Today, Justin Wilmot talks to us about how having a smaller buyers list with quality, vetted buyers can be better than a huge list that isn’t responsive.
Justin Wilmot explains why it’s important to focus on those who are opening your emails and the need to create relationships with your buyers.
Announcer: Welcome back to the FlipNerd.com REI classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Justin: Hey, guys. Justin Wilmot here, also known as the 10 Hour Wholesaler. I am the host of your REI classroom for the week. We’ll be talking about a big list versus a quality, responsive list.
Announcer: This REI classroom real estate lesson is sponsored by UglyOpportunities.com.
Justin: All right. What I want to talk to you guys about is a quality list versus a huge list. A lot of times, people think, especially the newer investors and even seasoned investors think that having a really large list is a good thing. While it may seem like it can be, it’s not always. In most cases, it’s just not.
A responsive list of maybe 10 people that you have a real relationship with where you can text them, you know them, you text them when it’s their birthday. You say “happy holidays” to them when it’s Thanksgiving, Christmas. You’re on a text basis with these people, a real relationship, that is much more dependable than a list of hundreds of people that could give two craps about who you are. Because we are not here to annoy people, just blasting them with e-mails, we’re here to give real value to buyers.
Value, in our experience, comes in a real relationship, and whether that’s me as the CEO of my company or whether that’s people within my business, there are actually people in markets that we’re in that know me as the CEO, the captain of the ship, but they don’t speak with me. They’re on a text relationship with my sales managers and operations managers. That is much more effective than having a large list that just looks at your inventory, maybe, when you e-mail it to them. Then people that want to hear from you and that know you and/or your team very well, there’s a lot to be said for that.
I would encourage you to continue to build relationships and romance your list, as you grow the list, and focus on the 20% of the people that are opening your e-mails. If you have any e-mail provider, you can see who is actually responding to those blasts. Make sure that you’re focusing your energy and time into those people, not the rest because this is where your comfort level will change, in regards to getting properties on a contract, and you’ll have a better idea of where you should be focusing your efforts and acquisitions, if you’re doing wholesaling.
This goes for fix and flip as well. You can know who the agents are that have the best retail buyers. For example, here in Florida, we have agents that specifically work with just and doing their marketing with snowbirds, people in the north. Typically, those people are pulling money out of IRAs, self-directed 401Ks, whatever. They’re still cash buyers, buying rehabbed properties.
Again, it’s quality over quantity, not the other way around.
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