Finding and Attracting the Right Real Estate Leads: A Simple New Way of Marketing
“Real estate is a numbers game.” You have probably heard this statement several times. There is some truth to it, but a lot of misconception. There are two school of thoughts when it comes to getting real estate leads (especially sellers’ leads) in real estate investing. One of them is to “cast a large net” and get as many leads as possible, and market heavily to the these real estate leads. This strategy can get very expensive and time consuming. Furthermore it’s very unfulfilling, because not all these real estate leads are rightfully targeted and therefore do not produce the results expected. The second school of thought (and my favorite) is about smaller batches of highly targeted leads, with a very skilled and methodical marketing approach, which will not “leave any stone unturned.” It is much more fulfilling from the investor’s point of view, because the investor feels that he/she has better results and conversations.
This is the strategy I am going to focus on in this blog post – smaller batches of leads, but highly focused and targeted. But there is another trait that is important for this smaller batch of targeted lists to be really a winner. And that is linked to the fact that “Who you are is who you appeal to.”
I want to share a brief story with you. When I started in real estate back in Hawaii in 1987, I was working in a very energetic and inspiring real estate brokerage office. Their focus was high end properties and Asian investors. I was struggling as a new agent in the office, but I did like their work discipline, ethics and enthusiasm. I said to myself, “There must be a way I can succeed as much as they are.” I stumbled into the answer by chance. I was sitting an open house for another broker and this man walked in. He was in the US Army and he wanted to sell his house. I started a conversation. My husband was in the US Army as well and we seemed to have a lot in common. I got the listing of the house and sold it right away. In the process of selling the house, I ran across a family who really wanted the house. They were from the Philippines and spoke very little English. They connected with me because I was also from another country (Italy) and I understood the struggles of learning a language and being in another country. They purchased my listing, but I also sold their other house, plus I got a lot of referrals via word of mouth.
What is the morale of the story or the so called “Silver Bullet?”
Within a few months I was very busy listing and selling properties to military personnel relocating to and from the island, plus Philippino families looking to purchase homes. These 2 niches alone made me very successful in a short amount of time.
Once I move to the mainland and transitioned to real estate investing, I used the same approach. Who did I relate to the best? I wanted to buy small multi family buildings as rentals. I targeted small multi family landlords, who preferred working with individual investors instead of real estate agents.
I started doing fix and flips of bread and butter homes, targeting single women and mothers who were looking to purchase a home for them and their children.
Again, just these 2 niches made me very successful for many, many years.
In every business, not just real estate investing, marketing to a specific demographic is the key to becoming a successful real estate investor.
The problem most investors run into while creating an effective marketing strategy is that they are worrying too much about copying competitors’ marketing and data than trying to come up with their own strategy.
I suggest that you take a step back. Understand who you are and how that is reflected in your business. If you are already working in an environment helping elderly, military personnel, corporate relocations, and so on, you will naturally attract other people who share these traits.
Once you are clear about yourself, your core values and skills, you will begin the process of using the data differently on what leads to target and how, and you will be more accurate not only in your marketing message, but also in the results for your business.
You will work smarter, not harder.
The 3 Steps in Marketing to Find and Attract the Right Leads in Real Estate Investing
- Write down a list of values, skills and traits for you and the business that you want to build. For example, you want to help elderly people transition out of their present home. You are not a pushy salesperson and you have patience and true willingness to help. You can help them sell their home and find another property that better suits them.
- Ask for feedback from friends, family, co-workers, What do they like or dislike about you?
- Do not over analyze the feedback. Use it together with your list from step #1 to redefine your values and principles and re-write your marketing message. For example, I want to help elderly homeowners and landlords sell their properties so they can transition to smaller homes or cash in for retirement. I will do so in a helpful and caring way, sharing different options on how to do so, without sounding salesy or pushy.
Now you are ready to target the right leads sources with the right attitude.
When you go through this exercise and you understand more about yourself and your core values, you will see a dramatic difference in the quality of your leads and your business. Your focus, clarity and principles will shine through and you will become successful with much less effort.