One of the most often asked questions from real estate agents I consult is how can I grow my business to the next level. The real estate agents who are asking me this question are educated, experienced realtors who have paid a hefty price for my time and who already close many houses each month.Almost all of them already understand the 80 percent, 20 percent rule and are having someone else do almost every thing in their business except generating real estate leads and showing up to closings.When you look at the sales cycle that a real estate agent and home buyer or seller go through it is very strain forward. The real estate agent is contacted or contacts the prospective client, they have a sit down meeting to discuss goals of the transaction and this is when it happens.One the potential client has meet with the real estate agent, the agent almost always gets an agreement signed stating the client is being represented by the agent.So, to produce more sit down meetings with prospective clients all an agent has to do is get more real estate leads or potential clients. This is where real estate leads come into the business cycle. More leads means more potential clients to sit down with and help through the buying or selling process.There are many ways for realtors and real estate brokers to generate their own real estate leads, but this goes against the 80 percent, 20 percent rule. The obvious answer is to find a reputable real estate lead generate company to send a consistent number of motivated real estate leads to your or your company.Notice the word motivated in my sentence. Many real estate lead generation companies do not target motivated home sellers or buyers and they sell these leads to realtors who then waste time talking with non motivated clients.You need to make sure the lead generate company you are dealing with is generating motivated home buyer or seller leads, meaning they are looking for someone who help them now and are willing to talk with a professional real estate person.There are many real estate lead generation companies, and each company has their own business plan or lead generation method and sale system. My suggestion is to ask the company where and how their leads are generated so you feel comfortable the real estate leads you will be receiving are motivated home buyers or sellers.Then ask what the conversion rate is for the companies leads. A good lead generation company will have around a 20 percent conversion rate. Meaning two out of every ten leads will end up listed or a buyer representation agreement will be signed signed.One you have a conversion rate and the cost the company charges for each lead you can come up with a budget for your leads. One suggestion I would make is to insist there is no cancellation fee for their service. The is to protect you from the no so generous and honest companies that exist in this market.Real estate leads are by far the best way to grow your business to the next level. You increase the number of clients you work with. This also allows you to increase your network of new clients. Ask the leads if they have any family or friends who need a professional real estate agent to help them in their next home search or sale.
Real Estate Investing Skill Acquisition
Real estate investing is not in any list of high school electives. You can’t get an accredited degree in real estate investing. You won’t find a high school or college guidance counselor who recommends a career in real estate investing (if the guidance counselor understood real estate investing, he or she probably wouldn’t be a guidance counselor!)The public school system and educational curriculum in the U.S. is only a feeble attempt to prepare students to just “get a job.” Unfortunately there is no class in “Making Money 101.” You don’t have the opportunity to take a class in “How to Become Financially Independent.” No teacher ever taught a class in “How to Succeed When Everyone Else is Failing.” I never learned anything about succeeding as an entrepreneur or becoming wealthy during my 10 years in the university classroom. I only became a multi-millionaire when I learned the skills of real estate investing, and I paid the price out-of-pocket and out-of-the-classroom for that education. I learned these skills in the ole University of Hard Knocks through trial-and-error.Never disparage the cost of education. There ain’t no free lunch. You’ve gotta get this know-how outside of a classroom, and learning how to make money is gonna cost you. But if you think the cost of education is expensive, you should calculate the cost of ignorance!However, learning real estate investing doesn’t have to cost you an arm and a leg. Yes, I know, the real estate investing TV infomercials and the real estate investing seminars held around the country charge big bucks for those 3-day seminars and week-long Boot Camps. But that’s pocket change compared to the fees they want to collect from you later. Catch this fact: all the real estate investing infomercials and seminars target you as a candidate for “real estate investing coaching.” That’s where they charge you up to $25,000 and over $50,000 per year for “coaching.” And often you are assigned to some kid “still wet behind the ears” to call you each week or month to hold your hand and whisper in your ear what common sense and a persistent drive should already tell you! I’m not exaggerating the real estate investing educational system, because I know it inside and out. I personally know many of the so-called “gurus.” I’ve been close to it for 25 years. My opinion is that the fees charged are exorbitant because the promoters have found deep pockets in the marketplace.When I started my real estate investing career 25 years ago, real estate investing TV infomercials were unknown and real estate investing seminars were extremely rare. Back then, Mark Haroldsen followed an emerging trend started by Al Lowry and Nick Nickerson by holding occasional real estate investing seminars across the country. Later Robert Allen expanded the industry. Robert Allen promoted real estate investing conventions in the major cities across the U.S. He found a market for costly real estate investing packages of information with cassette tapes and note books. TV infomercials, expensive seminars, and outlandish coaching fees followed in subsequent years. Would-be real estate investing aspirants today who want more than an inadequate salary from a job in Dullsville often conclude that they have to “pay through the nose” for real estate investing know-how.However, through diligent searching, these want to-bees often find that this education in real estate investing is more readily obtained from other sources than they previously imagined.Real estate investing is probably one of the most easily learned skills never taught in school. Real estate investing is probably one of the most prolific careers available on Planet Earth. Because families now live in houses instead of caves, houses available for fix up are everywhere. And probably nothing contributes to upgrading the deplorable housing conditions across America comparable to real estate investing in fix up properties.The entrepreneur-minded aspirant who discovers the real estate investing industry often catches a vision of life-beyond-a-job. Books and online courses offer an alternative to expensive seminars and coaching.