Imagine how easy the real estate business would be if you could get every new deal that comes your way. While this may sound like a pipe dream, it is really much easier than you think. Closing on the deals that you really want is more about doing the little things than spending money generating leads. The real estate business is about the contacts you make and how you treat them. As I am sure you have heard before, it is a people business. By focusing on contacts instead of deals, you actually end up with more leads. Not only should those leads translate to more deals, but you will get ones that you really want. This will not happen by itself, however. There are some things you need to do to get to this point:
1. Prepare to act: Fortune favors those that are most prepared to act. In the world of real estate, this means being ready to make an offer when an opportunity presents itself. Not only do you need to make quick decisions, you have to have financing lined up. If you seek lender financing, you need to have your prequalification updated. Update your loan folder to include recent bank statements, pay stubs and other pertinent information. You should keep in constant contact with your lender or mortgage broker to find out what items you will need to submit with your offer. If you are making a cash offer, you should update your proof of funds letter and transfer money into whatever account you plan on using. Your offer can hinge on whether or not you can close within a certain time-frame. Wasting a day or two getting your financing lined up can lead to you losing the deal. If you do this enough time,s your lead source will soon turn to buyers that are really ready to act.
2. Know what you want: If you don’t know what types of deals and properties you want, it is impossible for others to know as well. Before you reach out to local realtors, attorneys, wholesalers and investors, you should have an idea of what you want. The more defined you are, the better deals that will come your way. Instead of wasting time looking at and researching properties you have no interest in buying, you can save time on the ones you want. Additionally, your local contacts will remember you the next time they get a deal in your wheelhouse.
3. Meet with local contacts: Deals will not simply fall on your lap – no matter how much you would like them to. To get deals you want, you need to meet with people that can help you find them. This means reaching out to local contacts in your area. The real estate business is a numbers game. The more methods you have of generating leads, the higher chance you will turn those into deals. Allocate time every week to meeting with realtors, wholesalers, mortgage brokers and attorneys. This may get a little monotonous at times, but is critical to your business. Something as little as a quick cup of coffee can make a big difference. Your meeting does not need to be a sit down lunch at a fancy restaurant. Think of the impact it would have if you ask a wholesale contact out for a round of golf. If a drink at happy hour is your preference, go that route. Separating yourself from the investing pack can put you at the top of their list.
4. Think big picture: To get the deals you want, you need to think about building relationships. One deal should never be bigger than your business. If you act unethically or make short sided decisions, you run the risk of ruining a solid contact. There are plenty of seemingly minor decisions that go into every deal. By trying to squeeze every last dime, you will get a reputation as someone difficult to work with. On the flip side, making small concessions will brand you as someone who is enjoyable to work with. In many cases, it is things like this that will get your phone to ring with new deals.
5. Follow up: One of the most important things you can do is also one of the easiest. Regardless if you get the deal or not, you need to acknowledge anyone that thinks enough of you to give you a lead. A quick email, phone call or text message won’t take you more than a few seconds, but can cement a relationship. If you did get a deal from someone, you should return the favor. A small personal gift thanking them goes a long way. If you have not gotten a deal yet, it could be because of a lack of a follow up. Every time you meet with someone, you should send them a message thanking them for their time and follow up again in a few days. The importance of this cannot be understated.
Being prepared to act leads you to close more deals. The more deals you close, the more relationships you make. These relationships hold the key to the types of deals that come your way. Instead of wasting time and money marketing, focus on your contacts.