10 Follow Up Tips To Convert Your Real estate Leads Into Deals

1. Diversifying Communication Platforms (Don’t underestimate texting!)

texting is a great form of follow up

Real estate investments depends on converting leads into profitable deals, and all of that is done through communication. Diversifying your platforms for follow up will help you convert your real estate leads better. Through emailing, calling, and texting, there are many different channels to effectively communicate with your lead. While those platforms are all worth using, the most effective method out there has to be texting.

OpenView, an online journal, found that it takes a sales representative 18 call attempts before a contact is reached. Generally, calls that go to voicemail have a less than 1% chance of getting a call back, and that only 18% of people check their voicemails. But! Once a call is connected, the response time is much quicker. Persistence is the key with this platform.

Similarly, emails have less than a 24% chance of ever getting opened. Kenneth Burke, from “Text Request”, found that only of emails are opened and responded to. But don’t let that deter you! Using every communication platform is important.

However, while calling and emailing might take more effort than they give back, studies from “Text Request”, an online journal that researches the statistics of text usage, found that in 2015 95% of text messages were opened within 3 minutes of receiving the text. If you’re not texting your real estate leads, you’re missing out on a lot of potential communication, and subsequent deals. Communication that can easily convert a lead into a deal. More information from the “Text Request” study shows that getting, and sending, texts is the most used form of communication in American adults under the age of 50.

If everyone is texting, then why not use this as a way to communicate with your leads?

2. Trying Multiple Methods – Just Keep Swimming!

just keep swimming

We already spoke about how using different communication platforms is important, but what good is knowing how effective something is without staying persistent with it? If we know that it takes 18 attempts to get one call response from a potential real estate lead, then the lesson there is to stick to what you’re doing and not to slow down! Call, email, and text until you get a response.

Additionally, people are more likely to respond to someone they’ve talked to in person. If you can, set up a meeting with your real estate leads. Once they see a person, they’ll be more inclined to respond to you because you won’t seem like a disembodied voice after their property. You’ll become a real person to them. You’re more likely to get a lead to make a follow up meeting with you once you’re real to them. Staying personable is key when it comes to communication and follow up with your lead.

3. Drafting Emails & Phone Calls – Write Some Scripts

phone calls can convert leads into deals

The more professional you present yourself, the more confidence your real estate lead will have in you, and the more confidence you’ll have in yourself. A way to make sure you’re saying the right thing is to form drafts of what you want to communicate, and edit them accordingly. Make sure you don’t sound like a robot, though. Again, make your drafts personal to your lead. Remember, they’re a person just like you. If you draft something that you wouldn’t follow up with, then why should your lead respond to it?

For example, when working on follow up for a lead, use something along the lines of:

“Hi [lead’s name]. Are you still considering selling your

house? What days work best for you so we can get

together and talk about our options?”

Formatting your follow up in the form of a question gives your lead the feeling of control. That way it doesn’t seem like you’re pressuring them into making a decision quickly. Also, don’t be afraid to use “we” language when speaking to your real estate lead. If they feel included in the process, your lead will be more willing to work with you, because you’ve worded your follow up to include them in the process. By staying open and welcoming, you present yourself as someone who knows what they’re doing in your follow up.

4. Keep a Schedule & Stick To It!

keep a schedule

Far too often real estate investors don’t stick to a schedule, and give up after the first few failed attempts. Keeping a schedule is important when it comes to follow up on real estate leads, because it keeps you persistent. The hardest time to attempt following up on your lead is the time after you’ve already gone off your schedule. Don’t let yourself fall into a rut of not trying. The effort you put into your follow up will come back to help you as long as you stick to it.

Set a time each day to reach out to your lead. Make this a reminder in your calendar, or an alarm on your phone or computer, so that you know when to follow up. Make sure you time it for the best time of the day to reach your lead. If you’re scheduling communication for a weekday, time it to be around lunch so that you have a higher chance of getting a response on your follow up. If you’re setting something up for weekend communication, try contacting your lead in mid-morning, or early afternoon. Remember, people are more likely to respond to a text message, but don’t be afraid to reach out in other platforms as well.

5. Track What Works & What Doesn’t

find out what works

Keep a log of all of your follow up attempts, this will help you with future follow up attempts on real estate leads to know which methods worked best and which methods did not. Keep a log of what times work best for getting a response from your lead, and what days you’re most likely to reach them best at with your follow up.

Look at the response time of your follow ups. If you have a lead that responds better in the evening, then try contacting future leads in the evening. If your lead responds better during the day, then try that. Work with trial and error to determine when is the best time to attempt contacting with a follow up on your real estate leads. But most importantly, keep a log! Nothing is more helpful than jotting down useful information in a journal, or on the notes feature on a smartphone.

6. Do Business in Person – Be Present & Personable

do business in person

In a LinkedIn article about customer satisfaction, McKinsey Business Journal is quoted as stating that “70% of buying experiences are based on how the customer feels they are being treated.” Additionally Gary Vaynerchuk, from “The Thank You Economy”, says:

“People want [this] level of engagement from the

companies with which they do business…even the best

of what formerly passed for good customer service is no

longer enough.”

Basically, do business in person as often as possible, and do it well. Be polite, personable, and punctual. If you leave your lead with a good experience, they will be more inclined to respond to your follow up and do business with you. Be sure to shake their hand, smile, and remember their name. At the end of your meeting with them, get their contact information and keep communication alive with all of the methods we’ve already spoken about, but more importantly, use those forms of communication as ways to set up meeting in person. The more you interact in person with your real estate lead, the more likely they are to respond well to your follow up.

7. Make an Agreement & Hold Them To It

make a schedule and stick to it

Doing business in person is the first step to solidifying more meetings that can turn your real estate lead into a deal. Make future plans with your lead, and hold them accountable for those plans. When talking to your lead, indicate interest in future meetings with them, and be sure to get their word on it. If you make a plan to meet and discuss pricing in the near future, send them a reminder of your planned meeting 24 hours before the time you’ve set. This will ensure that your communication was open, and prevent them from having an excuse if they aren’t able to make it. Your business depends on their dependability, hold them to the agreements you both have come to in your follow up.

8. Send Letters & Postcards

use direct mail as a follow up method

Similar to having scripts pre-written for emails, or phone calls, sending a follow up letter to your real estate lead keeps you personable, and helps better establish communication. Remember, keeping that communication channel open is key to converting your lead into a deal.

An example for an initial follow up letter is:

[Lead’s name],

 

Just checking in to see if you sold your house at [address].  

If you did, great! That’s awesome.  

 

If you have not, we’d like to make you a no-obligation cash offer to

buy it.  Just think, by this time tomorrow, you could have the house

sold!  It doesn’t get any easier.

 

We don’t charge fees either.  You won’t have to pay thousands

in agent commissions or deal with surveys, appraisals, inspections.  

 

I’d love to talk with you about what we can offer.  Feel free to call

me at [phone_number] or simply reply to this email.   

 

Thank you,

[Your name]

[Your company name]

An example for a follow up letter to use a couple of weeks after the offer to your real estate lead is:

[Lead’s name],

 

We made you an offer for your house at [address] a couple

weeks ago.  

 

Hopefully you’ve sold it.  But, if you haven’t, we’re still interested

and wanted to let you know that we can probably get it closed

within a week.  We pay cash which allows us to be able to close

super fast.

 

You won’t have to wait for appraisals, surveys, inspections and

all of the uncertainty that often arises from those things.

 

Most people want some time to make plans and arrangements, but

often we find people would prefer to just be done with the house so

that they can move on with their life.   

 

Please give me a call at [phone_number] so that we can discuss

how fast we can get this closed.

 

Thanks!

[Your name]

[Your company name]

9. All That Swag – Use Your Merchandise

use swag to help leads remember you

An effective way to keep your real estate leads interested, and keeping communication open during the follow up phase, is to use your pre-existing content. Merchandise such as pens, magnets, mugs, t-shirts, or anything like that is a perfect way to show appreciation for your lead, and create brand recognition. Use them as gifts when you send a thank you follow up letter, or use them as incentives for your leads to stay in communication with you. Plus, this is a great way to continue to get your name out there while also building a community of people who know about you and your real estate business.

10. Use a System (…Like Ours!)

use a system for follow up conversion

All of the tips we’ve gone over are the first steps to converting your real estate leads into deals with your follow ups. But what good is all of that knowledge without having a way to stay organized? We talked about keeping a log of your attempts at follow up communication, but how is your organization past that point? How are you tracking the letters that you send out? Where do you keep your scheduled appointments? Do you write and store every email that goes out? What is the cost of following up?

Having a system in place to manage and track follow ups is a must. Sure, you can stick to using a spreadsheet or hiring an assistant to track everything for you or manage a Rolodex, but these methods still have a high probability of costing you leads, and potential real estate deals. One method we’ve found for staying organized, and staying on track, is using a CRM.

Finding a CRM system that meets your needs is an important part of every real estate business. Real estate CRM systems can track phone calls, mailings, manage schedules and even send you live notifications. Take REImobile for example. REImobile saves you valuable time by keeping track of your follow ups and sending live notifications to keep you informed of when, where and how follow ups are happening. You convert more real estate leads into deals when you follow up with your clients. A good CRM will not only make you more money, but it will save you time. And time is money, people!

Special Bonus Download: 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.

 

Easily Increase Your Motivated Seller Lead to Deal Conversion Rate

INCREASE YOUR LEAD TO DEAL

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:

 

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.