It has become very difficult to find a “deal” but deals happen every day, so keep looking. Technology is changing so frequently and we as investors need to keep up with what’s going on. Each market can vary on what strategies work best, but here are my thoughts on some marketing techniques:
Yes, it still works. No, it doesn’t work as well as cold calling and typically you’re going to have to spend more money to see a return. Our second small multi-family unit we closed on was from our first direct mail campaign. We were shocked! I wouldn’t expect that to happen again. I talk to a lot of investors who say they didn’t get any deals in the first six months from direct mail. You typically get 1% of the letters you mail to call back. Of that 1%, about 90-95% will want an outrageous price, above what they would even list for on the MLS.
If you were to send out 1,000 mailers, you may get 10 responses. Of those 10, I would expect maybe one to be a real lead. Again, it’s very unlikely you get a deal off the first list you mail to, but keep sending them and stay consistent with the same list. A sale usually occurs on the 8th “touch”. Mailers are no different! Stay consistent and don’t give up on your message.
If you can do it and you’re great on the phone, then it’s a great strategy. You can also hire ISAs (inside sales agents) to do the dirty work for you. There’s different ways to go with this option. You can hire a VA, a cold calling company, a young college student or someone who wants to get started in real estate. We’ve had a lot of success with cold calling and it’s my personal favorite strategy.
This can get pricey. It’s very easy to learn how to run ads so getting a high-ranking SEO on things such as “buy my house cash” is going to be expensive. This is the tactic I know the least about, so take my advice lightly. Also, be cautious of what kind of deals you’re looking for. An apartment owner is not typically Google-ing “how to sell my apartment fast”. Know your market and your audience.
Networking is not dead. Even during the COVID crisis, we have been able to network and meet lots of new people. The Internet makes it easy to connect with people you are looking for. Let people know exactly what you’re looking for. If you’ve ever been in a BNI (business networking influence) meeting, you know they ask you exactly who your client is. They want to know how they dress, where you can find them on a Tuesday evening, what they do for a living. Get that specific when you’re networking. If you don’t know exactly who you’re looking for, then how are you supposed to relay that message to someone so they can help you?
This is a great strategy, just get ready to hear the word “no”. Typically the only homes you can door knock are pre-foreclosures. Vacant homes are obviously vacant and probates usually mean the same. Pre-foreclosures are distressed sellers who over time, become very distressed sellers as their situation worsens. These folks are experiencing grief and you’ve now entered their situation. You’re going to deal with anger, denial, bargaining, depression, and acceptance. You’re there to help these people and put them in a better financial position. Keep consistent in your follow up and you will have a good chance buying that deal.
A lot of old tricks still work. There’s nothing fancy, no secret to marketing for deals. The secret is consistency. Narrow your list down to exactly who you are looking for and keep marketing to them.