As real estate investors, we often have so many things going on from a lead generation perspective that we don’t properly evaluate which things are working best. Because of that, we might keep doing things that don’t add value to our business or bottom line, but keep soaking up our resources. David “The Diamond” Oswald shares his High Profit – Low Cost method with us in this FlipNerd.com Expert Tip.
David: Mike, I appreciate that. I wanted to talk about the concept of something that I created called the HPLC method. It’s all about high profit, low cost. I came up with this after thinking about in my real estate investing business, how the majority of the deals that I get and the income that I make, is usually from only two or three sources, even though I‘ve tried many, many dozens of different things that are out there.
I’ve tried everything that you’ve heard of as far as marketing. Putting signs on your cars and having the door knockers and trying to have people physically out there doing knocking for you and driving for dollars. And doing everything that is out there, but I found consistently that certain types of direct mail has worked for me, certain lists that I’ve gone with and tried different types. And once you start to do these things on a regular basis and you’ve tested a lot of things, start to hone in on the fact that the higher profit, lower cost, is really what’s going to create that spread for you, and allow you to keep more of what you make.
Because as you know in real estate investing or any business that you do, it’s all about what you actually keep at the end of the year. It’s not really that gross number, and I know that people love the gross number, they love to say, “I grossed a million dollars,” etcetera. They talk about that, but it’s about, what are you personally in your business, holding on to. And at the end of the year, you say, “Wow, I grossed this much, but I also kept this portion” and how do you do that? You focus on and you keep a lot of your attention on, what are those things that are pulling for me and in what is the way in which they’re pulling too.
I can’t just say, go do direct mail. It’s just not that simple. It’s about what list did you try? What type of direct mail piece did you try? What was the format? What was the way in which the call was answered? What was the whole formula, in other words? And there takes a little better work to that. There is a little better entrepreneurialism spirit that has to come out for you to figure that out. But once you get to that formula, there you go. That’s your answer. That’s the thing that’s going to be propelling you to keeping more of what you make. And that’s what this is all about. It’s all about lessons on HPLC, my friend.
Mike: Awesome. Thanks David. I appreciate it.
Thanks for joining us for another FlipNerd.com expert tip. To access hundreds of tips and full expert interviews, please visit FlipNerd.com or join us in the iTunes store. We’d like to thank our sponsors, RealtyMogul.com and National Real Estate Insurance Group. To access the most robust social platform in existence for real estate investors, where you can find off-market wholesale deals, find great vendors to help you in your business, and learn and socialize with other real estate investors, please visit the all new FlipNerd.com. If you’re not yet a member, you can set up a free account in less than a minute.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect 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.