crazy thomas rent-to-own training video #2 - marketing your rto business

Sieze the opportunityMake the World your Osyster

FREE Rent-to-own Training #2Marketing of Your RTO Business

CRAZY THOMAS

Lease Option Specialist

Who am I?

• Crazy Thomas• Thomas Wong• Your rent-to-own

specialist• A real estate

investor with a process improvement background

• Have done over 30 rent-to-own projects in the last few years

What did we cover so far?

• In our first video, we covered– The basics of RTO– What is rent-to-own/Lease Option?– Why RTO is good for tenant and

investor?– What are the risks of RTO?– The basics of making money with RTO

projects

The Rent-to-Own Process

What do you need for a Rent-to-Own project?

• To put a Rent-to-Own Project together, you need:–A qualified Rent-to-Own tenant

–A good property

–Investor or investors to buy the property

The “Bag of Tricks” of Crazy Thomas

• Where & how to get Rent-to-Own Tenant?

• Where to find investors?

Where & How to get Rent-to-Own Tenant

• Advertising: Kijiji, classified ad, signs, landing page/squeeze pages– Tips for Kijiji ads:

• Pictures• Be specific about a property• Drive them to take actions (call NOW)

• Referral, Referral, Referral– Current tenant– Potential tenant– Real Estate agent, Mortgage agent– Hair dresser– Tim Horton, Country Style…

Basics of Your Marketing Efforts

• Expose your services to many people

• Attract the attention

• Drive them to take actions– Call or email you– Leave their contact information (sign-up

form on landing page/squeeze page)

Expected Conversion Rate

• 100-10-1 (100 people see your information, 10 people contact you, 1 resulted project)

• A good Kijiji ad can expect about 300 people looking at it in 3 days

How to convince a potential tenant to work with our RTO program? (The first encounter)

• Focus on establishing a rapport with the client• Clarify their understanding of Rent-to-Own• Gather as much information about them as possible

– Current family situation– Current rental situation– Family gross annual income– Type of houses that they want– How much can they afford (monthly & down)

• Set their expectation (realistic expectation)• Listen carefully and aim at providing them the benefits that

they are looking for• Remember to ask for follow-up contact information and referral

Where & How to find investors

• Who you know is important; Who knows you is critical

• Networking– Physically attending meeting/events– Social media – Facebook, Twitter, Linkedin– Need to show up. Need to be consistent.– Establish relationship with “Center of influence”

• Referral, Referral, Referral– Current investors– Real Estate agent, Mortgage agent– Hair dresser/cell phone story– Having lunch

What to do with potential investors?

• Be passionate with your investment strategy

• Establish rapport

• Share the stories of your project

• Tell them enough to generate interest, not enough to make decision. Decisions are for follow-up meetings

• Focus on helping them to understand

Opportunity to Participate with Crazy Thomas

• Cash investors (get 20% return per year for 1- 3 year terms)

• Mortgage partner (get >50% return per year)• RRSP 2nd Mortgage investor (get 14% interest only

return per year)• Assign contract with confirmed rent-to-own tenant

from Thomas• Ask Thomas to help you to structure your own

deals• Let Thomas mentor you on doing rent-to-own

deals

The “Bag of Tricks” of Crazy Thomas

• We still have many more tools in our “Bag of Tricks” like how to pull a RTO project together and how to run the project to ensure that we are making money at the end.

• We will cover them in the videos that you will receive next time.