When meeting other investors, one of the most frequent questions I am asked is how is it that I manage to buy up to 5 properties a month when they are struggling to find one.
It only takes me a few questions to get to the problem. Their marketing doesn’t make the grade. It’s either haphazard, inconsistent, or nonexistent, and instead of facing that they want to tell me that it’s the economy, or it’s different where they live.
Here is what I counsel all the people who want to make wheel barrels full of money: “Don’t ever forget that above all else you are in the marketing business. The extent to which you embrace this fact will ultimately determine your success or failure in this or any business!”
A bold statement, I admit. Now obviously you need to know the basics of the business, how to buy and sell homes for a profit, but beyond that, your marketing will be the difference between you and all the other investors out there.
Why is it such a difference? Because when you market well, people come to you to help them solve a problem, and that makes all the difference in the world. Yes, you can go knock on doors of every FSBO or foreclosure in town, but the positioning is terrible. First, you were not invited, and the prospect is likely to be so defensive or angry, you are not going to get very far. Unless you really like rejection and a very low return on your effort, this isn’t the way to go.
I send postcards and direct mail to my prospects all the time. Sometimes people say to me: “I tried direct mail and it doesn’t work in my area.” This, of course is absurd. What I usually say to them is “What’s the difference between a 1 dollar bill and a 100 dollar bill? It’s the message on the paper!
So many people send out $1 messages and expect $100 results. It just doesn’t work that way, and it never will. The $1 message screams out to your prospect all about you, and how you will buy their house sight unseen.
First, an ugly truth: Your prospect doesn’t care about you. He cares about someone who has a solution to a problem they are having. When you take out al the I, I, I, of your direct mail pieces, and replace it with possible solutions to their problem, then you have a far better chance of having them contact you.
No one is born a terrific marketer. You would not believe some of the mistakes I made when I started out. But I got the education I needed, and was never afraid to invest in seminars that ultimately got me to a position of making over $1 million a year. You can become a great marketer too, but you must get the education on how to do it right, and the system to execute it all.
I know that marketing will make the difference between an investor who does 3 deals a year, and the ones who are doing 4 or 5 a month like I do.
Proper marketing will produce truly motivated sellers which are the best prospects in our real estate business. This will make a difference between making $50,000 per year or $50,000 per single month!
To summarize, you need to become good at marketing, that’s the first step! The second step is for you to realize that you need a motivated seller to create huge profits. The first step will take care of the second one!
By John Benson