Today I want to demystify what social networking entails and how you can use it to your business’s advantage.

Social media, web 2.0, social networking. These terms are mentioned in just about everything business owners read and hear, but the majority still don’t completely understand what the buzz is about. Yes, keeping up with emerging trends can seem daunting, but social media is one trend business owners need to keep on their radar.

Basically, there are two aspects of social media. The first aspect encompasses things like blogs, podcasts and videocasts, which many businesses have readily adopted. The other, more social aspect includes applications like MySpace, YouTube and Twitter.

Using the social side of social media to market your business can be tricky. Recently MySpace has gotten a bit of unfavorable attention from the media because of sexual predators taking advantage of the site. And while YouTube has become a favorite way to share videos online, you can never be sure as to what kind of video the service will show after yours plays. Some of them may be highly inappropriate for your audience.

So, as a business owner, how do you determine which sites to target, how to approach them and what returns to expect? Here are some nuggets for you to keep in mind as you consider leveraging social media in your own company.

Examine your target market. Are you marketing to finance types or Gen Y’ers? The more social aspects of social media may not be the best place to find and communicate with your audience if you want to do business with stock brokers. Yet if you’re marketing to a more casual customer, social media may be just the carpet ride your business needs.

Focus on the return and the investment. Because social media has garnered so much attention, many have gotten caught up in the hype of stories about businesses seemingly going from zero to 60 overnight. As a result, some companies have become much more focused on their return than their investment. Figure out well in advance what you’re willing to invest to get the return you want.

Set and measure your digital yardsticks. As the saying goes, “If you don’t know where you’re going, any road will take you there.” Establish some basic goals for metrics that you’ll monitor regularly. If you’re starting a MySpace page, set a goal for how many friends you want to have within a certain period of time.

Contribute to the social network–don’t just market to it. I suggest you first listen to the community and understand what the issues and who the influences are. Don’t just try to push your wares.

Protect your brand. The sad truth about the more social aspects of social media is that there are some not-so-savory characters that’ll be using the same medium to get their message across. Examine where you’ll be placing your brand and what types of companies are going to be sharing that space with you.

Social media can have a positive impact on your business, if done right. You already understand the importance of networking; now it’s time to take it online.

All the best,
Mark Jackson (MJ)

As we take a look at the last tip for finding the right REO,  I want to be sure that you have already researched the real estate comps in the areas you are interested in.  Now that that is done lets look at the types of properties to look for.  They should be pre-approved bank short sales.

You are looking for a bank sale that was approved but has fallen through for some reason. The bank has a price it is ready to  accept and you just need to make the offer. These are the sales that close the fastest and with the least amount of red tape.

Another good way to speed up the sale and make sure you get the house is to offer to buy the house “as is”.  Once you do get an approval on a property, be prepared to do your inspection quickly and respond to seller disclosures. Typically you only get 10 days to complete and remove any contingencies. Have an appraiser and inspector selected and ready to go on short notice.

For prime “move in ready” properties in good locations, there are often multiple offers. You need to be prepared to pay a price over the asking price. The more cash you can bring to the table, the better your chance of getting the house. If there are no other offers on the home, be prepared for the bank to reject your first offer and make a counter offer.  A larger “short sale specialist” agency with a lot of agents and lots of contacts with banks may be able to negotiate directly and speed up the process.

Finding and purchasing a distressed, bank owned home is a challenge. However, if you are prepared, have your financing in place, and are working with professionals who know the short sale and bank owned property environment in your region, you have a much better chance of getting a great property at an incredible price.

Let’s stay in the vein of finding the right REO property in the current markets. Real estate comps are the best way to price your property competitively once you finish rehabbing.  A question that I hear alot is why do REO homes and Short Sales take so long to close escrow?  The main reason that REO homes and Short Sales take so long is the amount of loans that are being processed by the banks and loan servicing companies. Each asset manager is handling a workload in excess of 200 files at all times.  Each file is a complex financial puzzle and no two files are the same.

Short Sales are definitely the new preferred method of dealing with loss mitigation by lenders. But there is currently no conforming method to contract with the banks. While most banks want the same information from the seller, each bank has their own way that they want it presented.  If the short sale package is either incomplete or sent in the wrong order, this delays the process not only for that file but the other 200 plus files behind it.

Knowing the basics about these two types of real estate properties will assist you as you navigate the maze of current listings currently on the market.  Take time to gain experience with each and learn which works better for your business.  Tomorrow I will be talking about our last piece of the puzzle,  the actual closing process.

Everyone know that a great way to make money as a real estate investor is with an REO purchase.  Fortunately current real estate comps list a surplus of REO properties.  How you go about buying one is simply a matter of following a few easy steps.  Finding the right location, closing on a property, and the closing process.

Find the Right Location – Even though you are looking for great deal, real estate, as always, is all about location. Don’t be seduced by a great price into living in an area where there is not a good resale status. One of the first keys to finding a good bank owned home is to select the area that is thriving. Right now, there are bank owned homes in every community. Maybe not as many in some areas as others, but there are bank owned homes in every city.  The next step is to be open to broadening the area you have selected.  By expanding the circumference of your target area, you exponentially increase the amount of bank owned homes to select from.  If being in a certain school district is your number one concern, check the boundaries of the district and allow a search of homes in the entire area.

These few tips will be beneficial in selecting a good area for an investment.  Stay tuned for tomorrow’s post and I will be discussing closing on REO properties and the best strategies for making that happen.

Whenever you are thinking about buying real estate, you must look at recently sold local comparables, or real estate comps, when deciding what to offer on a property.

Certain areas are beginning to rebound, slowly and we are seeing multiple offers on the nicest properties in the most desirable areas.  And they are priced 40% – 50% what they were in 2006.  To stay ahead of the trend you must do your research in areas, so you will be prepared to give a competitive offer when something is listed in your area of interest.

Keeping your mind focused on real estate comps and working in excellence will surely catapult you and your business to the front of the playing field.  Remember,  being prepared is 99% of any business deal!