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Share some marketing/advertising ideas???

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  • Share some marketing/advertising ideas???

    Anyone want to share some marketing and advertising ideas that they are using right now with the market so dang slow??? I'm in the middle of one that I hope will get the phone ringing....so I can't say whether it is going to do any good or not. I am specifically a new home builder....so I am out looking for new home prospects.

    If anyone is interested in this thread idea....I'll post more of what I am doing now....and over the next few weeks I can post results of whether or not it is working.


    Sam

  • #2
    Re: Share some marketing/advertising ideas???

    Originally posted by finehomes View Post
    Anyone want to share some marketing and advertising ideas that they are using right now with the market so dang slow??? I'm in the middle of one that I hope will get the phone ringing....so I can't say whether it is going to do any good or not. I am specifically a new home builder....so I am out looking for new home prospects.

    If anyone is interested in this thread idea....I'll post more of what I am doing now....and over the next few weeks I can post results of whether or not it is working.


    Sam
    Sam

    Are you trying to get clients to build for? Your lot or there's. Starter homes, mid-range custom, high end. Need more information.
    ============================================

    [url=http://twitter.com/Allan_Edwards]Twitter[/url]

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    • #3
      Re: Share some marketing/advertising ideas???

      Allen,

      Yes...looking for clients to build presold homes for. I've done way to many specs and not interested in doing any more....live in several of them!!!! You may remember that a few years ago I moved to this new area....only 20,000 people in the whole county so I am pretty much marketing to anyone and everyone!!!!

      I do not currently have any lots of my own...although this coming year I may be working with at least one "partner" to develop one or more locations.

      Things are deathly slow here now after really being quite busy all last year and earlier this year. I'm ready to move past the downturn I'm in with my current development project with all of these condos/townhomes that are going back to the banks and go back to building homes like I used to when you and I first met.

      So...here's what I am working on right now. I obtained a mailing list from the city office of the city I live in, which is the largest city....of all of the rental units in town. I figure this target market has two things going for it with things being so slow right now. First, no current home to sell and second, most likely can qualify for the first time homebuyer tax credit. Those of you that are following along here may want to look into that for your own marketing at www.federalhousingtaxcredit.com which is a website the NAHB set up with all of the rules for getting the $7,500 tax credit for first time home buyers. The nice thing is, you can have previously owned a home to be considered a "first time" home buyer.

      Anyway...I have a pretty awesome brochure that I had 10,000 copies made up of several years back. You may even remember that we did an article in JLC about that as we had our subs and suppliers participate in the advertising and cost of the brochure which is really almost more like a magazine than a brochure. I sent the brochure, one of the NAHB premade flyers regarding the tax credit, a letter explaining how the tax credit works, and a cover letter explaining who we are and how we can help them get into a new home even though the credit market sucks right now.

      NOW....this is where it gets really interesting and where I think my marketing idea is getting good. I wouldn't normally do something this bold....but I've been sitting at home doing nothing lately.....so I figure anything to get work is better than nothing.

      I'm offering....as an assistance to help people qualify for their construction financing, to subordinate half of my builders fee during construction. I do all of my jobs on a cost plus contract....always have. I typically do cost plus 10, plus I have a percentage for overhead and supervision. So, I am offering to collect my normal overhead and supervision and only 5% during construction and leave 5% on the table to help them qualify......so they don't have to bring as much in as a down payment....possibly having to bring in NO DOWN PAYMENT!!!

      Of course I will have liens on the property throughout the job so I am protected and then will get a lump sum at the end when the home closes. I normally wouldn't even think or consider something like this......but I'm SLOWWWWWWW right now....been doing nothing but sitting a home drawing plans for myself and working on getting a book full of plans together. With any luck I may get 3 or 4 projects out of it???

      So far, I've just sent out info to renters in this one town only as thats the only list I had access to. If I start getting some calls next week, I looked into a list from an online company and I can access the rest of my county for $75.00.

      Sam

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      • #4
        Re: Share some marketing/advertising ideas???

        Sam:

        You are talking subordinating on the construction loan only, correct? What about the permanent loan? I would guess they would want a pretty hefty down payment or a very low loan to value ratio for a conventional loan?

        I like your idea of targeting people without homes to sell. A RE agent told me about USDA loans that are I think 100% loans to first time homeowners. They are sort of like the farm home loans that we used to have. Is that or something similar part of your idea for the take out?
        Last edited by swbuilder; 09-07-2008, 12:11 AM. Reason: typo
        Randy

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        • #5
          Re: Share some marketing/advertising ideas???

          http://www.usdaloanapproval.com/
          Randy

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          • #6
            Re: Share some marketing/advertising ideas???

            By the way, I have been sending out various mailings to lot owners in the subdivisions I build. Most recently a large 8.5x5.5 postcard with a fullbleed glossy picture on one side and a small picture on the other. I left space to personalize a handwritten message depending on what crowd I am targeting. I like your marketing idea better for potentially immediate results though.
            Randy

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            • #7
              Re: Share some marketing/advertising ideas???

              Originally posted by swbuilder View Post
              Sam:

              You are talking subordinating on the construction loan only, correct? What about the permanent loan? I would guess they would want a pretty hefty down payment or a very low loan to value ratio for a conventional loan?
              Randy,,,,Yes...I am just subordinating during construction...then I expect a lump sum payment at closing. I am just doing this to help get the approval of the construction financing. The buyers can then use the $7,500 from the tax credit for the long term down payment.

              Its really all a timing thing. If we start a home now....it will be getting done about the same time as they are getting their taxes done next year and getting that money for the down on the long term closing.


              Sam

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              • #8
                Re: Share some marketing/advertising ideas???

                Sam

                Couple of things. Can you really make money building new homes where the entire county has only 20,000 people? I think maybe you need to do remodeling and commercial and whatever , in addition to new homes, to have a viable program.

                Another point about using investors (as I believe you are). While I realize investors provide assistance with financing and perhaps working capital and allow you to do things you couldn’t do on your own, you pay a steep price for this. Like 50% of the profits. You have to do twice the volume you would do by yourself.

                The main issue I’ve observed about builders who use investors is how they run their program. They often build just to be building, not really thinking thru a project. They aren’t spending their own money. When you have your name and your capital and assets on the line, you are little more careful about what/where/how you build. With an investor, you feel you have a partner to prop you up and you are not quite as diligent. I’m not directing this toward you, just saying this is what I’ve observed over the years.

                Of course there are exceptions, I’ve also seen people take on investors and really grow a company. But not sure this works for small builders.
                ============================================

                [url=http://twitter.com/Allan_Edwards]Twitter[/url]

                [url=http://houzz.com/pro/allan]Houzz[/url]

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                • #9
                  Re: Share some marketing/advertising ideas???

                  Allen,

                  Good points. I'm adding this to the subdivision of multifamily and commercial the I have been working on for the past few years. I haven't been doing homes at all and that's why I am in the mess I am in now. If I had been marketing for homes as well and had that to fall back on now with all the condo's buyers backing out....I might not be in so much trouble????

                  My investor is not as bad as you mention. Just a hard money lender with a steeper interest rate than a bank. He put up the cash for the land and improvements for my subdivision and then I get bank financing for the buildings. Occassionally he will finance a building depending on the situation. Usually a couple points higher than the banks.

                  Ive talked to a few of those investors like you mentioned and I've never been that desparate for money. I don't see how anyone could make a profit big enough to split with those kinds of sharks.


                  Thanks again for your comments....and cross your fingers that the phone starts ringing here. I am pretty sure I am the only guy around that is advertising the tax program....I just hope people understand it.


                  Sam

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                  • #10
                    Re: Share some marketing/advertising ideas???

                    Allen,

                    One thing I neglected to mention...which I think helps a little around here. We have some major players in the oil industry working around here since Wolvering Gas and Oil found a pretty major field here a few years ago and has been pumping a significant amount of oil out of the area. They are drilling like crazy looking for new locations and if they find them....I think our 20,000 population is going to increase!!!!

                    Also, there is a proposed 270MW coal fired power plant on the table right now that is just on the tail end of the approval process at the county right now. That will create a few hundred high paying jobs as well. I have been a big and very vocal supporter of that from the very beginning and happen to be very good friends with the owners of the project. Hopefully that will spur some more homebuilding in the area. We sure need it!!!


                    Sam

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                    • #11
                      Re: Share some marketing/advertising ideas???

                      Originally posted by swbuilder View Post
                      By the way, I have been sending out various mailings to lot owners in the subdivisions I build. Most recently a large 8.5x5.5 postcard with a fullbleed glossy picture on one side and a small picture on the other. I left space to personalize a handwritten message depending on what crowd I am targeting. I like your marketing idea better for potentially immediate results though.
                      until i activate my builders licenses we're concentrating our advertising dollars on carpentry and cabinetmaking with newspaper advortiorals, magazine ads, and a booth at the home show comming up in october.

                      our local printer who does our letterheads and business cards has a new printer that does what is called "variable data printing" basically it can print postcards that have a common graphic or logo on one side and an individual address and a custom message on the other side all at the same time. its a bit more costly than printing just one graphic on all pieces but we are planning on targeting our past customers in blocks of 50.
                      S.M.Titmas.

                      "Truth is, everybody is going to hurt you. You just gotta find the ones worth suffering for."
                      - Bob Marley

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                      • #12
                        Re: Share some marketing/advertising ideas???

                        Originally posted by smtitmas View Post
                        until i activate my builders licenses we're concentrating our advertising dollars on carpentry and cabinetmaking with newspaper advortiorals, magazine ads, and a booth at the home show comming up in october.

                        our local printer who does our letterheads and business cards has a new printer that does what is called "variable data printing" basically it can print postcards that have a common graphic or logo on one side and an individual address and a custom message on the other side all at the same time. its a bit more costly than printing just one graphic on all pieces but we are planning on targeting our past customers in blocks of 50.

                        That sounds nice. My cost was about .46 cents a piece so with a stamp thats .88 cents. I think we ordered 1000. Like I said, I don't plan on getting any immediate sales off of mine but I think they look fairly classy and I suspect some people will hold onto them until they are ready to build and give me a shot.
                        Randy

                        Comment


                        • #13
                          Re: Share some marketing/advertising ideas???

                          Sam:

                          By the way, thanks for sharing your idea. I never would have thought of subordinating a part of my fee to help with the construction loan. I have a few lots that would be perfect for first time buyers, price-wise and maybe coupled with a usda loan and/or the tax credit, can make a few sales happen.
                          Randy

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                          • #14
                            Re: Share some marketing/advertising ideas???

                            Randy.....I wouldn't normally even consider it. My attitude is normally..."if you can't qualify on your own....you have no business building a home" BUT... right now I am so slow and haven't been working for the past couple of months....I am ready to do just about anything to get some things going. If this is what it takes to get the phone ringing and get some homes going.... I'm ready to make it happen. The first batch of advertising went out just about a week ago...so we'll see if we start getting some calls soon.


                            Sam

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                            • #15
                              Re: Share some marketing/advertising ideas???

                              The best advice I can give, if your market is anything like mine, is to consider remodeling. At least until the economy recovers if you don't prefer it. I have migrated from custom home building to remodeling with a little reluctance but I seem to be one of the few busy contractors in my town, (Sacramento Ca.), and I'm enjoying it.

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