Aug 26
increase your lead to deal conversion rate easily

Easily Increase Your Motivated Seller Lead to Deal Conversion Rate

Created by Danny Johnson

This post originally appeared on the REImobile.com blog. CLICK HERE to view the post.

As real estate investors, we all need to be constantly focusing on increasing our motivated seller lead to deal conversion rate.

The cost of motivated seller leads is astronomical for most investors. Typically, investors are spending between $150 to $450 or more for each lead!

If we don’t increase how many of those leads we make money from, we could go out of business.

What’s the Real Problem Here

Getting motivated seller leads to build inventory for your house flipping business is only part of the battle.

“I don’t ever get any good leads…”

“You can’t get deals like that where I live…”

These are just some of the statements I hear all the time from real estate investors that don’t have their lead to deal conversion ninja skills honed.

The problem most likely isn’t that they aren’t getting good leads or that those kind of deals can’t be found where they are. They just aren’t converting as many of the leads as they could be.

The problem is almost always that they just don’t know how to properly convert those leads into deals.

It’s Bad Business To Not Maximize Your Profits Per Lead

Maybe you’ve heard that house flipping is all a numbers game. That’s true.

What doesn’t have to be true is the ratio of leads to deals you do.

Usually, you will hear that it takes 100 calls to get 10 great leads to make offers on and you will end up with 1 deal. I don’t really like those numbers at all because they just plain suck.

We can do better than that. Much better than that.

My house flipping business regularly is able to make offers on 33% to 50% of the calls (and website submissions) we get. That already is much better than the 1/10 leads to offers usually given for a typical house flipping business.

Of those offers, we typically buy 20% to 30% of the houses. Again, much better than the abysmal 10% of offers to deals that are commonplace.

Here’s how to improve your conversion rates without having to do anything terribly difficult.

 

Destroy Your Competition

how-i-feel

Much of why so many real estate investors hover around the 1% range of calls to deals (remember, 100 calls, 10 offers, 1 deal) is due to competition. Other investors are snatching up those deals.

There are 4 specific things we do that much of our (and likely much of your) competition just doesn’t do consistently.

  1. Answer Our Phones Ourselves and ImmediatelyWhen a seller calls us from our marketing, we immediately answer the call no matter what we are doing. Even if we are at the dinner table, we will stop and answer the phone.I’m constantly being told from motivated sellers that they just started calling phone numbers for people that buy houses and I was the first one to answer my phone out of the 5 to 10 they already called. Guess who’s more likely to get the deal.Some investors use call centers to answer the phone calls and get information from the sellers. This is a decent solution if you do not have the ability to answer the phone. The problem I have with this method of answering these calls is that you completely lose all ability to create rapport with the seller.Building rapport with a seller is more important, most of the time, than the offer you end up making. Do not discount this. This how you beat your competition every time.
  2. Confidence on the PhoneThis relates to the previous advice in that it’s about building good rapport. Most motivated sellers that call are unsure of what is involved with selling their house to a real estate investor.You build great rapport by being confident on the phone (difficult in the beginning for most, so don’t worry if even thinking about answering calls from motivated sellers causes anxiety) and taking the time to explain what the process is for you to buy their house.
    Being confident comes from being prepared to answer their questions. We cannot guess at all the questions that will be asked but we can be prepared for the typical questions such as:“How does this work?”“How much can you give me for my house?”“Will I have time to move?”“There are tenants in the house, is that a problem?”
  3. Immediately Set an AppointmentThink about the situation from a motivated sellers’ perspective.They have a house that they want to sell and are searching for someone to buy it. If you were in their shoes, you’d probably be a little nervous about the process and possibly embarrassed about the state of the house.You probably would be happy talking to someone that answered their phone right away, was friendly, confident and sounded interested in buying your house.You let them know you are interested by immediately setting an appointment to see the house.If you encountered someone that did all of those things, you’d feel that you had done what you set out to do when you started looking for a buyer. This would likely prevent you from contacting anymore investors. Competition eliminated.
  4. We’re PreparedWe run our numbers and are ready to make an offer before we go to see the house.We look up comps and determine a potential value for the house after it’s fixed up. We then use our formula to determine our maximum allowable offer (simply 70% of the after repaired value, minus the cost to fix it up).Obviously, we do not know how much it will cost to fix up because we haven’t seen the house yet. But, we have our number already determined and can determine the fix up cost while at the house.After we walk through the house, we can tally up our estimated repair cost and subtract that from the number we already calculated and can make our offer.There were times when I was a new investor that I left and went back to my office to determine my offer. By the time I called back, the sellers had already accepted another offer. Don’t find yourself in that situation. Make your offer on the spot if you are able.

Make Them An Offer They Can’t Refuse

Many investors think that the highest offer always wins. This simply isn’t true.

I’ll let you in on some of the reasons sellers sell to us, even when we offer less than our competitors.

  1. We understand sellersStudy after study has shown that we buy from people we like. Though we are buying houses and sellers are selling them, it works the same way. We are actually selling our service and they are buying it.We show empathy when we meet with sellers. This goes a long way with them as they are usually apprehensive about dealing with real estate investors that are marketing that they have enough money to buy houses for cash. That can be intimidating.Many times sellers are facing situations they are embarrassed about or stressed out about. If you can genuinely show you understand what they are going through, they will more easily open up and feel comfortable with you.If you cannot genuinely relate to sellers, do not try to. Doing that will be obvious and backfire.Be who you are and it will work out better for you than the guy that shows up and tries to be all knowing and high-powered. Sellers most likely will not relate to that guy.
  2. We present an actual contract as our offerThere was a time when we would just make verbal offers to sellers while standing at their doorstep. It was way too easy for sellers to just tell me they’d think about it. I was not converting many of those leads into deals.We then switched to using an actual contract to write out our offer and presented it to them while sitting down somewhere comfortable in the house. I think there is a little bit of an expectation that you would like a decision when you sit down and discuss the offer to them.
    It’s guaranteed that they will give you more time to discuss your offer and make sure they understand everything that is involved. This is very important because an offer and process that people do not understand is an easily disregarded offer because it leaves too many unknowns.
  3. We do not push themDon’t be pushy. Nobody likes a pushy salesman.If a seller asks how long they have before they have to make a decision, it’s best to tell them they have as much time as they need. You could always add that, though they can take days to decide, you are looking at, and making offers on, other houses all the time. If you happen to put several under contract before they decide, it could affect your ability to buy their house.
  4. We make everything easy for themMake as much of the process as easy for them as possible. Eliminate as much resistance as you can and you will convert more leads into deals.Clearly explain what happens if they accept your offer. Let them know exactly how things will go down and what they will need to do (usually not much as the title company will do most of the work).Clearly explain the contract in terms they can very easily understand. I highly recommend you have a real estate attorney create you the simplest contract with the simplest language they can (I know that’s gotta be hard for them….lol). You just don’t want people hesitating to sign an agreement because they don’t understand it.We also like to tell people they can leave behind whatever items they want at the house. This allows them to not worry about having to get rid of furniture and trash they’d rather not deal with.

Have a Round Hole and a Square Hole

Don’t try to always fit round pegs into a square hole.

Why not have other ways of profiting from leads you get that don’t fit your investment criteria?

Do you buy rental properties but come across leads for houses that are too expensive for the rents they will fetch? Do you flip houses and come across leads where the seller owes too much?

You can bird dog these leads and even put them under contract and wholesale them.

Unfortunately, I don’t have enough room in this article to cover these things in detail here.

But, you can download a free copy of my ‘3 Most Effective Techniques to turn 50% or more of your Leads into Deals’ guide right now:

 

Special Bonus Download: Click Here to Download our 3 Simple Strategies to Convert 50% More of Your Leads Into Deals guide. This guide shows you how to make money from more of your leads so that you can massively increase your ROI for your marketing.

The free guide describes several options for making money from leads you get that don’t fit your investment criteria as well as our techniques for following up with sellers if they don’t immediately accept our offers.

Roughly 50% of our deals come with follow up. Get the guide and find out how to double your lead to deal conversion rate.


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Aug 25
This article will go in depth to cover how great content can increase traffic to your website

Great Content Increases Traffic to Your Website

Created by Danny Johnson

Increasing website traffic is the cornerstone of any successful business with an online presence. While some companies entered the internet-era with an already-established name, others have had to find their way and grow with the worldwide web. For businesses still finding their way, increasing traffic to your website may seem like a difficult journey. But never fear, and never underestimate the power of content.  (more…)


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Jul 16
we buy houses - sell house fast - keywords for house buyers

We Buy Houses and Sell House Fast – The King and Queen of Keywords For Cash House Buyers

Created by Danny Johnson

If you put yourself in the shoes of a motivated seller that needs to sell their house fast, what would you type into Google search to find what you are looking for?

This is an exercise all real estate investors should be doing if they intend on getting motivated seller leads from their websites.

An Example For San Antonio

As an example, if I had a house in San Antonio, TX that needed a lot of repairs that I couldn’t afford to make that has been sitting vacant for months, getting vandalized, being squatted in, receiving notices from code compliance for violations, I might search one of the following in my browser: (more…)


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Feb 10
Use these steps to find great real estate investor blog keywords

My Battle Tested Formula for Finding Competitive Real Estate Investor Blog Keywords

Created by Danny Johnson

Your real estate investor blog is one of the most powerful weapons in your real estate investor arsenal. When used correctly, your real estate investor blog can greatly affect your rankings in search engines. The higher you are in search rankings the more leads your site will produce.

Keywords are the building blocks of every post. For your post to be great you need great keywords. To find great keywords you need an effective plan.

In today’s post I want to share my battle tested formula that I use to generate competitive keywords for my real estate investor blog. I truly believe this to be something that every real estate investor can benefit from and it’s easy to do!
(more…)


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Dec 18
Your real estate investor post needs to provide amazing content and a highly readable format.

The Ultimate Strategy: Writing the Most Effective Real Estate Investor Blog Posts

Created by Danny Johnson

This post will show you how to write blog posts that will help you improve your search engine rankings and get more leads. The key is to write posts that people actually want to read.  Stop wasting time with blog posts that are completely self-serving and meant for nothing more than SEO. Things are changing and this is where it’s going.

By itself, content isn’t enough. To have a truly successful real estate investor blog you need engagement. You can have the greatest written article in the world, but if it isn’t presented correctly nobody will look at it for more than fifteen seconds.

Your real estate investor post needs to provide amazing content and a highly readable format.If you are paying the same price, would you rather have a fast car with a rusty body, half a door, no windshield and crates for seats, or an equally fast car with a luxurious interior and a smokin’ hot bod? Your content is only as good as your presentation.

Let’s take a look at how we can package up your product to increase traffic and interest.

1 AWESOME HEADLINE GUARANTEED TO GRAB ATTENTION!

See what I did there! Your headline is the most important part of your blog post. As a real estate investor, you understand the importance of setting yourself apart from the pack. If you are creating intriguing original content, you NEED to put every bit the effort into your title.

Titles like “Selling Your House Fast” and “Reasons to Sell to Investors” aren’t going to cut it anymore. The very definition of “title” contains the terms describe and identify.

So in what ways can you descriptively identify your post in a creative way?

The most effective headline writing strategies

(more…)


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Oct 14
Top SEO Keywords For Real Estate Investors

25 Super-Targeted SEO Keywords For Real Estate Investors to Get Motivated Seller Leads

Created by Danny Johnson

SEO keywords for real estate investors are not all created equal. Some keywords work better to attract the true motivated sellers to real estate investor websites. Some SEO keywords just attract people that have no motivation what-so-ever to sell. They are simply looking for a buyer that is willing to pay full market value for their house to move into.

You don’t want those people! They will just waste your time and frustrate you!

What you really want are keywords that (more…)


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Oct 08
Real Estate Investor Websites Best Practices

5 Real Estate Investor Websites Best Practices

Created by Danny Johnson

There are many factors to consider when trying to make real estate investor websites convert. First, just to be clear, conversion is the taking of a visitor to your real estate investor website and having them take some action that you want to take. In the case of buying houses, the real estate investor website’s top priority is to get the motivated seller to call the investor or fill out a form with their contact details and information about the house they would like to sell and submitting that data to the real estate investor.

If you are using one of the many real estate investor website templates available that come with default content, you will likely want to customize it and change it according to the following best practices.

1. Real estate investor websites should focus on being personable rather than corporate

When I setup my first real estate investor website for buying houses from motivated sellers, I made the mistake that most people make when setting up their first website…
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