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Free Short Sale Course
[July 10, 2008] by Broker-Trainer
Filed under: Free Short Sale Course

Free Short Sale Training

Your Mortgage Broker Education Taught You Something:

Every Marketing Plan Needs a Budget

Over my last several posts, I’ve introduce some of the basics of marketing for a preforeclosure based business, one that can produce thousands in profits. I’ve also mentioned on many occasions what you may already see as an obvious reality, that being the current challenges in working the mortgage business. After all, what are the formal mortgage broker training, attendance at mortgage seminars, and time and effort that you’ve put in doing for you now? There has to be something else in today’s market. As someone who has had mortgage loan training and who I’m sure pays attention to the news and realizes how many foreclosures are out there right now, aren’t you ready to learn how you can effectively market to new clients, profit from the current real estate economy and, in doing so, earn 10 times what you would make for simply originating a loan?

I’ve also introduced my system for working this business that works and that works consistently! If you really think about it, a foreclosure investment course (or any real estate investment course for that matter) should focus on giving you repeatable results, not just something that may work for a few select people.

Now, let’s continue this next series of posts, which focuses on business marketing. Since we’ve now covered the 3 M’s of marketing, it’s time to move onward and forward and execute a plan. A good plan starts with a budget so let’s see where we are at for this week.
Types of offers you will be making to motivated sellers
Benefits of a business model that focuses on pre foreclosure
The 3 M’s of Marketing Part I – Your Market
The 3 M’s of Marketing Part II – Your Message
The 3 M’s of Marketing Part III – Your Media
Marketing budgets
Implementing your marketing plan

Every business needs to (or at least should) have a budget for its various expenses. Marketing is certainly part of the expenses for any business and it is a critical part of real estate investing. The main point I’d like to make this week is that your marketing is an investment, not just another expense!

The first step to setting a good marketing budget is to be reasonable. If you have $500 a month extra that you can devote to marketing, then use it to its fullest advantage, rather than setting a $1,000 a month budget that you will struggle to stick with. Setting a budget too high from the beginning puts too much pressure on the business and can add stress when it isn’t necessary.

So, what kinds of expectations should you have? Many investors place an ad in the paper and expect miracles, when the better approach may have been to use a more diverse array of marketing media. The choice of media will somewhat depend on your budget, as classified or phone book advertising can get pretty expensive pretty quickly.

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Your goal should be a revenue stream that exceeds your monthly marketing costs by about ten-fold. For example, if you are investing $1,000 a month in various marketing media, this should translate into about $10,000 a month in revenue. If you haven’t hit this benchmark, consider diversifying your marketing campaign, rather than just spending more money.

Another way to look at budgeting is to expect that for every $500 you invest in marketing, you should be able to buy one property. Considering that an average profit on a pre foreclosure deal (based on my experiences) is about $25,000, that’s a pretty darn good return on your marketing investment, no matter what kind of business you’re in.

Expect to be patient with marketing and the budgeting for it. Starting out, it will take a little time for deals to start coming in so don’t be discouraged if you spend $200 on marketing and you don’t have five deals yet. Catch my drift here? It is an investment so be patient and the results will come.

Since you are in the mortgage lending business already, the idea of marketing your services should be something that you are well on top of, again a huge advantage you have over other investors. The mortgage lending business is intimately tied to real estate and puts you in a great position to profit from the booming preforeclosure market. Please take the time to review the action steps and tips from all of my recent posts and make sure you’ve paid attention because we’re going to move onward and forward and I want you to be in an ideal position to act upon what you are learning. Stay tuned, I have so much more to share with you, and all the best to you in success.

D.C. Fawcett

The Short Sale Expert to Mortgage Brokers

Click Here To get a FREE Short Sale Course for Mortgage Brokers

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