CREATING A MARKETING PLAN TO BUY HOUSES RICHARD ROOP
This is when we’re incorporating all business models.
When sticking with my favorite business model and using the “Ultimate Strategy” to buy houses that are owned
free & clear, we’re seeing average profits of about $58,000 per deal.
How much to spend?
How much are you willing to spend on marketing to get one deal, if your average profit is $27,000 or $58,000? I
know from experience that you can do a deal spending $50 to $300. I also know that it’s more likely that you’ll
want to plan investing $500 to $1,000 for each deal. In hot markets, fast moving markets… basically markets
that lack motivated sellers, you can plan to spend more. If you double or triple that budget per deal, you are
looking at $1,000 to $3,000 per house bought. However, I see higher average profits per deal in those markets
as well.
Budgeting & Planning Tips
Tip #1: Invest enough to test a marketing campaign to buy one house. In normal markets that’s $500
to $1,000. Hot markets $1000 to $3,000.
Tip #2: If you invest half your budget
and you don’t get close to half the calls
needed for success, you can drop it
early. If you need 10-15 calls to buy a
house and you only have 4 calls
midway through, you might want to
redirect you marketing to a different
campaign.
Tip #3: Budget enough to reach your goals.
Or adjust your goals to meet your budget.
Tip #4: Some campaigns (like cheap weekly classified ads) can take several months
before you get halfway through the campaign.
Tip #5: You want more than one campaign running at any given time. The number will depend on
your monthly house buying goals.
Tip #6: The best campaigns will be the ones you have already tested and then can put on autopilot.