Hemet, CA

I remember receiving the text message on my TREO 700P, the day after Christmas…I received the first of 3 REO assignments in a 24-hour period. I guess the wait until after Christmas mentality was kicking in and it was time to clean off some desks and get those files moving before the end of the year.

The first one came in for the city of Perris, about 20 miles due west of Hemet, just an easy drive down the Ramona Expressway. I contacted my contractor and let him know that I was on my way to do an occupancy check, and to expect my call within the next 30 minutes, as I was expecting to make quick work of this simple task.

Well, I showed up in the neighborhood of 20-year old small homes on very small lots. The streets are narrow and it seems as if there is not enough curb space for the cars that belong on this block. Cars were parked so close on the street; it almost felt like an urban area where there are lots of apartments – but that is not the case here – all homes. Simple homes with some loud colors that boasted of a proud Hispanic culture.

I arrived at the subject property in the middle of the block – all brightly decorated from the Christmas holiday that had just passed the day before. In the front yard, behind colorful wrought iron fence protecting the home, I was three young girls and their mother with a small foosball table in the yard – obviously a family Christmas gift. I don’t think I’ll ever forget how much fun they were having…and how I would come to ruin their day in just a few moments.

Here I am in my black Mercury Sedan, stepping out wearing my new black leather blazer that I had gotten for Christmas, feeling like a “sharp dressed man” (as ZZ Top sings about). I know now, that I must have been a scary sight to those young girls as I turned the moms laughter into rage and tears as I explained to her, with the help of her eldest, acting as an interpreter, that they no longer owned the home and that they would have to move out.

I was very humbled by the experience, wishing I could find a rock to climb under. I left my paperwork and business card and asked to have the father contact me, as he is the only name on the deed.

Unfortunately, this poor woman was in denial. She did not share the news with her husband until the New Year. Dad showed up at my office on January 2^nd, with his daughter explaining in great detail the anguish of his wife and a very sad story that the family has had to endure over the past year.

Because so much time had already lapsed, and the lender had already started the eviction process, there really was very little I could do. I was able to raise the cash-for-keys allowance of $500 to $1,000 – but either way, I needed him and his family out by the 10^th, with the home ‘broom clean’.

On the 9^th, I called and checked to make sure he was on tract. He let me know that the family was gone and that he was working very hard cleaning the place up for me – to meet my standards that I had gone over with him at my conference table, in my office.

Today I called to confirm that the check had arrived by overnight courier – only to discover that his cell phone had been disconnected. So, I made arrangements with my contractor to meet me at the property at 3:00 to change the locks out and let me take my needed photographs – hoping to find the displaced homeowner there so I cold give him his thousand dollars.

Fortunately, the last truckload of debris from the yard was just being loaded into the back of his Toyota pick-up truck. He took a break and walked me through the home. It really was very nice. Nice ceramic tile throughout – new kitchen cabinets – freshly painted walls. All in all the home appeared to be very well cared for and definitely showed the pride that 10 years of ownership provided. If it wasn’t for the lure of easy money and pie-in-the-sky refinancing, this tragic tale would never have unfolded.

As I am taking my pictures, I realize there in no cooking range or microwave exhaust system. I question and he admits that he took it with him. He was very proud of the new appliances as they were less than a year old. I explained that he had to bring them back. I explain the best I can about “real property” and how the home came with a oven and it needs one now. He corrected me and told me he bought the property from the bank and it had nothing in the kitchen when he moved in.

I tried making a few phone calls, looking for an exception, or some sort of authority telling me what had to happen – relieving me of my burden. Sometimes, I just hate voice mail and sometimes I just hate this gift that God has apparently given to me – making me a compassionate soul. It would be just so much easier if I could just be a jerk when I wanted to…but no, I have to feel his pain and the pain of his family comes right back to me, visualizing his daughters and his wife playing foosball the day after Christmas.

So, I try and figure out what I can do…what WE can do…what does God want me to do? I ask him if he can come up with an old unit somewhere - maybe a used appliance store in the area and go buy one for $50 or $100 bucks?

He tells me he has the one from his new rental that he pulled out for his own newer better model – it is sitting under a tarp at his new rental house. Bam, problem solved. He drove over to the new home, loaded it up and within a half hour we were all done.

What was nice, he brought his oldest daughter back with him to help. She is actually 17 years old, graduating from high school this year, turning 18 in July and will probably join the U.S. Army as an MP, right out of high school. She is currently a Captain in the Jr. ROTC at her school and an Honor Roll student. I felt so proud of her.

We talked a bit bout the future and then dad asked me if I could help him get into another house in about 6 months, after he can save some money. He knows his credit is shot, but the loan was only in his name and not his wife’s – so he believes he has a way back into the housing market, as soon as he is ready…and you know what, if he is serious about working with me, I’ll get him that house, by God!

So please remember, as you go from REO to REO listing, that you are walking in the tear stained footsteps of an American tragedy.

Now Have a Blessed Day,

John Occhi, REALTOR®
Century 21 Crest - CrestREO
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473

Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner.

This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® with Century 21 Crest and the CrestREO Division who is proud t

As a Hemet, CA REALTOR® that accepts REO assignments I have learned that there is much more than taking a listing and selling it.

REO Listings require an extensive amount of time administrating the various tasks that must be accomplished in a timely manner. If I were not able to systematize my business and surround myself with talented individuals, I would no doubt have already failed as an REO agent.

REO Listings also require an extensive cash reserve. At the REO Team at Mission Grove Realty we will not only advance the costs for the utilities, we go so far as to advance all of the costs associated with the Property Preservation of the REO Property. We have learned that an average of $1,000 cash reserve must be available for each REO assigned to us for liquidation. Most of our Asset Manager clients are comfortable with our 45-day billing cycle.

The first step in every REO assignment is to verify the occupancy of the property - has the former owner / tenant moved out already? If they have not, then I must make contact and initiate a "Cash for Keys" program, within the guidelines of the lender I am working for.

Assuming for the sake of this article, the property is vacant - I immediately go into a pre-marketing phase, which includes the Property Preservation. The services offered by the REO Team at Mission Grove are many.

On Site- Property Preservation. Most services are completed in three days or less and always include before and after pictures of everything that is done. Typically we process many more pictures than are required to be submitted. All of our pictures are always available on-line for our clients easy access, in addition to the submission through our clients proprietary web interface.

The Property Preservation Division of the REO Team at Mission Grove Realty offers its services either a la carte or as a single monthly fee preservation package price. Every relationship with our clients is unique and we strive to build a unique program that will best meet the individual needs of our clients - so please just contact us for details.

Locksmith: We will re-key the front door or every door that provides access to the living space. We will install padlocks on all gates and will insure that garage doors are secure. Typically, we change all locks to a pre-set lock code, making it convenient for our clients to gain access. We utilize state-of-the-art combo lockboxes, also preset to industry standards. All of our padlocks are also typically keyed to the same key code.

Trash Out / Debris Removal: Our crew will clean-up trash and remove debris for safety, compliance, and appearance from both the interior and exterior of the property. We will provide before pictures, allowing our clients to determine for themselves that what is being taken to the dump is actually trash and not personal belongings that need to be inventoried and stored according to California law.

Janitorial Services: Our crew will provide cleaning services that will leave the floors broom clean and the carpets vacuumed. Floors will all be mopped and all sinks, toilets and bathtubs/showers will be clean.

Winterization / Plumbing: Winterization is typically not required in the mild climate of South West Riverside County or throughout most of the Inland Empire. However, if an assignment is ever in an area that does require the service or our client would rather be safe than sorry then we can provide either wet or dry winterization service, according to local code. This service will help prevent weather-related damage to home and the plumbing system.

Of course, if there are even any plumbing issues - our plumber will be there to take care of the problem.

Lawn Care Services: We will provide both an initial lawn care service as well as maintain the landscape. Most clients agree that service twice a month is more than sufficient at maintaining the curb appeal necessary to sell the asset for the most amount of money. Services include mowing, removal of clippings, and trimming of shrubbery.

Swimming Pool Maintenance: South West Riverside County and the Inland Empire region of Southern California has more than it's share of Swimming Pools. When we have an REO property with a pool, we will start the operation of the pool, starting the filtration system. On instruction from our clients, we will drain, clean, and refill the pool as necessary. Of course we will keep the pool clean by adding chemicals weekly and provide a weekly pool service, if requested.

Lockouts / Evictions: Never a pleasant aspect of this job, but we will provide a crew to assist the local sheriff with the removal of personal property in accordance with local laws and the client's written instructions. We have access to local attorney that specialize in the eviction process and can act as the go-between for our clients, if requested.

Repair & Remodeling: Many times a lender just wants to sell a home "as is" with all of its faults. Other times the Asset Manager will recognize that a minimal investment in renovation will handsomely pay off at the closing table.

A licensed and insured California General Contractor performs all client-approved work. All work is performed according to client-approved proposals and local building codes.

Boarding / Securing: Many times a home is either left with broken windows or vandalism occurs that requires windows and doors to be boarded up. Our Property Preservation specialists will board up your properties and secure them in accordance with HUD specifications, local code, and the client's requests.

Toxic Mold: - When a home is suspected of having a mold problem, we have the resources to contract with a local vendor that can provide a certified mold inspection, testing, and remediation services. Our local vendor is a certified Industrial Hygienists.

If you have the need to assign an REO property to the REO Team at Mission Grove Realty, then be comforted to know that not only are we marketing geniuses that will sell your home in less time than the average days on market, with a quicker escrow time than average, and know that your account will be professionally administered by our in-house team, but you will know that we will take care of all of your property preservation needs as well.

Now Have a Blessed Day,

John Occhi, REALTOR®
Century 21 Crest - CrestREO
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473

Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner.

This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® with Century 21 Crest and the CrestREO Division who is proud t

It seems as if I am keeping up with a newly established "New Year Tradition" or analyzing data from the MLS to get an understanding of where the market has been, where it is today so that I can do my best to stay ahead of the curve in order to best serve my real estate clients - whether they be first time home buyers, sellers, investors or someone who is in trouble with their mortgage.

As I dig deeper into the data, I will be releasing information that I find interesting. As of this point, I have downloaded both the SoCalMLS as well as the MRMLS. The data that I have downloaded is strictly for residential listings. I am not considering land sales, multi-unit sales or mobile homes that are listed in the MOBILE results.

The SoCalMLS is the MLS that is used by the local Hemet San Jacinto Association of REALTORS® (HSJAOR). Although it is the 2^nd largest MLS in the Country and dominates much of the State of California, it only services a relatively small portion of the Inland Empire. Most of South West Riverside County is serviced by the Multi-Regional MLS (MRMLS).

Of course, both MLS's look at the same data in completely different ways. My biggest challenge so far has been ‘mapping' the data so that I could create my own spreadsheet that will be able to analyze all of the data as one set - drawing conclusions based on the entire market and not just a segment serviced by only one MLS - as I had done in the past.

My first task was to scrub my combined list of multiple entries for the same property. This is because listing agents may belong to both MLS's and enter their properties on both MLS's as unique entries.

What I discovered is that there are a total of 1,048 ACTIVE LISTINGS currently on the market, as of 3:00 a.m. January 1, 2008 in Hemet CA. I scrubbed 214 duplicate entries 0r 20.8%.

Of the 1048 ACTIVE LISTINGS - 544 of them are listed exclusively on the MRMLS. Add the 214 I scrubbed and you have a market penetration of the secondary MLS in the market of 758 ACTIVE LISTINGS, representing 72% of our market in Hemet.

This leaves only 504 ACTIVE LISTINGS in the SoCalMLS or 48% of the ACTIVE LISTINGS in the Hemet real estate market. If there are 214 listings that have been scrubbed, matching SoCalMLS listings, this means only 290 ACTIVE LISTINGS are being marketed exclusively in the local MLS or just barely 27% market share in our own market.

Fortunately, both MLS's do share data in a very simple format, known as the Alliance MLS - combining minimal amounts of information to help an agent find property for sale or comps when accessing a property value. I just think it is a shame that there is more activity in our market from agents outside our market then the agents who live here and work here every day.

ZIP CODE BREAK DOWN

Hemet is divided into 3 zip codes. 92543 is the central portion of Hemet. 92544 is the East side of Hemet and includes a large unincorporated land base and a substantial proportion of the population. 92455 is the West side of Hemet - mostly in the City of Hemet city limits, but there are some portions of the zip code that have rural land that is unincorporated.

Typically speaking the 92543 zip code has much of the older structures - most of which are a bit smaller. 92545 has most of the new construction and most of the new retail centers and the newer schools. This area is the closest to the freeway and all of the various commuter routes out of the valley. 92544 is considered by many who have lived here for any period of time to be the best part of Hemet. The schools rank higher. The homes may be a bit older, but here you will find many custom or semi-custom homes. Lot sizes are larger and it is just a quieter lifestyle.

In looking at the current data, the ACTIVE LISTINGS are broken down as follows, by Zip Code:

92543 - 173
92544 - 407
92545 - 468

Now lets look at the MEDIUM PRICE (this means the price that is in the middle of all of the listings so the medium Price for 11 different items would be #6 if you arranged them in price sequence from the lowest to the highest) for each Zip Code:

92543 - $199,900
92544 - $275,000
92545 - $275,900

The PRICE RANGE in each zip code unfolds as follows:

92543- From $35,000 to $795,000
92544 - From $94,900 to $2,500,000
92545 - From $72,900 to $1,149,000

And the AVERAGE PRICE for each Zip Code reveals:

92543 - $226,967
92544 - $325,236
92545 - $286,003

As of New Years Day, 2008 the average time on market is getting longer and longer. Let's take a look at how each zip code stands:

92543 - 103.7 DOM
92544 - 121.3 DOM
92545 - 103.7 DOM

I already mentioned that the homes in the center of town tend to be a bit older - lets take a look at when each area developed:

MEDIUM YEAR BUILT

92543 - 1970
92544 - 1983
92545 - 2001

The AVERAGE YEAR BUILT looks a bit different:

92543 - 1969
92544 - 1980
92545 - 1996

Perhaps one of the most important aspects of buying a home in Hemet, CA is considering how large the actual home is...or how much living space it has. Let's now look at the SQUARE FOOTAGE of homes in each of the zip codes:

MEDIUM SQUARE FOOTAGE

92543 - 1250
92544 - 1637
92545 - 1872

And the AVERAGE SQUARE FOOTAGE of homes for sale in each Hemet zip code looks like the following:

92543 - 1348
92544 - 1748
92545 - 1877

The BEDROOM & BATHROOM count is always a very important factor to consider when comparing homes. So lets take a look and see if there are any substantial differences by zip code in Hemet, CA.

The AVERAGE BEDROOM & BATHROOM count is as follows:

92543 - 2.6 Bedrooms & 1.9 Bathrooms
92544 - 3.2 Bedrooms & 2.1 Bathrooms
92545 - 3.2 Bedrooms & 2.3 Bathrooms

Hemet is not a community that typically has a lot of homes with Home Owners Associations or dues that must be paid monthly - but there are some. First we'll look to see how many ACTIVE LISTINGS will require the new homeowner to contribute to their HOA, then we'll look at the AVERAGE CONTRIBUTATION.

HOME OWNER ASSOCIATIONS

92543 - 40 Homes of 173 Active Listings have an HOA
92544 - 16 Homes of 407 Active Listings have an HOA
92545 - 176 Homes of 468 Active Listings have an HOA

AVERAGE MONTHLY HOA CONTRIBITATION

92543 - $122 monthly
92544 - $127 monthly
92545 - $93 monthly

The LOT SIZE is another very important factor to consider when shopping to buy a home in Hemet. You must know what is important to you - low maintenance or a big yard for a pool or other family recreation. Unfortunately, not all of the listings have accurate data to analyze as far as lot size, so I've just used what I have - adjusting all of my numbers accordingly. I have also excluded all parcels over an acre - as the purpose is to determine what size lot you'll find when looking at typical home sites and ao couple of 10 acres spreads can really through the numbers off completely.

AVERAGE LOT SIZE

92543 - 140 Properties Considered - Average Lot Size = 7,708 Square Feet
92544 - 325 Properties Considered - Average Lot Size = 10,544 Square Feet
92545 - 369 Properties Considered - Average Lot Size = 6,565 Square Feet

Well, this should cover all of the basic questions you could have about the Hemet Real Estate market, giving you the opportunity to see exactly what is available for sale today.

I have the rest of each MLS downloaded and will spend time crunching those numbers as well and when I am done with the snapshot of 2007, I'll start to compare to the data I had collected for 2006.

Until then, if you have a specific question about the Hemet Real Estate Market, p[lease don't hesitate to contact me directly and I'll be more than happy to help you get the answer you need.

Have a Safe and Prosperous New Year,

John Occhi, REALTOR®
Century 21 Crest - CrestREO
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473

Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner.

This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® with Century 21 Crest and the CrestREO Division who is proud t

When considering the purchase of aHemet home that has been foreclosed on by the lender (REO property - or Real Estate Owned), you should know going into the transaction that there will be some sweat equity that you will have to put into the property if it is going to be a worthwhile endeavor.

By sweat equity, I am referring to the fact that as a bare bones minimum, you are going to have to paint and probably deal with the flooring - one way or another. What I would like to address in this series of articles is some tips on minimizing the costs of rehabbing a property perhaps most importantly keeping the job as simple as possible.

This first article in the series will be on painting tips - since 99.9% of the REO homes I have seen for sale in Hemet are going to require some sort of painting to make the house a move-in ready home for either your family or that of your net tenant - if this is an investment property.

First you must educate yourself on the different types of paint that are on the market. Each type of paint has it's own specific use for a specific surface. You will need to learn about water-based paints as well as oil-based paints. Then there are the acrylics and primers and even more specialized paints for different types of projects. I won't spend time here going through each - talk to a knowledgeable paint salesman at either your local paint store or hardware store.

HINT: Before you start painting or using any sort of glue, I would recommend using a ordinary anti-static dryer sheet on your hands. When it comes time to wash up, you will get your hands cleaner a lot quicker!

Every paint job requires prep work - perhaps the most difficult and time consuming aspect of a paint job - unless you have trouble staying on the intended surface you are suppose to be painting, like I often do... Lets start with caulking.

CAULKING

If you ever watch a home improvement show, the pro's make it look so easy - trust me, it's not. At least it's not easy until you practice and perfect what you will be doing. I strongly suggest you get a tube of the cheapest caulk they have and practice on scraps of wood - places that will not matter at all.

The best advice I can give on actual technique is you need to learn how to push the bead forward and pull back on it at the same time. Remember that every caulk is different, so be sure to follow the instructions printed on the can.

As you practice, use your finger or better yet a plastic spoon to shape the bead.

HINT: You will come across some difficult to reach spots that your regular caulk gun will never reach or is just very difficult to use. When you run across this situation, use a 20CC plastic syringe as your mini-caulk gun.

Types & Uses for Different Caulking

Acrylic Latex - Perhaps the most common caulk for interior jobs. This is commonly used on counters and around sinks and tubs. It is relatively easy to use and inexpensive. Depending on the abuse the caulk takes; this should last indoors from 3 to 10 years.

Butyl Rubber - This is a very durable exterior caulk that should last in even the most extreme weather conditions for 10 years. You need to be careful when using this, as it is very difficult to clean up.

Siliconized Acrylic - This caulk is relatively easy to use and clean up. Even better, it will last for 20 to 30 years. It is, however, on the pricey side. Just remember, you get what you pay for in life.

Urethane Foam - This is not your traditional caulk, as it is dispensed from an aerosol can. It is very useful for filing hard to reach areas. When dispensed, it expands into foam that cures solid. This is a great product for filing in around electrical junction boxes and new windows, when they are installed. This is a pricey product and a single can does not go very far - so prepare yourself.

Well, this will give you some idea of the prep work that goes into painting. In the next article, I'll discuss some of the equipment - from the basics to the heavy-duty stuff the pros use.

Blessings to all who read this,

John Occhi, REALTOR®
Century 21 Crest - CrestREO
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473

Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner.

This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions.

I am proud to be a full time REALTOR® with Century 21 Crest and the CrestREO Division who is proud to be a contributing member of the ActiveRain community.

The holidays are here and many REALTORS® are in slow down mode, spending valuable time with family and loved ones. Rightfully so, this time is well deserved and priceless as memories are created.

However, in order to survive the Hemet, CA Real Estate market that we are in, that by everyone's expectations will only get worse in 2008 we have to figure out what we are going to do to survive. I'm sure, I'm not the only one who receives emails soliciting my services to get into some other venture - using my REALTOR® skills and resources. Well, if it's OK, I'm going to stick with this wonderful industry we call Real Estate.

I will be doing things a bit differently though. This is the time to plan and figure out just what you can do and what you will do for the next year, so once all of the memory-making holidays are over, you can hit the pavement with both feet on the ground running.

I believe the key to success in this market is to keep doing what got you here - assuming you have a system for it. If you are working EXPIREDS or FSBOS and you have a system in place - then by all means keep plugging away. The same is for any other system.

I am going to implement a new system for first time homebuyers. My lenders don't know it yet, but I will be looking to them to foot part of the bill for this endeavor.

My New Niche - and What I plan to Do

RENTERS- That's right, nothing new...but new for me. Yes I have done business with renters in the past, but I have never targeted them as a group. 2008 will be different. I should point out that in my market, most of my qualified renters are currently renting single-family homes. We do have a number of duplexes and four-plex's in the market - but those rents are usually very low and in many cases are subsidized with Section-8 funds. We have very few actual apartment complexes - but there are a few and the rents tend to be a bit higher there. The main focus though, the renter in the single-family residence.

Step 1 - Identify my market. To do this, I will be working hand-in-hand with my Title rep to identify the criteria to identify a list of properties that are non-owner occupied. (If they are not owner-occupied, then chances are they are inhabited by renters - my target).

In order to kick-start the program and keeping it manageable and affordable to start, I will be looking for 500 properties to market to. I will want to keep the prospect list as close together geographically as possible, because at some point during the year, I will knock on every door at least once.

Step 2 - Load into my Database for easy management. Because Title will give me my information in an electronic form, downloading will be rather simple, once I get it figured out.

Step 3 - Start Marketing. It does not take a lot of genius to figure out that for a plan to work, it has to be put in play. Isn't there a law of physics that talks about motion and energy and how one creates the other? I think a guy named Einstein was made famous with this theory. So, having a plan is the easy part - implementing it is what matters. This is what I am looking at - again, allowing myself room to adjust as needed.

January - Send out initial Postcard with a picture of a typical newer home in my market (hopefully, one of my own REO listings). On the back I will have the necessary financial information that includes the monthly payment (and all disclosures) with a headline that might read: "You can OWN this home for only $1500 a Month!" I'll then direct them to call a toll free number to find out more details. Of course, the toll free number will be a call-capture system for easy follow-up by both the lender and myself.

February - Time to get intense. The January mailing will have scrubbed the list for bad addresses and such. Now it is time to get serious, since 40% of all tenants end up moving in the spring. Here I will do a series of 3 postcards, spread out evenly throughout the month. I'm still playing with ideas for the headlines, but one may be, "Where will You Leave When Your Lease is Up?" and another I am playing with will be something like, "Isn't it Time You started Paying for Your Own Home, and Not Your Landlords Retirement?"

March - Hold First time homebuyer seminar in a neutral location. This is not to sell any particular home or loan program. It will be a short and sweet 1-hour to 90-minute presentation - TOPS! Since this is TAX SEASON, a great topic would be the tax advantages of homeownership followed up by mistakes first-time homebuyers make in the shopping and buying process. To announce this, I will send out a postcard, with the call-capture toll free number for registration and information as well as running a small ad in a number of local weekly publications we have in our market (The Valley Chronicle, Easy Ad & The Penny Saver)

April - Time for another postcard. Here I can use a headline that offers a suggestion like, "Whatever You Do, Don't Renew Your Lease Until We've Had a Chance to Talk". I'm thinking instead of showcasing a particular property that I might showcase a wealthy real estate investor - perhaps an icon like Donald Trump and tell a bit of his story on the back of the card. End with a call to action for more information.

May - Switch up the marketing. Now, instead of showcasing a SFR, highlight a local Condo (we do have a few nice complexes in the valley). Not everyone wants to move into a home with a yard and maintenance. There are those that thrive in a tighter community with amenities.

June - Here I am going to talk about the benefits of working with a REALTOR® and his team when shopping for a home. I'll send out a postcard with a group photo with as many local vendors as I can muster together for a shot in front of my office with a headline along the lines of, "Did You Know...When You Buy a Home You Don't Pay Your REALTOR® or his team a Dime!" Having a group photo, I can charge the vendors for participation and marketing and remain RESPA compliant.

July - Here I will repeat the steps taken in February; sending out a series of 3 postcards with different headlines since about 30% of all tenants move in the fall. For this campaign, I'll again work on the financial side with a headline that might read, "What You Will Pay in Move-In Costs in a new Rental Might Allow You to Own a Home Instead!"

August - Again, I will repeat what I did in a previous month - looking back to January, I'll create a new postcard with a similar headline and message.

September - Following in the footsteps of March, it will be time to hold yet another first-time buyers seminar with marketing campaign similar to the one held earlier in the year - always willing to make adjustments as necessary.

October - Again follow the footsteps of April, creating a new story on a new icon with a different call to action

November - There is not much activity in November, but it is important to stay in front of the market, so I will probably send out a holiday greeting with a very subtle message.

December - Like November, there is not much going on, but a simple holiday card would be a nice way to stay in front of the prospects and their family. Here, instead of a postcard, I may hand address actual Christmas Cards - with no business message, what so ever.

STEP 4 - Gather Data. I already mentioned that I would be knocking on every door at least once. While I am in the field, I will take digital pictures of every home in my database. This will allow for some custom marketing pieces.

STEP 5 - Market to Investor / Absentee Landlords. I also plan on sending a mail piece to each of the property owners at least once a quarter. Imagine the impact of a property owner receiving an envelope with a picture of their investment property printed on the envelop, with a tile reading, "Have You Seen Your Investment Property Lately?" Yes, this will be a bit labor intensive to get going, but once the database has been created it is there and can be used for many different functions. So, if an out of town investor is looking to either buy more Hemet CA properties or wants to sell the one they have, hopefully, I will be the one that stands out form the crowd - proving that I am an effective marketer.

As far as my marketing choice, I have chosen postcards because they are the least labor intensive and the message will be seen by everyone who goes through the mail (including the mailman).

There are 3 different size postcards - a "standard" would be the 4" by 5". These should be avoided, as they too easily get lost in the shuffle. Rather select a card that is larger than most of the mail the prospect will read. The 5" x 7" is a good size. If budget allows, step up to the 8" x 10".

If you can keep all of your mailings into a single zip code, you may consider bulk postage to save money. However, when doing direct mail, I am an advocate of using designer stamps and putting them on the card myself. Sooner or later, you will be in a home and a 10 year old kid will come and thank you for all of the pretty stamps you have sent that they have collected - and looked forward to every month.

Aside from being to corporate, bulk mail will typically take up to 10 days to be delivered - even if you drop it off at your local post office. Usually, it has to go somewhere else to be processed and returned.

I have been debating with myself, as I develop this niche, and have decided that none of the marketing is about me. Yes, I will do a piece on my team, but the focus is the value of the team and the fact that we get paid from the seller and not the homebuyer.

Staying focused on the message that appeals to first-time homebuyers in Hemet, CA will build my credibility. The whole idea is to generate phone calls because they like and trust what I have provided them with, because in the process, I am establishing myself as the expert

So, go ahead now...identify your own niche market and figure out a plan to implement so you have something going on next year. I believe that every niche if designed and implemented properly can generate 1 or 2 good solid transactions a month. Yes, it may take time to get that, but it will happen. A well document system for servicing your niche is the true value of your business - not the book of business you have done in the past. So document your system and build your business.

Until Next Time, Have a Blessed Day,

John Occhi, Hemet CA REALTOR®

Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner please call (951-443-6259) for your free copy.

This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.

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