Craigslist Ghost Ad Concerns

We think running ghost ads in the manner you state originally undermines the integrity you will ever have with an investor. Once that is done, they will never work with you again as they will always be gueing what you are lying about. However, running an ad that simply inquires about investors through a generic ad such as you stated last in your post, is an upfront manner to build a buyer's list.

I cancelled a CL ad because I ran something similar and did have someone nearly rip me apart, made me too uncomfortable. But maybe try this. Tell them you have had an opportunity on a home, the owner has not advertised yet, and you wanted to feel if there would be any interest before you get involved. I ended up doing that on a property in another town. When the lady called, I told her I couldn't give the exact house out of privacy for the owners request. But I do have other homes I am checking into, what are they interested in. Which is the truth, if you are really looking for houses in that area. Or word your ad differently.
I have a house under contract from a Realtor and have the clause that I can assign it. My offer was taken, I have 9 days left to sell it, and advertised it. One guy called me yesterday and really tore me up over the fact that I don't legally own it and I am trying to sell it.
Someone on Deans site reminded me of this, and that is what I told him.
The original price came down to $90k, I have spent the past 2 weeks on counter offers, and he refused to go under $70k, I then told the guy that I managed to get him down more, and now I cannot for other reasons, fix and flip so have the option to assign my contract, and all the dealing is done for him. He said okay, and said he'd let me know, but it got him off my back.
So don't give up on ghost ads, just be more creative and have looked in that area,and ready with an answer.
Sandi

We are always in the process of building our buyers list. I don't think a ghost ad is a bad thing, and I think most other investors expect them to be out there. But you still don't want to be called out placing one. That being said I wouldn't advertise down to the street or neighbor hood unless I actually had a property. I would just put a county in the ad. When I tell them it's unavailable i might mention the town if they ask. But after that I steer the conversation away from the ad and focus on what they want. Ask a question about what they do or some of their other investments. People love talking about themselves, when someone calls me i'm on the phone usually a half hour minimum. I get their info and let them do the rest.

basic ad:
3/2 with full finished basement
Where-ever County...Must Sell!!!
Was: High Price
Now: Low Price
phone #

caller: I'm calling about your CL ad

You: Oh, i'm sorry but that property isn't available anymore. If your interested i come by great deals like that all the time though.

caller: Where was this home located?

You: It was out in random town (this is where you don't stop talking) It was a sweet little home, I got lucky with that one. Is that the type of property your looking for? Where do you like to invest?

caller: Well I like to keep closer to the...(let them run with it)

Of course every call is a little different but this is generally how it goes for me. After I get their info I make a small file for each buyer. Then I program their number into my phone so if they call again (perhaps on another ad)I'm ready. I did have one buyer call again on a similar ad. As soon as I saw his number pop up I grabbed his file, then I told him that unfortunately the deal fell through. I said I just left the ad running to see if it would generate any more leads (most people will understand and even appreciate that you're running a business). We B.S.ed for a while and he hung up happy. I hope this helps.

I just posted a ghost ad and have had no response. I posted one on craigs list and one on the thrifty nickle hoping for some cash investor to call. I seriously need cash buyers. I need to get my buyers list built up and so far I don't have a single buyer. Any one out there have any buyers they can spare?

I've been told Ghost ads work, but you run into a situation where a potential buyer will ask you tons of questions and you better know the answer. Basically I never run an ad unless I actually have the property under contract and that way I can answer their questions. I tell them I want to assign the contract and they know right away what I'm doing, but its all about honesty in this business. Its up to you how you want to do things, but its better to have a property or have a mentor have a property under contract that you have direct knowledge on.

I was hesitant to run a ghost add at first. I didn't want to lie, and I didn't want to waste someones time. It was one of the advisors who asked me if I had just closed on a deal, what would I tell the next person who called the ad anyway? I would tell them that the property was unavailable, get their info, and put them on my buyers list. As for wasting time, I think I'm helping them. Now that I know specifically what they want... I'm going to find it for them. I don't use ghost ads exclusively, a general "I Find Properties" ad works good too, whatever makes you comfortable.

You're a wholesaler

You can assist to find homes for investors for a fee

I get about 5 phone calls or emails a week from people telling me they're buyers

I grill the hell out of them not just because I don't want my time wasted, but because if you run this with the wrong person, that person can be that investor who could have made you alot of money if you were just honest in the beginning

Be honest. Just say

I FIND HOMES
NEGOTIATED FEE

INVESTORS AND BROKERS WELCOME

I really appreciate yours and everyone elses reponse to this post.

Right now, I feel that it is a moral issue with me and will take the approach that Bill, Sandi, DJMario, ElixBrown and you last suggest. Being new I can't afford to have serious investors question my integrity. That would leave me back at square one. I've done too much work for that to happen.

Again, thanks to all!!

I am a new REI and I have come across a deal that I cannot refuse, but I need some guidance (or buyer) on this one. Here is the deal:

My wife's uncle just recently passed away and his wife had passed away several months prior to him. My mother-in-law (his sister) and her sister and 3 brothers are executors of his estate. He (and his deceased wife) own a 3 bedroom 2 bath brick home with approximately 1781sf that was built in 1984. The house does need some upgrading and minor repairs (about $20-25,000 worth) to make it a very nice house again. There is a balance of approximately $35,000.00 on the house and the mortgage payments are about 3 payments behind of $900.00 a month. I had some comps pulled on the house and they range anywhere from $84,000 to $90,000.00 depending on the upgrading and rehab work. It is located in a nice middle income neighborhood that seems to be very quiet.

Since he just passed away and there is no will, the estate (my wife's family) does not want anything to do with the house and they would rather just let it go back, but they know that I am interested in it. I need to know if there is any document that I could use to let the Mortgage Company know that I am interested in this house and if so, what that document is and if there may be a buyer out there that may be interested in this house as well...I am open to any suggestions or guidance at this point, and by the way, I have not made my first deal yet and I am patiently awaiting for that too happen...Thank you in advance......!!! ****( I am in a crunch time since they are going to be starting Foreclosure Proceedings on December 17, 2010)****

I was caught in the same situation once . So this is how I got 15 buyers, It was a little work I did not put a Phone #, I placed a new EM address not my regular EM address I got a great response. I had to reply Twice and a one time every hour but when I did speak to someone was just to verify that once I found this type of property as is ststed in their EM would they be interested and continue the conversation if it is necessary. I am not saying this will work But it worked for me. I hope this help.
Happy investing.
Veronica

I will NEVER use a ghost add, its being dishonest by advertising something you dont have! As an investor you need to be totally HONEST,and have integrity. Dont ever decieve your potential buyers by placing a ghost add....

John, I'm glad you decided to use something that feels good to you. As for everyone else, you're not telling anyone you have Buckingham Palace! You keep it general "3/2 in good area" and a realistic price, I can find that all day long. What I'm looking for are people who want what I can find. In the end your selling yourself, you get them on the phone and start building a relationship. If used right Ghost Ads can be a useful tool, if you never produce anything then your investor will just stop paying attention to you, and then you've wasted time. I highly doubt that on judgment day I'll be barred from the Pearly Gates because I've used ghost ads! It comes down to if you don't like them don't use them.
Here is a funny quote that just popped into my head while I was writing this (it's just a joke, not to be taken seriously)... "If honesty is the best policy, then by default dishonesty must be the second best policy" -George Carlin-

i do not care for them myself. i feel they are on the edge of dishonesty. i get the idea behind them, but i'm all about full disclosure in a deal. if you use them and feel good about it, that is fine for you. for me, i've never been comfortable with them. i have tried them a couple times and had a little response, but not much. my coach at the Academy tells me to use them, but i don't anymore. for me it's being maybe not dishonest, but real close to it. just because everyone else does it, doesn't mean i have to. you have to do what you feel good about and comfortable with in this instance. ghost ads are not for me and i won't use them anymore. i believe "get the property and the buyers will come". call me crazy because that goes against the most popular theory, but that is just me. you have to do what is right for you, no matter what anyone else says.

You have to put something out there or you won't have any buyers....if you wait to get the deal under contract then you have to worry about NOT finding a buyer in time...It's a catch 22. Even putting bandit signs out can be false advertising if you really don't have something for them...I don't see the big deal.
Just be friendly and talk around it and find out what they are looking for! Has anyone on here read Carol Stinson's story...
Barbara

I can fully understand what you're feeling. However, you have to believe in yourself and what your business can offer other investors. When you create a ghost ad and an investor responds,tell them to hang on the line for a moment and you'll check the availablilty for that particular listed property.

When you return, tell the investor that your partner is handling that deal, and it's currently pending or no longer available.

This will take the heat off you, and also show the investor that you have a successful system in managing your deals.

Now you can ask your questions and screen your new investor.

Fake it till you make it!!

God Bless - Kelly

Obviously, I support using ghost ads, but I have also had a good response with "program specific" ads. What I do, where I do it, and my number. But it is a slower way to go about it, there's no urgency.

Agree w/David&Kerry's post. Just don't get to specific. BUT it is YOUR business and use the grocery store approach....if it's for you take it, if not leave it on the shelf. I KNOW ghost ads work. I just decided to not try and re-invent the wheel, but copy what the sucessful students have already done and used. I have picked up a large amount of buyers using them. As David said...you only are wanting them to call you, from there remain confident and direct the conversation where you want it to go. When the buyer contacts me, I go no deeper than "That property is no longer available" and say but I will be picking up of several over the next (week/month or whatever timeframe you are comfortable with) then say "Well tell me what exactly do you look for in a property" or "What makes it a good deal for you". Then nows the time to get specific, but specifics on your buyer. Most of the time you are speaking with an investor and usually isn't their first rodeo. Be honest (but it's not the time to unload your whole REI experiences or lack of - LOL) just what you do and what you CAN do for THEM, be confident and professional and I haven't had any problems.

Ghost ads are only one tool to use. With them and many other avenues over the course of the last several months, I have built a buyers list of 597 buyers to date and growing. I mirror Matt L. though, with Dean & Carol S. also! Yes you can get property 1st and then try to find a buyer. But kind like shooting blindfolded, not real sure where the target is. But buyers 1st gives you focus. You have a direct course of action.

It is a concern with the honesty thing, and being a new investor you do want to have integrity, especially when you have put time in building your power team and you are already building relationships with investors and real estate agents. Your name will start getting around in how you do business. I also am concerned about the catch 22 thing. Thanks for sharing your thoughts on this subject. You have to know what works for you. Keep building and they will come. Good verse. Happy Thanksgiving!

I can fully understand what you are saying and it make a whole lot of sense. I'm in the process of building my buyers list dont have any yet. Thanks for the comment it gave me good advice.

I firmly believe that this IS A RELATIONSHIP business! Properties are only the tools we use! I have had out-of-state buyers who come to me/repeat business because I have worked hard to build those relationships, upfront and DO WHAT I SAY I'm going to do. Even if as little as returning a call in the timeframe I say I will. Builds trust.

Happy Thanksgiving to all!

I think i'm the only one, if not of a few who believes in the 'Get The Deal First' theory, mostly because i've done it before and it makes it easier for buyers to actually take you serious and allows you to close faster.

I see you have nearly 600 buyers. How many of them are legit and if so how did you screen them??? Did all of them give you a POF, corporate docs and bank statement toverify??

If you have a property onhand, and ask for the following, getting those is never a problem.

As someone said earlier, relationships is the key to making it in this business; you can stay very well fed if you do the right thing and maintain a respectful partnership with an investor(s)

Sure that's fine. As I stated these are OUR businesses and we all conduct as we see fit. That's what's so awesome about being business owners - We're the Boss! lol!

Yes, I have a large # of buyers. I have large list to have someone to send the deals to. Rather than just posting an ad in hopes a buyer/investor sees it before my contract expires. Knowing what they want keeps me from wasting time. I have lead driven advertising in place as well to draw me those leads. I have learned not to act as an agent for my buyers, meaning I having them in mind when I pick up a property but I blast it out to ALL the buyers that it fits their criteria as well as blasting it through the SFL system (sellpoint). I have obtained buyers through multiple sources. I get a large amount of investors contact me through my advertising "I buy ads" also. Plus I call of those I see! lol. I don't prejudge my buyers and at this point would only require a POF if I was locking up a REO or negotiating on shortsale specifically for them and would 'pre-sale' them property and literally have them pay the earnest money. If they can't that's probably a good sign they aren't serious or are not cash buyers. POF on those because those deal would gain me slightly more exposure and on REO/SS usually require a quicker close. Meaning alot of REO holders aren't allowing "assignments" so you would have to actually do a double close (using transitional funding, etc.) can still be done without credit or $$ out of pocket. It's the exposure I was refering to. I have enough contingencies in my PA that in the event a buyer didn't deliver I could still get out. Make sure you are fully protected at all times no matter if my buyer sits on a gold brick at night, you just dont know and nothing is a done deal til you get the check at close. Cause unfortunately money can bring out an ugly side in some people. As long as everything is in writing there is no problems.

So bottom line whether it's first or last....we are all here to close deals! LOL I say if it works for ya....keep it working for ya! And good for you!

Wishing you the best and Happy Thanksgiving!

Thanks,
Jennifer

Don't you think a cash buyer has been around the block a few times and called a few ghost ads and knows what is going on?

Any time you get a caller like that i always tell them the the property is under contract for sell and I cannot give out the address. If they ask why tell them that you don't give out adresses because you protect the privacy of your investors. They will respect that especially if their an investor. For all you know they could be another wholesaler trying to find your buyers and getting your buyer info gets them a instant buyer for their properties. Just go with Investor privacy.

I dont get it,why even put yourself in a position of being dishonest, for the sake of a ghost add etc.? There are soooooo many other ways you can honestly conduct your buisness and have GREAT results!!!Thats one of the big problems in this world, people think nothing of being dishonest... What a shame......

The other way to do this is to have your real estate agent give you a list of buyers who bought in the last 90 days then pull all the ones who bought with cash and mail them a letter. also look on the sfl sight and you will find a list of a thousand buyers in your area that you could mail to.

I'm a private real estate investor in (your local area)and I'm always running into some good deals, if you're a cash buyer and would like me to put you in my buyer's list feel free to contact me and let me know what is it that you're looking for.

In the other hand if you have a property that you think that I might be interested, again please contact me with property information.

Thanks,

your contact.

What Kelly wrote is exactly what I did when starting out and didn't have any buyers. It is always best to work backwards and see what your buyers are looking for instead of putting properties on contract without any knowledge of what people want. Once you find what they want go out and get them on contract.

Big companies do this type of stuff all the time. It is called test marketing. They do this to see if consumers will be responsive to what they may have.

Some of you guys and gals on here need to stop being scared and break out of your comfort zone and do these things. I bet it was uncomfortable when the gentleman whom started this post got grilled with all the questions from the potential buyer. But now I bet he knows how to handle the situation if it ever happens again.

Everyone seems to think that things are going to be easy all the time, but they are not always that way. Then when a challege faces them they quit and give up. If thats the case, you'll never be successful.

The trick is to just be confident when talking to people. They have no idea who you are, what you do, and what you know. If your not people will doubt you. (Fake it till you make it.) Dean talks about this in his video post. I recommend watching it.

You just gotta do what other will not do in order to reach that success.

All the best, Jason B

If I were you id seek out a real estate lawyer!