Real Estate Investing as well as Marketing
Despite whether you’re after short sales or unsightly houses, making money in real estate investing starts with leads. Unless you’re just uploading outlaw indicators as well as waiting on the phone to ring, you must have implemented some screening procedure to get the very best feasible leads touchdown on your desk (or getting in touch with the phone).
The much better you do at setting up your screening, the more time you’ll have, the much less trash calls you’ll field (which can be uncomfortable whether you’re doing it, or footing the bill to have it done), and also the even more you’ll only be collaborating with possible deals – the dream of all investor.
THE RULE: All leads are not equivalent, and all telephone calls are not leads.
A successful advertising campaign is not one that creates a ton of call. That’s simply a ton of job. The job is various than business. You’ll discover in your real estate investing that some advertising and marketing projects, like the yellow letter (yellow letters are explained below), will generate massive action rates, however likewise huge varieties of unqualified phone calls.
Advertising and marketing in the real estate investing globe aren’t just about reaction prices. We have a special product which only attracts a little portion of sellers. We don’t wish to speak to EVERY seller, just the ideal ones. Fortunately is that you can tweak the message of high reaction pieces like the yellow letter to give precisely what we want …
OUR GOAL: To obtain as lots of non-deals to filter THEMSELVES out before we ever need to speak with them. Good marketing will certainly enable individuals who do not certify to do the first screening for you.
QUICK SIDENOTE TO NEWBIE INVESTORS: Don’t hesitate to shed leads … they just lead if they want AND able to do organisation with us. If, however, you want to take every last contact us to deal with your abilities talking to sellers … no problem … that’s perfectly ALRIGHT … simply intend on repairing your screening when you’re prepared to concentrate on deals.
If you’re marketing to a demographic group (a bunch of individuals sharing some characteristic, like having ended listings or notices of default on their mortgages), you are starting the testing process by selecting what kind of sellers (this benefits buyer also) you wish to market to.
From there, your marketing message (which can include the “item” your sending, like a postcard, or the message you use on a taped message or your squeeze web pages *) requires to consist of language to both better the possibility along if they certify, and to allow the non-deals to invalidate and remove themselves.
( * Squeeze Pages are solitary page sites designed to screen, gather leads, as well as send them to you. They’re a keystone of real estate investing advertising and marketing – have a look at the source box listed below for web links to my Internet Marketing resources.).
Currently, allows the jump into 2 real-life examples from my service, the post-it note and also the yellow letter.
The “UGLY” Post-it Note.
Among the important things individuals recognize me for has been my prolific use of post-it notes. I really did not create the idea, yet in the real estate investing globe I’ve distributed extra post-it notes than any person, and also I’ve evaluated the hell out of them.
The initial post-it I made use of had an extremely efficient, yet common message. It got us TONS of telephone call, and cost a mint for the telephone call handling. The good news is, the margins in real estate investing are high enough that it functioned despite the “breakage” (a term for waste, in this instance by having unqualified vendors calling).
There were deals without a doubt, however likewise a lot of sellers just looking to save a few dollars on Realtor payments, or that had believed they had been particularly selected, maybe since their house was so awesome as well as valuable (aren’t they all?).
I was specifically seeking residences in need of work to either rehabilitation or flip to wholesale buyers. So I needed deep discounts as well as poorly kept residences. Other callers would be wasting their time as well as mine. Real estate investing doesn’t pay by the hour, so this is less than ideal.
So right here’s what I did. I included the complying with language to the post-it notes, developing what I call my “UGLY” Post-it:
P.S. If you want retail worth, we’re not your guys. But, if you desire a person to buy your house … (a checklist of benefits) … after that, we’re your men. Get in touch with us now … Can’t obtain far more to the point. If you want retail, do not call us.
Why lose the moment? Why manage the uncomfortableness of informing them you want to pay 50 cents on the dollar or lease alternative their house subject to with no cash down?
THE RESULT: It cut our employ half, without any reduction in viable leads. This was significant because I was paying a pretty high price to a call centre to process the leads … I just wished to spend for actual leads, so this saved me a bunch, which indicates my Return On Investment (ROI) shot up. If you were taking the telephone calls yourself, you just got a huge chunk of your time back. Either way, a BIG win.
The Yellow Letter.
The “yellow letter” is another top-performing advertising item for real estate investing. The original yellow letter was produced by financiers John & Donna MacNeil, as well as later on promoted by investing master Ron LeGrand and also others.
If you have not seen it, the yellow letter is a transcribed (or handwritten-looking) letter on yellow legal pad paper. It states something like “My partner Erin, and also I want to get your house.” If you haven’t seen it before, the yellow letter looks real enough to be weird. And also it does obtain a lot of phone calls … like:
* Upset people with negative moods and foul mouths * Police calling on the part of little old women * An arbitrary lead or two … as well as * Lots of people telling you that their house is NOT for sale.
So, how to fix it? Easy … I just added the complying with throughout of the letter (before the signature and also PS): If you don’t react then, I’ll think your house is not for sale.
THE RESULT: Again, a HUGE decline off in phone calls, yet not in leads. The yellow letter stays a leading advertising and marketing device for us, but now we don’t require to field the 70% of the phone calls who wished to inform us that their house isn’t up for sale.
If you desire far better performance with your time and you want to concentrate extra on service than active work, then start including language to your advertising items to pre-screen the sellers who you are not going to be able to (or do not want to) collaborate with.