In A Tight Real Estate Market...

In today's economy-the worst economy since the Great Depression-you might be wondering

if buying and selling investment properties is still a profitable venture. Thankfully it is, especially if you do a great deal of advance planning. But it all begins with advertising. In a tight real estate market, you may be reluctant to spend money on advertising. But in the end, it's one of the best investments your company can make over the long-term.

We have found that in our market different kinds of advertising attract different kinds of people.

Some people are more likely to be influenced by a Yellow Pages ad or a newspaper ad. Others are attracted by signs, while still others respond to a website. In other words, there are many different advertising routes you can take if you're interested in buying houses. In the end, though, no matter what type of advertising you pursue, you can crank up your buying machine as a result of it.

The goal for your advertising is to get your phone to ring. You can then sift and sort through your potential client list, finding the most promising potential sellers. However, if your phone is not ringing and you have only one potential client, it makes your job difficult.

The more advertising you do, the greater number of calls you receive. The more calls you get, the more deals you'll have and the more successful you'll be in the end. Granted, you won't want to pursue every lead, but, the more you have, the more options you have. And isn't it better to have a long list of potential clients than a short list with only a few?

A company that buys houses may do a number of different types of deals, such as all cash and the REOs that are done through a realtor. The houses you buy may be owned free and clear, where they don't have any underlying loans. Or the homeowner may have little equity or no equity. The homeowner may then be satisfied with just a little cash.

In fact, the troubled economy can actually work to the advantage of a company that buys houses. With many people experiencing financial difficulties, they may be eager to sell their homes for cash. So use market forces to your advantage, and buy smart.

by: Alan Cowgill

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