Buy and hold real estate investing is one of the most common real estate investing strategies. It refers to the process of purchasing a property and holding on to it for an extended period, usually 5 to 7 years. The buyer may or may not sell the property down the line, but it is considered to be an excellent way to build wealth over time.
According to the National Association of Realtors, statistics show 51% of buyers found the home they purchased online. This shows how powerful digital can be in your marketing efforts as a real estate investor. If you are looking to scale your real estate investing business I highly suggest using digital marketing to do so.
With the tough competition in real estate these days, the ability to stand out from the pack is crucial. This is where effective marketing strategies come in handy. However, as a real estate investor and professional, trying to figure out which strategy works and what doesn’t is time-consuming.
When people speak of success, they often talk about how they got their career started and how far they were willing to go to reach their goals. One of the ways to reach your goals is to find someone who will personally guide you. Remembering them this month is one thing, celebrating the success you reached with their guidance is another!
Why do people invest their money? People think that their finances automatically grow whenever they invest in real estate. However, that’s not always the case. A first-time real estate investor need to do their research to make sure they invest in the right properties.
Real estate investing is a competitive field and finding success is not an easy task. While it does not require a degree to become a profitable real estate investor, you need to have certain skills to find success.
If you are a company with a big budget for marketing, you could just invest in big advertising campaigns to boost your company’s sales. However, if your company is just starting up and is still small, you wouldn’t be able to do this. You need to figure out where you should put your marketing focus on.
There is the mistaken belief that simply putting up ads for their company everywhere will help bring in loyal clients. This is often not true.
Let’s start with a dating analogy. You are a guy, looking for someone. You meet a girl at this party through a friend. You’re introduced and you’ve been told that the girl is great, has a good job and personality and more. Won’t you feel reassured that the girl you met is supposed to be great? Compared to meeting some random stranger without someone else’s perspective, you would prefer to meet someone your friend already knows.
Trust is a big thing and it’s built as you get to know someone. The same is true in advertising, as overloading people would be useless for your business. You need to build trust to get clients.
You could invest in Facebook Ads or Google AdWords. However, meeting with the people in your community will bring value to your business as you build relationships with them. These people might one day be a client.
What’s important is learning how to make someone into a client through trust in your services. How do you know if someone will become a client? How will you earn people’s trust and convince them to use your services?
Building Trust as Real Estate Investors
This is where face-to-face marketing comes in as the most efficient way to generate trust in customers. Marketing companies all over the world know that people who have already experienced their product will be more likely to buy it again. For some brands and companies, product samples help increase their sales by 2,000 percent. However, real estate is not a product, it’s a service. How can people sample a service? Below are some examples.
Services like a gym give out free boot camp and training sessions. People who try it out and enjoy it will be more likely to purchase full memberships.
A software company gives out trial versions of their products as samples. If people like it, then they’ll buy a subscription for it.
For real estate agents, you are the service. The homeowners as the prospective clients get to talk to agents. They get information from and network with others through their agent. Homeowners achieve their goals together with their agent.
Helpful tips for Face-to-Face Marketing
As previously stated, face to face communication is great. Talking to people face to face allows you to know their unspoken reactions, through body language, the tone of voice, and facial expressions. Here are tips for when you have face-to-face conversations with your prospective clients:
When approaching your prospect’s house, walk up with confidence
Ring the doorbell or knock on the door 3 times and back away to give them their personal space. Wait for a couple seconds for the homeowner to get to the door before you knock again.
Have a friendly smile on your face so that they won’t be suspicious about your intentions
Be alert, listen for movement inside the house and keep your eyes on the window after knocking
When the door opens, assume that the person who answered is the person you are looking for
Talk about buying TIME only
Don’t wear something too formal. Don’t wear suits and ties. And no red clothing of any kind because red means stop. No hats or sunglasses because these cover the eyes.
Polo shirts, jeans or slacks are okay. Wear comfortable footwear. Don’t wear heels, for ladies. No trench coats either.
Don’t go to houses looking shabby, be neat.
To build trust with your prospective clients, be open to “sample” your service. Build your relationships well and provide valuable service without asking for anything in return. This will lay the foundation of trust and comfort for those prospective clients.
This is why face-to-face marketing is important. To learn more, visit Colorado REIA.
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A buyers list is a compilation of potential investors. This list contains contact information of potential buyers. Having a quality buyers list will increase your prospects and give you more profitable transactions.
A buyer’s list should contain the following:
The buyer’s complete name
Type of funding
Growing a quality buyers list should be one of an investor’s top priorities. This list has to be attended to regularly even when sellable properties remain vacant. However, having a buyers list isn’t enough to guarantee sales. Actions need to be taken with your buyers list as your focal point. After putting a property under contract, plan and develop marketing strategies that make use of your buyers list. With a plan in place, sales will immediately come your way.
A word of precaution: establishing a quality buyers list must be handled with care. Be careful in approaching potential buyers, they know how to spot a good deal. Make sure to do your homework.
The Importance of a Buyers List
One thing that real estate investors have to do over and over again in their careers is selling properties. This is not a one-time thing., Unfortunately, selling houses and properties isn’t as simple as putting up a “for sale” sign in the front yard.
If you are a real estate investor, you also can’t let a local realtor do all the work because they’ll take away a huge chunk of your profit. Paying them every time they sell a property isn’t a sustainable business. If you are in this business, you should know it requires marketing and promotion.
For those new to the business, the idea of selling real estate isn’t as fun as some make it seem. The sales process can be daunting, but it doesn’t have to be difficult or time-consuming if you’re smart and know what to do. This is where a quality buyers list comes in handy. If you have a solid list in hand, selling houses and properties will become easier, which makes the job more enjoyable.
Having a quality buyers list means that you already have prospects who want what you are selling. This list is like a “business book,” and it doesn’t matter if your list is long or short. What matters is that the people listed here can close a deal with you.
When your list is filled with people looking forward to your next deal, you won’t have to rely on selling properties over the internet or through real estate agents. If your list has grown long enough, you’ll be able to sell properties with an email and without having to list on the open market.
How to Build a Buyers List
Now that you’ve learned what a buyers list is and how important it is in the real estate business, you’re going to learn how to build your own list.
Building a buyer list is an important step to success for all real estate investors. There are a lot of techniques and strategies to generate money in this business. No matter what strategy or technique you use, there is one goal in mind and that is to find buyers. So, how can one build and grow a solid real estate investor buyer list? Here are a number of ways:
These are known as bandit signs, and you may have seen them on street corners or stuck in yards saying, “We Buy Houses.” Having these signs all over the area can work and get you some potential buyers.
Advertising through Print
Newspaper and magazine ads are under this category. This kind of advertising is inexpensive and you can run an ad repeatedly until you find responses from prospects who want to make a deal. Interesting ads that say something like “Poor Credit? No Problem! You can buy a home now!” can be intriguing enough to bring in calls.
Business cards and flyers can also do the trick. Whether you tack them on bulletin boards or hand them out personally, there will be people who pick them up. Those who call you can go onto your buyers list.
Advertising on Craigslist is free. You can attract potential home buyers using these classified-like ads. Another way to build a buyers list through Craigslist is to search for people who are running similar ads. Search for people who are looking to buy a home with a low down payment or a low credit score. Another thing to search for is those people who are looking for houses for rent. You can ask them if they’d want to buy a property with a substantial discount.
If you have a website for your business, it would make perfect sense to set up an official work email list as well. As you grow your email list, more people will receive your newsletters and product offers. You can gather responses through this and add the people who respond to your buyers list.
Direct Mail Marketing
Using this strategy may be less effective in building a buyer list, but it’s still a great way to find targeted individuals and scale your real estate marketing to contact only those who fit your criteria.
Social media is also a great way to find potential investors
Use the search box on Facebook to search for real estate investors in your area and add them as friends. From here, you can check their friends and see if they are investors or potential home buyers. Soon people will be adding you, and you can send them messages to see if they’re interested in buying properties.
Working on this platform is similar to what you’ve done on Facebook. The only difference is that you can build your background here and add your email address to your bio for easy visibility. Follow local real estate investors and see who follows them. You can start following these people, too.
This site is an education site. It’s the largest real estate hub and is a networking site as well. This website has local groups, and you can search for your city and see who is interested in buying real estate properties. You can post here, too.
Local REIA Websites
Go to local REIA websites, like SuncoastReia.com for Tampa Bay and ColoradoReia.com for Colorado. Search your city on Google for real estate clubs, associations, or investors meetings. The website will have a board of directors and how to contact them. It will also have newsletters containing mentors and wholesalers’ advertisements. Sometimes, the website will have a member section, which you can use to build your buyers list.
Join an Investor Club
Investors congregate in clubs. This is the perfect place to find prospects. Start conversations to find out who’s buying to build up your buyers list.
There is no shortage of ways to build a quality buyers list. However, it’s important to remember that you don’t need make use of every single strategy. There’s a certain rule called the “80/20 rule,” which states that 80 percent of your output comes from 20 percent of all your efforts. Figure out what method works best for you and focus on that one. If you are a real estate investor and you still have not built your buyers list, start doing it now. Keep building and maintaining it, and then use it to your advantage.
Marketing is the process of getting a product or service from the seller to the potential customer. The keyword here is “process”. Marketing involves research and selling. It involves promoting and distributing products or services to customers. It involves everything needed to get potential customers to pay for your product. Marketing is teaching people why they should get your product or service. Why they should choose you over other brands. If this is not what you are doing then it isn’t marketing. Influencing and educating potential customers is the key to good marketing.
How Can Marketing Help a Real Estate Investor Get Leads?
Marketing is essential to any business, and real estate is not an exception. Without marketing, people wouldn’t know about your business. When investing in real estate, it will feel very daunting especially if it’s your first time. To ensure your investment turns into a profit, incorporate marketing into your strategy.
Passive Marketing vs Active Marketing
There are two kinds of marketing: passive and active. Below are their definitions and how both differ.
What is Passive Marketing?
Passive marketing is when you put out content and wait for responses from potential clients. For example, a business can make a website where they put in all the information that a customer needs to know. It takes planning and good execution to get results. Facebook posts and ads or videos are good examples of passive marketing. These are passive because you’ll have to wait for people to contact you.
Examples of Passive Marketing
Bandit Signs are a marketing tool that are used by real estate agents to find new leads. They are poster-sized printed signs that are often seen on the streets. Bandit signs are like billboards but smaller. The success of this marketing tool will depend on the strategic placing of each sign.
Online Paid Advertising has a lot of businesses embracing the internet as one of their main strategies. Examples include Google ads and Facebook ads.
Direct Mail Marketing is another strategy real estate investors can use. Direct mail marketing will get to anyone who owns a mailbox. The key to direct mail marketing is to target the correct demographic.
What is Active Marketing?
Active marketing is the type of marketing that needs action. This means networking with other businesses and people. This type of marketing needs constant work to spread the word. This marketing strategy takes effort and can be very beneficial for new startup businesses. Active marketing sometimes includes meeting with vendors and clients face to face. Making cold calls and holding sales appointments are often included. Active marketing requires you to have persistence and, of course, skills.
Examples of Active Marketing for Real Estate include Cold Calling, meeting with both clients and peers, and word of mouth.
Word of Mouth Marketing – How can it help beginner real estate investors get leads?
Word of mouth marketing is an effective marketing strategy for real estate investors who are starting out. A lot of people prefer to have recommendations from their friends and family. This is why word of mouth is such an effective marketing strategy. It’s a powerful type of advertisement as it gets people talking. This will give your business hype.
Word of mouth advertising is a type of active marketing. As beginners in the real estate business, this is the type of marketing you should do. Especially when you don’t have the resources to do passive marketing. This is a great way to get your business out there.
Examples of Word-of-Mouth Marketing include:
Reviews from customers online
Social media shares
New clients referred by existing clients
Generated content from clients
To have effective word of mouth marketing, make sure you know your audience. Be authentic and unique as possible. Have an edge that clients won’t find from other competition. And while you’re at it, build a community and interact with everyone. This will help build trust in your business.
There are many ways to kick start your real estate business. We’ve laid out different marketing strategies you can use to help you out. Are you ready to take your business to the next level?