Hard Money Loans for Real Estate: How to Profit Wildly in Real Estate With Hard Money Loans

Hard money loans can help you make a fortune in real estate investing. Whether you’re just starting out or you have years of experience investing, you can definitely take advantage of the enormous leverage these special loans provide.

When you decide to use hard money loans to buy real estate for investment purposes, one of the first things you need to do early on is to think about your exit strategy.

Your exit strategy is essentially what you plan on doing with a particular investment deal in order to profit from it. For example, you might want to invest in a property so that you can fix it up and then sell it for a profit as soon as you have it ready. Another example of an exit strategy is investing in a property so you can hold onto it as a rental property for long term gains.

Once you’ve picked your exit strategy and decided you will be using a hard money loan to fund your deal, your next step is to crunch some numbers and complete your due diligence process. Like they say, “the money is in the deal,” so you want to “buy right” in order to make sure you profit.

You can find deals from motivated sellers in all kinds of situations — people facing foreclosure are a good example of motivated sellers, abandoned property owners are also likely to be motivated to sell and so are distressed out of town landlords.

Once you find your deal from a truly motivated seller. you want to negotiate and put it under contract because your hard money loan lender will definitely want to see that binding document before they can lend out any funds.

With your deal under contract, you will then need to find and contact a loan broker or lender who specializes in hard money loans for real estate. Hard money loans are typically not underwritten by conventional banks or credit unions like conventional real estate loans are.

After you get your funding and buy your investment property from a motivated seller, the next step is to get it fixed up so you can get it ready for the market. You can do this yourself or you can find independent contractors to help you with the repairs.

In most cases, hard money loans for real estate will make a provision for repair money. So going back to “buying right,” if you got your repair costs estimated correctly, then you shouldn’t have a lot of problems at this stage.You will have enough money to fund the repair costs.

The final stage of course is executing your exit strategy just like you planned at the very beginning of your project. Here’s where you put the deal on the market and either sell it to an end buyer or you hold onto it as a rental property.

As you can see, hard money loans for real estate can really help make the process of investing and profiting with real estate so much smoother. Take advantage of these special loans and use them whenever possible.

Prosper Loans – Peer-To-Peer Lending Creates Opportunity

Many people assume there is only one source of borrowing. This source would, of course, be a traditional bank. While banks truly are a major source of lending, there are other opportunities for borrowing. One such method would be peer-to-peer lending. Among the common peer-to-peer lenders, Prosper remains an increasing popular provider.

Prosper Loans (Prosper.com) is a company that also does offer something unique to the financial market. It provides a means in which investors can a nontraditional and potentially profitable vehicle for their money. How so? Investors become lenders and reap the interest on the financing they provide.

The numbers tell the tale. There are over 1.1 million members and they have borrowed $264 million in funds. Such figures clearly show that this is a well established and serious lender. How does the program designed by Prosper work? The answer to this is found in the answer to what exactly peer-to-peer lending entails.

Basically, the process eliminates the traditional lending institution by connecting borrowers with those that are looking for viable vehicles in which to invest their money. New and innovative investment vehicles will always be popular which is why this company is raising eyebrows in financial circles.

The actual borrowing/lending/investing process is a rather streamlined one. A borrower merely needs to determine a loan amount along with a stated purpose for the loan. Immediately thereafter, the borrower will post a classified ad promoting a loan listing. Those interested in investing via funding loans will examine the classified listing.

Investors are not under any obligation to cover any loan. However, if the investor sees a loan listing that meets his or her risk level, the investor may wish to fund such a loan. Again, there is no obligation for the lender to accept a loan offer so no one is locked into funding weak loan offers.

As soon as a loan is approved, the borrower will make repayments in the same manner they would to any other lending source. They will make fixed monthly payments which will go to cover the loan and the interest.

The money that is paid back will cover both the investor’s actual investment although a portion of the payments will go to Prosper.com. This should be considered a given because the service does have to make money in order for it to remain solvent. That is just basic common business sense. This is where certain misconceptions arise where the service is dubbed fraudulent. Accepting fees for providing a lending and investing service is perfectly understandable. The key here is that the service does what is needed to do to provide all parties with a viable means of seeing both their needs met. Accepting a nominal fee in order to provide such a service is logical.

Prosper.com does offer a unique peer-to-peer lending and investing service which can help all parties involved. Many are seeking a viable means of acquiring lending when other forms of lending have been cut off. The same can be said that there is a need for effective investment vehicles as well.

Is Permission Based Email Marketing Ethically

As the internet is flooded with aspiring online home-based entrepreneurs and marketers, web consumers are constantly receiving their emails promoting their brands and wares. Today, a lot of ‘junk’ email is received in the email in-box just like yesteryears’ when post boxes outside the homes were filled with junk mail.

If marketers want better results from their marketing efforts, they must adopt the better marketing approaches, although their marketing strategies may be versatile and powerful. It is possible to enjoy higher Return On Investment (ROIs) using the best of email marketing strategies, but without the proper marketing ethics, even the best marketing strategies and campaigns could fall flat.

Effective Email Marketing

Email marketing has been proven as a very effective online marketing strategy for online business ventures. This is due to the fact that many consumers have emails and advanced technological devices such as smartphones and mobile devices with Wi-Fi facilities. These components are sufficient to send and receive emails at any time from anyone to anywhere.

Modern consumers with emails tend to check on their emails a couple of times a day. This consumer habit benefits businesses that manipulate emails to reach their targeted niche markets or secure a wider audience in promoting their business. Effective emails would draw consumers to be potential leads to the business where a building of strong relations could convert potential leads to customers.

Email marketing is also cheap and fast. The advanced technologies of today lower the cost of sending an email compared to slow mail and other traditional marketing strategies. This is an excellent marketing tool for new businesses that are low in budget. Organic and free web traffic could be harnessed through a proper implementation, although paid traffic could also be procured quickly for the desired business marketing activities.

However, the wrong way of manipulating email marketing could backfire on the marketer where web consumers become annoyed and against the brand or business. This could happen with spam emails which take up busy consumers’ time and inbox space. A bad impression could be impinged on the brand and business which does not augur well with the marketer in the marketplace. Hence, it is crucial for the marketer or entrepreneur to adopt good marketing ethics in engaging email marketing to win over customers.

Permission Based Email Marketing

Marketers thinking of engaging in email marketing to promote their brand and business wares today should consider implementing permission based email marketing. This is an ethical approach towards email marketing where marketers request the permission of targeted potential leads to be opted into their customer database or email listing.

This form of email marketing approach is also known as opt-in marketing whereby email recipients are given an opportunity to say ‘yes’ to receiving business news via emails. The securing of consumers’ permission makes it easier for the marketer to send relevant emails of marketing information without worrying about annoying the recipient.

Once permission is secured from identified business prospects, better marketing campaigns could be designed to increase the chances of compelling potential leads to make purchases and be converted as business customers. When the business lead opts into the business emailing list, the marketer requires less effort and time in developing the best of promo materials to benefit the consumer.

This form of marketing helps to boost the bottom line of the business as more quality time could be identified in establishing strong customer relations to generate trust, respect and confidence between the two parties. It would be easier for the marketer to secure more accurate information from the potential leads through online surveys in various emails sent to understand the needs of the consumers better.

The proper approach of permission based email marketing which the marketer is to adopt is by providing an online opt-in form via emails or at the web business site where the potential leads indicate their consent in receiving further updates or news regarding the brand or business from this particular marketer.

This approach confirms the potential lead’s interest and inclination towards the brand and company to empower the marketer in sending relevant emails to the potential leads. When an appropriate business email is sent to these potential leads, it is possible for these potential leads to find favorable and value added products or services which they could order or purchase via the marketer. The marketer would enjoy better bottom lines from the highest number of sales triggered from these potential leads who are now inclined towards the brand or business.

Ethical Marketing

Ethical marketing via emails is a strong testimony of the marketer’s character which calls for mutual respect and integrity. Marketers who exercise ethical marketing are highly respected in the market with a strong show of upright character which augurs well with all consumers. This is unlike interruption marketing which is spamming consumers’ email in-boxes regardless of consumers’ feelings and feedback.

Spamming is very much frowned upon by marketers pushing loads of promo emails to their list of potential leads in the market. Marketers could be desperate to such unethical marketing approaches when their business fluctuates with the market. Modern consumers do not like marketers to coerce them into accepting the brand or business offerings through numerous emails which could clutter up their in-box, especially when marketers spam their in-boxes with multiple copies of the same message.

Ethical marketing is powerful in this era as mutual respect is exercised and business opportunities come at the right time for the marketers to present their brand or business benefits. Politeness in marketing campaigns wins more customers than forceful approaches. Opted in customers remain loyal and positive towards the brand and business when they are able to exercise their free will in choosing their brand and company for products and services.

Loyal customers through permission based email marketing make purchases on the brand which keep the business afloat in all seasons. They could also help to spread the word about the brand and business if they are truly satisfied with the product or service rendered.

The Advent of Digital Marketing

What are the defining traits of digital marketing?

1. Cost: While the importance of traditional marketing is nearly nil, it is also evident that traditional media outlets – such as television, radio and newspapers ads – can be very expensive. However, utilizing and publishing search engine optimized article only costs time.

2. Quantification: It is almost impossible to quantify the effects of traditional marketing. It is not possible to know how many people have come across an ad; the number of people interested in it is also impossible to quantify in traditional marketing. Even if a person invests in traditional marketing techniques, it is difficult to compare the investment with the return. This results in one’s inability to determine whether their marketing technique has worked or not. However, with digital marketing, it is very easy to monitor the traffic generated by your online ad, article or website.

3. Visibility: A person can increase the visibility of their product locally with newspaper ads, television or radio. But, with all these new and improved gadgets at their disposal, everybody is on the internet these days. Therefore, it is only practical to market your products online to garner the public’s attention.

4. Trust: Unlike traditional marketing, digital marketing is not a one way street. If a business is opting for digital marketing, then they are reaching out to their potential clients; they are also giving them the opportunity to put their questions forward. This helps build mutual trust in a company and ensures a strong company-client bond.

5. Targeting: With traditional marketing techniques, it is nearly impossible to target a specific group of people as your audience. In turn, this may result in low sales of a product. Digital marketing gives a company the opportunity to do the same thing without any hassles.

6. Taking a step towards the future of marketing: Traditional marketing has not lost its place, yet. However, it is widely known that digital marketing is the new face of future marketing strategy.
Although digital marketing is a futuristic approach to marketing, traditional marketing mediums such as television, radio and print media are still relevant.

Therefore, it is advisable for a company that is choosing a marketing agency, to take note of a few facts. If the agency promises a balanced approach at marketing a product that keeps traditional and digital marketing in mind, then, you can rest assured that it is highly probable that this company will have a strategic and client specific marketing format that will be beneficial in the long run. Additionally, if a company has a HubSpot certified partner this is often beneficial for both parties. If the company is mindful about the client-company relationship and strives to maintain a good relationship, it is surely one of the prime options out there.

Four Reasons Why Many Businesses Fail With Marketing Automation

Over the years, working in senior marketing roles for large corporations, I’ve been fortunate enough to have experienced the introduction of many new marketing automation and internet based technologies. Many companies have prospered from these new technologies, whilst others have failed to achieve even minimal benefit. Why?

In the early to mid 1990′s I witnessed email and internet being rolled out across corporate organisations. Then came SEO and I remember optimising our first client website. Around the same time AdWords PPC advertising started becoming the talk of the town. Not long after, Social Media, MySpace, Facebook, Twitter and LinkedIn became popular amongst different target audiences.

Along with these technological developments we’ve seen numerous marketing automation tools, from web development tools, email tools, advertising tools and social media management tools. Now we’re seeing incredible marketing automation tools such as HubSpot that are absolutely amazing and elevate marketing to an entirely new level. It’s no wonder marketing has changed so much in the past 10 years.

No longer is it predominantly a creative art form, it’s now also very scientific. Unfortunately many businesses are failing to harvest the massive potential and significant benefits that these advanced marketing automation tools can provide. There are 4 key reasons for this.

1. Limited knowledge on how to use (operate) the tools.

Companies often see demonstrations of the tools or read websites and sales material. Of course the demos and sales material highlight how easy these marketing tools are to use, but often they take time, effort and interest to learn. Frequently the tool is bought or downloaded and used once or twice and then laid to rest because no-one in the company actually knows how to use it correctly, has the time or interest to learn it or simply the novelty wears off. A very basic example of this related to a company that decided it needed to start creating videos for its website. It purchased a video camera and sophisticated editing software. Unfortunately no one really knew how to use the camera or the software. Someone in the company attempted to learn it but found that they didn’t have the time or interest and neither the camera or the software was ever used again.

2. Staff have an operational knowledge of the marketing automation tool but limited strategic knowledge.

This seems to be very common in many organisations. Staff and management understand what the tool can do, are excited by its capabilities, know how to operate it but have lack the strategic knowledge on how to best apply the functionality of the tool in their particular industry or environment. An example of this was a company that had heard it would be beneficial to start a blog. It set up a blog on its website and started blogging. Unfortunately the content of the blogs were irrelevant/inappropriate to the businesses’ core expertise and the blogs became simply press releases or promotions. The blog failed to deliver any benefit to the business.

I’ve actually seen this do more damage to an organisation than if they had never started blogging in the first instance. It’s a credibility issue.

3. Employing “Experts”

Companies need to be very careful when employing staff to manage these sophisticated tools. The interview process should be structured very differently. Many candidates can talk the talk but often have limited expertise, either operationally or strategically, or both. Carefully designed recruitment processes should be developed to ensure the candidate has the correct level of skill.

4. Recruiting expert contractors who promise the world.

We’ve all come across the SEO expert who can guarantee no.1 position on page 1 of Google results. Most businesses owners are not experts in this field and the convincing sales pitch is too good to pass. The expert is recruited, the business hands over a lot of money and very often it ends in disgruntled, upset and cynical business owners and managers. There are many reasons for this including the use of improper techniques that Google identifies and penalises the site for.

Summary.

A couple of months ago I was at the Australian Formula 1 Grand Prix and I started thinking about how similar Formula 1 is to Marketing Automation. There is no value in having the fastest car if no one on the team understands how to start it. That said, even if there is someone who can start it, the race team still will not perform well unless they have a solid race strategy, for example when to make their pit stops and tyre changes.

In essence, as with marketing automation, the car is simply a tool that is used to execute a strategy.

Marketing Automation can deliver incredible benefits and efficiencies to a business. Prior to implementation, businesses should ensure they have both strategically and operationally skilled staff who can use the tools appropriately. Alternatively, the business should consider external resources with proven, demonstrated expertise.

When using external resources it is important to work with an agency or consultants who are fully transparent, sharing everything they are doing, why they are doing it and how it is being done. For example, at Marketing By Objectives we are completely transparent and share everything we do with our clients, to the extent of training them to do the work themselves in the longer term.

By doing this, businesses can realise the full benefits from the marketing automation tools they invest in.