Today’s REI Classroom Lesson
Doug Van Soest shares how his follow up system works, including what types of marketing he sends to his motivated leads as follow up.
REI Classroom Summary
From personal phone calls to emails to voice and text blasts, it’s important to continuously follow up long-term, as you never know when they’ll be ready to sell the property. When they do decide to sell, you want your information in front of them.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
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.
Doug: Hello again. My name is Doug Van Soest and I am with SoCal Home Buyers. My wife and I flip houses here in Southern California. And I am today’s host of the REI Classroom, and today we’re going to talk about relentless follow-up.
Announcer: This REI Classroom real estate lesson is sponsored by TheInvestorMachine.com, FlipNerd’s private investor coaching program and your blueprint to investing success.
Doug: What do I mean by that? Well, when you’re buying homes, if you are like us, we market direct to owners so we’re not really shopping for homes on the MLS necessarily. So, we do a lot of direct mail, internet, things like that, and you get a lot of leads in. Well, say 90%, 95% of those leads, you probably aren’t going to purchase the home, at least not on the initial phone call or email.
So, what happens with those leads? Well, you may have heard the quote, “The fortune is in the follow-up.” I don’t know who said that, but I’ve heard it before and I believe that to be true. Follow-up is critical, and I don’t mean just following up once every six months with a phone call or a text message. I’m talking about relentless follow-up.
So, here’s kind of our system and what we do. And with this system, we purchase about one-fourth to one-third . . . depending on the time of the year, a fourth to one-third of our homes that we purchase are from our relentless, extended follow-up system, meaning we did not purchase that home on the initial contact or the initial negotiation. It came weeks or months later from our follow-up.
So, you’ve got to stay in front of these sellers because if today’s not the right day, time and circumstances can change everything. In a month from now, two months from now, a year from now, maybe they’re ready to sell and they probably are. And you want to be the one that is fresh on their minds so they will call you back to try to get that deal.
So, what do you do for follow-up? Well, here’s what we recommend. Number one, personal phone calls from a human is the absolute best way. So, don’t just stop calling yourself, especially for a lead that you feel is a really good lead that could lead to a deal someday. Put it on your reminders in your CRM, whatever you use to remind yourself or your salesperson to physically call this person and follow up. That’s the absolute best way.
However, we all know human time is limited and if you’re dealing with hundreds and thousands of leads, you can’t do that for every single lead as often as you want to. So, you’ve got to use technology to help you out. So, in addition to manually calling, you want to do an email drip campaign. Get their email, capture it, put them on an email system, drip system somehow.
There are tools you can use for that, AWeber.com, MailChimp.com. Those are probably the two best. Put together 20, 30 emails in the system that’s going to go out for the next year and a half, and just let it go. Let them get your emails quite often.
The next would be a voice and text blast. So, what do I mean by that? Well, there’s software you can use that will literally call them and it will be a recorded voice message from you following up, “Hey, this is Doug. I was just checking in to see if you sold that property yet. If you’re still interested in selling, give us a call back. We’d love to talk to you about it. Here’s my phone number.” Something that simple.
Same with the text, “Hey, just checking on that house. Are you interested in selling yet? Give me a call.” Systems you can use for that, we use CallLoop.com. You can also use . . . I believe it’s called . . . I can’t remember it right now. Slydial and Slybroadcast are another service that a lot of people use for that, so get that going.
And then the last thing is direct mail. This might be how you contacted them in the first place. Don’t take them off your list, but in addition to that, you can collect all of your follow-up leads and send them an additional, say, postcard once a month or once every six weeks that’s targeted for a follow-up message. “Hey, you contacted us before. We weren’t able to put anything together. Still interested in buying that house if you’re ever ready to sell.” Something like that, so you’re continuing to drip mail in their mailbox every so often, so they can, again, be reminded of you.
The point here is to stay in front of them, stay fresh in their mind, through emails, manual calls, texts, voice blasts, and mail. Don’t do it just once. Be relentless. I’m talking about three to four contacts per month for these leads. That’s about one a week on average.
You should do this for, honestly, as long as you can. I don’t believe you should stop at about a year, a year and a half. I think you should keep them in the system until they tell you to take them off their list or their property sells to somebody else, or what the goal would be is you buy their property from them.
So, relentless follow-up, the fortune is in the follow-up. Don’t discount it. You’ve got to do it, especially if you’re working a lot of leads.
I hope you enjoyed that. If you want more information from me and my wife, you can check out our website at SpousesFlippingHouses.com and contact us there. And I hope to see you next time on the REI Classroom. Have a good day.
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