Can premium rental homes in suburban Phoenix throw off positive cash-flow at 75% of market rents?
An investor asked me that question the other day. It’s an academic problem, really, a matter of costing out typical homes to see how they perform under that scenario.
I can do that much standing on my head, but answering a question like that with a spreadsheet is not terribly satisfying. We live in a data-rich world, and I wanted for my investor to understand exactly what we were talking about. So not just the spreadsheet, but also MLS listings of typical homes. And not just the listings, but also detailed photos of those homes, with descriptions of what might be wrong with each one.
In fact, I could have answered the question any way I wanted, from tap-dancing on the telephone to an attempt to set a showing appointment. But I know from experience that the more questions I can answer in a completely credible fashion, the greater my chances of forging a long-term client relationship.
And that’s a big “Duh!” — isn’t it? How would I want to be treated if I were thinking of dropping some substantial fraction of a million dollars on investment real estate?
And this is where engenu comes in. I can shoot the spreadsheet across immediately, as an appetizer. But I’m not selling spreadsheets, I’m selling houses, so I put together a list of houses that I thought might be financially impressive. I toured each one, taking photos of everything, then came home and built an engenu web site from my findings.
I’ve been talking about engenu for nearly a year, but I’m not sure I’ve ever gotten the point all the way across. We use engenu to build our single-property web sites and to provide supporting documentation when we blog about homes for sale. We use it as a way of previewing homes for out-of-town buyers and investors, and as a way of communicating staging advice to our sellers. The language of real estate is photography, and engenu enables us to build (and rebuild) large, photo-rich web sites with minimal effort.
So: I came back to the office with my photos, sorted them into folders by home address, threw those seven folders into an encapsulating folder called “Coldwater_Springs_Bargains.” I tossed the PDF of my spreadsheet in there, too, along with a PDF file of the MLS listings. Then I uploaded everything to our file server.
From there, all I had to do was run engenu. Look at the web site I built. One master page leads to nine sub-pages. Two of those are the PDF files, but the other seven are photo slide shows. All of it is linked together into an easily-navigated hierarchy — and the pages are SEO-optimized to boot.
So how long did it take to build that site?
Less than ten minutes. It only took that long because I wrote copy and captioned some of the photos. Had I taken the structure just the way I had it built, I could have inherited the whole site in less than a second. You can see me demonstrating this kind of automated web site creation in The Way of the Farmer from last May’s BloodhoundBlog Unchained.
So what do I end up with? A very elaborate web site to answer my investor’s question, for one thing. There is no one he can talk to in Phoenix — or anywhere — who will provide this level of documentation. Moreover, I’m building my own credibility by being completely transparent about the claims I am making about rental properties in the Phoenix area.
But wait. There’s more. I now have a site that I can share with other investors. Facts are facts, and my facts are backed up with numbers, listings and photos. So, of course, I wrote a blog post about the web site. We sell a lot of rental homes, and I want to sell a lot more. This is a very effective demonstration of why investors should be putting their money into properties in suburban Phoenix — and doing it with me.
And all of this is made possible by engenu.
There are 146 photos in that site, which is not a lot by our standards. There is no way you would email 146 photos, and, even if your client received them, they would have no way of making sense of them. engenu makes it easy to communicate vast quantities of information — photos, PDFs, off-site links, YouTube videos, Google maps — while sending your client nothing but a single web-site link.
Cathleen and I built over 1,500 engenu pages in 2008. That’s in addition to blog posts or WordPress Pages. This is a permanent, highly-relevant, highly-searchable improvement to our inventory of on-line content, all done in seconds or minutes per page.
At Christmas, I pointed out that Realtors have a publishing problem. engenu is one way we have come up with of solving our publishing problem.
And what does all this have to do with you?
I’m going to teach engenu at BloodhoundBlog Unchained in Phoenix. I’ve talked about this software plenty enough, but Teri has convinced me that people won’t really get it until we go through it again and again, engenu in action, engenu in real life.
I’ll be teaching tech stuff because it’s what I’m good at, but Unchained is about breaking all of the chains that are holding you back. We’ll be doing Social Media Marketing and Search Engine Marketing, all that geek stuff. But we’ll also be covering Direct Marketing and belly-to-belly sales techniques. We’re not about weblogging or (god help me) Twittering, we’re about converting the sale.
If you want to learn how to convert more sales in the coming wired world of real estate, we’re the only game in town.
So: Commit yourself. I’ll show you how to make ten wicked-slick web pages in ten minutes, but that will be just one of the classes you’ll take with us.
Click the appropriate button below to sign up now.
CyberProfessionals: $397
Unchained Alumnus: $597
Regular Price: $697
Every session will be taught by an expert, by a working real estate professional balanced on the bleeding edge of hi-tech marketing. We’re building this curriculum for our own self-improvement, too, so we know there is simply no better investment you can make in your career this year.
We’re looking forward to seeing you in Phoenix!
Technorati Tags: arizona, arizona real estate, blogging, BloodhoundBlog Unchained, investment, phoenix, phoenix real estate, real estate, real estate marketing, real estate photography, real estate training, technology
Brian Brady says:
“We’re not about weblogging or (god help me) Twittering, we’re about converting the sale.”
Snob. We tweet a bit….but only inasmuch as it contributes to conversion
January 21, 2009 — 2:50 pm
David Shafer says:
Nice website. Very impressive to potential clients and done in a few minutes!
January 21, 2009 — 3:43 pm
John Kalinowski says:
Hi Greg! I understand the need to bring people in for Unchained, but do you plan on doing some sort of web-based tutorial to help people understand how to get started with Engenu? I think it sounds like an excellent product, and is definitely something we could use to build our single-property sites, but I’ve read through the documentation and it doesn’t seem all that easy to get started. I’m not an expert by any sense, but I’ve built my own WordPress-based website and I still can’t get my brain around getting started with Engenu. Maybe there’s just too much detailed documentation on the site, and what’s needed is a simple tutorial, possibly in video screen-shot format that shows it happening in real time (for those of us with slower minds).
Thanks! – John
January 21, 2009 — 3:58 pm
Teri Lussier says:
At the risk of sounding like an idiot (too late? 😉 )
>But I’m not selling spreadsheets, I’m selling houses, so I put together a list of houses that I thought might be financially impressive. I toured each one, taking photos of everything, then came home and built an engenu web site from my findings.
Okay, I’m bracing myself, here goes: This wasn’t a client at this point? This is someone you are going the extra mile for to prove that BHR is the only brokerage to do business with?
January 21, 2009 — 5:34 pm
Aleksandar M. Velkoski says:
Going the extra mile can never hurt you? Right?
January 21, 2009 — 6:05 pm
Cheryl Johnson says:
>>Okay, I’m bracing myself, here goes: This wasn’t a client at this point? This is someone you are going the extra mile for to prove that BHR is the only brokerage to do business with?<<
But, Teri, this is the way outstanding realtors have ~always~ done business … they always go the extra mile regardless of whether or not someone is officially a “client” …
Back in the 1970s and 1980s (when Bob and I started) it was done with photocopies and personal delivery or snail mail … and a little later OMG!! ~faxes~ … but the principal is still the same … quickly and efficiently sharing as much information as possible…
January 21, 2009 — 7:23 pm
Teri L says:
I knew that question was going to be misunderstood…
Let me say it this way:
Holy shit! What a fantastic way to go the extra mile for potential clients!!!! Why didn’t I think of that!?! *This* is why I love BHB!! I’m always learning new ways to place myself beyond competition!
Yeah. That’s probably closer to what I was trying to say… 🙂
January 21, 2009 — 7:38 pm
Greg Swann says:
> I still can’t get my brain around getting started with Engenu. Maybe there’s just too much detailed documentation on the site, and what’s needed is a simple tutorial, possibly in video screen-shot format that shows it happening in real time (for those of us with slower minds).
This is my reason for wanting to teach it at Unchained, to figure out what I’m not getting about other people not getting the software, if that makes sense. We’ve been building pages and sites for clients since 2002, building more and more robust software solutions year-by-year. It could be that what I need to do, at the outset, is to teach the idea of thinking engenu, thinking about using web sites of slide shows to communicate real estate ideas to clients.
January 21, 2009 — 9:23 pm
Greg Swann says:
> This wasn’t a client at this point? This is someone you are going the extra mile for to prove that BHR is the only brokerage to do business with?
Precisely. FWIW, I tend to weigh these preliminary efforts against the information the prospect has provided. Give me a first name and a phone number, I’ll probably start with just a phone call to make sure you’re serious. This investor told me everything, which told me first that he’s a serious man, and second that he had read all the investment stuff on our web site. In other words, he is mine to lose. If I deliver the goods, we’ll do two or more houses together, plus, possibly also a ton of referral business. By working this way, I can get our relationship off to a good start, plus I can create content that will attract other investors.
Incidentally, while I was out there, I also took pictures of the pool under construction for one of my other clients, an out-of-town buyer who bought a getaway home on the golf course. Her engenu site is 67 pages, 137 megabytes, but she will be a sneezer for me until the day she dies.
January 21, 2009 — 9:50 pm
Teri L says:
>I tend to weigh these preliminary efforts against the information the prospect has provided. Give me a first name and a phone number, I’ll probably start with just a phone call to make sure you’re serious.
Thanks, Greg. The reason I’m asking is because I’m using our broker’s lead generating system, and trying to find ways to make that critical connection with a potential client quickly and strongly. I can now see that engenu could be used to cement a relationship with someone who might be browsing on a few sites.
I’m definitely going to give it a try and see what happens- at the worst I’ll have more breadcrumbs out there, at best:
>but she will be a sneezer for me until the day she dies.
Beautiful!
January 22, 2009 — 6:14 am
Cheryl Johnson says:
Re Engenu
I really have no business speaking up, since my engenu experience is pretty limited, but here goes…
Seems to me the essential engenu idea is that you can take a collection of documents, links, and images; upload them all in one swoop; then use engenu to organize that rag-tag collection into a coherent web site.
Where people stumble, maybe, is because engenu started life as a slide show generator, and they get stuck on that figuring out function??
January 22, 2009 — 6:28 am
John Kalinowski says:
Greg- OK, I’m going to try and jump in this weekend and set up a new site using Engenu. I’d like to start hosting my own non-branded virtual tours that are MLS compliant, and my plan is to use Engenu to create a very generic site that will allow me to crank out these “tours” quickly for our agents (minus the cheesy background music!). I’ll let you know what happens. Thanks!
January 22, 2009 — 7:04 am
Greg Swann says:
> I’d like to start hosting my own non-branded virtual tours that are MLS compliant, and my plan is to use Engenu to create a very generic site that will allow me to crank out these “tours” quickly for our agents
Good on ya. We use engenu to set up an unbranded version of the web site that we can link to from the listing, much as you are talking about here.
Here are three engenu sites we built for one listing:
1. Staging, cleaning and repair advice prior to listing.
2. The complete single-property web site.
3. An unbranded version of the single-property web site linked from our MLS system.
Oddly enough, we can host the unbranded website on our own file server provided there is no contact information in the site itself. YMMV.
The bad news is, they have to be two separate sites, so a change to one needs to be copied over to the other.
January 22, 2009 — 8:31 am
Don Reedy says:
Greg,
Wow, I am extremely excited to have engenu rolled out to all of us who “know the product is powerful”, but need that direct belly-to-belly training that only you can provide. If only this ONE tool becomes a part of our marketing expertise from attending Unchained, then (voila), slam dunk on the value of our time together.
I suspect that Brian and the others will bring their own “Duhs” to us as well………
January 22, 2009 — 9:46 am
Travis says:
In reference to the PROPERTY AND INVESTOR DATA SUMMARY, how do you estimate the maintenance costs? Are you using a formula, real life experience, or some other factor to determine costs of $600?
January 22, 2009 — 6:08 pm
Greg Swann says:
> how do you estimate the maintenance costs? Are you using a formula, real life experience, or some other factor to determine costs of $600?
Home warranty. If you escrowed that amount every year, it might be cheaper. Either way, on average, normal wear and tear should not run to much on homes like this, in this climate. I’m not even accounting for repairs that can charged against tenant deposits.
The third figure in that column is the HOA dues.
January 22, 2009 — 7:42 pm
J Boyer Morristown NJ says:
ok ok, I need to sell some more houses so that I can come to unchained.
January 22, 2009 — 8:50 pm