Lead generation is crucial for any real estate investor. It’s the backbone of your business that keeps the deals flowing and the profits rolling in. If you’ve been struggling to get more leads on your desk, this guide will break down three essential steps: Audience, Action, and Annoyance. By the end of this post, you’ll have a clear path to start generating more leads and ultimately close more deals.
Building Your Audience
Defining Your Target Audience
Before taking any action, you need to identify who you’re targeting. This step isn’t just about deciding you want to buy houses. It’s about understanding who is likely to sell and who you can work with. Here are some potential audiences:
- Homeowners: These could be distressed sellers, tired landlords, or people facing foreclosure.
- Wholesalers: Other investors who may have leads that don’t fit their buying criteria.
- Banks: Institutions with properties they need to offload.
- Other Investors: People looking to JV or just needing help closing deals.
Importance of Identifying the Right Audience
Knowing your audience lets you tailor your approach to their specific needs. If you’re good at talking to homeowners but hate it, you might want to soul-search or focus on another group like wholesalers or other investors.
Taking Action
Direct Marketing to Sellers
Once you’ve defined your audience, it’s time to act. Here are some effective methods:
- Mailers: Send out postcards or letters to your target audience.
- Cold Calling: Pick up the phone and start dialing. It’s a hustle but it works.
- Door Knocking: Sometimes the best way is direct contact.
Networking at Real Estate Events
Don’t underestimate the power of face-to-face networking. Aim to attend at least two clubs or meetings per month. Here, you can connect with other investors, wholesalers, and potential sellers.
Being a Student of Different Marketing Strategies
Always be on the lookout for new ways to reach your audience. For example, Instagram messaging can be an effective method to get in touch with people.
Tracking Trends and Measuring Results
It’s vital to keep an eye on what’s working and what’s not. Track the performance of your different marketing channels and adjust your strategies based on what brings in the most leads.
Focusing on Revenue-Generating Activities (RGAs)
Only focus on tasks that will directly lead to making more money. Setting up your PO box isn’t an RGA. Calling people and making deals happen is.
Annoyance (Consistency)
The Concept of “Seven Touches”
It takes about seven interactions for someone to recognize and remember your brand. These touches can be:
- Postcards
- Phone calls
- Emails
- Door knocks
Importance of Name Recognition and Brand Awareness
Coca-Cola and Red Bull didn’t become giants by accident. They consistently get their brand in front of people. You need to think similarly.
Specific Action Steps for Consistent Follow-Up
Daniel’s system for pre-foreclosure leads is a great example. It includes:
- Immediate skip tracing
- Three RVMs (Ringless Voicemails)
- Door knocking
- Another set of RVMs
- A physical letter
This system ensures you’re hitting your leads multiple times in a short period, increasing the likelihood they’ll remember you when they’re ready to sell.
Dominating a Particular Neighborhood or Niche
Yale Hamrick is a great example of dominating a specific area. Everyone in his targeted neighborhood knows to go to him when they need to sell. This kind of hyper-local brand awareness can be incredibly effective.
Phrases That Pay
For Wholesalers
When talking to other wholesalers, you can use specific phrases to show how you can help them:
- “I specialize in low equity deals.”
- “If you’re wholesaling, what are you doing with your leads if they owe too much or if they’re unwilling to accept an offer that’s low enough for you to work?”
- “Next time you run into a situation where your seller is unwilling to accept the offer that you have on the table or they owe too much for it to work, send that lead to me. I will do what I can to convert it with an owner finance deal, and when I convert that deal, I will pay you for making that transaction happen.”
- “This way, you’re paying for your marketing campaign out of your trashcan.”
Networking with Investors
When networking, always ask:
- “Are you here to leverage your time, your money, or your experience?”
- “What can I do to help you?”
Offer your unique skills and always be ready to follow up.
Tracking Results and Making Adjustments
Keep a close eye on your metrics. Track:
- Number of leads generated
- Cost per lead
- Conversion rate
- ROI on different marketing channels
Adjust your strategies based on these metrics to ensure you’re always optimizing your efforts.
Consistency and Follow-Up
Never stop following up. Even if a lead isn’t ready to sell now, they might be in the future. Consistent follow-up can be as simple as:
- Sending a monthly newsletter
- Checking in with a quick phone call
- Dropping by with a business card
Final Thoughts
Lead generation is the lifeblood of your real estate business. By focusing on building your audience, taking consistent action, and being “annoying” enough to stay top-of-mind, you can ensure a constant stream of leads. Remember, the key to success isn’t just knowing what to do—it’s actually doing it. So get out there, start generating leads, and watch your business grow.
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