The Proper Steps in Today’s Real Estate Market
Most of the bad stuff the news is talking about you need to be aware of because it affects what kind of assets you’re going to buy and the real estate investing you’re doing.
You’ve probably seen all the fear mongering going on with many of the so-called pundits comparing this to the worst economic recession/depression since the Great Depression.
The numbers certainly don’t back that up… as of yet.
If the numbers and trends continue it could approach those levels of 25% unemployment, mass layoffs, and other hysteria which drove people to the bread lines and to the brink of starvation.
“So what does this have to do with your real estate investing?”
The numbers will give you insight of how you’re going to do your marketing, which generates your leads, which gives you quality contacts to make, and the number of contacts you make to sellers will ultimately determine how much real estate negotiating you will be doing this year.
Remember, it’s not about being like the movie Boiler Room where you have to hard sell and A.B.C. which means Always Be Closing. Hard phone sales and sleazy used car salesman come-on presentations are far less useful these days.
So what you want to focus on more is the number of contacts you make each day as well as the number of times you contact each party. Those will be much greater indicators of your success.
Obviously, you want to spend your time where you can get the greatest amount of money. If the person is not interested in your creative financing type of purchase don’t call them again.
The main thing I’m talking about is continuing to contact the people you have yet to get a hold of, have had to leave voice mails, have gotten no answer or a busy signal, or those you’ve talked to who’ve indicated their openness to your creative offer.
You probably have seen the numbers that it takes anywhere from 9-15 contacts in order to complete a sales transaction.
The reason most investors and salespeople fail is because they never make it to this 9-15 contacts level for reaching interested parties or potentially interested parties.
Trust is a huge issue which starts by doing what you say on the first call and builds the more times you contact them.
In the beginning you’re just another telemarketer who wants something from them. The only way you get through this is with persistence and maintaining your professional contacts level as well as doing what you say.
In this context I’m mainly talking about keeping your appointments.
So when you schedule a phone call with them you call them at that time no matter what. Even if you have to leave a message then the fault is on them and you can subtly bring that out next time about how you thought you had a confirmed and scheduled phone appointment and maybe the signals got crossed because they missed it.
Always leave them an out because you don’t want to directly call them out and make them accountable or you may bring up some defensiveness on their part and when the walls go up they’re definitely less likely to sell you their property or do business with you.
As for the economy, the numbers I saw showed that 95% – 96% of the money which was being spent 12 months ago is still being spent this year. So as bad as the economy is there’s only been a 4% – 5% drop in people’s spending.
What has happened is they are much more careful with how they spend their money and what they choose to spend it on.
They consider their purchases much more carefully in today’s economic environment because of their fear of being laid off or losing their income than they did just 12 to 24 months ago.
Now of course you can subtly capitalize on this hysteria and fear when you make points during your presentation with the motivated seller.
Using current events and statistics builds proof and trust. By following this formula and making the required number of contacts you’ll get what you want. It’s just a law of physics.
Get started doing what you know works right now because you know when you talk to noone you get nothing. Get more information on real estate investing and , and make your dreams come true.
This entry was posted on Monday, January 26th, 2009 at 8:02 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.