potential buyer. If you were them, what would you want to know? Beyond aspects of the property itself, touching on the appeal of the neighborhood or zip code where your property is located would be helpful too. This gives a potential buyer a feel for what strategies they could apply to this deal and whether it’s in their wheelhouse.
Upload high-resolution photos
They say a picture is worth a thousand words. Potential buyers want to get a clear picture of what your property looks like. Grainy or blurry pictures will make it difficult for them to do so. Instead, upload high-resolution photos that showcase the house in detail. Take pictures from multiple angles. Create consistency between your description and your photos by taking pictures that visually depict what you’ve written in your description. Any listed repairs should also be highlighted visually. This will allow potential buyers to assess the property fairly and feel more comfortable considering this deal without a proper visit to the house. We cannot stress how important it is to have good quality photos included with your posting. It is the biggest driver of visibility for a deal on MyHouseDeals. And whatever you do, never market a deal without photos. You’ll only be making your life harder.
Include a video tour of the property
Combine a written description, photos, and a video to elevate the deals you post. Video gives a new layer of information beyond what photos can convey. This will help potential buyers who are unable to visit the property themselves, especially during the coronavirus crisis. You don’t need any fancy equipment to pull this off. Use your smartphone and just make sure to keep it steady as you record the video. Take advantage of the audio on the video to provide additional information about the property to complement your description.
Create a virtual tour
If you have the capability, consider creating a virtual tour. This will allow potential buyers to “walk through” your property at their own pace and get a 360-degree view of everything. While it takes some work to pull off, given the unprecedented times we’re experiencing, everything you can do to recreate the experience of visiting a property in person helps. Although most virtual tours are geared towards the retail market, more and more investors are taking advantage of it, especially during these unprecedented times, so this is something to look into particularly if you are moving a high volume of deals each month. Once you create a virtual tour and post it on your website, link to it when you post your deal.
Position your deal for a particular strategy
You know your deal better than anyone. Help guide potential buyers by using your experience to your advantage. If your deal would make for a good rental, flip, subject 2 property, or any other type—let potential buyers know. This will help you attract the right fit for your deal.
Now that you’ve optimized your online deal from a marketing perspective, the financial side of things is just as important.
Be Transparent with Your Numbers
The number one reason for skepticism and deals falling through is overinflated numbers. If you exaggerate or do a haphazard job, you’re going to shoot yourself in the foot and cause headaches for yourself later. Provide a clear picture of what you’re offering to position yourself for success.
Be fair in estimating the ARV
ARV stands for estimated after repair value. Put in the work and come up with a reasonable estimate for this figure. A prudent way to do this is to use comparables (comps) to back up your numbers. If you don’t have direct access to comps, work with a realtor who can pull comps for you. There are also many services out there that can help you do that yourself.
Provide comps information you used to arrive at your ARV
Your potential buyers will want to review the information you used to arrive at the ARV for the property. Be proactive in posting this information with your deal (this can be in the form of information typed in the estimates section of your post or as attached reports investors can download—both are supported by MyHouseDeals).
Use current and relevant comps
The closer your comps align with the characteristics of your property, the more relevant they will be. Make sure the comps you choose are current and not outdated. If you’re using comps that were sold more than six months ago, it’s less likely that investors will rely on your data and they will, instead, seek to complete their own research. Here are some factors to consider when determining comps: (1) conditions of sale; (2) market conditions; (3) financing conditions; (4) physical comparability; and (5) locational comparability.
Keep in mind that because our markets are changing so fast due to the coronavirus and that these changes may have an impact on home values, you should be as targeted as you can be with your comps. Use only the most recent comps you can find, but also keep in mind that we may be entering a period when comps are just not reliable because market conditions are too new to know how values have been affected. In those cases, rely on your expertise and the expertise of your network, and be upfront with your potential buyers about this variable.
Be detailed in your repairs description and estimate
This is another opportunity for you to make an impression. List out all of the repairs in as much detail as possible. If potential buyers can see each repair laid out in detail, line by line, it will put your estimate in perspective. A potential buyer may have additional questions, so be prepared to provide further details and the associated costs you used to arrive at your total repair estimate.
Consider your current local market conditions when determining your asking price/assignment fee
Prices change over time so be sure to stay up-to-date on how things are faring in your market. You’ll have to adjust your asking price, factoring in your assignment fee, accordingly and you may have to be willing to take a smaller paycheck to move your deal quickly.
Follow up and Follow Through
Making deals is a process and marketing it online is, of course, only the beginning of the process. Here’s what you can do to keep things moving quickly…
Pick up the phone
Take the time to talk to each potential buyer over the phone. This is where you can have an open discussion on subjects that may be too complicated for email. Do not screen your buyers’ calls. Give everyone a chance so they have all of the information they need to find out if your deal is the right one for them.
A lot of potential buyers will first reach out to you by email. Stay on top of your inbox and get the conversation started by replying to potential buyers promptly.
Potential buyers will have a lot of questions for you. Provide all of the information that is requested of you clearly so potential buyers can gauge their interest level in your deal.
Show your credentials
You’ll want to make sure a potential buyer is credible. The same is true on their end. A potential buyer will want to know you’re serious before doing business with you. Especially if this is their first time working with you! Point them to your website, send them your credibility kit, and put them in touch with your referrals. All of this adds to your credibility as a real estate investor.
Connect them to resources
A lot of moving parts are needed to make a deal happen. A potential buyer may need to talk to lenders, contractors, title companies, movers, etc. If you have people you would recommend, make the introduction. They’ll appreciate it!
We’re going through unprecedented times and stress levels are at a high level. Going above and beyond in all that you do makes a difference. We’re all dealing with a lot, so the more we can help each other, the better.
Despite the current climate, deals are still happening and investors are still looking for deals, even under self-quarantine. Post your deals as soon as they are under contract and touch base with potential buyers who contact you as fast as you can to move a potential transaction along.
Our customer success team at MyHouseDeals is here to guide you through every step of the process. We have an amazing team that’s dedicated to helping you post deals to MyHouseDeals! They can also help you market your deals and keep them updated for our entire community. Contact firstname.lastname@example.org with your deals or any questions.
Stay safe, stay healthy, and happy (and profitable) investing!