Archive

Archive for July, 2009

Slacking

July 31st, 2009

Haven’t made much progress on Real Estate in the past three days. I’ve been focusing much of my time on a freelance web project (mo’ marketing money). That’s no excuse as I should still be making progress towards getting things done on the Real Estate front. I have been reviewing some short-sale webinars though, so I guess that counts. I just haven’t done anything measurable.

On a better note, I have done some thinking and have restrategized a bit. Actually, this is a result of my freelance web project so I guess the time off hasn’t been in vain. But, I just realized that in the grand-scheme of things, I am going to implement a large internet-marketing strategy into my real estate marketing strategy. The drawback is that I feel in order to implement this strategy, I will need to spend a lot of funds to outsource professional work and set things up the right way and once. There is an old saying, “Do it right do it light…do it wrong do it long”. I want to do things right and light. To do so, I know I will need to maximize my time and hire specialists to complete certain tasks. This will require MONEY. Right now, I have little capital.

So, I have changed up my game plan. My original marketing plan will stay in place, however instead of immediately, it will not take effect until after at least my first deal (maybe two). I will then take the ENTIRE net profit and go buy a BMW M6. Then after that, I will travel to Jamaca and take a break. I’ll be found on the beach somewhere with Corona’s and smoking some herbal. Ha, ha…not quite…not yet anyway. Seriously, I’ll actually use the entire profit and reinvest into marketing. Marketing is what makes a business stay in business and prosper.

So, I thought of this strategy change while designing the website for a client. I had been thinking to myself, “I hate the time-consuming aspect of web development. I wouldn’t want to even do this for myself”. I even thought about sub-contracting the development after securing the project. That would’ve been smart, right? The hurdle of doing everything yourself, is a hard one to jump. I’ll clear it one day.

- Justin

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Accountability Tuesday

July 29th, 2009

Another week has past and some progress has been made.

1. Ramp up the remaining aspects of the advertising plan; flyers, post cards, business cards, news ads, etc. (still pending as a lot of my advertising copy will depend on the outcome the response of my lawyer)

2. Acquire a pre-foreclosure list from either the County Recorder or SalesTeamLive. (I worked out an arrangement with another investor in town who already subscribes to the County Recorder database. I post his properties to CraigsList and other sites, he shares his subscription. This should be an excellent arrangement.)

3. Follow-up with local Title Companies (There is actually a title company that is tied in with the lawfirm that I’m working with, so I kind of found a 2 for 1 when I selected my new lawyer. The title company that the lawfirm is part-owner of can do everything I need it to.)

4. Find additional Realtors to work with. I’m only working with two at the moment. I think one of them has been avoiding me since our first meeting, after she found out I was new to investing. The other seems to be out of town often. I need to not limit myself here. (still diversifying here, they are all still so slow to respond. I’m finding this as a commonality across the board with Realtors. I’m guessing they won’t become as responsive as I’d prefer until I start bringing commission checks their way.)

5. Find out how I can legally build a birddog army. But not only birddogs who find property, but more-so birddogs who can help find property buyers. (I had a meeting with my new lawyer last Friday and it went really well. This guy is sharp and seems to know real estate inside and out. Regarding my birddog army, my main concern was being able to utilize buyer-side birddogs. I know that seller-side birddogs can be utlized on a per-lead basis or per contract as long as they have the equitable interest. He is going to do some further research and get back to me regarding buyer-side birddogs.)

6. Narrow my focus even further to single-family properties in Southwest Champaign. (I completely slacked on getting more accomplished on this. I just found out that door-hangers in Champaign are against Muncipal Code, however I get them all the time. Still thinking about whether I should do this or not. As far as direct-mail, I am screen-scraping more of the county records as I type with Mozenda. I still need to contact a Realtor and see if they will be forthcoming with sharing the expired listings within my target area. And as far as the secret-contact method, I think I’ll defer this until next weekend.)

7. I found a Realtor who is interested in the Podcast, so hopefully I can get this underway shortly.

8. Regarding, my Marketing Matrix. Unfortunately this keeps changing. The more I learn about internet marketing, the more I realize I need to intertwine this into Real Estate marketing. The difficult aspect is utilizing the various internet marketing platforms with my limited marketing budget. This will be so much easier after my first couple of deals when I can reinvest all of the profits into marketing.

New Goals for the week of July 28, 2009:

1. I’m thinking about whether or not I should get the “Virtual Bird Dog Blueprint” course. After doing a lot of research on this course, it seems to be exactly what I need for my scheme. However, a voice in my head is telling me not to purchase any more courses. But I think I’ll ignore that voice. There of course are those who purchase all the education in the world and never get started, but I’m not even close to those people. I think if I didn’t get everything setup ideally from the start, it will cost me more money in the long run. After just typing that, I’m convinced. I’m going to place my order tonight.

2. This is somewhat unrelated, but I need to finish the Freelance web projects I have on my plate. Once I have them finished I should have another $800 that I can throw in the marketing budget.

3. I need to stop playing phone-tag with my potential VA and phone-interview her to see if she would be a good fit to perform the tasks I need her to do. The tasks would be to update some of my other social networking sites with current posts (biggerpockets.com, realestateinvestor.com, etc.).

4. I’m thinking I need to revamp my squeeze page strategy. After reading the SIMS Profit guide by Greg Clements, I now know that squeeze pages are more important than I originally thought. I have a company website, but I need to restrategize and implement squeeze pages without revamping my company website that took me ‘forever’ to create. The reason this is a priority is because I need to know what site to specifically market on the ad materials I create after hearing from my lawyer.

So, I have a lot of things on my plate. I’m sure I’ll complete my first couple of deals as the result of my second ad campaign. However, I right now I’m still ironing out the details of how I will structure it.

- Justin

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Weekend Update

July 26th, 2009

It’s now Sunday evening and my weekend is coming to a close. Sometimes I sit and reflect on what I’ve been doing to keep me busy and I feel like I’m not doing enough. But when I look at all I’ve crossed-off of my lists, I’ve been doing a whole lot.

My Saturday got off to a rocky start although I did start it at 8:30am, which is very good for a weekend morning of mine. Although I think to myself “what would Jesus do?” in many situations I face in life, when it comes to business I think “what would Trump do?”. And I bet that he gets no more than 5 hours of sleep nightly and starts his mornings at 5:00am. So I’ll have to work on that. But anyway, on Friday I noticed that my serpintine belt was shredding on my car, so on Saturday I took it in to Car-X. I was prepared for a minimal charge of less than $100. Turns out, I needed a new tensioner too, so I walked away $250 broke-er. It’s all good though; misc repairs here and there beats the hell out of a car note, so I’ll take it.

The rest of Saturday; I was able to get to Commerce Bank and get another Business account setup (I already have one with Bank of America). Having a local bank account will definitely come in handy when it comes to depositing checks, since there isn’t a local BofA branch here (don’t ask me why not) it would be a huge hassle mailing deposits in. Also, the guy at the local branch who I deal with is a good guy to work with, so perhaps the rapport built with him will pay off in the near future.

Also on Saturday I went to the DMV after forgetting that my plates expired at the end of June. So that was another $100 out of hand. And on top of that my dentist just sent me a bill for another $100, what the hell is that all about? It looks like my insurance declined to pay for some routine things, so I’ll probably have to waste a couple hours of my life just to get to the bottom of that! Time robbers!

Today, I got some random things done like cleaned up the office/apartment, washed the car, got some office supplies from Staples, performed some maintenance on Twitter, and went to the Gym.

It’s 11:00pm, but I still hope to get a few things done tonight before I ‘call it a night’ (usually around 2:00am). Although I made the video about Mozenda, I still need to complete my screen-scrape for the Owner-Occupant property owners in Champaign.

By the way, the CTO/Founder of Mozenda actually emailed me on Friday and thanked me for the unsolicited publicity. I thought that was pretty cool. He actually is offering me a credit towards the subscription service too. This just goes to show the power of the web. You never know who is paying attention to you.

I’ve got other updates, but I’m tired of typing and I’ve only got a few hours before I need to go to sleep. I’ll post about them later. So peace out.

- Justin

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Using Mozenda as a Real Estate Investor

July 24th, 2009

In this series of videos, I give a brief overview of how Screen Scraping (data collection) with software such as Mozenda can greatly benefit Real Estate Investors. I’m excited about this software. I’m glad I found it as I’ve used others that aren’t even half as good. Watch the entire combined 17 minutes (part 1 and part 2) and I guarantee it won’t be a waste of time.

- Justin

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Accountability Tuesday

July 21st, 2009

I’m changing my ‘accountability’ days to Tuesday. I think that will work better for me. As far as last weeks goals, I made progress on all of them and completed a few of them. This list is really working as before I typed this I finished the last task that I had incomplete, because I didn’t want to write about postoning it.

1. Ramp up the remaining aspects of the advertising plan; flyers, post cards, business cards, news ads, etc.

(still in progress as a lot of my advertising copy will depend on the outcome of the meeting I have with my new lawyer this week)

2. Acquire a pre-foreclosure list from either the County Recorder or SalesTeamLive.

(I may be able to share access to the online County Records with another investor, negotiations are pending, this beats driving to the office)

3. Follow-up with local Title Companies

(neither of these chumps will return my phone calls and I’m not even doing business with them yet, is this a sign?)

4. Find additional Realtors to work with. I’m only working with two at the moment. I think one of them has been avoiding me since our first meeting, after she found out I was new to investing. The other seems to be out of town often. I need to not limit myself here.

(still diversifying here, they are all so slow to respond. I need to clone myself and renew my license, then I’d be straight)

5. Contact and perhaps arrange appointments to meet all of the other local investors. There is a good possibility that business can be done between us all.

(I called all 12 of them that are advertised. So many don’t answer the phone it’s a joke. What if I wanted to sell my house fast? I left some messages and actually spoke to one guy out of Decatur. He’s willing to reciprocate leads with me, so that’s good)

6. Find out how I can legally build a birddog army. But not only birddogs who find property, but more-so birddogs who can help find property buyers. Find new lawyer to speak this over with.

(I’m meeting with my new lawyer this Friday about this. Hopefully he tells me what I want to hear.)

7. Purchase some additional stationary for the Ad campaign.
(This additional stationary is no longer needed)

    New Goals for the week of July 21, 2009:



1. Narrow my focus even further to single-family properties in Southwest Champaign. I have two big-money buyers that are local that desire this area, so this is where I’m going to hone in at the very start.

-I’m going to launch a direct mail campaign to all owner occupants of single-family residential properties and in the direct mail piece I will convey that I would like to buy their home now or even as far as 3 years in the future (I would sell my option to buy).

-I’m going to drive the neighborhoods and look for FSBO’s, then make direct offers to them.

-I’m thinking about door-hangers, but I’m not sure about all the walking time involved.

-I need to find access to the expired listings in the SW Champaign area, I could then make those property owners direct offers.

-There’s also another method of targeting the single-family properties that I’m going to try out this weekend. I’m keeping it a secret for now. But I’m going to take video of me doing it. Hopefully I won’t get shot. At least if I do, the shooter will be on camera, so that’s a plus.

2. I’m going to try and schedule the podcast interview with a local realtor this week. The interview will be about why folks should choose Champaign-Urbana to invest in real estate. I’ll throw the audio up on a squeeze page as incentive so I can continue building my international buyers’ list.

3. After meeting with my attorney, I’ll be able to properly structure my ‘marketing matrix’ as a key component of the matrix is to gain property seller AND property buyer birddogs. If I can legally build a network of birddogs in Champaign, I’d soon be crowned king, I guarantee it! But I’m kind of gridlocked now because I can’t move forward with my design of advertising scheme without this counsel.

This is a short list, but I think it will keep me busy for the next week.

- Justin

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$750/day!! At least I got a warning

July 20th, 2009

So, this morning I check my email and look what I found:

Placing signs in the public right of way (between the sidewalk & the street) subjects your company to fines of up to $750.00/day for repeated violations. Please obey the law & avoid me whittling away at your 7-figure goal $750 at a time by not littering the countryside with illegal signs.

Zoning Administrator
City of Champaign

It looks like dude did some reasearch and cross-referencing on the web. I’m not surprised by this because deep down, I knew this was going to happen even though I took certain measures to avoid it. But I know where I went wrong. Now, I can’t even give all the juicy details because big-brother could be watching (reading). He definetly was in this case, because I only mention the 7-figure goal on my justinmcclelland.com blog. Well, “big-brother” if you’re reading now, I’m thankful that you gave me a warning and that’s just being honest. So, “Thank You”!

Now that that is out of the way, I’m just going to reiterate that, “I can’t be stopped”! Can’t stop, won’t stop…take that…take that..(I typed that while doing my P. Diddy shuffle infront of the keyboard, I should YouTube it but I won’t rub it in all the way in because he may get mad and then I’d have to Lyoto Machida that a$$). Since I received that email, I have been forced to come up with alternatives. I just thought of an alternative that is even better than bandit signs! And just a tad bit more expensive. And I haven’t seen any other Real Estate investors in town do it, or outside of Champaign for that matter. I’m a marketing machine! I’ll give more details soon.

- Justin

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Sick Days don’t exist

July 17th, 2009

I started off my morning with the extraction of my four wisdom teeth (they weren’t bothering me at all, but the dentist said it would be best so my Invisalign not be in vain). I guess due to the severity of my removal situation, I had to use an oral surgeon and not a dentist. I had the procedure done at 9am. It was an odd experience because today was the first time I had ever been ‘put-under’ by anaesthesia. I remember the Nurse put the IV in my arm, put a blood pressure wrap on my bicep, and a pulse meter for my finger, then raised the chair. She soon after administered the juice and said I would “feel really relaxed in 30 seconds”. 30 seconds passed and I was like, “what’s the deal”. I was about to tell her that I am a grown-ass man and she needed to up the dosage. That’s all I remember afterwards. I was cracking jokes after waking up about the nurse getting a stain on my “Armani” button-up and demanding reibursement. She then countered with the claim that my she’d reimburse me for the cost of a Wal-Mart button-up as the shirt probably matched my Wal-Mart shoes! She one-uped me! As my shoes actually were from Walmart.

My friend dropped me off at home and I slept for about 4 hours, waking up almost every half hour. It felt like I took a Brock Lesner two-piece combo to the jaw. But I ain’t no punk. Give me a shot at the title with Brock, I’ll take him out (a swift front-snap kick to the jewels, I don’t mess around…so-what it’s against the UFC rules…and your point?). But, there is no such thing as a Sick Day on this journey.

At about 4pm, I was back in the mix. I was straight-up strarving because I hadn’t eaten or drank anything to break the operation fast. I made some calls to two local title companies in effort to get aquainted and schedule time to come in and review their closing records (I got a tip that their records are public records and you can identify cash buyers this way…I sure hope so). Both calls were fielded by secretaries, or similar, and they both seemed that they weren’t impowered as on each call, I was referred to contact the owner. It is so hard to schedule appointments and make phone conversations during typical business hours, with the nature of my full-time job. Hopefully, I can schedule to meet them soon, preferably on a weekend.

At 4:15pm I drove to the county assessor’s office to use one of the public terminals and search the public records of those home owners who’s mortgage is in Lis Pendens status. Bad thing about this was that the damn office closed at 4:30pm. What the hell was that all about?! As user un-friendly as their 1992 records software is, I barely had a chance to review one record before I had to leave. This beats the $80 monthly fee for home access, for now.

I then went by the UPS store to pick-up my company mail and that was it for the day. Oh, and the good news of the day is that my AmerenIP electric bill is extra-low! This is because I refused to turn-on the air conditioner in my entire residence/home-office since summer began. There has been the minor usage here and there, but for the most part, NO AIR. I’ve been roughing it, and staying away from home for the most part. I know this has saved me at least $75 last month. And also, I no longer have to pay towards the deposit that was required when I switched my AmerenIP residential account to a business account ($150). It broke down to being $30 monthly for 5 months. I still think it was a lame move that my personal account which was in perfect standing for years before I switched it to a business account. Then once I made the switch, absolutely no rapport from the personal account was considered. They just want to hold my money interest free for a year, that’s all that is! I’m struggling now, but soon all of these inconveniences will pay off huge. After all of the real estate courses and books, you never hear of an emphasis being placed on building business credit in the beginning. I guess I’m going against the grain (right in align with my style).

I have 7 combined business accounts, some report to DNB, Experian, and/or Equifax. I wanted start establishing business credit as soon as I could so that I could start leveraging more available funding, aquire credit without personal-guarantee’s and also for asset protection purposes (non-piercing of the corporate vail and yada yada yada). A business credit history never starts until action is taken (file for DUNS number, buy in business name from vendors that report, etc.). So technically I could right now outscore many companies that are much older and have no credit; not by much, but after 9 months in, I’m on my way.

- Justin

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Unleash the beast

July 16th, 2009

So, the more I progress the more important I realize marketing is. Deep down, I feel like I have the recipe (at least part of it…the < $1K version) for Investor Guerilla marketing. I've spent the past 24 hours doing nothing but research on how I can utilize the web, in an automated fashion, to build my international buyers' list. Also, I've spent some time refining how I'm going to locate motivated seller's in Champaign-Urbana. I would outline it all here but, I honestly just don't feel like typing right now and plus in may change soon. But here are the Cliff notes:

International Buyers' list:

- Distribute my online video's for both my Entrepreneur blog and the Schwaps blog to a multitude of video hosts. I currently only use YouTube and it takes FOREVER just to publish and upload one 7 minute video there. I was came across a service called Traffic Geyser and what they do is that they submit your video's for you to over 100 video hosting services, social bookmark it (digg, squidoo, etc.) and so on. As a result, it is highly likely that you'll appear in an ideal, high organic listing position on Google. This costs $100/month. But, according to my research, this would be less expensive than having a VA do the same and plus I have 100% control.

- Online article site postings will be used to specifically target those who may invest in Champaign, by offering relevant and educational real estate related content. I previously had a VA writing my articles for me and I would put the finishing touches on it. I was able to get, what I think is, a decent price of $10/500 word article. Even when having the VA compose the articles, just posting these to the various article sites was taking loads of time. I previously submitted a group of 3 articles to 3 different article sites and after registration, confirmation emails, etc. it took me about 3 hours. I found a service through Submit Edge, they can write a quantity of 10 – 1000 word articles and submit them to 1000 article sites (yes that's right 1,000), for $300. That price seems steep, but its' only $30 per article. And I get to have 3 links in each article. That alone is worth the price. 3 unique links per article blasted to 1000 sites is; 1 link x 10 articles x 1000 sites = 10,000 links back per site. It takes 80 days, but I guarantee that after that time period, I'll dominate Google for the keywords I desire.

- Podcasting. I'm going to start interviewing various local and non-local Real Estate specific and industry related experts. I'll start off by interviewing them specifically about the Champaign real estate market. I'll host the podcasts to my Schwaps website and maybe create another squeeze page that has the audio as the incentive for sign-up. I'm pretty sure I can do this all with my VoIP account and capture the phone conversation in MP3 form. Once edited and published, I'll get the clips posted to various podcasting sites and directories and hell…I may even be on iTunes!

- Social Bookmarking is also a service through Submit Edge. I'm thinking of going for the package that contains 8 social bookmarks submissions to 125 social bookmarking sites from 8 different accounts. This will put the nail in the SEO coffin. It will also set me back $225.

- There is also the utilization of Twitter using TweetAdder. Now, this I have already purchased. It is awesome, it allows you to bypass manually adding people to follow. You can select a set of keywords to base your follows on, or even base your follows on someone else's follows. Which is what I'm doing right now. I am set-up right now to follow everyone that Colin Egbert has following. He has an impressive REI for Web 2.0 course out right now which I plan to purchase down the road. But for now, I'll just try to be like him and follow his followers and hopefully they'll follow me back. TweetAdder costs only $55 and is well worth it. I think it's so cheap only because people haven't really caught on to Twitter like Facebook yet. But by the time everyone else catches on, I plan on having 50,000 followers. I've only had it a week and have gained approximately 1700 followers! I 'will' flip a house on Twitter one day.

- Craigslist auto poster software. I know that it is common practice to get leads off of Craigslist, Backpages, etc. Craigslist is cool, but it takes way too long just to make one post so there is no way that I'd be able to make the amount of posts as frequently as I'd like to manually. That's where Cute Auto Poster comes into play. This software will allow me to automate my posts and it's smart enough to make the posts in such a manner that won't flag you as a spammer and get yourself banned from posting. This tool only runs $100 and is a must for me. My mind is running right wild right now with the different ways I'm going to utilize this thing.

Well, it's extremely hard to make brief posts and it looks like I did indeed outline everything. At least my system for generating online buyer list leads. I've already blogged about my 'Motivated Seller' marketing strategy, that was one of the very first video's I made. Not too much has changed since then. This is just part of my Marketing Beast! I can't wait to unleash it all which requires more capital! That's what I'll indeed do with the proceeds from my first couple of deals. And by the way, my goal is still on for a 7 figure networth before I turn 30. Only 16 months left. I'ma get it!

- Justin

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Accountability ‘Remainder of the week’

July 15th, 2009

I am becoming inconsistent with my blogs again. Perhaps I should set a daily task in Outlook to remind me. Also, I am failing horribly with my weekly tasks and I just figured out the reason. I rarely read old posts so therefore I once I post what my tasks are I am going off of memory only…just plain dumb. I am going to print them out from here on out. I’m getting stuff done, but just not the items on my list. Sticking to the list will be much more efficient for me. So my goals this week again are:

New (same) Goals for the week of July 13th:

1. Ramp up the remaining aspects of the advertising plan; flyers, post cards, business cards, news ads, etc.

2. Acquire a pre-foreclosure list from either the County Recorder or SalesTeamLive.

3. Follow-up with local Title Companies

4. Find additional Realtors to work with. I’m only working with two at the moment. I think one of them has been avoiding me since our first meeting, after she found out I was new to investing. The other seems to be out of town often. I need to not limit myself here.

5. Contact and perhaps arrange appointments to meet all of the other local investors. There is a good possibility that business can be done between us all.

6. Find out how I can legally build a birddog army. But not only birddogs who find property, but more-so birddogs who can help find property buyers. Find new lawyer to speak this over with.

7. Purchase some additional stationary for the Ad campaign.

Also, I am fighting a losing battle with this self-hosted Wordpress blog. I’m annoyed that it loads so slowly. I’ve performed various optimization procedures myself, paid for assistance, and changed through numerous themes and it seems to make little difference. I’m beginning to believe that it is my hosting server which is the issue. Their equipment meets all of the requirements. I don’t want to host the blog elsewhere or move to a wordpress.com hosted blog. Maybe this isn’t a huge issue as I believe most blog readers would RSS, at least that’s what I do. The strange thing is that the Schwaps company blog is real fast, but then again the theme is extremely simple. Oh well, I’m through with it for now as I need to focus on the more important issues.

- Justin

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Bandit Signs Part 2

July 13th, 2009