NEXT LEVEL II

Short Sale Seminar – LEAD GENERATING

© KNOLLY WILLIAMS’ 7 DAY SYSTEMS • PAGE 1

SHORT SALE LEAD
GENERATING

KNOLLY’S TOP 25 MARKETING IDEAS
FOR NON-STOP LISTING LEADS
Mission

The mission of 7 day Systems is to equip real estate agents with the systems, tools and training required to make the maximum impact on their own lives and the lives of others.

Purpose

The purpose of this seminar is to provide you with valuable insights and knowledge to equip you to take your short sale practice to the next level.

Knolly Williams

KNOLLY WILLIAMS is a top-producing mega agent, author and short sale specialist.

Knolly has worked in sales and marketing for more than 20 years. Since he began focusing on short sales in 2004, Knolly has successfully closed more than 500 short sale transactions.

Today, Knolly and his team prevent more than 100 homes per year from foreclosure, and he averages a greater than 95% success rate in getting short sales approved. By implementing Knolly’s proven system, you can do the same!

Knolly has trained thousands of agents in his proven system, through his live seminars and the popular 7 Days to Success with Short Sales Training System.

7 Days to Success with Short Sales™ is a training system and complete kit that exposes the successful system that Knolly uses to generate short sale listings, get them approved, and get them closed. The training kit includes a 380+ page user guide, a TOOLKIT CD with over 250 bank contacts and 55 editable forms, along with an audio CD.

Next Level Short Sale Seminar™ is designed to help real estate agents take their short sale business to the next level. In this seminar you will learn the tips, tricks and techniques that have taken Knolly Williams more than 20,000 hours, 7 years and 500 short sales to master.

Be prepared to learn and grow during this jam packed presentation!

More Info

  • Breaks
  • Questions
  • Additional Resources

Ground Rules

  • Only paid participants may participate and contribute.
  • Mute yourself whenever you are not talking (*6).
  • Do not put the call on hold (you will be disconnected). |
  • You may ask questions during the call; preferably at the end.
  • Respect the different learning styles and opinions of others
  • Help each other learn, because none of us is as smart as all of us working together to improve our skills and knowledge
  • Have fun

NEXT LEVEL II
SHORT SALE LEAD
GENERATING

KNOLLY’S TOP 25 MARKETING IDEAS FOR NON-STOP LISTING LEADS

Knolly’s Top 25 Marketing Ideas

Generating a Non-Stop Supply of Short Sale Leads

  1. Print advertising to local agents for referrals
  2. Email blast to local agents for referrals
  3. Direct mail marketing to local agents for referrals
  4. Yard signs, used in addition to your agent sign
  5. Place an ad in the yellow pages
  6. Take out a classified ad
  7. Say it loud with a billboard ad
  8. Network with some good bankruptcy attorneys
  9. Subscribe to default list service
  10. Call on expired listings

11. Send direct mail to expired listings

12. Hook ‘em with door hangers

13. Farming to FSBOs (for sale by owner)

14. Online marketing and blogging

15. Take it to television

16. Farming on foot

17. Call agents to help them take their listings from OLD to SOLD

18. Sphere of influence postcard campaign

19. Write articles (published in print or on the web)

20. Partner with loan modification companies

21. Conduct short sale training classes

22. Back of business cards or specialty business cards

23. “Just Sold!” postcards to distressed areas

24. Partner with debt consolidation companies

25. Partner with “we buy houses” investors

Idea #1: Print Advertising to Local Agents
for Referrals

Short sales are absolutely a niche market. Many agents want nothing to do with them for various reasons. You can market your services to local agents and pay them a referral fee in exchange for feeding you their upside down sellers.

In your advertisement, you want to identify yourself as the local short sale specialist and publish your referral fee. You can also include quotes from other agents who have used your services.

Sample print ad advertising your services to other agents

Idea #2: Email Blast to Local Agents for Referrals

Sending an email blast to the agents in your area might turn out to be very cost effective. I have successfully emailed to agents of my local board for many years.

A Note about Being CAN-SPAM Compliant

In 2003, Congress passed the CAN-SPAM Act. This act was enacted for the purpose of controlling and regulating unsolicited email. For more information and to see how you can be CAN-SPAM compliant with your email campaigns go to

Sample Email Blast

Idea #3: Direct Mail Marketing to Local Agents for Referrals

Postcards are very effective for a direct mail campaign because, unlike letters, they don’t require opening.

In lieu of postcards, you can also send a letter that includes your business card and any other marketing piece inside the envelope.

It’s also a great idea to maintain a database of agents you have worked with. As you are referred short sales, keep a database of referring agents that you can market to on a regular basis.

You can easily get an additional 50 listings per year by simply having a database of 10 busy listing agents who refer you 5 clients per year. If you maintain a high success rate, agents will be eager to refer their short sales to you again and again.

Idea #4: Yard Signs—Used in Addition to Your Agent Sign

In addition to your regular yard sign, you should consider making some inexpensive yard signs that you can place on your listed properties.

These signs are a wonderful idea because oftentimes entire neighborhoods are distressed, and there are likely other homeowners in the area who need help.

Sample Yard Sign

Idea #5: Place an Ad in the Yellow Pages

I have had good results marketing in the bankruptcy and foreclosure section of my local yellow pages. I recommend you keep your phone book ad (and ad budget) small, but noticeable and effective.

Sample Ad for Yellow Pages

Idea #6: Take Out a Classified Ad

Consider running a print advertising campaign targeting homeowners facing foreclosure. I ran a very effective ad in a local classified newspaper for some time. Now, I stick mainly to the internet, but print advertising can still be effective.

Almost every town has a small classified newspaper: Greensheet, Thrifty Nickel, Bargain Book, etc. These publications are widely read, and advertising rates are usually very economical. To be effective, however, you will need to maintain your ad for a long time. You will need to advertise consistently for 6 months before you know if your ad is generating sufficient leads or not.


Idea #7: Say It Loud with a Billboard Ad

Who says billboards are strictly for soft drinks, car dealerships, and fast food? In 2003, I moved to Harlingen, a small town in south Texas. At the time, I had just started selling real estate, and I wanted to do some BIG advertising to jump start my career.

In a smaller community, billboards can be very effective. In larger cities, their effect may become diluted by all of the other marketing (e.g., other billboards and store signage). In larger markets, billboards may also be cost prohibitive.

There are so many homeowners facing foreclosure today that reaching them in a big way may make a lot of sense for you.


Idea #8: Network with Some Good Bankruptcy Attorneys

Many bankruptcy clients would actually be great candidates for a short sale. The reason most individuals file for bankruptcy protection is because they are in debt way over their heads and want it wiped away. Some file specifically to stop foreclosure. What many people don’t realize is that bankruptcy treats unsecured debt differently from secured debt.

With unsecured debt (such as credit card debt), a Chapter 7 Bankruptcy puts a stop to all collection activity and wipes the slate clean. The debt and the creditor go away. With secured debt (such as a mortgage or car loan), the same bankruptcy filing will stop all collection activity; however, since the debt is secured by collateral, the collateral is typically repossessed.

So, in essence, although a person can file bankruptcy to put an immediate stop to a foreclosure of their home, they are only buying time. As a secured debt, the home can still be foreclosed on once the bankruptcy runs the legal course. When that happens, the person is left with both a bankruptcy and a foreclosure on their credit. I call that “the double kiss of death” to a credit report. Research indicates that the foreclosure has a far more devastating effect on a person’s credit than a bankruptcy does.

If a person truly needs to file bankruptcy due to the mountain of unsecured debt they have, it would be far better, in my opinion, for them to do a short sale first and then file a bankruptcy. This strategy will eliminate the foreclosure posting on their credit file.

Bankruptcy attorneys are a ripe source for financially distressed individuals and potential short sale clients. Every day, these specialists deal with individuals who are at the end of their rope. Even if these people have already filed bankruptcy, a short sale is still their best option if they can’t keep their home and the payoff balance on their home is more than their home is worth. Bankruptcy attorneys can refer these clients to you.

Idea #9: Subscribe to a Default List Service

As economic conditions worsen, I have seen a rise of companies that sell the names of individuals who are behind on their mortgage payments. Here’s an email I received recently:

Email
Hi there, Knolly.
Quick question... I was curious if you might want to contact households that are behind on their mortgage payment?
My company pulls credit data from the bureau on homeowners that are 30, 60, 90 days late on their mortgage. Given some geographical areas, we send over a spreadsheet with information on these highly motivated, distressed households. Included is a wealth of filters such as mortgage amount, credit score, number of trades, etc.
This data is NOT public record since a Notice of Default has not yet been filed. This means you can get in touch with these families before your competition knows they exist.
If there's any interest, please reply back and I'll send over a rate card and some filters for you to review.

Several companies also publish NOD (Notice of Default) lists of homes that are coming up for foreclosure sale. This is public information and is typically posted on a public website hosted by the appraisal district in the county where the home resides. Although you can pull this information yourself, these companies compile the information, saving you time.

Idea #10: Call on Expired Listings

For those who qualify, a short sale may be the perfect solution. Many of my listings come from former expired listings. These are sellers who are upside down and qualified to do a short sale, but didn’t know there was a way out.

I have found that the most effective way to contact these sellers is by phone. It can be time consuming, but also very lucrative.

Short Sale Expired Call

“I’ve noticed that many of the folks in your area want to sell but still owe a little more than the market is fetching.”

“May I email you some more information about The Knolly Team?”

“For homeowners who qualify, lenders are now allowing them to sell their home at current market value and forgive the difference.”

“Now, to qualify, you have got to have some kind of hardship. Lenders are looking for things like loss of income, increased expenses, medical issues, job relocation, divorce … Things like that. Have you experienced a recent hardship?”

If this prospect sounds interested and has a hardship, transition into your Short Sale Pre-Qualification Questionnaire.

Idea #11: Direct Mail to Expired Listings

A simple letter with a small survey questionnaire has worked for me. In the letter, I share with the prospect what I have to offer and educate them on the option of a short sale, depending on their situation (and whether or not they qualify).

Sample Direct Mail to Expired Listing

Idea #12: Hook ‘em with Door Hangers

In some cities, there are certain neighborhoods or parts of town that are full of homeowners who are upside down and feeling trapped in. These homeowners bought into a neighborhood where values have since declined for various reasons. These areas are often riddled with foreclosures and others who want out.


Idea #13: Farming to FSBOs
(For Sale By Owner)

Many For Sale By Owners choose not to hire an agent because they owe so much on their home that they cannot afford to pay a real estate commission.

You can aggressively market to FSBOs, letting them know that it costs them nothing to hire you to sell their home via a short sale, since your fees will be paid by their lender.

You can reach these potential prospects by phone, in person, or with a direct mail campaign.


Idea #14: Online Marketing and Blogging

Since many homeowners in trouble often search the internet for a solution to their situation, marketing your services online is essential to establishing yourself as the local area expert.

You should have a website (or a section of your current site) dedicated exclusively to your short sale business. This site should educate clients on what a short sale is and how they can benefit from your services. For ideas, check out my consumer website at

Additionally, you will want to have an online contact form (lead generator) for sellers to fill in their information and send it to you electronically.

Effective online marketing also includes blogging, Craigslist ads, online articles, and various forms of search engine optimization (SEO). This all helps establish you as the area expert.

Idea #15: Take It to Television

Another potentially effective way to reach homeowners in trouble is via television advertising. TV commercials can actually be a lot cheaper than you think, and I’ve heard from many agents who swear by them. Depending on your market, local cable TV ads can be as low as $5 to $10 dollars per 30 second spot.

An effective ad would be one that is specifically targeted to distressed homeowners. For example, the ad might say, “Behind on your mortgage payments? Facing foreclosure? I have successfully helped folks in our area avoid foreclosure, and I can help you too. Call me now at 512-999-9999 or find out more at


Idea #16: Farming on Foot

These days, many real estate agents are afraid to knock on doors. This isn’t cold calling; it’s cold knocking! And yes, it is scary. But let’s say you just sold a home in the area.

You could proudly knock on doors with the following script:

Agent:“Hi, there… My name is John Smith, and I recently sold the home at 511 Plymouth Stone. It’s just a few streets over. We closed on it yesterday.”

[Perhaps you can hand them a just-sold postcard of the home at this time.]

Agent:“I was able to help this family even though they owed more than their home was worth. I negotiated with their lender to forgive the difference. Who do you know in the area that is looking to sell?”

Don’t be scared! Getting yourself in front of people is a great way to hone your craft and pick up new clients (and database contacts).

Idea #17: Call Agents to Help Them Take Their Listings from OLD to SOLD

You already know that other real estate agents are a great source for short sale leads, right? Why not contact agents who have old inventory that you have identified as overpriced?

Sample Script

Short Sale Agent: “Hey, Jim, this is Karen with the Tallhouse Team. I’m calling about your listing at 438 Springhill. I noticed it’s been on the market for over 120 days. I just sold one at 418 Springhill. Based on my client’s situation, we had to sell that one as a short sale. Has you seller considered doing a short sale?”

Other Agent: “You know, Karen, I’m not sure. They do owe quite a bit on it, and we’ve already priced it at break even.”

Short Sale Agent: “Well, Jim, if your sellers would be willing to consider this option, I can see if they qualify. I’d be happy to do the short sale, and we could partner up or you could refer me the listing and I will handle everything.”