Marketing Strategies for Real Estate Investors
Real estate investing is only successful when a marketing campaign is implemented. This is true of all real estate investments regardless of your investment method (i.e. fix-and-flip, wholesaling, buy and hold, etc.). Real estate marketing is a strategic design to generate leads that hopefully enlist your services or allow you to find more deals. If you approach real estate investing as a business, then your real estate business should have an impactful and cohesive brand identity. This identity will be the background of the marketing approach you will use to cultivate meaningful relationships with past, present and potential clients. As with any business, it’s crucial that your marketing campaign be comprised of valuable and factual information. Because different strategies yield different results across markets, a comprehensive, multi-pronged strategy is advised.
There are a number of real estate marketing campaigns that will help your business reach new heights, but locating off-market properties, motivated sellers, digital marketing, and direct mail — all outlined below — are great a great place for new investors to start.
1. Target motivated sellers. Motivated sellers need to sell properties quickly and are usually willing to agree to unfavorable terms. Fortune Builders states that most effective method of finding motivated sellers is acquiring a county’s delinquent tax list. These lists contain “every individual who is behind — from two weeks to two years — on their property tax payments.” This gives investors insight into properties that are likely to default and enter foreclosure which unveils the potential for a deal. List price varies across counties ranging from $100 to the thousands. Once you have identified motivated sellers, how do you connect? Many times the best method of contacting motivated sellers is to knock on their door. Using language and demeanor that is both helpful, humble and polite, explain that you are a real estate investor in the area, outline their circumstances and the consequences of failing to make payments. Tell them you are in a position to mitigate their financial burden. Leave them with your contact information and give them a chance to mull over the opportunity.
2. Go online. The digital world is a vast, typically cost-effective, marketing opportunity that should be a component of every campaign. Social media sites like Facebook offer the ability to target campaigns to specific demographics and are an effective way to get in front of motivated sellers. With tiered costs correlated to reach, these ads are generally cost effective with you deciding to spend. Additionally, make use of appealing, professional websites that foster online lead generation with squeeze pages (a squeeze page is a landing page designed to capture opt-in email addresses from potential subscribers). Utilize pay-per-click and Google Adwords campaigns to generate leads. There are endless ways to generate eyes and positive word of mouth online. Good resources for undertaking online marketing can be found at Wordstream’s blog and this guide for beginners.
3. Direct mail. According to Fortune Builders, 92 percent of shoppers say they prefer direct mail for making purchasing decisions (56 percent find print marketing to be the most untrustworthy marketing tactic). Direct mail provides a tangible relationship that is more personal than email and social media. This is particularly important with older age groups who engage less in the online world. The key to direct mail campaigns is audience targeting. To do this effectively, you first need to build a specific, focused wish list of the ideal type and property you want to buy. Then you need to create your call to action and design your piece keeping professionalism in mind.
4. Off-market properties. Off-market properties are properties that are for sale but not listed in the MLS. Identifying these properties requires hefty market research, but they can be prime candidates for fix and flip projects. The best way to find off-market sales? Networking with estate attorneys, builders and wholesalers or attending auctions (if the latter, make sure each bid is tied to a property that you have done the due diligence for).