Note from the editor: Rob Kenneth is a friend of mine from South Florida. In network marketing we are always talking about multiple streams of income and this is what has drawn me to Rob. As a successful real estate investor, concentrating on foreclosures and pre-foreclosures, Rob grabbed my attention. I’ve learned so much from this expert and as one of my mentors I have now started to learn about this stream of income! Rob has been a leader in network marketing and we are excited to have him share his knowledge of this subject of real estate foreclosures with us. GM Often I am asked by other real estate investors why I am able to buy 3 – 4 houses per month when they are struggling to do one. I first ask a few questions, and I uncover real quickly that they don’t know how to market very well… and I am being charitable here. NULL
To be honest, some don’t do any marketing and wonder why they have no deals.
To me, marketing is any and all contact you make with a customer or prospect. Knocking on foreclosure doors is marketing, and I have done a fair amount of that very successfully. The difference between my success rate and other people who have tried this is this: I have a script memorized that has every conceivable objection that can be offered and how to overcome it, and also my attitude.
First, an ugly truth: Your prospect doesn’t care about you. He cares about someone who has a solution to his problem.
In real estate it might mean that he is going to lose his house. You must have empathy and compassion and only tell your prospect about your solution. He doesn’t want to hear about your life! I don’t come on like some big real estate investor. That will get a lot of doors slammed in your face. I simply tell them that I am here about there foreclosure problem, and I may be able to help. This approach has gotten me invited inside more often than not. In terms of direct mail, well you know that as soon as a foreclosure is filed, lots of people get that notice and the home owner receives a ton of direct mail from would-be real estate investors. They all look alike and are all routinely put in the circular file. If you are going to use direct mail, and I encourage you to do this, you must have a message that sticks out from the rest, but more than that, you must build credibility with the home owner that you can do what you say you can do. A direct mail piece that leads people to a website loaded with testimonials and a form to fill out to get more information will get you more leads than a one shot mailing piece urging the home owner to call you. You must remember that people in foreclosure are usually scared, and they think everybody is out there trying to steal their house from them. You must establish credibility before they will contact you. I have seen so many people eager to invest in real estate quit because they don’t know how to get leads.
Never forget that when you are a real estate investor, you are also in the marketing business. The extent to which you embrace this fact will determine your success or failure in this or any other business.
No one is born a fabulous marketer. You would not believe some of the mistakes I made when I first started out! But I got the education I needed from some marketing seminars I attended, and it has paid off very well! I now own 87 single family homes and several apartment buildings. Don’t let anyone kid you – it takes hard work to accomplish this, and I am convinced that anyone…literally anyone with the determination to do this can, as long as they learn the business and realize that marketing their services is the key to long term success. In my next article, I will talk more about how to get leads for your real estate investing business.