At no point in the sales process of a condo hotel may the sales agent representing the developer discuss any aspect of rental income. In fact, not a single piece of information provided in connection with a condo hotel sale may emphasizes the economic or tax benefits of the rental program. This has proven to be a point of major frustration for many potential purchasers.
The laws are very clear. A developer will get into massive trouble with SEC securities laws if he promotes the "investment" nature of a condo hotel. And any sales agent who discusses a condo hotel as an investment will lose their license and will no longer be able to practice real estate.
In fact, the only statement that a sales agent can provide to a prospective purchaser is a generic statement to the effect that "ownership may include the opportunity to place your condominium in a rental arrangement."
If a condo hotel is sold as an investment and the developer wants to tout the benefits of the rental program, then the property must be registered with the SEC and every other appropriate securities regulatory agency in the United States.
So, why not sell condo hotels as a security and avoid the headaches and restrictions that developers and sales agents currently deal with? Most developers consider securities compliance as being too expensive, far too time consuming, and poorly suited to the practice of selling real estate. Additionally, they would be forced to only sell their property through registered securities brokers and salespersons. Making the matter even more difficult from a sales and marketing standpoint, the developer would be prohibited from public solicitation of customers. Additionally, any misstatements or omissions of relevant information can equate to a securities fraud.
The irony in all of this is that by forcing developers to avoid security status, the potential buyer is deprived of rental projections and occupancy rates needed to help get an understanding for potential cash flow. This makes it infinitely more difficult for the buyer to make a fully informed buying decision. It also tempts aggressive salespeople to provide the information on the side, which if ever discovered, would turn the entire real estate transaction into an illegal offering of a security and criminal penalties would follow.
Fortunately for the prospective purchaser, there is a way to get more information before they commit to such an important purchase. Many condo hotels will refer the more serious buyers to their rental management division. The rental management staff can provide potential purchasers with the rental history of comparable properties. The information obtained is often more than enough for the prospective buyer to gain enough understanding of where the property might perform from a cash flow stand point.
Thursday, October 11, 2007
Sales Letter Writing - A Simple Step-by-Step Guide for Creating a Money Making Sales Pitch
Despite the variety of new marketing methods available today, the sales letter remains one of the most effective means of delivering a powerful selling message. A well-written sales letter is simple, personal, easy-to-read, and effective.
While sales letters are something of an art form, you can write an effective sales letter by following a simple, step-by-step formula:
* Consider using a headline or “Johnson Box.” Not every sales letter will have these elements, but they are ideal for telegraphing your offer or a clear benefit statement. Just remember that they make your letter look less personal and more like advertising.
* Use an appropriate salutation. Personalization is best when you can do it. Otherwise, use a salutation that connects with the reader as closely as possible. “Dear Friend” is safe but general. “Dear Cat Lover” is more targeted and specific. If you’re mailing to a business audience, use the occupational or professional title.
* Make your first sentence short and attention-grabbing. Don’t waste time with a long windup before your pitch. Involve the reader immediately. Make a startling statement. Start an interesting story. Hit an emotional hot button. Or just state the offer and get to the point. This last approach is often the best tactic and offers the least room for error. Then the sentences that follow can expand on this first sentence to pull the reader into the body copy.
* Present your offer on page one. If you don’t give your offer in the headline or first sentence, you should put it somewhere early in the sales letter text. The better your offer, the earlier you should mention it. Be clear and specific about what your reader will get by responding.
* Make the body of the sales letter work hard. Once you’ve grabbed your reader’s attention and generated interest in your offer, follow immediately with benefits, details, word pictures, testimonials, and proofs to eliminate doubt.
* End the first page in the middle of a sentence. Whether it’s curiosity or an urge for closure, cutting a sentence in two at the bottom of a page helps encourage the reader to turn the page, finish the sentence, and keep reading. You can also use this technique on successive pages.
* Keep your copy on track. You’re not writing a novel, but your main idea should be a thread that weaves through the whole letter. At minimum, present your theme on page one and end on a similar note on the last page.
* Call for action. Quickly restate the main points of your offer and ask for the response you want clearly and directly. Restate information on involvement devices, motivators, incentives, etc. Restate the big benefit.
* Make response easy and clear. How should the reader respond? Give your toll-free number. Explain the ordering process one-two-three.
* Guarantee your offer. Assure the reader that there is no risk. State your guarantee in strong terms. This should directly follow your call to action.
* Stress urgency. Why should the reader respond now? Is it a limited-time offer? Are supplies limited? Are prices going up soon? Give a logical, sensible, and honest reason why this is the best time to respond. And be clear about what will happen if the reader does not respond. Mention the lost opportunity or the consequences.
* End the sales letter when you’re finished. Just as your letter shouldn’t have a long windup at the beginning, it shouldn’t prattle on at the end. End a letter as bluntly as it began. Often this is a quick restatement of your instructions for responding or a simple “thank you.”
* Have the right person sign your letter. Your sales letter should be signed by the highest-authority person available or by someone relevant to the reader. Ideally, the signature should be in blue ink. (Hint: Consider how the signature looks. Does it suggest confidence and believability, or is it shaky and uncertain?)
* Use your P.S. effectively. The postscript is one of the most-read parts of a sales letter. It should present an important message, a prime benefit, a restatement of the offer, a reminder of the deadline, a sweetener, or whatever you feel is most effective in this prime spot. Some call the P.S. a headline at the end of the letter. Ideally, it should be short, about one to three lines.
While sales letters are something of an art form, you can write an effective sales letter by following a simple, step-by-step formula:
* Consider using a headline or “Johnson Box.” Not every sales letter will have these elements, but they are ideal for telegraphing your offer or a clear benefit statement. Just remember that they make your letter look less personal and more like advertising.
* Use an appropriate salutation. Personalization is best when you can do it. Otherwise, use a salutation that connects with the reader as closely as possible. “Dear Friend” is safe but general. “Dear Cat Lover” is more targeted and specific. If you’re mailing to a business audience, use the occupational or professional title.
* Make your first sentence short and attention-grabbing. Don’t waste time with a long windup before your pitch. Involve the reader immediately. Make a startling statement. Start an interesting story. Hit an emotional hot button. Or just state the offer and get to the point. This last approach is often the best tactic and offers the least room for error. Then the sentences that follow can expand on this first sentence to pull the reader into the body copy.
* Present your offer on page one. If you don’t give your offer in the headline or first sentence, you should put it somewhere early in the sales letter text. The better your offer, the earlier you should mention it. Be clear and specific about what your reader will get by responding.
* Make the body of the sales letter work hard. Once you’ve grabbed your reader’s attention and generated interest in your offer, follow immediately with benefits, details, word pictures, testimonials, and proofs to eliminate doubt.
* End the first page in the middle of a sentence. Whether it’s curiosity or an urge for closure, cutting a sentence in two at the bottom of a page helps encourage the reader to turn the page, finish the sentence, and keep reading. You can also use this technique on successive pages.
* Keep your copy on track. You’re not writing a novel, but your main idea should be a thread that weaves through the whole letter. At minimum, present your theme on page one and end on a similar note on the last page.
* Call for action. Quickly restate the main points of your offer and ask for the response you want clearly and directly. Restate information on involvement devices, motivators, incentives, etc. Restate the big benefit.
* Make response easy and clear. How should the reader respond? Give your toll-free number. Explain the ordering process one-two-three.
* Guarantee your offer. Assure the reader that there is no risk. State your guarantee in strong terms. This should directly follow your call to action.
* Stress urgency. Why should the reader respond now? Is it a limited-time offer? Are supplies limited? Are prices going up soon? Give a logical, sensible, and honest reason why this is the best time to respond. And be clear about what will happen if the reader does not respond. Mention the lost opportunity or the consequences.
* End the sales letter when you’re finished. Just as your letter shouldn’t have a long windup at the beginning, it shouldn’t prattle on at the end. End a letter as bluntly as it began. Often this is a quick restatement of your instructions for responding or a simple “thank you.”
* Have the right person sign your letter. Your sales letter should be signed by the highest-authority person available or by someone relevant to the reader. Ideally, the signature should be in blue ink. (Hint: Consider how the signature looks. Does it suggest confidence and believability, or is it shaky and uncertain?)
* Use your P.S. effectively. The postscript is one of the most-read parts of a sales letter. It should present an important message, a prime benefit, a restatement of the offer, a reminder of the deadline, a sweetener, or whatever you feel is most effective in this prime spot. Some call the P.S. a headline at the end of the letter. Ideally, it should be short, about one to three lines.
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