Maximum Impact Investing
One of the easiest ways to avoid dealing with unmotivated sellers is to generate enough leads to be able to filter through to find the right ones. Creating an effective marketing plan will provide you with the leads you need to make good deals. Too many times, I see new investors spending their marketing dollars in the wrong places. There are plenty of folks that are happy to take your money to provide you with “the best” marketing tools. If you are only generating a couple leads a week, you aren’t talking to enough sellers. Options for marketing include yellow letter campaigns, pay per click, websites, direct mail, Craigslist, auto dialers, bandit signs and others. While many of these can be effective, always pay attention to your cost per lead. Spending lots of dollars does not always equate to doing lots of deals. Some of my most effective marketing techniques cost very little. Bandits signs (if used properly) can be very effective. !
Today’s market is very different than it was just 6 months ago. The MLS is very competitive and finding deals there is difficult. It’s time to market directly to sellers, and that also means being able to effectively communicate with sellers. Understandably, many new investors have anxiety when speaking with sellers. Sometimes it’s the fear of saying the wrong thing, or not having an answer to a seller’s question. The most important that you can do as a new investor is relax! A motivated seller is looking for help. As a real estate professional, you offer help, and it’s OK if you can’t answer every question. Try this the next time you fumble for the right answer: “Mr. and Mrs. Seller, that’s a great question. Let me do a little research and get you the answer. Can I call you back later today at 4:30?” This does a couple things. First, it shows that you are real, nobody has ALL the answers. Second, it gives you a chance to get off the phone, review your conversation, and do some research. Then you can follow through on your promise to call them back. By making this promise and following through, you create credibility with your seller. You need several contacts (or touches as it’s called in the sales profession) to build rapport. I have used this line very successfully in the past, (even when I knew the answer to their question!)
To Your Success,