Momentum Property Solutions — Simple Solutions to Selling Properties
Momentum Property Solutions is a house buying company in Huntsville, AL, and the surrounding areas. We give homeowners a simple solution to selling their property by purchasing it as-is without any fees. Our goal is to make the process of selling your home as quick and painless as possible. Many homeowners are faced with a stressful situation that comes from owning a house that needs repairs. They think they either have to fix it up or just let it sit. But we buy houses just like that without the owner having to make a single repair or even cleaning. We also give them a fair offer for their home without them having to pay any fees or closing costs.
Once we buy their house, we immediately renovate it. We specialize in transforming neglected, outdated houses into luxurious homes that people dream of living in. We’re so invested in making sure that the end result is fantastic that we end up doing a large portion of the work ourselves. After we’ve renovated a house, we either sell it to a new homeowner, rent it, or help someone looking to move into homeownership make their dream a reality. Our lease option program has helped multiple families become homeowners of newly renovated houses when their credit score starting the program would have prevented them from buying a house right then.
My wife Melissa and I run Momentum Property Solutions, and we started investing in real estate four years ago. We also work as mechanical engineers, but we had entrepreneurial mindsets early on. Even in engineering school, I had a dream to start a company that would allow me to help people using the knowledge I had. I just didn’t know then that it would be real estate.
The dream became a reality when one of Melissa’s co-workers left his job to run the highly successful paper company that he had started on the side. I still remember the story of when he told his boss he was quitting. He said he had to leave because “I’m losing too much money.” In the following weeks, Melissa picked his brain as much as she could about what it takes to start and run a successful business. Not long after that, I was on a work trip, and a colleague began talking to me about owning rental properties and encouraging me to get into it. I had never really thought about it, but his words inspired me. I came home and pitched the idea to Melissa, and she was all in. It turns out that she had been thinking about diving into the real estate niche as an entrepreneur but was waiting on the signal from me.
Since that time, we have completed over a dozen real estate transactions. Every deal has been a tremendous learning experience. Whether learning a new investing strategy, different home improvement skills, or communication tactics, every house has taught us many great lessons.
Even though it is tough sometimes, we love using the skills and knowledge we have developed to genuinely help people who need us. Many of the houses we have bought were complicated situations that we were able to resolve so that the homeowner could move on with their life without the trouble anymore.
Even though we love helping people and seeing immaculate houses complete, there have been challenges at every turn in our business. Our most significant challenge has likely been sourcing new houses to buy. For the first few years of our business, we relied on outdated marketing methods to bring in leads. This included direct mail, driving for dollars, cold calling, and door knocking. Although we were able to do more than a dozen deals during that time, it was always unknown where our next deal would come from. I remember multiple times when we were finishing up a project and wondering how long it would be until we got another one.
Lead generation became even more challenging with a massive influx of out-of-state investors. Since Huntsville was growing so quickly, many investors from other states saw it as an opportunity to achieve better returns than they could get in their home market. This has driven up prices significantly and made it harder for disciplined investors to compete. Even with all of these challenges, we were determined to continue to be successful. To do that, we had to develop a creative solution to our lead generation problem. Instead of doubling down on the old-school marketing methods that we had already seen dry up, we decided to do something completely new. We’ve spent the last seven months developing a website that ranks on Google and converts traffic into leads.
Building a high-ranking and converting website is not a simple process, though. Writing quality content that provides value and engages our traffic took many months. On top of that, even if you have a great website, it doesn’t matter unless people can find you. Once we had a solid foundation of a well-written website, we had to set out to gain visibility with Google, namely getting high-quality backlinks. Even though our main site is complete and our main task is now getting backlinks to increase our rankings, we are still working hard to put out quality content on our blog. Many people put generic content on their blogs, but that’s not our philosophy. We decided to generate completely unique content that provided value to our traffic. Not only will that increase our traffic, but it will also provide more opportunities for backlinks, thereby increasing our overall ranking.
Beyond our main blog, we have created two other standalone blogs. One is dedicated to documenting our projects and showing before and after pictures. The other is made to provide DIY advice. We do a lot of work ourselves on our home renovation projects, so we have a lot of hands-on experience to share.
Even though making this shift in our business has been a ton of work, we’ve already started to see it pay off. We’ve already had multiple leads come in through our website, which is a much higher conversion rate than we saw for the year before using the traditional marketing methods. We also know that our conversion rate will continue to increase as we continue to improve and jump in the Google rankings. We are incredibly excited to see where this takes our business. We’ve felt for years that we were right on the verge of breaking into a new level of success, and we are confident that our unique marketing strategy will be what gets us there. It isn’t easy to be successful as a business when you don’t know where your next lead will come from, and that’s where we’ve been for the last few years. We are excited to have a steady influx of leads from people that need to sell their houses.
What we like about having a website is that it totally changes the dynamic between our potential clients and us. Our leads now approach us and request an offer to buy their house instead of us badgering them when they are not interested in selling. This way, our clients appreciate us instead of us getting on their nerves.
Beyond the opportunity that our website is bringing, we are also excited to use new strategies for financing future deals. We bought our first property using traditional financing, which required us to put down 25% of the purchase price. We used this house as a rental, and it provided decent cash flow. However, we weren’t satisfied with having just one rental house. To replace our engineering salaries, we needed about thirty! The issue was that we had just depleted our bank account with the down payment, and we wouldn’t have that back for another couple of years. We didn’t let that keep us down, though. To keep buying properties, we developed creative financing strategies that allowed us to continue buying properties without using so much of our own money. This allowed us to buy over a dozen houses when we could only buy a couple using traditional financing.
As we see an uptick in the number of leads coming in, we are looking to further develop our financing strategies. We will soon begin bringing on private lenders, individuals with capital sitting around that is not providing them adequate returns. We are able to put that money to use to purchase houses and fund renovations, all the while providing them a great return on their investment. That allows us to help even more people – Not only homeowners who need to sell their houses but also private individuals by growing their finances.
We were hesitant to locate private lenders until this point because our lead generation was so sporadic. But with our new marketing strategy that provides a more consistent lead flow, we are excited to implement this new facet to our business. Not only will it give a great return to the lenders, but it will also allow us to buy more houses since we will have access to a greater amount of working capital. We still have a long way to go in growing our business, but we are excited to see what the future holds. Our ultimate goal is to generate leads consistently enough to transition to real estate full-time. Before we built our website, we weren’t sure when that would ever happen. But now, we are already beginning to see it.
We’ve learned from owning a business that you have to continuously adapt to remain successful. What worked last year may be irrelevant this year, and you must constantly be tracking your systems to see what is working and what isn’t. To be successful, you must be willing to do things that others are not. For example, most people would look at all of the work it takes to build a high-performing website and decide that it’s not worth it. However, that makes me more excited because that means there is even less competition. Only a few businesses are willing to put the work in, and they are the ones that will get all the leads. Anyone can buy a list and send out postcards. That doesn’t take any effort. But when you consider how many people are doing that, it’s no wonder that the conversion rate is so low.
As a business owner, I’ve also learned that you must determine what your obstacles to success are and address them head-on. In my niche, our largest obstacle has always been lead generation, and that is the case for every other investor. However, many investors spend so much time learning new buying strategies without addressing the most significant bottleneck in their business. We absolutely love what we do in our business, and we are beyond excited to see what the next year holds as we enter a new chapter.