Marketing Matrix for Real Estate Investors
As a real estate investor, you are essentially in a marketing business. If you are not marketing for your own leads, then you are leaving a lot of money on the table and leaving your business vulnerable to changing markets.
We will be doing weekly blog, going in depth, discussing several marketing channels and how to best implement them in your business to get the highest ROI.
We will also be discussing the systems and processes we follow, from the time the lead comes in to the time we sell the property. We will be sharing what we use in our business. We will also be discussing the KPIs that you should start tracking to get a better pulse of where your business stands. KPIs will help you stay in front of the market changes rather than making the decisions after the fact.
We wanted to start with a very high-level summary of different marketing channels and how they compare to each other when it comes to budget, experience, effectiveness, etc.
Marketing Channel – This is a list of various marketing strategies you can implement in your business. There are some other strategies that you can follow but this gives you a very good starting point.
Budget Needed – This assumes you are doing some of these yourself. If you hire a company to do some of the above, your budget will go up.
Experience Level – This gives you a rough idea about which marketing strategy you should implement based on your experience.
Effectiveness – This column talks about how long it takes before you start seeing some leads come in. For example, SEO is a long-term play. You are likely not going to start seeing leads come in for few months. However, Direct Mail, PPC, SMS, RVM (Ringless Voicemail), etc. on the other hand, can be effective in the short-term. If done right, you can start seeing some leads come-in in as little as days or hours in case of PPC, SMS and RVM.
Property Specific – This column breaks down whether the marketing strategy is property specific or generic to generating leads. For example, when you send out Direct Mail, SMS or RVM, you send it for a specific property. However, when you do PPC or SEO, you are not targeting a specific homeowner or property.
Which marketing strategy should I start out with?
It depends on several factors like your experience level, budget, etc. As a general rule of thumb, you should start with a marketing strategy that you can stick with the longest. How each marketing strategy will perform will depend on the market you are in. Some marketing strategies are more effective in smaller cities vs larger cities.
For example, I am in NW Indiana market, about 30-45 mins outside of Chicago, so in my market Direct Mail still works very well. We get a large majority of our deals from Direct Mail. Facebook hasn’t been as effective for us so far.
On the other hand, investors in some of the more competitive markets like San Diego, Los Angeles, etc. don’t see good results with Direct Mail. Now that’s not saying that Direct Mail doesn’t work in those markets, but you will have to get more creative with your Direct Mail marketing and have a more targeted list in those markets.
In my NW Indiana market, we still see a good ROI on High Equity list but in SD and LA market, those lists will be ultra-competitive, so, as an investor in those markets you might have a better chance of getting deals from Direct Mail if you go after a more targeted list like Probate, Divorce, Low FSS (Financial Stability Score), etc.
The above is just to give you an idea that marketing is very dynamic and the only way to see what works and what doesn’t work in your market is by trial and error. It is hard not to get discouraged listening to someone talk about how PPC doesn’t work, how Direct Mail is as good as flushing money down the toilet, how Facebook doesn’t generate leads for Real Estate Investors, etc. You should look into the experience level of the person who is making these statements, how long did they try a particular marketing strategy for, did they use the most effective tactics within that particular marketing strategy, etc.
Hope you find this helpful. Which marketing strategies are working on in your market? What’s working and what’s not working for you?
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 >>