Key traits of successful real estate investors and tips for successful real estate investment
There are several key ways to build your wealth and diversify your portfolio through real estate investment. These include property management and wholesaling. Thanks to a multitude of methods for achieving success and prosperity, real estate investors have more opportunities than ever catering to a wide array of skill sets and experience.
Whether you’re new to real estate investment or a seasoned real estate Investor, there’s always opportunity in the market for those who are willing to find it. While there are colleges and technical schools that offer specialized programs for real estate, secondary education isn’t always needed for success in the field.
By developing and honing these key traits you can help solidify your path to becoming a successful investor.
You don’t want to jump into real estate investment blindly. This is a field that requires a fundamental understanding of the market and the dynamics that lay at its foundation. While secondary education and experience aren’t always needed, they certainly wouldn’t hurt either. It’s important to constantly expand your knowledge and understanding of the market.
Having well-defined goals is critical for the apprentice investor. Working towards a goal prevents you from stretching yourself too thin and can help you maximize your profits. You need to treat real estate investment as you would a business, complete with clear short and long term milestones you’re looking to achieve.
A key component of getting into any form of investment is to be passionate about what you’re investing in. Successful investors simply live for investment. They never stop learning, and they understand there is plenty they don’t know or fully comprehend which allows them growth and advancement.
Successful real estate investors are simply more committed than most. They’re devoted to maximizing their returns and scouting out new opportunities to expand their wealth. It’s important for you to constantly expand your understanding of the market and how you approach it as the market continues to expand and evolve.
Determination and perseverance are key traits accomplished investors have. It’s just as easy to lose faith when there are delays on a project as it is to feel elated after closing a big deal. You can’t quit when your prospects aren’t exactly looking the brightest.
Investment is a journey like any other in life. It’s important to bear in mind that the journey is a marathon rather than a sprint, and you may occasionally stumble along the way. There are plenty of situations in life where things beyond our control can happen. Therefore, it’s important for you to stay resolute in the face of any adversity that may come your way.
Real estate is a unique form of investment in that it can take a fair degree of intuition to help you be successful in the long-term. Unfortunately for some, this can lead to investing in the potential of a property rather than the property itself. It’s critical to pay attention to the changing conditions of the market so you can better forecast evolving market trends.
While it is important to think outside the box when it comes to investing in a property rather than solely playing it by the numbers, it’s just as important to not invest based on arbitrary ideas like your personal attachment to a property or neighborhood. Remain disciplined and focused as you choose where to invest your money.
As stated before there is a fair degree of importance in applying some unconventional thinking to your approach. You need to be nimble and responsive to changes in the market and expanding your understanding of it. There will be times where you need to carefully weigh potential risks against the potential reward and opportunity afforded.
There may be instances such as when a property will need extensive rehabilitation to bring it back up to code, but the location and zoning can bring a substantial ROI if the project is followed through to completion. While this prospect may seem daunting to the undisciplined, the seasoned investor sees these types of challenges as opportunities for growth.
While there are many paths for you to join the ranks of other successful real estate investors, the road you choose is up to you. There are snake-oil sellers peddling real estate investment as an easy path to wealth, but it’s important to remember that it’s ultimately a business that requires dedication and focus to grow like any other. Never forget the skill, dedication, and effort needed to achieve success in the long-term.
Learn more about real estate tactics by visiting Colorado REIA
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
There are two kinds of marketing: passive and active. Below are their definitions and how both differ.
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.
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.
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 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:
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?
In real estate, getting leads is every investor’s problem. Without a solid plan on how to get leads for your real estate investments you’ll find yourself losing money. This is why it’s important to understand what marketing strategies work and what doesn’t.
By knowing what works, you’ll save money and earn more money by converting leads into deals. We’re going to be looking at three effective passive marketing strategies for any real estate investor.
Bandit signs are a marketing tool that are often used by real estate agents to find new leads. They are poster-sized printed signs that are often seen on streets. Bandit signs are like billboards but smaller. The success of this marketing tool will depend on the strategic placing of each sign. These signs aim to catch the attention of passersby and create highly targeted leads. This is why bandit signs are considered a necessary component in every real estate advertising system. Although they are primitive compared to other kinds of marketing, they nonetheless generate real estate leads.
Bandit signs are relatively cheap but they are still gonna cost you. You’ll have to pay for the signs, the stands, the people who’ll put them up and the gas for driving around to put the signs up. Two hundred bandit signs will usually cost you a thousand dollars. With this in mind, how much will the cost per lead amount to? So, let’s say that you buy the 200 signs upfront for only $600. These will take up to 10 days to put them all up. If you’re paying someone $12 per hour for 8 hours a day for 10 days, that would be $960. The total investment for bandit signs would be $1,560. Depending on the location where you put the signs up, they’d last up to three months.
For the results, usually 200 signs will get about 115 calls within 30 days. In the 115 calls, there could be an average of 30 leads. These aren’t made up numbers. These are solid leads backed with documentation and accountability logs after years of being in this business. To compute for your cost per load, take the 30 into your $1,560 investment. Your cost per lead is $52.
The second type of advertising is online paid advertising. With a lot of businesses embracing the internet as one of their main strategies, real estate is no exception.
There are a lot of different ways where you can advertise your real estate business online. The two biggest ones are Google Ads and Facebook Ads. Both offer their own unique benefits where you have to choose which one fits your needs more.
The big advantage that Google Ads offers is that when people are searching for something they are more likely to convert into a lead. However, the cost of using it varies a lot. It will depend on the area where you want to advertise as well as the keywords you are targeting.
Everyone knows Facebook, everyone uses it. This is why Facebook ads are such a powerful tool to advertise real estate. The big advantage Facebook Ads offers you is targeting. It’s gives you a lot of flexibility and customization in trying to target your ideal lead.
You can advertise to people based on where they live, what their interests are, and more. You can take advantage of the powerful customization they offer to find leads for your real estate investments.
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. Sending mail to people who don’t want to do anything with your business will be a waste of your resources. A list of names with addresses can be bought. You can narrow down potential leads based on their income, credit limit, status, gender, geography and education.
Target marketing is recommended although it is more costly. Getting 5,000 leads for target marketing will cost up to $2,500. You buy the zip code for a cheaper price but 90% of those people won’t want anything to do with your service. You’d be wasting your mailers. When you do target marketing, you’ll be sending letters to people who can potentially be leads. Target mailing can be expensive, though, and results can be around 2.4%.
Each of these marketing strategies are a good way for any real estate investor to generate leads. They all offer their own benefits. You need to decide on which strategy you want to use first and master it before moving on to applying the others.
Watch for our next blog where we will discuss the perfect marketing strategy for beginner real estate investors.
In real estate marketing, you’ll be doing either active or passive marketing or a mix of both. When your marketing techniques pay off, leads will follow. But as to how you will take these leads and convert them into clients, you will find out by reading the rest of this article.
After accumulating leads from marketing a business, the next step is converting these leads into closed deals. And one of the best ways to make it happen is placing calls. When placing calls, it’s important to make sure that calls are handled well. Focus on each call and avoid entertaining another one while you’re in an appointment with someone else. Also, be sure to do a regular follow up on a weekly basis. Otherwise, people might just forget that you called.
If your leads happened to call you, be sure to answer them as much as you can. However, during the situations when it feels impossible to accommodate a phone call, you can briefly take it and ask for their contact information such as their name and phone number. Also advise them that you will be getting back to them as soon as you can. But if you’re able to take their calls, make sure to handle them with an agreement. Give them the facts about your business. Lay down their options and then close the deal.
When people respond to your marketing, either from online ads, bandit signs or mailed letters, this is a good sign as these are leads. Let’s say a distressed homeowner calls and asks you about what you do. You don’t just say to them that you buy houses and give them cash to move out. No, this isn’t the way. This kind of response will just drive the customer away. If you want to talk seriously with the customer, you’ll need to set up an appointment with them.
Upon setting up an appointment, the first thing you need to do is to get their information. Ask for their name and their number so that you can call them back later when you are ready to talk. When they attempt to fish for information and ask what how you conduct your business, don’t answer them immediately. If they are not satisfied with your response, there’s a good chance that you will lose them. Since these leads are paid for by you, it’s only imperative to learn the best ways to handle inbound calls.
If the caller happens to refuse to provide his details, you can opt to drop the call. As a business owner, you’ll have to learn how to identify the ones who are worth spending your time for. Pick the callers who are willing to share their details over someone who will only get information from you during the call. There’s no need to waste time for the people who are impossible to deal with. It is also important to stay in control of the conversation.
As soon as you’re able to gather the caller’s phone number, you can proceed to ask what you can assist them with. Allow them to begin talking and assess the situation they’re in. Ask follow up questions that are fitting. Ask them more about their property, its address, and its worth. Ask him what he thinks is his property’s worth. Ask the right questions to get the answers you desire. It’s all about how you can structure a deal.
When you’re done gathering the basic information you need, it’s time to go deeper. If the client has loaned out his property, for example, ask how much he owes. And then you can ask him what kind of help he is looking for. Ask deeper and more specific questions and then close the deal by setting up an appointment to meet in person.
One thing you need to learn by having all these passive marketing tools is that you are willing to talk to people who are going to call you. You need to learn how to strategically ask them the right types of questions. Otherwise, you might just be throwing money away. Every single lead you get is money you’ve already paid. And if you don’t know how to handle the call and cannot get a closed deal then you’re losing money. You have to have the confidence. Learn what to say and learn the proper way of handling inbound calls to yield better results.