Lead Generation Law #2…Feed the Database

LeadGenLast week I covered the first law of lead generation which is to build a database.  Law #2 states, “Feed it everyday.”   You have two options when it comes to feeding your database.  You can fill it people you have met or those you have not met.  Let’s start with those you know or have met.  This group is significant in that you probably have some kind of relationship in place with these people.  But a few things to consider here.  First, as you add these folks into your system it is important to categorize these leads into groups.  Start with the people you know really well, this includes close friends, family, neighbors, etc.  Keep it simple in terms of group names so you will know exactly who is in each group.  The next group might be people you come into regular or semi-regular contact with.  This could include people from church, your kid’s school or sports activities, heck even your Starbucks barista., dry cleaner or grocery clerk.  The next group is very important as well.  People you have done business with!  Some in real estate call this group “past clients”.  I don’t like that term because it infers I won’t do more business with them.  I just like to call them “Clients”.  We’ll talk more about this group next time, but get them into your database!  The next group for the “Met” category will be those you have met in your lead generation activities but have not yet transacted with.  These folks may not be quite ready or are in the tire kicking phase.  A very important group we will discuss more as well.  Lastly don’t forget your allied services.  Title reps, escrow officers, loan officers, etc.  They are always hitting you up for leads and you need to be doing the same!

Let’s move onto the “Not yet met” category.  This group is made of people you have spoken with but have not yet had a meeting with.  Maybe they called you on a mailing or you called them during your routine prospecting time.  This group will be HUGE!  And by that I mean in terms of sheer numbers.  You will talk to a ton of people you will never meet.  But that does not mean you can’t generate business from them!  Follow the same process for adding these folks into groups, however you will most likely use more specific group names like FSBO, expired listing, cold call, etc.  It’s important to use easy to understand group names so you have a point of reference when it’s time to contact them.

The last point I want to make, and one I will expand on later, is that the “have not met leads” will be a lot more in term of the amount of people in this category.  The way it works out for lead per sale ratio is, for every 50 have not met, who you market to 12 times, will turn into one sale.  So a lot more work here compared to the met group, but again I will go into more detail next time.  I’ll wrap up saying again, my job as the Team Leader/Chief Business Strategist at Keller Williams in La Mesa is to help you accomplish your goals.  So why not start today by reaching out to me to set up a business analysis and planning session to get you heading in the right direction?  I’ll be back next week with Law #3 and until then have a great weekend!

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Time for change…

KellerWilliams_Realty_Sec_Logo_RGB-revSpring time…the time of re-newel.  A time for change, growth, and opportunity.  And for me a big step in a new direction.  As of today I am proud to announce I am the new Team Leader at Keller Williams Realty in La Mesa.  This is an added bonus because I live in La Mesa…like 5 minutes away!  That’s huge because most of my career has been spent in larger regional and statewide management roles that often required travel.  I like to travel, but with a young family it can take a toll.  Who wants to miss softball and soccer games, and piano recitals?  I live for that stuff man.  So this move represents a sort of homecoming for me.  There are over 100 agents in the office, many I have known for years.  That’s a cool thing because I get to reconnect with old colleagues and meet some great (and productive) agents I did not know.  I always loved that part of this business, building relationships and getting to hang with some cool people.

There is work to be done here.  A kind of re-launch if you will.  This market center was one of the first KW offices in the San Diego region and has a great history.  But like many real estate companies, it struggled over the past few years.  The good news is this team is primed for growth and willing to step up and make some great things happen.  The goal is nothing short of market domination and continuing the tradition of serving our clients and each other at the highest level possible.

I have been keen on KW for a few years, having met with some key players in S. California.  Timing and geography always seemed to come into play, so being in my hometown makes this even more special.  Keller Williams has a long history of helping agents “Build careers worth having, businesses worth owning and lives worth living.”  I’m excited to now be a part of that.  Being able to affiliate with the largest real estate company in North America, and soon the world, has its advantages after all.  More than that however, is knowing that because KW is a company of systems and models, I get to share that with others and impact people on a daily basis.  And that’s what gets me up and going each day.

I’d love for you to reach out and connect to learn more about why I made this change.  If you are open to learning more about Keller Williams Realty you can visit:  http://redcareers.com/lamesa for information and to connect with me.  I look forward to hearing from you and here’s to a fantastic 2014.

Jason

The best real estate investment strategy is…

1031_Exchange_2For my money it’s the 1031 tax-deferred exchange.  The 1031 allows owners of investment property to exchange certain types of property and may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.  In essence you can sell (exchange) your rental condo in Arizona and buy a duplex in San Diego.  The catch is the properties must be “like-kind” which means the properties must be investment property.  It does not matter if one is a single family home and the other is a 4 unit building.  Like-kind simply means property held for investment.

Now, there are many rules to follow, which I will cover in my next post, but I want to show you the real benefits of a 1031 exchange.  Here are the 5 main reasons to exchange, courtesy of Asset Preservation.

  1. PRESERVATION OF EQUITY
    A properly structured exchange provides real estate investors with the opportunity
    to defer 100% of both Federal and State capital gain taxes. This essentially equals an interest-free, no-term loan on taxes due until the property is sold for cash! Often the capital gain taxes are deferred indefinitely because many investors continue to exchange from one property to the next, dramatically increasing the value of their real estate investments with each exchange!
  2. LEVERAGE
    Many investors exchange from a property where they have a high equity position, or one that is “free and clear”, into a much more valuable property. A larger property produces more cash flow and provides greater depreciation benefits,
    which therefore increase the investors’ return on their investment.
  3. DIVERSIFICATION
    Exchangers have a number of opportunities for diversification through exchanges. One option is to diversify into another geographic region, such as exchanging out of one apartment building in Denver, Colorado, for two additional
    apartments – one in Los Angeles, California, and the other in Dallas, Texas. Another diversification alternative is acquiring a different property type, such as exchanging from several residential units to a small retail strip center.
  4. MANAGEMENT RELIEF
    Some investors accumulate several single family rentals over the years. The ongoing maintenance and management of what can be a far-reaching group of properties can be lessened by exchanging these properties for one property better
    suited to on-site maintenance and management. Exchanging into a single apartment complex with a resident manager is a good example of this strategy.
  5. ESTATE PLANNING
    Sometimes a number of family members inherit one large property and disagree about what they want to do with it. Some want to continue holding the investment and some desire to sell it immediately for cash. By exchanging from one
    large property into several smaller properties, an investor can designate that, after their death, each heir will receive a different property, which they can either hold or sell.

Stay tuned for the next post relating to the 1031 exchange where I will cover the anatomy of the exchange and also share a case study.

Home prices up? Not so fast…

Over the past 6 months I have seen several reports indicating housing prices are on the uptick.  On a large regional and national scale this might be the case.  Reasons given include things like low inventory levels, rising interest rates, investor competition, etc.  But what do we discover when we look at what really matters, the hyper-local market?  Well in San Diego county we find that there are several markets with a drop in year over year pricing.  This happens in most markets when you look deep enough, but what makes it very interesting in this case are the areas where we are seeing these drops.  The most prominent areas?  Look to the coast!

SunsetLet’s start in Ocean Beach.  According to DataQuick, there were 15 home sales in July 2012 at a median price of $787,500.  This year saw 27 sales with a median price of $725,000.  That’s a drop of 7.94%.  Let’s move up the coast a bit to the Mission/Pacific Beach area.  Last July saw 20 sales at a median price of $771,250 compared to 17 sales this July at $757,500, a drop of 1.78%.  Even farther north in Solana Beach we had 12 sales at a median price of $1,835,000 last July compared to 30 sales at a median of $1,472,046, a drop of a whopping 19.78%!  By the way, the median price represents an equal number of sales above and below the median, which is different from the average sales price.

But my choice for the best bang for your buck when it comes to beach living is Imperial Beach.  IB has the distinction of being the most southwesterly city in the US, and being snuggled up against the Mexican border offers some challenges, to be sure.  But with its laid back vibe and proximity to Coronado, IB is hard to beat when it comes to owning real estate along the coast of San Diego county.  Last July IB had only 3 single family home sales at a median of $325,000.  This year saw a jump to 15 home sales at a median of $307,500, which is a drop of 5.38%.  Value in every sense of the word.

So what does it all mean?  First let’s start by acknowledging that it is more expensive to buy real estate along the coastal areas.  However if you are looking for the best values and this happens to be your price point then you are in luck!  And let’s face it…living at the beach is a lifestyle choice more than anything.  And with that lifestyle comes a price.  The good news is that no matter what part of San Diego county you live in, chances are you’re only 20 minutes or so from being able to enjoy this lifestyle!

MB

We Reward Entrepreneurs!

CarringtonWe believe it is time to challenge the status quo. Today’s real estate agents deserve leadership and innovation from their brokerage. As an entrepreneur you need to join a company that can provide real business opportunities, solid leadership, mentoring, and 24/7 access to resources that assist you in reaching your maximum potential. You also need a business partner that supports your financial goals. That is why we would like to introduce you to our Entrepreneur Reward Plan. This aggressive 90/10
compensation package with a low yearly cap will only be available for a limited time. We encourage you to take action today.

We are wisely investing in entrepreneurs who are confident in their abilities, optimistic about the market, and open to new ideas that could take their business to the next level. Carrington Real Estate Services is a young, aggressive brokerage who in only five short years has been named in the top 12% nationally for transactions in the 2013 RISMedia Power Broker Report and have proven that our entrepreneurs are 56% more productive than the industry average.* If you are looking to REfuel your business and take it to the next level — we need to be talking.

Plan Overview
• 90/10 compensation package…with ability to attain 100% after meeting annual CAP
• Qualified agents must have closed a minimum of six self-generated deals in the last 12 months
• Offer available from 5/15/2013 to 8/15/2013
• Other terms and conditions may apply
*Figures based on CRES/National Association of REALTORS® Annual Member Survey 2010, 2011 data.

The Searchers…a look at real estate search experience and results

syndicationLet me start by saying, “Boy are there a lot of choices when it comes to searching for real estate online!”  I mean just looking at this graphic makes me realize that it can be overwhelming  for consumers.  It also helps to illustrate why most folks looking at real estate online tend to stick with the Big 3, REALTOR.COM, Trulia, and Zillow.  Each of these sites offers basic & advanced search functions, as well as additional data that may be of interest to homeowners or potential buyers.  Think school and crime stats, and even pricing on other homes that recently sold and demographics on who lives there.  Over the past few years more real estate brokerage sites have also developed interesting search tools.  Upstart companies like Redfin have launched platforms consumers rave about.  Heck even  Century 21 and RE/MAX have redesigned their sites in hopes of luring more visitors and inquiries . All fine and dandy, but when it comes to pure property search, who is the best?

As an example.  When searching any of the big 3 portals, it takes several clicks to get what I want.  If I type in a search like I would on Google, “3 bedroom in La Mesa, CA with a pool”, I get nothing, zip, nada.  Of course these sites, like most, have been built to help people who may not know exactly what they are looking for, find it.  I get that.  But I still wonder why more property search sites don’t make it easier for people to find what they want?

In this day and age it all starts and ends with Google in terms of search.  If we want to find something we just go to Google and type in, “Best seafood restaurant in San Diego”.  Then we scan the results, read the reviews, look at menus and decide where we will spend our money to satisfy our hunger.  What we don’t do is go to Google and select “Restaurant” from a drop down menu, choose “Seafood” by checking a box, and then enter a price we would pay for a meal.  We just type and expect to see what we asked for.  Why can’t real estate sites work like this?

Search

Enter Smart Search from Atlantic & Pacific Real Estate, part of the Carrington family of companies.  Smart Search is exactly that…a property search that works just like those Google searches we do everyday.  That same,  “3 bedroom in La Mesa, CA with a pool” search we did above displayed 85 properties using the Smart Search!  That gives me a starting point that is exactly where I want to be, and I still have the option of filtering the results by clicking those boxes and drop downs if I want to.  So while this may be a bit of a shameless plug, as I work for Atlantic & Pacific Real Estate, the fact remains that when it comes to online property search, both results and experience play a big part in how online consumers want to access information.  Give it a try and share your feedback, see poll below, on what you like and don’t like about online real estate search sites.