Podcast Summary
Maximizing deal flow through marketing funnels: Marketing funnels help attract the right leads and opportunities, allowing investors to focus on their strengths and execute strategies effectively by getting specific about their buy box and setting clear KPIs.
Establishing and optimizing marketing funnels is crucial for success in real estate investing. Funnels help attract the right leads and opportunities, allowing investors to focus on their strengths and execute their strategies effectively. By getting specific about your buy box and setting clear key performance indicators, you can streamline your business and maximize your deal flow. Whether you're a seasoned investor or just starting out, understanding the importance of marketing funnels and implementing them in your business can lead to increased efficiency, better decision-making, and ultimately, greater success.
A lead trap for real estate businesses: Implement marketing funnels to attract, engage, and convert leads into customers, simplifying the investment process and generating passive income
Real estate investment offers various opportunities with little to no upfront capital through platforms like Rent to Retirement and private real estate funds. A marketing funnel is a crucial aspect of a successful real estate business, acting as a systematic process that attracts, engages, and converts leads into customers. James Daynard, who runs multiple businesses in the Pacific Northwest, describes it as a lead trap that establishes a brand and provides benefits. Sam Primm, who has also achieved success in real estate, emphasizes its importance in simplifying the investment process and generating passive income through experienced teams like PPR Capital Management and Vacasa. By understanding and implementing marketing funnels, real estate investors can effectively grow their businesses and maximize their returns.
Understanding the Customer Journey in Business: Businesses use sales funnels to attract, engage, and convert potential customers, tracking their journey from initial awareness to final purchase, and improving performance with valuable metrics.
A sales funnel is a crucial aspect of any business, regardless of its nature. It describes the customer's journey from initial awareness to the final purchase. The funnel's shape resembles an upside-down triangle, with the widest part at the top, representing brand awareness, and the narrowest part at the bottom, representing the sale. The top of the funnel is where potential customers learn about your business, while the bottom is where they make a purchase. Funnels can be simple or complex, and they help businesses track and improve their performance by providing valuable metrics. For instance, a real estate investor might list their property on multiple websites to attract potential tenants, creating a funnel that starts with brand awareness and ends with a lease agreement. Funnels are essential because they help businesses get the word out about their offerings and bring customers to them. Even a home-based taco shop needs a funnel to attract customers. So, whether you're running a landscaping business, a painting business, or a real estate business, remember that business is essentially funnel marketing. The more effectively you can attract, engage, and convert potential customers, the more successful your business will be.
Effective Funnel Systems for Real Estate Investing: Building a successful real estate investment business involves creating communication and awareness with potential sellers or wholesalers through various funnels, including mass marketing, call centers, buying ads, on-market listings, and broker networking. Continuously expand and refine these funnels to increase chances of finding profitable opportunities.
Building a successful real estate investment business relies on establishing an effective funnel system to generate deal flow. James shared his experience of having two main businesses, each with distinct funnels for sourcing investment properties. These funnels include mass marketing, call centers, buying ads, on-market listings, and broker networking. The goal is to create communication and awareness with potential sellers or wholesalers, ultimately leading to presented deals. There are two types of funnels: paid and relationship-based. Paid funnels involve marketing plans and spending money to bring opportunities to you, while relationship funnels involve building relationships with wholesalers, investors, and brokers to secure deals without significant costs. The key is to continually work on expanding and refining these funnels to increase the chances of finding profitable investment opportunities.
Diversify your funnels but focus on one or two lanes for new investors: New investors should focus on one or two lanes and go deeper, while experienced investors can diversify for better results
For real estate investors looking for deal flow, it's essential to have a diversified approach but not spread yourself too thin. Diversify your funnels between paid marketing and networking. However, for new investors, it's recommended to focus on one or two lanes and go deeper rather than wider. By having a clear focus, you'll be able to service potential deals effectively and make a significant impact. At the top of your funnel, brand awareness is crucial, as it qualifies you to potential deal sources and defines your buy box. Remember, going deep into a specific area or price point can lead to better results than trying to chase every opportunity that comes your way. As Sam mentioned, in the era of social media, it's easy to get overwhelmed by various ideas, but maintaining focus will help you accomplish more.
Specificity and speed are crucial in real estate investment funnels: Be clear about your investment criteria and follow up promptly to maintain successful funnels. Specificity attracts wholesalers and speed ensures a productive process for potential investors.
Specificity and speed are key elements in building and maintaining successful real estate investment funnels. Both James and Rob emphasized the importance of being clear about what you're looking for and following up quickly with leads. If you try to cram too much into your funnel or fail to follow up promptly, leads may stop coming in. Moreover, being specific about your criteria for deals can help wholesalers remember you and bring you relevant opportunities. On the other hand, speed is crucial in the investment world as many potential investors lack clarity about what they want to buy. By providing direct and quick answers, and making the process easy for leads, you can increase the production of your funnel. Remember, knowing when to stop investing time and resources into a funnel that's not producing quality leads is also essential.
Act Fast in Real Estate Investing: Being quick and efficient in real estate investing increases chances of securing good deals, establishing good relationships with sellers, and limiting competition.
In real estate investing, speed is crucial. Good deals get snapped up quickly, often within hours of being listed on the market. Investors must act fast to secure these deals, whether it's through direct communication with sellers or submitting quick offers. Being responsive and transparent with sellers can help establish a good relationship and increase the chances of getting a good deal. Additionally, being quick in the initial interaction can help limit competition and prevent potential deals from falling through. Overall, being fast and efficient in the real estate investment process is essential for success.
Being transparent builds trust and rapport in real estate negotiations: Transparency in real estate investing, including revealing profits and costs, can build trust and increase the likelihood of a sale. Tools like DealMachine help streamline the process and provide access to reliable lead information.
Transparency and trust are crucial in real estate negotiations. Revealing your profits and costs to potential sellers can build rapport and increase the likelihood of a sale, despite occasional backfires. By being honest and showing the entire process, investors can create a good buying experience and potentially secure better deals. Additionally, having a clear understanding of your buy box and costs is essential for successful real estate investing. Tools like DealMachine can help streamline the process by providing access to reliable and comprehensive contact information for potential leads.
Real Estate Investing with BAM Capital and Connect Invest: Both BAM Capital and Connect Invest cater to different investor needs, with BAM Capital targeting accredited investors and Connect Invest offering a passive platform for low-cost entry
Both BAM Capital and Connect Invest offer unique solutions for investors looking to build wealth through real estate. BAM Capital, with its successful track record and disciplined investment strategy, targets accredited investors seeking generational wealth or monthly income opportunities. Connect Invest, on the other hand, offers a passive real estate investing platform with a low entry point of $500 and fixed monthly returns. Both companies emphasize the importance of effective marketing funnels and tracking key performance indicators (KPIs) to maximize returns and minimize costs. For instance, BAM Capital uses a call center to generate leads for around $30-$40 per seller appointment, while Connect Invest focuses on online short notes with annualized return rates up to 9%. Regardless of the approach, a swift response to leads is crucial to convert interest into opportunities.
Reducing response time leads to more deals: Reducing response time to leads by 30 minutes quadrupled appointments and lower cost per deal.
Focusing on improving speed to lead significantly increased the number of appointments and deals for an off market real estate company. The company found that their lead manager, who was responsible for setting appointments, was getting back to leads too slowly after making additional outbound calls. By reducing response time to under 30 minutes, the number of appointments quadrupled, leading to more deals and a lower cost per deal. The company now tracks monthly marketing spend, number of leads, cost of appointment, and cost per deal as key performance indicators (KPIs) to optimize their marketing efforts and ensure profitability. KPIs help identify trends and issues, enabling the company to adjust their strategies accordingly.
Track marketing costs for informed decisions: Understanding costs per lead, cost per appointment, and cost per buy helps optimize marketing efforts and increase profits.
Tracking your marketing efforts and costs is crucial for optimizing your business. By knowing your cost per lead, cost per appointment, and cost per buy, you can make informed decisions on which lead sources to prioritize and adjust accordingly. James and Sam, who are in the real estate business, shared their experiences on this matter. Their costs per lead and cost per buy vary, but the importance of tracking and adjusting lies in maintaining profitability and ROI. Sam's business includes house flipping and buying deals, with a focus on setting appointments quickly. They utilize various marketing channels, including outbound sales, direct mail, PPC, Facebook ads, and even TV. Having multiple exit strategies for properties allows them to maximize their leads and profits. In Sam's business, they prioritize setting appointments on the initial call to buy houses as quickly as possible. Their marketing funnels include direct mail, which involves obtaining a list of potential leads and sending them targeted mailers. By having a clear understanding of your costs and adjusting your marketing efforts accordingly, you can improve the efficiency of your business and increase profits.
Maximizing real estate investments with targeted direct mail: Use affordable tools to build targeted lists, split test mail types, and consistently engage with the list for long-term success
Building a successful real estate investing business through direct mail involves a well-planned and consistent approach. The process begins by utilizing affordable tools like PropStream to build targeted lists based on high-profit ZIP codes and specific property characteristics. Once the list is built, it's important to split test different types of mail and continue sending it out for several months to maximize results. The property owner first learns about the investing company through a letter in the mail, and once interested, communication continues through phone or text to set up an appointment and make an offer. Even in unusual circumstances, such as a property with a deceased occupant, the investing company is willing to make an offer. The key to success is committing to the long-term process of building and consistently engaging with the mailing list.
Shifted focus from acquiring to disposition in real estate business: Developing relationships with potential cash buyers through various channels and tailoring offerings to their investment strategies can lead to profitable sales in the competitive real estate market.
While acquiring real estate is an essential part of the business, focusing on the disposition side, or selling the property, has become increasingly important. In the past, sellers could easily offload properties by blasting them out to a list of buyers. However, with the market becoming more competitive and capital becoming more expensive, relationships have become key. Developing relationships with potential cash buyers through direct mail, texting, email blasts, and face-to-face meetings has become crucial to selling properties for the highest profit. The focus has shifted from just having a buyers list to finding the exact product for the investor's specific needs. By creating lead funnels for specific investors and providing free education on their preferred investment strategies, sellers can create multiple niche funnels that bring investors back to their brand as a trusted brokerage for investment property sales.
Targeting specific buyer trends in real estate: Identifying and catering to specific buyer trends increases sales and transactions. Set up targeted funnels, use email marketing, and build a dispositions list for efficient deal-making and higher returns.
Identifying and catering to specific buyer trends can significantly increase sales and transactions in a real estate business. By setting up targeted funnels for these trends, such as Detached Accessory Dwelling Units (DADU), agents can attract and close deals more efficiently, resulting in higher volumes and better returns. Email marketing and building a dispositions list are effective strategies to establish strong relationships with buyers and facilitate successful transactions. Rob, a marketing expert and YouTube celebrity, emphasizes the importance of email capture and developing a direct booking website for building relationships and converting leads in any business.
Control and email marketing opportunities with a direct booking website: Direct booking websites allow for email collection, enabling effective email marketing and repeat business opportunities.
Building a direct booking website for a short-term rental business allows for more control and the ability to capture email addresses of guests, creating opportunities for repeat business and effective email marketing. This can lead to increased revenue through targeted follow-up and communication. The process involves setting up a device to capture emails during the booking process and utilizing this list to send personalized messages, offers, and reminders to guests. A direct booking website also allows for more creative marketing opportunities, such as announcing new amenities or offering discounts. The key to success is staying in touch with guests and keeping them engaged, which can take time but ultimately leads to higher chances of repeat business. Effective follow-up and communication are essential components of any successful sales funnel.
The importance of marketing passion in real estate investing: Passion for marketing is essential for success in real estate investing. Focus on a few channels, follow up promptly, and consider hiring or partnering with someone skilled in marketing.
Having a passion for marketing and maximizing funnels is crucial for success in real estate investing. This was emphasized by the guests on the podcast, who shared their experiences and success stories. For those without a passion for marketing, it's recommended to find a partner or hire someone who does. A funnel can be thought of as an upside-down triangle that customers travel through to convert. Following up with potential customers in a timely manner is essential to make the most of your marketing efforts. Additionally, focusing on a few channels and going deeper rather than wider is more efficient. To connect with James Danes, follow him on Instagram @jdaneflips or visit his website jamesdaneard.com. Sam Fasseter can be found on social media under the name Sam Fasseter Freedom.
Connect with Rob Built for real estate advice and guidance: Find Rob on Twitter, Instagram, and YouTube for real estate advice. Reach out to him personally on Instagram or use BiggerPockets Agent Finder for investor-friendly agents.
No matter which social media platform you prefer, you can connect with Rob Built for real estate advice and guidance. You can find him on Twitter, Instagram, and YouTube. For personalized communication, reach out to him through Instagram @robbiltthreads@robiltt. Additionally, if you're looking to invest in real estate, consider using BiggerPockets Agent Finder to connect with an investor-friendly agent who can help you navigate the market and make you confident in your investment decisions. This free resource is available at biggerpockets.com/deals. Remember, achieving financial freedom through real estate investing is a long-term goal that requires patience and knowledge. Don't focus on timing the market, but rather, spend time in the market. Past performance is not indicative of future results, and all investment decisions should be made with caution and the help of qualified advisors.
