Where Investors Get Wholesaling Marketing Wrong
There continues to be one critical mistake real estate investors make in their wholesale marketing strategy which sabotages virtually everything they do and makes every deal harder and harder to flip. What is it?
It really all boils down to the difference in short term and long term focus. So many real estate investors are only concerned with flipping the current house they are working on and paying the bills this month, versus building a pipeline through which endless deals can flow effortlessly each and every month.
Simply focusing on flipping one house and getting the most money for it, at whatever cost, ends up having long term ramifications, most of which aren’t good.
While keen focus is good, this approach to wholesaling marketing typically results in starting all over again with each property, burning bridges and increased costs of lead generation and selling homes as time wears on versus oiling a money making machine that can virtually run on autopilot. It results in a one call close approach and a more selfish perspective when it comes to pricing, disclosing and negotiating.
This is contrasted by those who have the mentality of offering a useful and needed service and building relationships that result in continually lower wholesaling marketing expenses, as repeat buyers come back month after month to buy again and buy more.
How can you create more of the latter?
Instead of desperately pitching the deal you have on the table, attempting to close everyone on the spot and promising the world to anyone who will look at it, think about a big picture wholesaling marketing strategy which breaks the process into stages from drawing attention and making connections to developing relationships and offering a valuable solution to fill the other party’s needs.
Instead of trying to squeeze a ton of information into the first touch, whether it is an in-person encounter or billboard, keeping it simple can often be more effective in the long run. For example, if you have a coffee shop and want more visitors, you might offer a ‘free coffee’ to get people to try it out instead of trying to pitch them on all of the complicated science that makes your coffee so great and they don’t really care about. You want them to stay longer and drink more and invite others, so you might offer free internet access. In real estate, it may be simply opening a conversation at a networking event with “What do you do?” and really listening or running ads proclaiming you have ‘wholesale properties at 50% below ARV’ and providing your number.
This opens the conversation. Then focus on how you can fill the order they need. Most importantly of all, offer good deals. It’s far more profitable not to gouge buyers on the first deal and keep them coming back every month instead of having to go out and find a new set of buyers every month. Reputation is critical in this business and a pool of ready buyers with blank checks is crucial for effortless flipping.
Your deals, reputation and relationship with prospects should result in them eagerly opening your emails and being instantly ready to wire the funds because they know what you are offering is going to be another good deal and good for them.
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