Today’s REI Classroom Lesson
In today’s world, social media is a crucial tool to making a successful business. Networking and generating leads are a consistent part of growing your real estate investing business.
REI Classroom Summary
Generating buyer, seller, and investor leads on a consistent basis can give you the stability you need in your business.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the flipnerd.com REI classroom where experts from across the real estate investment industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
J.: Hi, J. Massey here with CashFlowDiary.com. In this video, we’re going to talk about the importance of digital marketing in your business.
Mike: This REI Classroom real estate lesson is sponsored by UglyOpportunities.com
J.: You’ve probably have heard of, I don’t know, Facebook, LinkedIn, Twitter, Instagram, Pinterest and YouTube. Who knows, by the time this video is done, three more of them probably have been invented and you’re like, “Ah! What am I going to do? How does this relate to the fact that I want to do real estate?” I totally get it.
Here’s the thing I’m going to say: I want you to start before you’re ready, which means move at the speed of instruction, also known as now o’clock. As real estate investors, we are perpetually behind the times when it comes to technology because we deal with bricks and mortar, ordinances and politicians and a whole bunch of other things that, usually, aren’t related to social media.
Here’s the thing to understand: your real estate investing business is actually a service and while you’re out there delivering your service, you are not generating new leads. You must learn how to focus on the income-generating activities and, most importantly, the ones that have the greatest impact and use the least amount of your time. An investor’s business is directly proportional to the size of their database.
If you cannot continually generate leads while you sleep, while you work, if you’re overseeing a crew, you’re not generating leads. And that’s a challenge for your business because you may have experienced something like this, you look at your bank account you go, “Uh oh. There’s a problem. There’s not enough money for X, Y, and Z.” Then you get busy, you go to the networking events, you go out there and you’ll meet some people and you make something happen and income goes up. Which is great, Then you go, “Whew!” You start escrow and then it’s done. Well, that’s wonderful. You got paid, but now guess what? While you were doing all of that, your money started going down again.
Then you look, “Oh, I don’t have enough money.” And guess what you have to do? You have to repeat that cycle, going up and down and up and down and up and down because you aren’t consistently generating leads that develop customers for you who are ready to do business with you every day.
Here’s what I mean by that. In an earlier video, I told you that steps one, two and three for successful real estate business required you to develop buyer leads, seller leads and investor leads. Well, now I’m going to let you know you need 200 people in each category and here’s why. At a minimum, usually, within anyone’s database, there are approximately 3% of the people who are ready to do business when you are hoping that they are ready to do business. What does that mean? That means if your database is only 10 people, you only have 3% of them who might be able to do business. That’s not a safety margin, in my opinion. The cool thing about technology today is that it allows us to “be ever-present” without physically expending energy. You get to pend the energy once and set up technology to do a lot of the heavy lifting for you.
This doesn’t mean you’re not going to be involved with your leads and your customers, not at all, but it does mean you can put some stability behind your business. Just imagine if you had the ability to generate 10 leads a day, just 10 every day, no matter what happened. How would you feel at the closing table? How would you feel when you’re negotiating that next deal? How would you feel the next time you were talking to an investor and they say no? Well, you would know in your head, “Okay. That’s fine. I’m going to have 10 more brand-new people tomorrow to talk to.”
See, that gives you a sense of confidence inside of the negotiations and now it’s a negotiating table, not a begging table. And that’s what’s important. You must be in that position of strength. If you are in a mindset of lead poverty consciousness, that’s never going to happen for you. Thus, it does mean you might have to learn how to use these tools, Facebook, LinkedIn, Twitter, Pinterest, Instagram, YouTube, to your business’s advantage. And no more cat videos.
Now, it’s time to figure out how to create content that educates individuals, distributes it and promotes your solution. That’s what it comes down to. The cool thing is that you can get tons of help with that today. We have a worldwide marketplace available at our fingertips. So you don’t have to become the expert at all of it, but you do have to do it. It’s been fun talking to you guys today. I look forward to talking to you soon. Until next time.
Mike: HomeVestors, the we-buy-ugly-houses folks, is a franchise system of hundreds of real estate investors that have purchased over 65,000 houses. If you’d like to learn more about the most powerful real estate investing system in existence, whether you’re a pro looking to take your business to the next level or whether you have no experience at all but a burning passion to be successful in real estate investing, please visit FlipNerd.com/ugly to learn more.
Please note the views and opinions expressed by the individuals in this program do not necessarily express those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
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