Bandit signs are amazing!

Thanks for the info re bandit signs. I didn't know about Google voice

Greg

Thanks for the info re bandit signs. I didn't know about Google voice

Greg

Thanks for the info re bandit signs. I didn't know about Google voice

Greg

One of the most effective ways of driving more leads for your real estate business is to use yard signs which are also commonly known as “bandit signs” in the real estate industry.

All real estate investors, regardless of whether they are rehabbers, wholesalers or landlords are looking for a great wholesale real estate deal at a bargain below market price. Since all investors are looking for the same thing, the investor that gets the deal first is the ultimate winner. If you are a wholesaler then you can market the deal to other investors for a profit. If you are a rehabber or landlord then you can get a great deal without having to pay a markup to a wholesaler that found the deal. So clearly getting the deal first is what is most important to you and this is where utilizing bandit signs can really separate you from your competitors.

You can utilize bandit signs in many different ways. One effective method is to use preprinted signs that have a message specifically for individuals that are facing foreclosure or in some kind of financial distress. These individuals are known as distressed sellers or desperate sellers and this is who you are targeting when you use these types of bandit signs. Your sign could say something like this:

STOP FORECLOSURE TODAY
WE CAN BUY YOUR HOUSE FAST
WE PAY CASH FOR YOUR HOUSE
CALL 561-123-4567 RIGHT NOW!

The above sign would be very effective at targeting sellers in a specific neighborhood area or target market that you focus on. Strategically placing bandit signs in your target market will lead to distressed sellers calling you. At that point you will need to meet with the seller and see if you can put a deal together that makes sense for both of you. Before you start putting signs out all over the neighborhood consider which neighborhood you want to target and also what you will say to the seller once they call.

For the above bandit sign targeting distressed sellers I recommend that you have it preprinted with a generic message like above with black writing on a yellow bandit sign. I also recommend that you use an 18×24 sign bandit sign. Using a sign that is smaller than that will be too small for most people to be able to read from a passing car. You should not use the “H wire” metal stakes that the sign company offers you since these stakes can cost as much as the signs do, which means your order will cost twice as much. Another reason why I don’t like to use the “H wire stakes” is because since they are so heavy your shipping cost will be much higher too.

I recommend that you use a sign stapler like an Arrow Hammer Stapler that you can purchase at Home Depot to attach your bandit signs to wooden telephone poles. You must make sure that you put the sign up on telephone poles at about the same height as the roof of a car so that it will be visible above the cars when they are stopped at a traffic light. You should put your signs at major intersections in your target market and you should place your signs on the right hand side of the road where traffic stops so that they can see your sign while they are waiting for the light to change. Placing your sign in the middle of the road between traffic lights will be much less effective since cars will be speeding by and will be less likely to notice your sign or write down the number. For this same reason do not put your website on the sign. People that are driving by will be much more likely to dial a phone number than they will to write down a website.

Many cities have laws prohibiting marketing using bandit signs. Generally the more upscale the neighborhood the more likely that the city code enforcement will remove your bandit signs and have laws prohibiting them. You will need to check with your local city. Even if they do have laws against it some cities are more tolerant than others. I have bandit signs that have been up for 2 years in some cities without a phone call or complaint. Other cities will call you within 30 minutes of putting a sign out and threaten you with a fine if you ever put out a bandit sign again. I suggest that you do not antagonize them and move onto another more bandit sign friendly city. The easiest way to gauge your city and their policy towards bandit signs is to see how many other yard signs are out there and how long they stay out before being taken down.

If the city or code enforcement call you and ask you to remove your signs you should do so immediately in order to avoid upsetting them any further. Some wholesalers place their signs out on Friday evening at 5 p.m. and then collect them on Monday morning at 8 a.m. Since code enforcement in many cities does not work weekends this can be an effective way of saving your signs from the junk pile heap and staying out of trouble. However keep in mind that you might be violating city laws so see what others are doing and know the laws in your city before you start a bandit sign campaign. Also never put a bandit sign on private property.

Putting out bandit signs marketing for distressed sellers like the example above is a great way to find desperate sellers that are in foreclosure, considering a short sale or behind on their payments. These desperate sellers are prime candidates to sell their house to you at a below market cash price in order to avoid foreclosure. If you put out bandit signs you will get calls from these sellers and some of these calls will turn into deals. Purchasing 100 bandit signs (18 x 24) will cost you about $200 or $2 per sign.

You can choose to put the signs out yourself or you can pay someone to do it for you. I recommend that you spend your own time talking to buyers and seller and that you pay someone else to put out your bandit signs since you will make a lot more money that way.

Putting out 100 signs will cost you $200 and you should get at least one deal if not 3 or 4 from putting out 100 signs. If you make $10,000 or $20,000 flipping one of these houses then that $200 that you spent on the bandit signs will be the best marketing dollars you have ever spent. If you pay someone to put out the signs for you then it will cost you a little more but you will be able to answer the phone and talk to the sellers instead of driving around all day putting up signs.

In South Florida the going rate is $1 per sign and if you pay someone to put out your signs then make sure that they take a photo of each sign and write down the location of each sign. That way you can spot check and make sure they are really putting your signs out. When sellers call ask them how they heard about you and verify if the call is because of your bandit sign. Also find out where your bandit sign was located so that you can learn which areas work best for your signs. I find that major roads that lead to freeway access ramps or exit ramps get the most calls.

The above methods of using bandit signs to locate distressed sellers is one of the most cost effective marketing methods to get distressed seller leads on a continuous basis. However it is not the only method. There are many other ways to find distressed sellers including traditional classified ads, display ads, radio ads, local television stations, social networking and internet marketing. One thing that I can guarantee you is that when you flip your first house for $5,000 or $10,000 from a bandit sign then the next time you order you bandit signs you won’t be ordering only 100 signs. Try it for yourself and see how it works. Just make sure you know how to put a deal together and know what to say when they call!

How else can you use bandit signs effectively? Another very effective way to use bandit signs is to build your buyers list. One of the best ways to build your buyers list is by placing bandit signs around a current property that you have listed for sale. If you market for distressed sellers then eventually you are going to have a property to sell. When you have a property for sale then use a bandit sign to alert people in the neighborhood about the property and the great deal that you have for them. This is a great way to build your buyers list. The more properties that you have for sale the more buyers will call you and the quicker you will build your buyers list.

For building your buyers list I suggest using blank yellow 18 x 24 bandit signs that are handwritten and not preprinted. For some reasons hand written signs get a much better response rate. Make sure your sign says something like this:

CHEAP HANDYMAN SPECIAL
4 BED 2 BATH ONLY $49,000
MUST SELL NOW CASH ONLY!
CALL 561-123-4567 RIGHT NOW

The price should be a discount price that gets attention for that specific neighborhood or city. Price your bandit sign so that the price is $10,000 less than the cheapest houses in that city. The price needs to be a real bargain so that a real cash investor would be curious and call the number to find out about the property. Do not put the address of the property on the sign. If you do then they won’t call and will go to the property instead.

You will get calls. You will be surprised at how many calls that you get. And when they call you need to find out how they heard about you and verify if they saw a bandit sign or not. You also need to verify where the sign was located so that you can track your marketing efforts. Make sure you get the caller’s name, telephone number and email address and if possible try and find out as much as you can about what type of house they are looking for, how much cash they have etc. Naturally you can also build your buyers list using other advertising methods such as classified ads, online marketing etc.

The above examples show you how to effectively add bandit signs to your marketing toolbox. You will be very surprised at how effective bandit signs can be and if you continuously put out bandit signs for both desperate sellers and cash buyers you will see results.

One last point to remember is this. Put signs out for desperate sellers in the neighborhoods where you want to buy properties. For the cash buyer signs put some in the same neighborhood where the property is located but also put the bandit signs in surrounding more affluent neighborhoods since this is where the cash buyers live. Also if you are a realtor remember that you need to mention that somewhere in your bandit sign and also you might need to put the address in order to be compliance with your local real estate regulations.

I wish you the best of luck with your marketing efforts. If you use bandit signs and you like the results then please let me know. There are many other beginning real estate investors that would love to hear your story of how bandit signs worked for you. llexington