Marketing is a part of any successful real estate investment strategy. Whether you pass business cards, mail letters, make cold calls, network, or go cyber, marketing is key to long term success
Tom Cafarella is a CPA turned real estate investor. What separates him from his competition is marketing.
After he got fired from his CPA job because he was spending all of his time learning about real estate, he started selling single family homes. He had some success, but realized he wanted to be an investor.
He recognized to be a profitable investor, you have to start with a purchase price that allows you to rehab, rent and refinance to a number that is agreeable with the bank. Meaning, you have to buy at a discount.
Marketing is the key to finding sellers
Marketing is the key to getting in front of owners who aren’t known to the marketplace. They don’t realize they want to sell. Then something happens, and because of your marketing, you are top of mind to solve their need to sell.
Tom started a real estate brokerage that has 200 agents. They use a marketing program that involves, mailers, calls and appointments. The mailings are sent out monthly and go to specific property owners with properties fit their sweet spot. This sweet spot includes: area of town, length of time they have owned the property, estimated remaining balance on their mortgage and age of the owner.
Mailings are followed with calls to cell phones. Their system allows an agent to call as many as 500 – 700 names per day depending on how many conversations they have. The purpose of the call is to set an appointment.
At the appointment, they have developed a set of questions that help identify if the seller is a prospect for selling at a discount for Tom’s investment team, or if they are a retail listing option for the agent. Either way, the agent has a potential sale.
For Tom, he has a team of 200 agents hunting for investment opportunities.
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