Blog Archives – Real Estate Disruptors

Digital Marketing in Real Estate Wholesaling

March 26, 2021 By Steve Leave a Comment

Digital Marketing is quite the buzzword these days. But what exactly is it, and how can you use it for your real estate investment business?

Types of Digital Marketing

These are the most common forms of digital marketing that I’ll discuss here:

SEO (Search Engine Optimization)
PPC (Pay Per Click advertising)
Facebook and Instagram ads
YouTube videos

SEO for Digital Marketing

Search Engine Optimization is basically the process of getting yourself listed high on Google’s search results. This is without buying ads, which are usually the first two to five listings you see when conducting a Google search.

The leads you get from SEO are usually very high quality leads, and are usually ready to take action soon. Why is that? Because SEO results are from people looking for the specific thing you’re offering. They’re typing in search words to Google trying to find something they want to do/use. Now they may not be ready to go right away, but fairly soon.

SEO has a downside, though – it takes nine to 12 months for optimization to work. This means you have to be consistently producing content. It’s also why most people never get around to it. This is part of the reason we do so much content on www.realestatedisruptors.com, such as this blog.

The algorithms Google employs change, but one thing is very important: Google wants your website to be relevant to what the user is seeking. The more unique content you have on your site, the higher you rank. The content has to be added consistently and over time. If you dump a bunch of articles and videos onto your site in one week, and let it sit, Google will see that and won’t rank you highly.

PPC in Digital Marketing

Pay Per Click is advertising on Google. These are the ads you see at the top of any search rankings. They look just like other search result listings, but slyly have the word “Ad” in the front of the line of the ad. These are always at the front of any search results.

You can build a PPC ad campaign based on almost any budget. PPC ads can be scaled to almost any level, and include as many keywords or phrases as you can invent. If you want to completely saturate a geographic area or specific search strings, you can do that with enough money put into the campaign.

Why would you do this? Because PPC leads are the hottest leads you can get from digital marketing. These are people who want to sell their house NOW. Many wholesalers treat these leads as emergency contacts: They call, text, email, direct message (DM), and even drive unannounced to the house to make the appointment. These are leads that if you snooze, you lose.

Facebook and Instagram ads

Here we’re talking about buying ads on Facebook and Instagram, not posting content. For example, check out the content we post on Facebook and Instagram.) The distinction is important, because ads in these spaces are targeted to groups you identify and appear in the timelines of people who otherwise may never find your social media page.

You can deliver your ad in a similar manner as PPC ads or SEO searches. The difference is Facebook’s algorithms do the work of identifying who might have an interest in your service. While people do search on Facebook and Instagram, it’s not the primary method of engagement. Instead, Facebook creates a profile of every user, using all kinds of interaction, web searches, or other usage to figure out what the person is interested in.

Facebook and Instagram ads are sprinkled into a person’s feed and look almost identical to regular posts. They have a small “sponsored” notice below the account’s profile name to indicate that it is an ad.

Leads from Facebook and Instagram are very solid leads, but may not be quite ready to pull the trigger just yet. Not as hot as PPC leads, but definitely interested and should be contacted quickly. However, you may find that these leads are looking to act in a month or two or six. They are solid leads, but may need some nurturing.

These ads also allow you for great personalization, but photos of people should be those acquisition agents who will likely visit the seller. You can also use more generic photography, like a house or logo. These ads allow you to use visual hooks to attract sellers.

YouTube Videos

Video is becoming the most popular content for consumers. This is because it is easy to get information about virtually anything via video these days. It’s a huge reason we produce so much video content (see our Real Estate Disruptors YouTube page for our podcast and tons of free content).

Need to repair your car? YouTube it.

Want to bake a cake? YouTube it.

Want to sell your house for cash? YouTube it.

YouTube allows ads, so you also can advertise your services. Since YouTube is owned by Google, much of the same algorithms employed at Google apply here. There are more and different ones, but the way ads are delivered to people are similar. You can also target consumers much the way you would for PPC ads.

Content is King, and video is the King of Content. You want to have video reviews of your services on Google, which are posted on your website, and which you can use on YouTube and even Facebook/Instagram.

Video provides a powerful, personalized experience.The key is to be real – testimonials can’t appear to be scripted, reviews must seem honest, and your videos have to look authentic. Any “fakiness” will be sniffed out and the consumer will click somewhere else.

Whom to Hire?

There are many, many companies who say they do digital marketing. However, some are much better than others. Ask a lot of questions to any company you’re thinking about hiring – do they have experience in your industry; what specifics can they offer for your company’s strategy; is this customized or a standard campaign? Don’t be afraid to demand information and specific answers. If you don’t feel comfortable, move on to the next company.

Using a company like Bateman Collective (www.batemancollective.com) can vastly improve your results. We use Bateman Collective for our digital marketing because they have significant experience in the real estate wholesaling community. While a company with such expertise may cost more, you also won’t be the guinea pig. Then again, if your budget only allows for you to hire a college kid who is getting his feet wet, that’s how Brandon Bateman got his start. You might find a diamond in the rough.

Just know that if you’re not getting results, and tweaking your campaign doesn’t increase your leads, then don’t be afraid to fire them and try someone else. Digital marketing isn’t simple, and it is constantly changing. Your marketer has to be on top of the changes and be monitoring your account frequently to maximize your lead generation. It’s your job to stay on top of them and get your marketing company the information it needs to make your campaign successful.

Conclusion

Digital marketing is not only here to stay, it is where most consumers get their information these days. Its influence is only increasing, and that will render other forms of advertising obsolete. Many traditional marketing channels remain viable: Direct mail, cold calling, TV and radio ads, even billboards (digital billboards provide great flexibility here). But consumers are searching for information and becoming educated online. If you aren’t using digital marketing, your competition is, and so are your customers.

Where Did Your Customers Go?

March 10, 2021 By Steve Leave a Comment

You finally closed that deal. Whew. Go deposit that check and on to the next one, right?

Where’s the next one?

The pipeline is dry.

You’re starting from scratch.

Crap.

Why Your Leads Run Out

It’s hard to build a real estate wholesale business (or fix and flip, buy and hold, etc.). In the beginning, you’re doing everything: marketing, cold calling, contracts, closings, problem solving, and the list goes on.

So why is it such a roller coaster? Why does everything seem to come in waves?

Because you’re not being consistent. Specifically, you’re not being consistent with your marketing and acquisitions.

What tends to happen with new business owners is the Business Cycle:

You don’t have any properties under contract, so you spend time on marketing.
You get leads coming in, so you spend time cold calling.
You get seller appointments, so you spend time going to those.
You get a deal closing, so you spend time making sure it closes.
You close the deal, and realize you haven’t spent any time on marketing.
Go to Step 1 and start again.

Sound familiar?

Why Consistency Matters

You may feel like you don’t have time to consistently market or call leads. After all, you’re super busy taking appointments, or finding buyers, or solving seller problems, or whatever else.

The truth is you have to MAKE the time or you will never get beyond one or two deals at a time. You see, it’s the marketing and acquisitions (cold calling and following up on leads) that builds your business.

Without consistent marketing, you set yourself up for a huge outflow to potential sellers, these sellers respond, you contact them and follow up. If you don’t follow up in a timely manner, they probably move on to one of your competitors.

More Isn’t Necessarily Better

Let’s say you’re doing direct mail and you’re dropping 10,000 postcards this week. Your next drop won’t be for another two months.

You don’t have the money to drop 10,000 postcards every week, or even every month. After all, marketing costs money.

So don’t ADD more expense. Rather, try spreading out your mailings. Instead of having 10,000 postcards go out and then trying to follow up on all those leads for two months, why not drop 1,000 postcards this week, 1,000 next week, and so on?

Now you have done several things to your advantage:

You spread out your marketing costs, spending 1/10 per week
Customer responses come in regularly over two months instead of all at once
You have more time to follow up on the leads sent out that week
You have consistent marketing, so you generate consistent leads

Build From Here

The biggest advantage of this approach is that you have time to devote to each area of your business: Marketing, acquisitions, dispositions, and so on. After a few week lead-in, you have regular outflow of marketing, inflow of leads, a manageable number of appointments, and consistent closings.

So from here, it’s easier to scale up. Increase your marketing from 1,000 per week to 1,500, for example. You also will have more regular cash flow, allowing you to plan your marketing and perhaps hiring some administrative help.

Get your processes under control and working consistently week-to-week, and you will soon be able to grow and expand. We can help you get all that organized, systematized, and running. www.disruptors.com

Work Hard, Then Don’t

February 19, 2021 By Steve Leave a Comment

Just so we’re clear here: real estate is hard work.

I don’t care if you’re wholesaling, flipping, buying and holding, or new construction, this business is hard and can be brutal.

But it can also be a piece of cake.

The Dichotomy of The Business

Why do I say that real estate is hard? Well, first off, because it is. No one hands you the keys to a massively successful, run-on-autopilot real estate business. You have to create it. YOU. And that’s hard because you don’t know what you’re doing. None of us did when we started either.

Real estate is definitely a learn-on-the-fly business. If you think you’re going to study hard, figure out all the details, and THEN start a highly successful real estate company, you’ll never get past a couple of deals, max. If that much. Because you have to dive in and DO IT, not read about it. Taking action is the most important thing you can do to build a real estate business.

When you’re starting out, you have to do it all. You’re both learning and building, and every day presents something new. YOU’RE DOING THINGS. While that can be overwhelming, once you get a couple of deals under your belt, you start moving faster. You identify deals more quickly, you learn how to close more deals, and you anticipate potential problems and either avoid them or handle them before they’re problems.

The Build Out

As you get established, close deals and start bringing on employees, your company begins to take shape. You find the niche(s) you like or are good at, you’re dialing in your marketing, and you’re building buyers’ lists. You’re getting your groove on.

This is still a busy, busy time. You’re handing duties to other people, but you’re still running the show. You have added tools and technology, processes and policies, and generally have a way of doing things.

Now is when the grind can begin to wear you down. It’s often difficult to see, because you’re too close to the situation. And you have a big appetite, seeing how much more business you could be doing, and kicking yourself for all the deals you missed while you were learning how to do it. You don’t want to slow down, because that’s for the weak. Plus, you see BIG numbers just on the horizon.

This is when it is important to keep yourself grounded, to see the forest from the trees. You can grind, but you need to let others take some of that grind off of your shoulders. This is when you need to ensure you have processes and people in place to handle things. Putting those systems in place is when you’re really building the company.

The Payoff

You’ve worked hard building the company, putting in long hours many, many days. Some days were amazing. On others you were pulling your hair out. Sometimes the cash was good, other times you didn’t know if you were going to open the doors tomorrow.

Now the business is handling itself — marketing is consistently bringing in good leads, acquisitions are signing them up, and dispositions are closing them. So why are you working so hard?

This is the key moment, when you recognize that you don’t have to be there doing everything every day. Your business rolls on without you touching every aspect of it. You can actually step away from time to time, and the company is still there when you get back!

Most entrepreneurs have a tough time slowing down. They love doing the work, building the business, making the deals. But no matter how much you love it, eventually the grind will wear you down. At some point, you will resent your business if you don’t get away from it occasionally.

Remember the Reasons

You started this business for specific reasons: money, time freedom, not answering to anyone, or whatever other reason you had. Don’t lose sight of those. It’s easy to get stuck in the grind, working every day just focused on the next deal.

Taking time off is actually a crucial part of growing your business. That may sound counterintuitive, but if you’re always there to solve every problem, then how is the company going to become a COMPANY and not just some people who follow you around? After all, you don’t want to do everything all day, every day, do you?

I know people who work very part time in their businesses and still make incredible money. Check out my recent Real Estate Disruptors podcast with JR Piper, who travels the world while his business produces $20,000/month. They put in the time to build their companies, and now have both the money and time to do what they want — travel, spend time with their family, expand to other ventures or charitable organizations, mentor young people, all manner of activities. It’s truly inspiring to watch how they used real estate (a business they love) to do some really incredible things.

So force yourself to take vacations.In order for your company to grow, you have to not be there occasionally. Get away from the work. If you have trained your people well and documented your processes, then they can do it. Let them. Give them the opportunity to take charge, to do their jobs, and make you proud.

And let them do it while you relax on a beach somewhere…

Check out my weekly podcast at www.realestatedisruptors.net, every Wednesday at 2 pm MST. Also, we have our free wholesaling workshop at DisruptorsU.com. And visit more free information we have at www.realestatedisruptors.com!

Why You Need Systems

February 8, 2021 By Steve Leave a Comment

Even if it’s just you

Everyone talks about implementing systems, but do you need them?

Do I have the time to find or create systems for my business?

What will systems do for you, especially if you’re a one person shop?

Systems can do everything. If you like making your life easier, that is.

What Is A System?

We hear people talk about systems (or processes) all the time. But what is a system?

Systems create specific steps to follow in performing common tasks. They may automate tasks, or provide specific directions to someone. These tasks may occur every hour or only on occasion, depending on the task. For example, you may have a system for sending data to your dialer to start cold calling. This may be used every day you or your team is cold calling, such as every work day. Other systems may be used infrequently, such as hiring a new employee.

All the steps necessary to complete a process should be in the system. The entire purpose of a system is to ensure nothing is left out and that the task is completed as efficiently as possible – you don’t want to forget to deliver a signed contract to the title company because you left that step off of your system.

Automation

Taking routine tasks and putting them on autopilot is an excellent reason to use systems. Manually combing through foreclosure lists is tedious and time consuming, but having software or a service that sifts it for you both maximizes your time and ensures it is done timely and as error-free as the data allows (there can always be data errors beyond your control).

Doing repetitive tasks over and over gets boring, and it increases the likelihood of errors. Creating systems for making calls, scrubbing data, preparing closing documents, hiring employees, and so on frees up your time and lets you focus on revenue-generating activities.

I had a conversation about systems with Terry Thayer on my Real Estate Disruptors podcast (you can watch it for free on YouTube, Apple Podcasts, or my website www.RealEstateDisruptors.com). Terry used to work himself ragged as a general contractor doing fix and flips, buy and holds, renovations, and other real estate work. A 70 or 80 hour work week was a slow week for him. He didn’t get to see his wife, his kids, take vacations, or enjoy the fruits of his labor.

Then Terry discovered the power of systems. He stopped being a contractor and became a real estate wholesaler. He spent a year finding or creating various systems for his business, everything from finding sellers to hiring employees. By implementing those systems, Terry now works about five hours a week and makes over six figures a year. He even has a hiring process which hands him solid, qualified candidates and has cut his time spent hiring a new employee to two hours.

Systems Are Important for Solopreneurs, Too

Being a solopreneur (the old “me, myself and I” running the business) is hard. There’s no one to help you; no one to catch your mistakes or remind you to do something. Sifting through seller lists, parsing skip tracing results, dialing telephone numbers in cold calling, knowing which offer was sent to whom and needs follow up – all things that need to be done, but take a lot of time away from doing other things.

Make these tasks accurate and reliable by implementing systems. How many times have you tapped the wrong number when calling someone? Missed an important piece of information is a large spreadsheet? Spent 20 minutes hunting for that contract because it wasn’t placed in the proper folder?

Systems are even more important for the solopreneur, because you can’t afford to miss things. You don’t want to kill a deal because you forgot to order title work, for example. As you grow and hire employees, you can easily hand off systems to the new people. Things don’t massively change because someone else has a different file organization system (or lack of one). You’re basically plugging them into the system, but the system keeps running and doing its job.

Keep It Consistent

Good systems work regardless of who is sitting in that job’s chair. If your acquisitions success rates change every time you hire a new salesperson, you don’t have a system, you have a free for all. The wheel is being reinvented every time someone else is in the acquisitions seat. You need to have a consistent method that anyone you hire can use and keep your successful processes working.

Once you have successful systems in place, you make life easier for your employees. They know what to do on a daily basis; there’s no guessing about how to accomplish duties and meet established targets. You can easily determine who is doing their job, and who is not.

Having systems also gives you the ability to diagnose what part of your business is failing if your KPIs drop. Is marketing still going out? What are the responses? Are acquisitions making enough calls each day? Are contracts being signed? If not, why? Systems make it easy to find out who is not following the system, and correct the problem. Check your systems, and see what is clogging the pipeline. Clear the blockage, and the system operates smoothly again.

Find Systems or Create Your Own?

Creating your own system may sound appealing, because you can make it be exactly what you want. However, creating a system from scratch is time consuming. I recommend finding existing systems (e.g., software, developed hiring processes, etc.) and adapting them to your business’ practices. You will save a lot of time, and likely a ton of headaches too. This approach may cost you a little more money than if you created your own system, but it is more important to get a system in place than it is to save a few bucks here. Later on, if you’re not happy with your choice of system, you can change it up or create your own. You will have more time later, once you get your systems up and running.

It’s never too early, or too late, to implement systems. Remember, systems are just tools to help you get things done faster and more accurately. That’s all. Don’t get hung up on who uses what system; find what works for you and get going.

The faster you get systems implemented, the faster you gain time and the more successful you will be.

Why Your Reputation Matters

February 1, 2021 By Steve Leave a Comment

Is A 5-Star Reputation Important? — Reputation Matters

You’re trying to sell a property you have under contract, but you can’t get other real estate investors to return your calls. Why? After all, this is a good deal…

Why won’t they give you the time of day?

Well, why should they answer your call, text or email? Have you given them a reason not to?

Here’s the thing — you need other people to work with you in order to do this business. You need sellers to sell to you, and buyers to buy from you, and contractors to do repairs, and loan officers, and private money lenders, and so on. What happens if you get a reputation for breaking deals, or making promises you don’t keep, or not paying your debts in a timely manner, or poorly estimating your deals? Would you want to work with someone like that?

Reputation Matters: Keep Your Word

This is crucial — don’t make promises or sign contracts you can’t fulfill. Your word is your bond. If a thought crosses your mind that you could back out of a deal with Joe because Mike will pay you more, flush that away fast! You had better close the deal with Joe, because he will likely tell everyone that you backed out of the deal. He also may be upset with Mike, thinking the deal was stolen from him. Even if it wasn’t signed yet, you had a verbal agreement. Now you and Mike have bad reputations, and all for a few dollars.

Instead, close with Joe. Tell him that Mike offered more money, but you already had a deal with Joe so you’re honoring it. You might take the next deal to Mike first if he pays more, but don’t screw Joe over. In the long run (maybe as soon as your next deal), you will lose much more than you made on this one.

Things Happen

Sometimes things happen in the course of a transaction and you might have to back out of a deal. This is real estate, and that’s life. But you don’t have to complicate things or let others get harmed in the process. Try to protect as many people as you can, or at least help them.

Be honest with everyone involved (including yourself). If something torpedoes the deal, let everyone know as soon as possible and apologize. It may not be your fault, but apologize anyway; it helps keep everyone on good terms.

Should you take a loss just to close the deal and not break your word? That’s something you will have to evaluate at the time. You might be able to go to one of the parties and ask for a renegotiation because you simply can’t fulfill the original deal, or because it will be a big loss for you. Again, just be open and honest with them. Most people are pretty understanding. If you’re helping everyone get the deal done, maybe the problem can be spread around so no one takes a major hit. Try to help everyone out as best you can.

In the end, you might decide to take the hit to preserve a relationship that has been profitable and/or may be in the long run (such as with a buyer or private money lender). If you do, be sure to let them know so they understand what you did. Don’t gloat or use it as leverage, but tell them you’re taking the loss because that’s the deal you made. It builds a ton of good will, and may be reciprocated in the future.

Don’t Hide

The worst thing you could do is run and hide. Answer calls and texts. Better yet, call first and explain what is happening. If you disappear, consider your reputation trashed. You will find it very difficult to work in this industry after that.

Stand tall and take your lumps if you can’t find a way to solve the problem. You will gain respect. Everyone in real estate has had a deal go bad on them. If you stay engaged, you can make the best out of it. If you disappear when times get tough, your business won’t be far behind.

Trust is the Key

Respect is given based on your behavior. Trust is earned because your actions have proven your responsibility. Going back on your word, even once, can destroy a reputation for years. You can ruin your reputation before you even get one by promising things and not delivering. Breaking agreements is the fast track to bankruptcy.

Trust is a reciprocal relationship. Those who trust you will give you more leeway than those who do not. You also will find it easier to work with other people, because they will know they can count on you. Reliability is an often overlooked characteristic to a successful business person.

Your Word is Your Bond

Treat your word as a blood oath with others. Don’t break it without a very good reason, and even at that you had better work like hell first to avoid breaking it. Because once people start believing that you always keep your promises, they rely on your performance. This isn’t “fake it ‘til you make it,” this is just “make it” from the start. As in, make your word be a core value and something you break only in the most dire situations.

You will find all kinds of benefits to keeping your word — deals will be easier because people will trust that your valuations are correct, that your description of the property is accurate, and that deals are moving and closing. If you have issues come up, talk to people. There is nothing that good communication can’t solve, or at least make the situation less problematic. The earlier, the better and the more thorough, the fewer problems.

The Benefits

Being trusted brings innumerable benefits. You will have bigger buyers lists with buyers eager to take your deals quickly, your contractors will know that they’ll get paid timely, you will have loyal and available private money lenders, bankers will make exceptions for you, and other people will help you when you need it (and you will from time to time).

Occasionally doing the right thing may hurt you or your wallet, but the value of good relationships is impossible to measure. You can’t buy them; you can only create them with your actions and ethics. And when you’re in a tough spot, those relationships can be your lifeline to getting out of the situation.

Who Do You Want To Be?

Keep this in mind: Are there people who have treated you poorly in your business or personal life whom you do not want to work with again? You don’t want to be that person. Instead, strive to be the person everyone wants to do business with because you keep your promises and over deliver. Be the one who fixes and saves deals, the one who always closes. Be the solution finder.

Be available to give advice or help, even if it’s for free or inconvenient. You can have reasonable limitations on this, but don’t be stingy with your knowledge or time. Giving back only elevates you in the eyes of others.

You will have times when you cannot keep your word or you have to cancel a contract. That’s life in real estate. Sometimes forces beyond your control intervene and you simply have to make a call. Exhaust all your options first though. Talk to all parties involved and keep them informed. Rack your brain trying to find a way to make it work. And in the end, an apology goes a long way if it simply can’t be done. Most people understand that things happen, but if you give it your best effort to see it through, they’ll appreciate you.

Most of all, keep your word. Be mindful of your reputation, and work to make it bulletproof.