So, a recent group coaching call got me thinking about the basics… the fundamentals of this business. It’s all about keeping things simple.
I see time and time again people who overcomplicate this. So unnecessarily!
See, there are just 3 basic elements of real estate investing:
- Talking to Sellers
- Making Offers
That’s it. It doesn’t get any simpler than that. 🙂
If you’re not doing any deals, it’s because you’re not making enough offers… and if you’re not making enough offers, it’s because you’re not talking to sellers… and if you’re not talking to sellers, it’s because you’re not doing enough marketing.
See how it all comes down to marketing? That’s the core of your business. I’ve said it a million times… we’re not in the real estate business, we’re in the marketing business.
If you don’t market, you have no leads. Without leads, you’re dead in the water. Leads are the lifeblood of your business.
You need to be doing at least 3 of these marketing strategies:
- Handwritten postcards to large lists, like absentee owner or high equity: 500/week
- Yellow letters to rentals on Zillow: 20/day
- Yellow letters to evictions or probates or tax-delinquent: 20/day
- Send text messages and emails to landlords and FSBOs on Craigslist and Zillow: 20/day
- Email listing agents offer from older listings on the MLS: 20/day
Once you start marketing, leads will come in. And that means you’ll be talking to sellers. Keep your list of questions for them super simple:
- What’s your situation?
- What would like to happen with your house?
- How quickly do you need to sell?
- Do you mind if I ask you a few questions about your house to see if it’s even a property I’d be interested in?
- Why haven’t you sold it yet?
- Why do you want to sell it?
- I’m an investor, I’m looking for a house I can lease for a year and then buy it, you wouldn’t be interested in something like that, would you?
- I’m an investor, I see you’ve listed your house for $XX,XXX, is that price negotiable? What’s the lowest you’d be willing to go?
The key to speaking with sellers is playing the role of reluctant buyer NOT motivated/desperate buyer.
The answers you get should tell you whether the seller is a prospect (equity or motivation) or a suspect (not motivated yet, but might be ready to sell to you later).
- If they’re prospect: make an appointment to meet them at their house
- If they’re a suspect: send them an offer and follow up
That is it, folks. See how NOT complicated this really is?!
Market… talk with sellers… make offers. (The bonus step is following up.)
Remember: Be brilliant at the basics. Keep it simple.