Why do most real estate investors fail with marketing?
You hear this question so often asked on BiggerPockets and other chats on Facebook, “What’s the best marketing strategy to find motivated sellers?”
The answer to this question is, the best marketing strategy to find motivated sellers is the one you can stick with the longest. I own a Direct Mail marketing company and I notice that investors who make money are the ones who mail to the same list over and over again non-stop. A lot of newer investors fail because they try Direct Mail for a month or two and don’t get any decent leads and then they give up. They blame that Direct Mail doesn’t work.
There are investors who are making tons of money from Direct Mail because they start with a good list and then they consistently mail to that list every month.
You can start with any marketing strategy and there are several to choose from – Direct Mail, SEO, PPC, FB Marketing, Cold Calling, Ringless Voicemail drops, SMS blast, etc. The key to making any strategy work is to stick with it. Below is a quick analysis of different marketing strategies:
|Direct Mail*||$$$||Medium to Long Term||Medium to High|
|Facebook Paid Ads||$$||Short Term||Low to Medium|
|SMS Blast*||$||Short Term||Low to Medium|
|RVM Drops*||$||Short Term||Low to Medium|
|Cold Calling*||$||Medium Term||Medium to High|
|SEO||$||Long Term||Medium to High|
* Effectiveness depends on the quality of the list.
FYI, the above are the costs if you do these on your own. If you hire a company like ours then you are paying for a person to manage these tasks for you and your costs will be higher.
As you can see they all have their pros and cons. Some are more expensive than other and some give results in shorter period vs others. The key is to find a marketing strategy that you feel most comfortable with and then stick with it until you master it. Once you have mastered that one, then add another one to your lineup and keep on doing that.
For newer investors, I would suggest they start with a good list like Probate, Tax Delinquent, Code Enforcement, etc. and then either do Direct Mail or Cold Calling to that list. No matter which one you pick stick with it. Keep mailing or calling the list non-stop and have a good follow up system for these leads.
It’s not a question or IF but a question of WHEN you will land a deal if you follow the process.
REsimpli is founded by Sharad Mehta, a very active real estate investor. Sharad has done over 400 deals in last 6 years since he became a full-time real estate investor and over the years he has developed systems to automate many parts of his real estate investing. Sharad is a very active investor i See more >>
REsimpli is founded by Sharad Mehta, a very active real estate investor. Sharad has done over 400 deals in last 6 years since he became a full-time real estate investor and over the years he has developed systems to automate many parts of his real estate investing. Sharad is a very active investor in Lake County, Indiana market and he manages his entire business from Carlsbad, California, where he lives. Using the systems that Sharad has developed, he is able to manage 3-4 rehabs a month from a distance.
At reSimpli, our mission is to ‘Simplify Real Estate Investing Through Technology.’ Our team is passionate about using technology to reduce the time and energy required to build and manage a successful real estate business. reSimpli is a cloud-based system that makes real estate investing more efficient by automating tasks and helping the investor manage their business more efficiently.
We are constantly building and improving features that aid in: creating accurate and detailed scope of work for rehab projects, creating contracts with digital signature support, deal analysis tools, etc. We are a team of very active real estate investors so everything we are developing is something we find useful in our day to day investing.
Our passion is to create the best software for your real estate investing business and aim to be the only software program that a real estate investor needs to run a successful, scalable business. See less >>