I have something to confess. If I find a Real Estate Blog, I read it. I know that I write one, but I feel I’m humble enough to know that I can learn something from every single person I encounter. The truth is that everyone needs to stay on top of their game and the only way to do that is to continually educate yourself. That is true success.
Now, I’m not going to send you to the competition. I trust that you know how to use the Google machine. But what I am going to tell you about is a recurring theme in many of blogs that I have been reading lately. Most people say it differently. Everyone has their own spin on things, but the way that I have always said it is: “If you want massive success you need massive action.”
These are the basic laws of thermodynamics, really. You know that Newton guy was pretty much a genius, and I don’t mean the one that makes fig cookies. You cannot create something out of nothing. If you want something, you need to put something into it. In other words, you get out exactly what you put in. If you want a million dollar lifestyle, you need to put in the energy and dedication that it takes to create a million dollar lifestyle. No one is going to hand it to you, you have to take action and earn it.
Real Estate is basically a game. I’ve called this “the Real Estate Game” many times and there’s a reason behind it. First of all, it’s downright fun. Once you wrap your head around all the inner workings and have everything click, you are in for the time of your life. Believe me. Secondly, we’re out there trying to win. Growing up, the mantra was, “try your best and have fun”. That’s great for a ten year old, but we’re past that now. Now, we play to win because over time we have discovered that there are few things more enjoyable than working hard and seeing results. If you are playing any game TO WIN you will need education, determination and massive action. So, let’s take a look at what kind of action you need to take in order to succeed in this business.
The Super Bowl was decided recently. I’m sure you heard. Before the Seahawks and Patriots ever got to the championship game, they had to endure a grueling NFL schedule. They practiced every week in preparation for game day, and whether they won or lost, they had to do it all over again the next week. They have to EARN the right to play for football’s greatest prize.
Real Estate is like that. We educate ourselves, prepare ourselves, and hone our skillset so that we can go out and play the game. In my humble opinion, it is far more exciting than the Super Bowl. We get take action that can affect our daily lives and help shape the future that we have always envisioned for our loved ones and ourselves. So, what do we need to do to create the massive action?
First, we need to plan and develop the areas that we want to focus on. If you are a wholesaler, focus on that. If you are a rehabber, focus on that. You need to define your focus so that your action is not scattered. That’s not to say that you shouldn’t have a general idea of what everyone in your industry does. Having that knowledge will help out tremendously when dealing with folks and having a basic understanding of the challenges they face in their profession.
Second, we need to figure out what the return on our investment, or ROI, is. For instance, if we have a typical response rate on leads from yellow letters, we need to know what the proper response rate needs to be in order for us to get close to the results we are after. Believe it or not, the average response rate is between ½%-1%. That means that for every 100-200 leads that you may get, you get one response. Let’s be generous and say 1%. Then from those, you need to know how many leads actually result in a deal. There is a conversion rate for that as well. If you are REALLY good you may get 1 out of 5, but lets figure that you get 1 of 10. At 10%, that’s still pretty good. This is a skill that you have a lot of control over. You can hone your skills to get better responses. Karl Krentzel at Facebook’s Red Pill Investor has good scripts to help you with that. So, if your marketing campaign and sales skills are where they need to be, you need to send out about 1,000 yellow letters to get one house. If you’re working with Agents, Wholesalers, etc., for your leads, it would obviously be less. Personally, I found that it took me about 100 offers to get a solid deal when I first started. With a lot of practice, the number has dropped, but the amount of work that needs to be put in will never drop.
If you only send out 100 Yellow letters or make 10 offers a week, how long would it take you to get a deal? Over 10 weeks! Do you really want to wait that long to get started? Of course not! So, instead of taking your time and only putting out a few offers a week, ramp it up to 5 a day. You would be getting deals a LOT faster. I know that it is 2 ½ times the work to send out 50 Yellow Letters a day, but if you want your business to grow, you need to start taking more action. After all, game day is just around the corner and you’ve got to battle to get to the Super Bowl.
If anyone has more questions or wants more one-on-one coaching, don’t hesitate to contact me. This Real Estate Blog is a passion for me and I truly enjoy sharing what I know with others. The same goes for teaching and coaching. Thanks for coming by and getting a bit of the education. Until then, remember that you, too, have that inner warrior that it takes to achieve greatness and success. Feel free to drop me a line at Coaching[at] BaileProperties.com.
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