Ghost ads and how to reply

This is what I did. I did not LIE about a property I did not have under contract for all the reasons you stated.(more lies needed) There is no need to advertise a property you don't have. Simply advertise that you have the systems in place to find great deals. When they call just ask if they want to be notified when you get one of those great deals. It beats lying and saying "oh that one just sold" or whatever you have to make up when you run an ad with a property that does not exist.

Just my opinion on "ghost ads'

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

In my jurisdiction, these are illegal. They are either taken down quickly by authorities, or, worst case followed up by threats of law enforcement action, since they have a phone number to access. Obviously, we do not want to violate the law. Can anyone suggest alternative strategies to market to distressed/motivated sellers?

I am known as the bandit sign king in my town. I have had numerous calls from city and county officials ( sign police ) and have even received a call from SC license and regulations board. I have simply apologized and told them I will take the signs down.

It differs in every city and county. There are ways to maximize the effectiveness while minimizing your risk. It's not like law enforcement will come after you and throw you in jail for bandit signs, but I have heard of investors getting fined severely.

Steps to protect yourself:

1. Get a google voice phone number! Google provides a phone number and answering service FOR FREE! Best of all this number cannot be traced back to you.

2. Learn where bandit signs are acceptable. This takes time. For instance, I know certain street corners where bandit sings will be left up for months. Reversely, I know corners where bandit signs will be taken down in a matter of hours and I will get an unpleasant phone call.

3. Hire someone to put your signs up Friday evening and then pick them back up late Sunday night. This happens in most big cities where bandit sign laws are strict. Sign police are a monday-friday 9-5 job. Therefore weekends are fair game!

4. Don't put your sign on a telephone poll if you are in a strict bandit sign area. They do not like this at all, put them on stakes and into the ground instead. Look for areas where other bandit signs are.

Hope this was useful.

I have done both of these and would like to share my thoughts with you.

Micheal Mangham makes a good point above. Ghost ads are kind of an area of grey.
They are frowned upon.

Can you simply advertise that you find great deal? YES

The only problem with this is that... IT IS LESS EFFECTIVE

The reason for ghost ads is because they are SO EFFECTIVE. Must more so than advertising like every other new wholesale investor who doesn't have properties yet. The problem is, most investors know you are new because of the way you are advertising, like a newbie.

Are you "fibbing" a bit? Perhaps... but it is a great way to make your phone ring.

Tips:

1. Dont advertise the same "property" or picture of a particular property over and over again. Each ghost ad should be totally different with new pictures.

2. Wait a week or so to call your buyers back. Tell them you are sorry that it has taken so long to get back to them but that deal was already put under contract and that you have been busy working on a couple new deals. This is where you pre screen to and find out if they are a TRUE cash buyer. Most "cash buyers" are liars. Pre screen them, find out if they really have the cash and can close quickly, let them know that you are an investor that works with other investors in finding great deals for them. Ask if they would like to be added to your list of buyers and find out EXACTLY what they are looking for, what price range, location, and how quickly they can close if you bring them exactly what you are looking for.

This was the best way to build a buyers list when first starting out. These investors can refer you to potential other investors if you have a property that doesn't meet their criteria.

You only have to do ghost ads ONE time. Once you start getting properties under contract, you will advertise your REAL properties, and your buyers list will continue to grow!

Thanks for the information! It helps a newbie like me alot. I'll give it a try.

There is no gray zone lying is lying!
Just listen to Austin O'Malley

Those who think it is permissible to tell
white lies soon grow colorblind.

If you start a relationship with a cash buyer based on lies how do you expect him to ever trust you?!

Thomas

The whole point of the ghost add in my opinion is to get the phone ringing and it gives you a chance to practice your skills when talking to investors. When I first put out ghost adds and had the phone ringing I had no idea what to say. It didn't take long for me to become comfortable, maybe three calls. If I had never put out a ghost add I would have still to this day not ever had any practice talking to investors. And I would not have any buyers. I got all my buyers through ghost adds on craigslist and ghost add bandit signs. Is it a white lie? I guess so. But if you end up getting your buyer a deal who's gonna care. When they first call and ask if the property is available all I say is that it is not available anymore, and if they ask for details I just say I don't have the information in front of me and I keep the conversation going in my favor. They aren't calling to find out what kind of a deal you did, they are calling to find out what kind of a deal you can get them next!

You guys think the true cash buyers just rode into town on a load of pumpkins? They know exactly what's going on. Do you think you are the first ghost ad they ever replied to?

I too have been hesitant about putting out ghost ads. I have spent a lot of time and money trying to get my business up and running and I don't want to get a bad reputation by being dishonest in the beginning.
That said, I still need to build a buyers list and I have already spent a deal of money on direct marketing to some cash buyers with no results. So, should I take the chance with the ghost ads if it gets some buyers or spend more money on more postcards and letters and hope I get some kind of response next time?
Any thoughts would be appreciated.

DON'T fall into the "Ruthless and Greedy" and Shady Investor profile, it gives the REST of us a Bad name

NO Reason to start off by telling LIES...period!

There is NO grey area....period!

Ghost ads suck, I dont care WHO tells you to do this

Simply say (as Mike Mangham said) we offer some of the BEST wholesale deals in the area and if you would like to get on our buyer list for these deals, etc.. etc

I totally agree with Mike,reinvestor42 & Thomas,how can
you expect to start a honest career/business from a false
and deceptive beginning?If you feel uneasy you know it's
wrong.Just my two cents.And thankyou Mike for the idea for
an alternative ad. Silverhound

There are people who feel comfortable with using ghost ads, and there are people who don't like them. There have been good points on both sides that are valid. Each person will need to decide if they want to use them or not. As metioned above they do work and you can find buyers with them, but you can also find buyers without using them. As a coach I will teach people about ghost ads, and if they are not cofortable using them then we will talk about other types of ads to run that are more direct. There is not a right or wrong with ghost ads, do what you feel good about doing.

Rick 888 Stop spending money when you can use free websites like Craigslist. And if you are going to spend money spend them on bandit signs.

I forgot to mention, I got the techniques I used for ghost adds directly from Matt Larson. Matt Larson goes 100 mph, he is direct and straight to the Point when he teaches. I personally think if your not using ghost adds then your gonna lose a lot of confidence while trying to figure out what else works. Use ghost adds, they work.