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Volume 1, Edition 3

The real Deal 101 is a huge success!

On Saturday June 17, NHREIA held it’s first beginner’s seminar at the Radisson in Manchester. Approximately 22 members showed up to learn beginner investing techniques as presented by NHREA President Bert Cox and long time NHREIA member and seasoned investor Jack Lavoie. Both Bert and Jack stated that the single most important item to consider in a real estate deal is your EXIT STRATEGIES. Some discussion was had regarding creative financing. And both Bert and Jack encouraged people to put together a Power Team that will help to keep all the T’s crossed and I’s dotted. The feedback from the guests was very positive

and we look forward to doing this presentation again in the future. Essay contest! NHREIA is sponsoring our second annual Essay Contest. A weekend Bootcamp with a Real Estate guru will be awarded to the winner of the contest. Contestants describe their passion for real estate investing in 1000 words or less. The Deadline for entries is the July 14th . The winner will be announced at the August meeting! E-mail your essays to Bernadette at dette101@adelphia.net or to one of the Board members It doesn't matter if you've been in the biz just a short time or for many years. There's

nothing better than going to a quality bootcamp where you can learn the ins and outs of some aspect of real estate investing from a true master. You get to learn from their mistakes, so you don't have to make them. If you have been with us for a while, you know that we had TWO winners last year even though the Board was to choose only one. We just got down to the last two people after hours of reading all the essays and knew we had two winners on our hands. This year, that could be you!! The winner will have their bootcamp paid for! That is a wonderful thing, believe me. Some bootcamps can cost as much as $5,000, so it's a big savings. Good Luck everyone!

July 2006 NHREIA is dedicated to education and networking for Real Estate Investors in New Hampshire

THE REAL DEAL Produced by the New Hampshire Real Estate Investor’s Association (NHREIA)

Visit www.NHREIA.com

In this issue: Upcoming Speaker Schedule A Message from President Bert Cox CAP Rates by Treasurer Ann Bellamy Confessions of a Networking Madman by Chairman of the Board Richard Dale-Mesaros Frequently Asked Short Sale Questions/Short Sale Secrets By Dwan Bent-Twyford On the Financial Front by Secretary Melanie Maxham Irresistible Advertising by Administrator Bernadette Trafton

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NHREIA is dedicated to education and networking for Real Estate Investors in New Hampshire and throughout New England. The Board of NHREIA welcomes all questions and suggestions:

Bert Cox, Founder and President - 603-225-0097 Bert@BertCox.com

Rick Arguien, Vice President - 603-647-6112 Bullseyeproperties@comcast.net

Richard Dale Mesaros, Chairman of the Board – 603-536-3864

riskit@worldpath.net

Ann Bellamy, Treasurer - 603-801-2247 annbellamy@gmail.com

Melanie Maxham, Secretary - 603-859-8776 melanie.maxham@americanhm.com

Bernadette Trafton, Administrative Services - 603-834-4587

dette101@adelphia.net

Meetings: 2nd Wednesday of each month, Center of NH Radisson (603-625-1000), Manchester, NH; 6:30 PM

Please visit www.NHREIA.com for details.

NHREIA SPEAKER SCHEDULE August 9, 2006 - “Failing Forward – What NOT to Do!” We always hear the stories about how much money everyone has made on that “sweet deal”. Join us for an evening reporting mistakes that have been made and a veritable tell-tale of “WHAT NOT TO DO” September 13, 2006 - Dave Lindahl – Becoming a Multi-Millionaire In Five Years Or Less… David Lindahl has rehabbed over 521 houses in just under 9 years and owns over 1100 apartment units. Starting out as a struggling landscaper with no experience in construction, Dave accepted an opportunity to renovate a foreclosed house for a local bank during the wintertime when there was no landscaping to do in Boston. The job was completed mostly with the advice of relatives and friends who knew how to do the work. After completing the first house, he did another and then (after getting over his initial fears) began to buy and hold small apartment buildings for himself. To get the money for down payments (he originally used credit cards until they ran out!), Dave would rehab single family houses to “flip” for chunks of money, so he could buy more apartment buildings. With in the first 14 months, Dave’s apartment buildings created a positive cash flow of over $10,300 a month for him and his family and with in three and one half years Dave became a multi-millionaire. Today, Dave has earned millions of dollars renovating houses for resale, and owns over 1100 apartment units with a monthly cash flow equaling what most people make in a year! This is a DO NOT MISS Event! October 11, 2006 - Bill Twyford and Dwan Bent-Twyford, “The Queen of Foreclosures” More information coming soon November 8, 2006 - Jeff Therrian – Student Rentals

YOUR AD

COULD BE

HERE! Contact Bernadette at 603-863-6568 or

via e-mail at dette101@adelphia.net

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Hello Fellow Investors, Times continue to change. To quickly recap some of the issues highlighted at our last meeting: according to the National Association of REALTORS®, inventory of single family homes in the Northeast, is up 47% from the same time last year, prices are about flat, and foreclosures are nearly double last year’s (Registry Review). So what does this mean to investors? First, let’s answer the question that if inventory is up, is it because sales are down or because more people suddenly decided to sell their homes. In Merrimack County, year-to-date “solds” of single-family homes are about 10.3% below last year’s levels (606 this year vs. 676 through June 15, 2005) according to NNEREN MLS data. Hillsborough County was off about 13% (1471 this year vs. 1694 last year). In other words, the data suggests slightly reduced demand and a significant increase in supply. So what does this mean for real estate investors? It means several things. First, double digit appreciation won’t bail us out of our mistakes anymore. Maybe we should even factor in 3-5%

depreciation in retail value if we have to hold for 6 months. Speculation and preconstruction are in dire straits. Second, holding times may be higher. Average time on market is up, so add extra holding expenses, higher marketing costs, extra exit strategies, and work harder to have the value of your property stand out. It’s also a great time to “Buy and Hold” because nothing beats owning real estate for the long term. And if the number of buyers goes down, then the number of renters goes up. Third, your property is not the “market”. Some individual stocks go up in a “down” or bearish stock market, and some stocks go bust in an “up” stock market. Real estate is just the same due to location, demographics, social segmentation (first time home buyer special vs. vacation property) market segmentation (singles, multi’s, condo’s, commercial, development, etc.) and management. Value-added improvements will never go out of style. Didn’t some houses lose value even when the market was booming? So yes, some properties will appreciate even if the “market” is flat. Make sure yours do. Finally,

opportunities are more plentiful than ever for creative investors. It’s easier to get seller concessions because sellers are willing to be more creative, offer more favorable terms, and are becoming more motivated. If it’s tougher to sell, it’s easier to buy. Special thanks go out to Jack Lavoie and Bernadette Trafton for helping make the Real Deal 101 Intro to Real Estate Investing another success for the Association. Please let the board know what topics you’d like to see covered in the future. Choices include short sales, finding the deal, qualifying buyers, property management/land lording, round robin auctions, networking, or anything else that involves real estate. Happy Investing! Sincerely, Bert Cox President, NHREIA Bert@BertCox.com www.1house.com

President’s Message, Bert Cox, President NHREIA

Need to Fix and

Sell a house?

WE CAN HELP!

CALL Jay Cote at 603.247.4015

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CAP Rates By Ann Bellamy

NHREIA Treasurer

Capitalization Rates are used by appraisers, lenders and investors as a tool in evaluating income producing real estate. To over-simplify a little bit, the Cap Rate is an expression of the return you would get if you paid cash for a property. No financing is taken into effect in this calculation.

Capitalization formula: I = Net Operating Income, R = Rate, V = Value Income = Rate X Value (I=R X V) Value = Income/Rate (V= I/R) Rate = Income/Value (R = I/V)

Net Operating Income (NOI) or “ I “ in the formulas above, is derived by taking

♦ Gross Income (monthly rental income x 12) ♦ Less vacancy (depends on the location and the state of the market) and credit losses (like bounced checks) ♦ Plus other income (like late fees) ♦ Less Operating Expenses (both fixed and variable including property management fees and capital reserve for future capital

expenditures)

Sample Operating Statement:

A 250 unit apartment building complex with rent schedule of $450 per month per unit is selling for 11,100,000 (V for value)

Potential gross income: 250 x $450 x 12 months = $1,350,000 Less vacancy and credit losses (6%) -81,000 Plus other income +25,000 Gross effective income $1,294,000

Less expenses Fixed expenses: Property insurance $24,500 Property taxes $95,300 Licenses & permits $ 1,200 $ 121,000

Operating expenses: Maintenance 106,000 Utilities 103,200 Supplies 16,000 Advertising 7,500 Legal & Accounting 15,000 Wages & Salaries 90,000 Property Management 64,700 $ 402,000

Replacement Reserve: $25,000 $ 25,000

Total Expenses ($548,000)

Net Operating Income (I for Income) $ 745,600

For the above Operating Statement the Income and Value has been given. Now find the rate.

R = Income/Value Rate = $745,600/$11,100,000 R = 6.7 %

Once you have come up with a cap rate, the next step is to determine whether that cap rate fits with your overall buying strategy, and whether you can obtain financing for your purchase. If you are purchasing a commercial property (5 units and up is generally considered to be commercial), the local portfolio lenders can tell you what cap rate they want to see before considering financing your deal. In general,

High Risk = High Capitalization Rate = Low Value Low Risk = Low Capitalization Rate = High Value

Cap Rates are just ONE of several tools used in evaluating a purchase. And market cap rates can also be used to set a selling price. Once you have an NOI, you can apply the current market cap rate to determine the value. Cap rates are set by market conditions – the lower the cap rate, the higher the price.

Ann Bellamy annbellamy@gmail.com www.RehabList.com

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Boy, when it comes to real estate investing, a huge amount of our time is devoted to talking to people - on the phone, in person, to our realtors, buyers, sellers; the list goes on. Next time you finish up a conversation, ask yourself "Did I really make the best use of that interaction?" What I'm getting at here is for you to figure out all the ways other people might be able to help you out by sharing some of the contacts they have in their network. For example, when a potential tenant calls regarding one of your rentals and they decide it's not suitable for them, don't just put the phone down without asking them if they know of anyone else who might be interested in your unit; just this question alone can be worth its weight in gold, if they are able to refer you to a new tenant. Don't stop there, either. Ask if their current landlord would perhaps consider selling their building to you and on the flipside of that, maybe their landlord is looking to acquire more buildings for his portfolio and you could be that provider! Wow, this is easy! And hey, does this person know of anyone with a house they need to sell or someone else with a real estate dilemma requiring your creative solutions? Another thought is to

see if they should be added to your list of potential tenant/buyers. Can you see how you can very quickly expand your business by asking a few extra questions? So what about when someone calls you with a house they have for sale? If you aren't able to come to an agreement, DON"T HANG UP! You've got another living, breathing source of business here! Do they have any other properties for sale? Who else do they know, with property to sell? Is this someone who needs to refinance whom you could pass onto your financing team? I think you're starting to get the picture. I love to walk into a building and ask the owner if they'd be open to the possibility of selling. Quite often the answer might be no and that would be the end of the conversation, HOWEVER, now it's time to switch gears and say" Well, if you're not interested in

selling THIS property, do you have any others you might sell?", or "Are you looking to acquire more buildings, and if so, what are you looking for?" All of a sudden you've turned a dead end into a window of opportunity. Start to analyze each performance and you'll get better and better. Don't forget buyers, either. They're not interested in buying your building? Well, what are they looking for - maybe you can help them find it. Do they know of anyone else who would be interested in this particular property, or can they think of an acquaintance who might want to sell a property to you? Networking is all about expanding your web of contacts and this is done through the time you spend with other people and your ability to actively encourage them to introduce you to their contacts. Do this on a daily basis and always keep in the back of your mind: "What can I do to reciprocate? You'll be amazed at the results! Best wishes, Richard Dale-Mesaros Breakthrough Properties, www.re-nh.com riskit@worldpath.net

Handyman Special Buy a Fixer-Upper

List your Rehab to sell – for FREE! Single family or Multi’s

MAXIMIZE YOUR DAILY INTERACTIONS

By Richard Dale-Mesaros NHREIA Chairman of the Board

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When

investors find out I specialize in short sales, they always have so many questions. Here are the answers to some of the most common. Hopefully, these answers will give you a better understanding of a short sale and how to do one.

WHY DO THE BANKS

SHORT SALE? *The mortgage is in arrears or foreclosure. *The property is in poor condition. *The homeowner has hardships and cannot afford the payments. *New homes in the area are being chosen over existing homes. *The area or neighborhood has depreciated in value. *The bank’s shareholders are concerned when there are too many defaulting loans on the books. *Some banks are required to prove a loss each month… let’s help them out. *Some banks are required to have an amount equal to or up to six times the retail value of each REO “on hand” – ouch, that hurts. *An REO is a liability, not asset. Too many liabilities will cause any business to go under if not dealt with quickly.

CAN I SHORT SALE A

NICE PROPERTY? Absolutely! As you can see, banks short sale for many reasons other than the poor condition of the property.

WHAT STEPS DO I TAKE

TO COMPLETE A SUCCESSFUL SHORT

SALE?

Find a property owner in distress.

Put a deal together with the homeowner.

Have the homeowner sign an authorization to release form.

Fill out a sales contract for the amount you want to offer the bank and have the homeowner sign it.

Call the Loss Mitigation department at the bank.

Fax them your offer along with the following: a. Your cover

letter explaining why you can’t offer full price.

b. The sales contract.

c. Justifying comps of the area.

d. Pictures, if you have them.

e. A net sheet or closing

statement (a sheet that

shows the bank exactly how much they will net after closing costs, taxes, etc. are paid).

f. A hardship letter from the homeowner that mentions the dreaded word…. bankruptcy.

g. Estimated list and cost of repairs, using retail repair prices that the normal homeowner would pay for these items.

WHAT HAPPENS TO THE HOMEOWNERS CREDIT?

When you negotiate a successful short sale, keep in mind that the agreed upon price is payment in full. However, the homeowners may still owe the difference between the mortgage balance and the discounted amount via a “deficiency judgment.” If granted, this judgment will affect the homeowners and their credit report just as any other judgment. You must get the bank to agree to accept “payment in full without pursuit of any deficiency judgment.” In addition, you need to explain to the homeowners that the discounted amount (the difference between the mortgage balance and the short sale) may be declared as income on their income tax return by means of a “1099.” The homeowners can speak with their accountant for advice. Since the homeowners have been in such duress and probably haven’t made

This Month’s “HOT” Investor Tip

Frequently Asked Short Sale Questions By Dwan Bent-Twyford

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much income, a 1099 may not adversely affect them. I hope this sheds some light on short sales. As you know, nine out of ten deals have no equity. To be successful in this business, trends call for you to be a short sale expert. Check out my website www.theartoftheshortsale.com Short Sale Secrets By Dwan Bent-Twyford www.1234closures.com Anyone actively investing in foreclosed and distressed properties has no doubt come across one major problem… Finding deals with equity! Trust me, this is a nationwide problem. There are so many foreclosures out there; unfortunately most of the homeowners owe what their property is worth. I find that most investors walk away from deals with no equity. They either don’t know what to do with a no-equity deal or they are unwilling to put forth the effort necessary to make the deal work.

In situations like this, I SHORT SALE the mortgage. “What is a short sale?” You ask. To short sale a mortgage means getting the bank to accept less than is what is owed as payment in full. There are several steps that will ensure your success when short selling mortgages. First of all, you must have the homeowner under control. Many investors are under the misconception that they can buy the property directly from the bank while it is in the foreclosure process. Not true! The bank does not own the property until the moment of the courthouse sale. You can buy the mortgage and finish the foreclosure process, but you cannot buy the property. You’ll have to work hand-in-hand with the homeowner if you plan to short sale mortgages. Here is how it works: A homeowner calls you and tells you he is in foreclosure; owes $95,000 on his property; it’s worth $100,000 and he is 8 months in arrears. He wants

to move on with his life but can’t sell his house because he owes what it is worth. Here is where you come to the rescue. You meet with the homeowner and have him sign an “Authorization to Release” form (this gives the bank permission to speak with you about the account) and a sales contract for the amount you are willing to pay for his property. In this scenario I am going to offer $50,000. Next, you call the bank and ask for the Loss Mitigation Department. This is the department that handles properties that are in foreclosure. Tell the person handling the account that you are trying to help Mr. Smith with his foreclosure and you are willing to buy the property from him. However, due to it’s poor condition you are only willing to pay $50,000 as payment in full. Fax the sales contract for $50,000; comps in the area; an extensive list of repairs that are needed to bring the property up to marketable condition; a net sheet (a title company will help you with this); and some really bad pictures. The bank will then review the information and make a decision. Let’s say they counter at $65,000; you counter again at $55,000; they accept! It’s that simple! I short sale many, many mortgages every year. Banks are not in the business of (Continued page 8)

A real estate prodigy shows how you can quit the 9-to-5 routine and become a millionaire -- in just two years! A few years ago, Matthew Martinez was a lot like you - he worked hard to make as big a salary as he could. But it wasn't enough. He worked by the clock and yearned to be his own boss. With a small amount of savings, he acquired his first rental property. Two years later, he was making more from his rentals than he was working 9 to 5, so he quit his day job to manage his rental investments. Today, he enjoys a multimillion-dollar collection of income-producing properties - and he's ready to share his money-making strategies so you can begin your own journey to career and financial independence. Investing in rental properties is one of the most reliable ways to achieve financial independence, and tens of thousands of Americans are jumping into the market every year. In 2 Years to a Million in Real Estate, Matthew Martinez explains his program for locating the best rental properties, managing tenants, and creating a plan for exiting your day job. Using his advice and strategies, you’ll be able to achieve millionaire financial independence within two years. "Matthew A. Martinez is a tycoon in the making." -- CNN

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owning properties. They would rather short sale a mortgage than go to the courthouse steps. I’d like to share an incredible deal one of my Foreclosure Fortune Hunt graduates put together. Her name is Cathi Dubois. Cathi was helping some friends find a home in which they would live. They came across a property valued at $200,000 in a distress situation. The property had a mortgage of approximately $197,000 and was in need of several thousand dollars of repairs. Based on the fact that the current owner owed what the property was worth Cathi did what any prudent investor would do, she did a successful short sale. She contacted the bank and began the process. Her first offer was $50,000. The bank laughed and told her to make a higher offer. After several phone calls, the bank agreed to accept $130,000 as payment in full. That is a $67,000 short sale!! With the new payoff of $130,000, she then wholesaled the property to her friends for $140,000 and made a smooth $10,000 in less than a week!!! Personally, I think she gave the property away too cheap (smile). This is a typical case where having a firm grasp on creative real estate enabled Cathi to turn a “nothing deal” into a “something deal” just by picking up the

phone. She made money (and a lot of it) on a deal most investors would have passed by. The bank was happy with the short sale, Cathi made $10,000, and her friends bought a home with $60,000 equity! So… the next time you get a call from a distressed homeowner with no equity, what will you do? Walk away or make a few simple calls and turn your time into cash? I certainly hope you will make the small effort it takes to short sale the mortgage. It is

such an easy way to make money in an industry where great deals are tough to come by. When you short sale a mortgage, not only are you helping yourself; you are helping a very distressed homeowner and giving them the chance to start over. One can never go wrong when win/win is the solution. Look for more from Dwan Twyford in October, when NHREIA presents Dwan and Bill Twyford in our Fall educational seminar!

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Mortgage rates are going up. To quote an article I found on CBC: “The U.S. Federal Reserve did what was widely expected as it boosted a key rate by one-quarter of a percentage point Thursday, June 29th, 2006. The federal funds rate — what banks charge each other for overnight loans — now stands at 5.25 per cent. The increase was the 17th since the Fed began pushing up rates in June 2004.…” in an effort to reduce inflation.

Americans have been made very aware of mortgage rates by the media since early 2002. There are ads on the television, in the newspapers, on the radio, in magazines, on billboards, I’m surprised we haven’t seen sky writing on the coast line this summer.

For those who are new to the industry, when the feds raise the rate the banks can charge each other for overnight loans, this action in turn, affects ALL short term rates, CD’s, savings account and checking account rates, adjustable rate mortgages, home equity loans (max 15 years) and home equity lines (HELOC’s). It doesn’t necessarily affect the long term rates as quickly. That’s not to say they’re not affected at all. The lowest 30 year fixed rate I’ve seen on a conventional loan, with no points was 5.375%. Right now we’re looking at 6.875% (that’s pretty much across the nation keeping it simple). We’re talking only a 1.5% difference!

But the feds have raised the federal fund rate by .25, 17 times in a row. I’ll do the math: .25 x 17 = 4.25%. Here we are with the federal funds rate at 4.25 higher than the lowest low. Since the fed funds rate is at 5.25 then the lowest low must have been 1%. Can you believe that! Our fed funds rates were at 1%!!

These are some serious golden years. You will not see that again. Okay, back to the gobbledygook… Since the jobs data came in low, indicating slower economic growth, inflation is less likely which in turn makes the next Fed rate hike less likely in the short term (so Treasuries will continue to sit pretty for the investor). However, the economy hasn’t slowed down that much and inflation is still a concern. Typically, the feds have ended a long series of rate hikes with a half a point hike to kind of Seal the Deal.

I heard a few weeks ago that the financial forecasters are having a tough time interpreting the ambiguous verbiage and body language of Dr. Ben Bernanke, the Federal Reserve Chairman who replaced our beloved Alan Greenspan.

Then I read: Fed's Course Seen as Top Concern for U.S. Economy Wall Street Journal (07/05/06) P. A1; Whitehouse, Mark I’ll summarize; 12 of 56 financial forecasters were quoted spouting

off that Greenspan ignored rising home prices when he dropped rates like a hot potato. ? These bright gems are citing that the Feds under Greenspan’s “regime” made a “monetary-policy mistake” which led to the single biggest current threat to health of our economy. Oh Pshaw. No one gets more mud than the person who’s no longer in charge. Personally, I think they’re buttering Bernanke up. Greenspan was a tough act to follow and by the time he was out, the forecasters knew exactly what it meant when he raised his left eyebrow and tugged his right ear. When it comes to investing - you need to know: “does it cash flow?”. The rate you pay on the money you borrow from a bank is far less than what you would pay a hard money lender. No ones likes to “owe money” but its worth it when you play your cards right. Eventually, every investor’s dream, I’m sure is to have everything paid off. Research, review, respect. Research your concern and find a good advisor, review your options with your advisors, and respect the person you choose to advise you. We may not all agree on the head honcho to govern the country but you can interview as many mortgage brokers and bankers you want until you find someone who “gets” your situation and can cater to your needs. Resources: http://www.cbc.ca/story/business/national/2006/06/29/fedreserve-interest.html June 29th

http://www.ebmortgage.com/marketframes.htm http://www.mortgagebankers.org/mbanewslink/issues/2006/07/05.asp http://www.washingtonpost.com/wp-dyn/content/article/2006/06/28/AR2006062801334.html :Fed's Course Seen as Top Concern for U.S. Economy Wall Street Journal (07/05/06) P. A1; Whitehouse, Mark

On the Financial Front By Melanie Maxham, NHREIA Secretary

Melanie is a Senior Loan Officer dedicated to providing comprehensive mortgage solutions to her community,

national investors and previous customers with a high degree of trust, knowledge, respect and convenience.

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Move Forward. Faster...

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Members and Advertisers Support your Organization!

Take out an ad or give this to your favorite vendor. Ads must be submitted via clean master copy or “camera ready”. E-mail your ads to dette101@adelphia.net

(.jpeg or .gif format). Call Bernadette at 603-863-6568 for payment options.

NHREIA Advertising and Sponsor Options: Newsletter Advertising Alone: Discounts Available Business Card $ 25.00 per insertion 10 % per 2 insertions ¼ page $ 60.00 per insertion 20 % per 4 insertions ½ page $100.00 per insertion Full Page $175.00 per insertion Sponsoring Opportunities: Standard Sponsor *- Flyer insertion in membership packet for the year $300.00 Premium Sponsor *– Flyer insertion in membership packet for the year And business card size ad in each issue of quarterly newsletter $375.00 Premium Plus Sponsor *– Flyer insertion in membership packet for the year and ¼ page ad in each issue of quarterly newsletter and vendor table to $500.00 set up marketing material at monthly meetings. *Flyers must be mailed to Bernadette Trafton at PO Box 196, Sunapee, NH 03782 or hand delivered at a monthly meeting to be inserted in membership packages.

Sign me up! Name/Company________________________________ Tel ____________________ Address________________________________________________________________ Fax/E-mail______________________________________________________________ Ad Size/Description ______________________________________________________ E-mail orders to Bernadette at dette101@adelphia.net Newsletter ads $___________ Call Bernadette at 603-863-6568 with questions. Sponsor Package $___________ Make checks payable to NHREIA Minus discounts - $___________ Mail orders to: Bernadette Trafton Total $___________ PO Box 196 Sunapee, NH 03782

NHREIA 816 Elm St.

Manchester, NH 03101 www.NHREIA.com

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816 Elm St. #157 Manchester, NH 03101 www.NHREIA.com

IRR

ESISTAB

LE AD

VERTISIN

G

By B

ernadette Trafton, NH

RE

IA B

oard Assistant

1.

Believe in your product! A

dvertise with a guarantee. B

e comm

itted to your m

arketing, it shows that you believe in your product.

2. A

dvertise relentlessly. If you don’t keep people aware of your

business, they won’t know

who you are. A

nd, once you start, DO

N”T

STOP!

3. U

se advertising to create direct sales for your business. 4.

Track your advertising to better focus future ads. If the Concord

monitor brings you an 18%

return of people interested in your business, w

hile a SmartA

dvertiser brings 3%, you’ll know

to focus m

ore ads with the M

onitor. 5.

Continue to create products and ideas. Satisfied custom

ers will be

your gold mine.

6. R

emain optim

istic. Don’t believe anything can stop you.

7. Print A

dvertising (these will apply to

a. O

pen letter – looks like a letter begins “Dear …

……

”, it’s like a postcard, is personal and reads like a very personal letter from

the ow

ner of a business, it tends to get read. For example,

“Dear Prospective H

ome Buyers,…

..” b.

Advertorial - O

ne of your friends writes a raving review

of your business – advertisem

ent/editorial – making your ad look

like news. H

eadline should still get attention, the body copy should generate interest and desire and the bottom

should give the inform

ation to contact you to. c.

Classic D

.R. – Text book, direct response ad. Illicit a reply

from your target audience. Y

ou want people to buy, call or

visit you as a direct response to your ad. Typically there is a bold headline at the top of the ad, an eye-catching illustration to left of headline or in the m

iddle. Long body copy, broken up w

ith sub-heads for easy reading and testimonials in italics so

they are easy to find, a guarantee set in a box, and a coupon or toll free num

ber at the bottom right hand of the page insisting

on imm

ediate response.