Inner Circle E-Lesson: If you want to find great deals, do THIS.
Real estate investors and entrepreneurs have different goals and ambitions—that’s why we can all get together and share ideas and resources without stepping all over each other’s businesses. But one thing we all have in common is that we need, to some extent or another, to FIND PROFITABLE DEALS.
“Profitable deal” will have different meanings to different people. A part-time landlord might be looking for a nearly turnkey property with 10% equity and positive cash flow when financed conventionally. A full-time rehabber might need 12 ugly-but-structurally-sound houses with 30% equity this year. A wholesaler could be looking for 4 cheap, junker houses the MONTH. And a pretty-house fan might not care about price at all—only terms and the condition of the property.
But no matter who you are, you’ve noticed that great deals ‘on the market’—that is, listed with MLS, sold at foreclosure auctions, and so on—is small and still shrinking. So if you’re in the market for multiple deals this year, you’re going to HAVE TO market for those deals! bn
The good news is, this doesn’t mean that you have to set up a machine to mail out 1,000 pieces of marketing every week. It just means that you have to consistently market to one or more groups of people that generate the kinds of leads you’re looking for.
OK, so this might seem ridiculously obvious, but ask yourself this: are YOU doing it? How many other do you think are in the same boat you are—they KNOW they should, they MEAN to, and they even, from time to time DO it, but not constantly and consistently?
The answer is, most people don’t do much on a day to day basis to generate leads—nor do they do much studying about how to increase the leads they get as a percentage of the contacts they make, nor do they track the results, nor do they follow up—so if you do those things, little ol’ you really will be at the top of your game very fast.
Look at it this way:
If you have a way of generating names that allows you to mail to 50 new leads a week
And if you have a very reasonable but modest 3% response rate
And you make 1 deal for every 20 calls you get
That means that in 1 year you will have…
mailed out 2,600 pieces of mail
Gotten 78 calls
and closed 3-4 deals
Modest, yes, but more deals than 80% of the people in your local REIA have probably done this year.
And if you want MORE deals, just mail MORE pieces—consistently.
It really is that easy, I swear. Consistent contact is the key to great deals, and great deals are the key to the real estate business right now.