This is a two part series on how to become the most effective real estate lead-generating master in the investing game.
The first commandment of real estate investing is (drum roll please…):
The investor with the most leads wins.
In order to be a victorious real estate investor you need to make money. The only way to make money is by doing deals. But in order to do deals, you need leads.
Truckloads of leads!
However, most investors are so hungry for real estate leads that they blindly jump into buying lists, running ad campaigns, and calling every Realtor in town before they know what they’re looking for.
[Think “shopper,” not “buyer.” A shopper knows what they’re looking for and is patient while searching for it. A buyer is undisciplined, acts impulsively and spends without much regard.]
Before you even think about sending a piece of mail or running an ad you need to be spring water clear on these three things.
1. WHAT DO YOU NEED?
Do you need cash or cash flow? It seems simple, but skip this step and you may end up looking for fish in the middle of a desert.
- If you want cash, in chunks, and you want it now, you’ll focus on short-term strategies like wholesaling and flipping.
- If cash flow is your aim, you’ll be looking for longer term buy and hold properties, and perhaps lease options.
- You have to know, cash or cash flow?
2. WHAT IS YOUR TARGET?
Once you’ve decided how you want to be paid, the next step is to determine what type of property (single family, multi-unit, warehouses, what?), geographical area and price range you want to work with.
- The more narrow your criteria, the more successful you’ll be.
- TIP: Say you’re looking for single-family residences just below the medium sales price within a 10-15 mile radius of your personal residence that are owned by people who need to sell (which, if you’re new, is a great place to begin).
- STAY FOCUSED – Don’t be distracted by a 50 unit apartment building two states over just because your broker’s friend says it’s a smokin’ hot deal.
- I can’t emphasize this enough. Even seasoned investors lose focus, but once your target is acquired, don’t deviate from it before you’ve seen steady success.
3. WHO CAN CONNECT YOU? The final item on the pre-game checklist is to identify the people who can connect you to the type of real estate that meets your criteria.
- Where do your property owners hang out and who consistently comes in contact with them?
- Find those people. Make friends. Let them know who you are and what you do.
I could tell you all the mechanics of lead generation – what to say, where to advertise – and I will, in part two. But I’d be doing you a huge disservice if I didn’t INSIST that you complete this step before getting out in the game.
Once you know what you’re looking for and who can help you find it, you’re ready to open the floodgates to the high quality real estate leads you want.