Making money in real estate doesn’t have to be difficult, but it does require some experience and knowledge. That’s why some experienced investors are profiting from the mistakes that inexperienced investors make. In this blog post, we’ll discuss how experienced investors are taking advantage of rookie mistakes and generating more leads and revenue from their deals.
During times of economic uncertainty, inexperienced real estate investors often make the detrimental mistake of cutting back on marketing expenses in hopes of saving money. This expensive mistake costs them money because it slows down their lead generation pipeline and brings their new seller leads to a standstill.
Experienced investors capitalize on this rookie mistake by maintaining a consistent marketing strategy all year round, and sometimes doubling down on their efforts.
The most experienced entrepreneurs understand that marketing is an investment, not just a variable expense. Some variable expenses can be cut if needed, while an investment in marketing is something that helps a business sustainably grow and thrive over time.
A solid marketing strategy is the lifeblood of any successful business. But a marketing strategy only works if executed consistently. Which leads us to our second rookie investing mistakes.
Marketing requires consistency to achieve results. Most new real estate investors take far too long to grasp this fact.
Instead, rookie investors spend their first few years trying to do all of their lead generation and marketing on their own. The problem with this is that their marketing falls by the wayside the moment they get too busy, or when something happens in their personal life.
Even if an investor tries to do all of their marketing themselves, something will eventually go wrong and they’ll have to take a break from it. This can be due to working on a short timeframe to flip a house, dealing with unpredictable contractors, or getting sick and not being able to do anything for a week or two. It’s not a matter of “if” life will get in their way, it’s a matter of “when” it will.
The saying, “Life happens when making other plans,” is a perfect summary of how life can (and often does) get in the way of our ability to execute tasks at times, despite our best intentions.
Seasoned investors understand that it takes multiple touch points to find a motivated seller, and most sellers aren’t willing to sell to them right away. Most sellers take 4+ months before they become serious about selling their home.
This is why experienced investors contract out their lead generation and marketing to a reputable company that will market for them consistently to keep their name in front of sellers throughout the year.
By consistently marketing to the same sellers repeatedly, investors have better chances of their information being in front of sellers when the timing becomes right. Which leads us to the next rookie mistake.
Some new investors have sales experience, while others don’t. Those with experience may already understand the importance of relentless follow-up. But, more often than not, new investors make a critical rookie mistake by giving up on their leads far too easily. This is because rookie investors allow their fear of rejection to get in the way.
Most experienced investors learned not to give up too quickly the hard way. (By losing a ton of deals early on in their careers.) With time though, they’ve learned how to face their fears head on by equipping themselves with knowledge.
Savvy real estate investors know their numbers. They know that it takes on average 4 months, 45 leads, 250 relentless follow-up calls, and 12 hours of phone time to get 1 deal.
These investors use their knowledge to develop a consistent and relentless follow-up strategy that keeps their deals flowing. One of the ways they do this without spending all of their time behind a screen or on a phone is by hiring a team of professionals that can help them with lead generation, marketing, and follow-up. Which brings us to our final point.
Most inexperienced real estate investors greatly underestimate the value of their time and end up trying to do everything by themselves as a result. This leads them towards quick burn out and they end up maxing out on what they can do in a given week.
As the CEO of their businesses, experienced real estate investors understand that their time is worth well more than typical employee wages that range between $15-$35 per hour, and they delegate accordingly.
Whether they use a part-time employee or a Done-For-You services provider who can handle everything for them (like our very own REIComplete), delegation enables experienced real estate investors to focus their time and energy on the tasks they love doing — talking to motivated sellers and closing deals.
If you’ve found yourself making any of these rookie mistakes, you’re not alone. Now that you know what experienced real estate investors are doing to take their businesses to the next level, you can start implementing a strategy to do the same for your business today.
We’re experts at helping real estate investors generate motivated seller leads so they can grow their businesses. If you’d like to learn more about the Done-For-You Services we mentioned earlier, or if you’d like to hear about how we can help you develop and execute a consistent marketing strategy, sign up for one of our free discovery calls today!