All Forum Posts by: David Masciangelo

Timothy wins today for the most complicated question on the platform!  lol good question

First... The majority of Real Estate Professionals today do the following, and miss 97% of their segmented target market.

Only 3% of any given target market is ready to buy (or sell in this case) immediately. They've already done their research and ready to… CALL THAT REALTOR. SELL THEIR PROPERTY. SIGN INTO AMAZON TO BUY SOMETHING. BUY THAT NEW IPHONE. UPGRADE THEIR BIGGERPOCKETS ACCOUNT. WALK INTO THAT FOOD STORE. ENTER THAT RESTAURANT... and part with their hard-earned money! Three Percent!T

The other 97% is left out there to decide for themselves and they skipped right over our "WE CAN DO THIS" advertisement or mailers or outdated cold calling methods and moved on to research their need and who can solve it. Sucks, right?

Here are the Stats: Out of 100% of prospective clients (sellers in this case), only 3% are in BUYER mode (ready to sell or must sell)! They’ve done their research and know what they want. This 3% is where EVERY company is THROWING their big marketer bucks! That’s a lot of competition! 17% are in INFORMATION GATHERING mode. 20% are in PROBLEM AWARE mode. And 60% are in NOT AWARE of problem mode.

To use Anson Youngs numbers as my example:  Mailers are good but should be done as an extra in my opinion and here is why...

1. $4400 investment for roughly 8-8500 mailers at $.54 a pop
2. 10 appointments
3. 5.7 sales = $771.93 per lead final cost.

Now, if your turning 10K per lead you're getting over $10 back for every $1 invested.  Not bad.  But if these were flips and he grossing 45 K per deal well then, now we're talking.

Deciding factors:

What do you need to make on a deal, ideally?  

How many deals to get to your ideal sales number every month on average?

After answering those to questions, what % or how much money are you willing to invest in your cold calling, marketing etc?

You can't decide what your marketing budget is until you know your minimum profit your willing to take from any deal.  Once decided... base your numbers off of that.

Our ratios are:

10k leads contacted per month @ $3440 expense = 60-80 motivated seller leads on average or $43-57 per lead.  

Now, let's say you can only close: 

1 of them.  We'll that lead cost you $3,440 but if it profited you 20K  it returned $7 for every 1 you invested.

2 of them.  We'll that lead cost you $3,440 but if it profited you 20K it returned $14 for every 1 you invested.

2 of them. We'll that lead cost you $3,440 but if it profited you 20K it returned $21 for every 1 you invested.

Etc.

Hope this helps and let me know if you have any other questions. 

There is no wrong.  Maybe we learn something to not do again but no wrong.  Keep it up!

I don't recommend any coaches and that's because I work with many of them so I can't choose favorites.  I do, however, highly recommend using a coach.  Here's why and a few pointers on being careful doing it.

What's the point of a sport? (aside from conditioning and the physical and mental health benefits)

TO WIN!

What's the point of wanting to do good business? (aside from wanting to offer a better product, or service, to your client)

TO WIN!

So, if a sports team doesn't win without a coach in sports... well... you get my point.

I'll finish with this... 

To find a coach simply follow podcasts and social media touching your ideal target market.  Then, follow the comments about that coach.  

Before considering a coach, run your numbers (What % of your earnings are you comfortable forfeiting for some time while you begin to integrate the education from that coach into your business? and have your realistic expectations set out so you can convey those expectation to said coach before signing any agreement.

Best of luck and I'm here to answer any more questions if you have them.

If you're going to do this on your own definitely be sure you understand time invested vs. ROI on that time. First, understand this will start as your curiosity and end up a let down unless you have a system in place which needs to correlate with your cost per acquisition expectation.

Questions to ask yourself.  

1. How many deals have you done?

2. How did you find them?

If you do go down this road I would also recommend a list source but if your going to county records just fill out a PDF OPRA and send via email with your county clerk. about 80% of the country are now responding digitally. They have 7 days to reply with your request by law.

Let me know if you have any questions... Hope this helped.

Eric M. hit the nail on the head.  If 6 (3&3%) is standard... start with 5.  Whatever the Selling Agent works with a possible buyers agent is up to your agreement with them.  If it's just the selling Agent... 2.5 and never try to lower from there.  They give you a 1/2% discount which shows believing in you but do your homework and if you do not have a history with that realtor be sure he/she is a producer.

Again.... Never lower than 2.5%.  Biting the hand that feeds you is something we learn is dumb to do as kids and is true until the day we die.  Good luck!

Don't just look for any leads.  That is costly, and to be quite honest a waste of your time and theirs.  Identify, define and understand your ideal target market and what segment of that target market you want as a client or prospective client.  This takes a little time but most people skip right over this step trying to monetize their offering before their ready... Get a few deals done and then dry up and fall limp and think it's the market responding bad to your offering.  It's the other way around, you need to offer your solution, customized to your ideal target. 

Only 3% of any given target market is ready to buy (or sell in this case) immediately. They've already done their research and ready to… CALL THAT REALTOR. SELL THEIR PROPERTY. SIGN INTO AMAZON TO BUY SOMETHING. BUY THAT NEW I PHONE. UPGRADE THEIR BIGGER POCKETS ACCOUNT. WALK INTO THAT FOOD STORE. ENTER THAT RESTAURANT... and part with their hard-earned money! Three Percent!

YOU (and I) left the other 97% out there to decide for themselves and they skipped right over our "WE CAN DO THIS" advertisement and moved on to research their need and who can solve it. Sucks, right?

Here's what most entrepreneurs don't know, or don't do, but it's the most important thing to know. You'll be 10 steps ahead of your competitors if you understand this and plan accordingly.

Out of 100% of prospective clients (sellers in this case), only 3% are in BUYER mode (ready to sell or must sell)! They’ve done their research and know what they want. This 3% is where EVERY company is THROWING their big marketer bucks! That’s a lot of competition! 17% are in INFORMATION GATHERING mode. 20% are in PROBLEM AWARE mode. And 60% are in NOT AWARE of problem mode.

So, if you're confident in your product or service, it's time to focus on a very untouched 97% of your target market by ripping potential leads eyes away from their scrolling or researching into reading how you have the solution to their need!

Good luck!

All great suggestions.  I would add one book I would deem crucial to your success or lack thereof as an Investor. It's called The Compound Effect by Darren Hardy. It will help show you if you have the necessary daily habits that will ensure your success.  You can be the most educated person in the industry but if your habits or systems suck... you will too.  I learned this in my early years because I sucked.  Identify and form Revenue Generating daily habits in business and personal growth habits in personal... it'll explode your success in this industry, or anything for that matter.  This book helped me form those habits.  Read it, love it, do it.  Good luck! 

https://www.shortform.com/pdf/the-compound-effect-pdf-darren-hardy

Agile CRM.  In my opinion there is no other all-in-one solution that has the capabilities of automation at its price point.  Integrate everything from calls. emails, automations, web rules, triggers, you name it.  If you're going to do it.  Do it right the first time.  Respectively, you budget is unrealistic and will cost you more in manual labor to keep up with communication than you might spend a bit more on a more complete solutions.  Good luck!

I agree with Braden C. here.  We see that the competition and the gurus are always coming out with the next best thing.  Cold calling is a hot topic right now and I have seen several dozen do extremely well with it.  It works best for Investors with at least 2 exit strategies.  You need to be careful as "cold calling" has been grouped into a common understanding that rarely works of them just screaming as fast and as loud at the highest volume of people and that does not work anymore.  Rapport is real, sellers are humans, and if done correctly, it is very rewarding to your roi and a very pleasant experience for the seller.  I'm here if you have more questions and take confidence in knowing that you're not the only one with these questions.

Remember the 3,17,20,60 Rule.  It's easy to forget it when your everyday at the front of the battle line trying to mett numbers & goals while still completing all of your daily Key Tasks!

Only 3% of any given target market is ready to buy (or sell in this case) immediately. They've already done their research and ready to… CALL THAT REALTOR. SELL THEIR PROPERTY. SIGN INTO AMAZON TO BUY SOMETHING. BUY THAT NEW I PHONE. UPGRADE THEIR BIGGER POCKETS ACCOUNT. WALK INTO THAT FOOD STORE. ENTER THAT RESTAURANT... and part with their hard-earned money!

Here are the Stats: 

Out of 100% of prospective clients (sellers in this case), only 3% are in BUYER mode (ready to sell or must sell)! They’ve done their research and know what they want. This 3% is where EVERY company is THROWING their big marketer bucks! That’s a lot of competition! 17% are in INFORMATION GATHERING mode. 20% are in PROBLEM AWARE mode. And 60% are in NOT AWARE of problem mode.

So, if you're confident in your product or service, it's time to focus on a very untouched 97% of your target market by ripping potential leads eyes away from their scrolling or researching into reading how you have the solution to their need!

@Corey Rippeto Motivation. Motivation is the key to the actual property. Do your due diligence and get on some wholesaler lists etc however don't hope for much there, the good ones are far and few. I can speak from personal experience... It's time in the industry and/or realizing what your good at and not good at and hiring the best to do the latter. I am a data freak and a rapport builder so that is what I do, and how our Agents are trained. I am not a lender or contractor so I don't pretend to be. In a world filled with "investors", you need to be different, understand how to locate potential motivated Sellers and then more importantly how to help them with their unique situation. If you help them they will only want to sell to you because they trust you. It's a full time job, trust me.