Marketing in a High Demand
You may have heard the news that the real estate market is improving throughout the USA. While in some areas, the market improvement is steady, some markets are just hot! An interesting observation we have noticed is that private sellers in particular hear the news on Fox, CNN, CBS, etc. and immediately think their property is worth what it was in 2007 at the peak. The idea of gradual appreciation seems to escape a significant number of them as it seems at every corner everyone is saying sell! Even banks are selling REO’s at or near full retail value…before rehab!
In the midst of this, you may be hearing the phrase ‘limited inventory’ or ‘fierce competition’. And depending on your market, there is probably some truth to this. More agents are coming back on the scene. Real Estate gurus are selling Wholesale courses like M&M’s at the grocery store about how easy it is to be rich tomorrow. They all have some kind of ‘secret’ message to get deals flowing in to everyone however if you sell it to everyone, how is it a secret at that point?
So what is a wholesaler to do?
Simple. Have a plan and execute it. Massively. Now massively does not mean sending out 100,000 postcards every month although if you have the means to do it, that can absolutely work for you.
Rather, before you spend a dime, take the time to think it through. Here are some key points to remember to help get you through this time:
1) There are standard forms of marketing that seem to always work, albeit to varying degrees.
Common examples are:
Band It Signs
Networking at Real Estate Meetings
All these are proven to work. However, consider that if you do the first thing every guru teaches, you quickly join the very heavily traveled paths that everyone seeking to do the same is on. As an example, in my market it is very common to talk to Sellers who have gotten 10,15,20 or more marketing pieces all from different people. What are the odds they will call you? How will you differentiate yourself?
2) Who you targeting?
It is no secret that if you do a ‘shotgun’ style mailer to absentee owners rather than a targeted one, your chances of success could go down drastically. While there are deals there, there are certainly better ways to find deals with a little extra effort. More niche ideas such as dispossessory leads, attorney leads and code enforcement leads as examples can provide more lucrative deals due to less competition. They require a little more effort but the payoff can be massive as a result. Thinking through who you want to target by being more specific can yield better results faster.
3) How many are you targeting?
You have heard the phrase it is a numbers game. And it is. However there is a difference between shotgun volume and targeted volume. Anything you can do to improve your targeted volume can work well. As an example, I can target all 110,000 in the city where I am which will get me some results I am sure. However, if I target all the absentee owners who just filed a dispossessory case at the county and do that in several counties surrounding me, I am getting volume of a more specific type of Seller. My chances of better results improve although it takes a little more work to put this together.
4) Have a bigger bag of tricks and connections
So many times people get into real estate and they just want to wholesale. This is great but keep in mind that you can wholesale just about anything. With the right knowledge in place, you can wholesale owner finance deals, lease options, subject to deals and not just rehabs to your Buyers. Very few people realize this but there are several Buyers like myself that enjoy buying creative finance deals that make sense. Also by building your Buyers list, ask them if this is something they would buy. You may be surprised at how many say yes. Many Buyers like to control property for as little money as possible.
5) Your ability to talk on the phone or in person
This may not be a true lead generation strategy. However it is the most important marketing you may do. You get the lead…now you have to talk to the prospect. Do you have the skills to identify the needs and get the deal done? Skills needed are building rapport, negotiation and meeting the prospects needs. I have seen far too many people get the leads but not be able to put the deal together because this skillset was weak. Very few courses emphasize these skills enough. Take the time to learn rapport, negotiation and meeting needs not just in Real Estate courses but in business and life. It changes everything.
In summary, there is no doubt that competition is externally higher in today’s market. However keep in mind your only real competition is not the guy or girl next door. It’s you. Are you doing what it takes to improve yourself to get the job done? Put yourself in a position to succeed every hour of every day, own the position and you’ll be able to make it happen!
Have a Happy Thanksgiving everyone!