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How Online Scams Can Hurt Your Investment Business

If your business has an online presence, you may have been exposed to a website scam called “domain slamming.” As a real estate investor, you probably don’t have the time to research and determine if these emails and notices are legitimate.  But falling for these schemes can be costly and time consuming. We’ve investigated two such ploys to help you discover the truth behind the trap.

 

Domain Registry of America

Last month we received an official-looking letter, “Domain Name Expiration Notice” which looked exactly like a bill from a company called Domain Registry of America.  As a “courtesy”, they notify us that one of our domain names is set to expire in a few months.  They firmly advise us that we must renew NOW to retain exclusive rights. They ominously warn that not renewing may result in a loss of our online identity!  Naturally they offer their best savings when we switch our domain name to their company, which is triple the price of our current registrar, GoDaddy. 

So they mislead the consumer into thinking that it is a bill.  Many small business owners may have a friend or family member managing their computer related work because they are too busy RUNNING THE BUSINESS.  Or they simply don’t remember who their domains are registered with.  So this “bill” arrives and how many people simply pay it without researching first?  I bet quite a few.

 

 

Internet Trademark Scams

This other scam will be sent via email warning you that overseas companies are trying to register your domain with names ending in .cn, .com.cn or .asia.   Here is an example:

Dear Manager:

We are a Domain Name registration service company, which is a professional Internet Domain Name Registration and dispute resolution organization in China.  On January 31th, 2010, We received HAITONG Investment company's application that they are registering the name "WEBSITE NAME" as their Internet Keyword and "WEBSITE NAME.cn", "WEBSITE NAME.com.cn", "WEBSITE NAME.asia", "WEBSITE NAME.hk" domain names etc.  It is China and ASIA and HongKong domain names.  But after auditing we found the brand name been used by your company. As the domain name registrar in China, it is our duty to notice you, so I am sending you this Email to check. According to the principle in China, your company is the owner of the trademark. In our auditing time we can keep the domain names safe for you firstly, but our audit period is limited, if you object the third party application these domain names and need to protect the brand in china and Asia by yourself, please let the responsible officer contact us as soon as possible. Thank you!

Best regards,

John

Oversea marketing manager

Tel:+86(0)21 6296 2950

Fax:+86(0)21 6296 1557

web:www.ygnetwork.cn

These companies convince you to register Chinese and other Asian domain names, which is unnecessary unless you are doing business overseas.  The goal here is to force you to buy all those domain names at an inflated price.  This is spam and should be ignored.

If you ever receive anything regarding your domain name or hosting that you didn’t request or don’t understand, contact your provider and ask questions.  Many are taking it a step further and filing a complaint with the Federal Trade Commission.  You can use the online complaint form at http://www.ftc.gov/.

How to Grow Your Real Estate Investment Business with YouTube

We post videos on YouTube regularly to showcase our new wholesale and rehab properties.  It’s a great tool and offers investors a first glimpse of the entire property, warts and all.  But YouTube is not without its problems. Fortunately, it was just announced they are seeking feedback on site upgrades and design.   If you are an avid Youtube user like we are, don’t miss the opportunity to voice your thoughts directly to the source. And if you’re not using YouTube yet to advertise your properties to other investors – here’s how you can get started today:

1. Buy an inexpensive video camera.  We love the FlipMino
2. Create a YouTube account.  It's free and easy.
3. Film your video. You don’t need to be Martin Scorcese here. Keep it simple and within 3-8 minutes.
4. Upload onto YouTube.
5. Fill in the description and include a link to your website.
6. Email a link to the video to all your investor friends.

Do you use YouTube for work or fun?  Leave a comment about what you love or hate about YouTube.  And check out our latest video of a Woodbury three bedroom split level we just purchased last week.

 

 

Triplex for Sale in National Park

We reduced the price of our triplex at 5 North Grove in National Park.  This deal is a real money maker bringing in $1700/mo positive cash flow.  Each unit is separately metered and has its own heater and water heater.  The two 2 bedroom units are in rent ready condition. The 3 bedroom unit needs minor cosmetic work to rent.  Also needs a new roof.  Visit our website at http://www.sjideals.com for additional pictures or click here to view the video.  Call us directly at 856-979-3484 for lockbox information.

 

 

• Purchase Price: $125,900
• Rehab: $12,000
• Taxes: $6,666
• Rents: $1,100/900/900/mo.
• 20% down: $27,500
• Mortgage Amount: $110,400
• PIT - 30 yrs @ 6.25%: $1,200/mo.
• Positive cash flow: $ 1,700/mo.

The Right Way to Pre-Qualify Seller Leads

Hopefully you are using solid marketing techniques like online ads, bandit signs and letters or postcards to solicit motivated sellers.  But what happens when these homeowners get you on the phone?  Building a rapport with the prospective seller is of the utmost importance when screening leads.  These are real people with real problems and understanding the root of their phone call to you is crucial.

 

During the conversation you may be trying to work out the numbers in your head.  Obviously the numbers are important.  But always remember there’s a person behind those numbers.  Uncover the story and show some compassion.  This will help you determine the real situation as to why they are selling and also learn their level of motivation. 

 

I’ve found the most productive phone calls happen is when I really listen, don’t make them wait for answers and understand that every situation is different.  Attached is a Lead Form we use to help us gather information from prospects.  Feel free to download it and use it to pre-qualify your leads.  Leave a comment about your experiences working with sellers.

 

Download Lead Questionaire Sheet

Wholesaling on the Radio

Did you catch Dave and I on the radio last week? We were invited to our local NJ station, wnjc 1360AM on the Allamby on Real Estate Live Show.  We gave an in-depth analysis of the wholesale process, from identifying hot deals to processing and closing them quickly. 

You can listen to the entire show below:

Download Pat and Dave on Radio

Or watch the highlights video here.

 

 

High Points:

• Skills you need today to get into wholesaling

• Marketing to sellers

• Building a buyers list

• Why reading Steven King books can help you in real estate

Low Points:

• Driving and video-taping myself simultaneously

• Unsolicited callers insulting our good-looks

Thanks again to our good friend Andy Smith who was brave enough to invite us to the show.