The key to more real estate deals is incredibly powerful, simple, and free. Perhaps what is most shocking is that so few real estate professionals do it! And with real estate booming and inventory low, now is the perfect time to deploy this technique.
The Fortune Is in the Follow-Up
Studies have shown that follow-up is the key to more deals. Here are the statistics:
- 48% of real estate professionals make one contact to a lead
- 25% get up to two contacts to a lead
- 12% get three contacts
- 10% of all real estate professionals get four plus contacts
Why does that matter?
- 2% of deals get under contract on the first contact,
- 3% percent after the second
- 5% after the third
- 10% after the fourth
- 80% of the deals get under contract the fifth or later contact attempts
As the late great sales trainer and motivational speaker Zig Ziglar was famous for saying, “The fortune is in the follow-up.” You need to follow up, and only 10% of people are doing it. If you’re not doing more deals, this could be the issue.
NOW is the Time for Following Up
Over the last year inventory levels have plummeted, and I have been hammering with the follow up and picking up all kinds of deals. Despite what people are saying, the real estate market is strong. Now is the time to be part of the 10% and follow up on a lead you talked to six months ago that wasn’t motivated at the time. Or look up a deal you made an offer on a year ago and see if they ever sold, and then follow up with them.
You may resist this strategy because you don’t want to pester people. The reality is you’re not bothering them. In fact, you could be saving them and I have a story that illustrates this perfectly.
Phil’s Salvation Story:
I was 22 years old and had just broken up with my girlfriend. She had a friend named Crystal who was dating a guy named Matt. Matt worked for the Southern Baptist Convention in Nashville. And when we were at social events together occasionally Matt would invite me to church, and I’d always decline.
After I broke up with my girlfriend, Crystal encouraged Matt to call me and invite me to church again. And Matt said, “I’ve never even called Phil before. We see him at football games, but I’ve never actually called him on the phone. Secondly, every time I’ve invited him to church, he’s always politely declined.” Crystal pressed a little more and he reluctantly gave me a call. He invited me to church and to his amazement I accepted his invitation. He was even more shocked when I showed up. And well, the rest is history. I gave my heart to Christ, and I’ve been serving him ever since.
Can you imagine if he didn’t follow up? If he was being polite and he didn’t call me? How many more years might I have gone without Jesus Christ as my Lord and Savior? The point of the story is, follow up. You’re not bothering people; you could be saving them.
6 Step Follow-Up Strategy
- Follow up immediately when a lead comes in.
- Contact them four or five days in a row.
- If you don’t hear from them, wait a week then try again.
- Wait another week, then reach out to them again.
- Wait two weeks before trying again.
- After a month put them onto a monthly follow-up process.
Systemized Monthly Process:
Follow up with each of the leads on a chosen day of the month. Start by looking up each address on Propstream or MLS to see if the property has sold. If it’s still on the market, then reach out to them. This gives you a way to instantly get in touch with people on a personalized, non-automated way that connects directly with them.
Follow-Up #1 Rule: No Automation
No automated email, texts, or phone calls. It’s less personal and has lower deliverability. Unlike manual text, phone, or email where you can get a higher deliverability and you can personalize it, with automation you don’t get the needed connection with the seller. An argument for automation is that it gives investors more freedom and time. I would argue that follow up takes up a relatively small amount of time. In fact, it’s an incredibly potent use of time.
Tips to Personalizing Your Follow-Up
Tip#1: Personalize the Property Details
Do basic research on the property before you call, no matter how old the lead is. PropStream is one of the greatest tools for research available today in America on residential real estate. However, you don’t have to use Propstream. Instead, you can get access to most of the data for free through county websites.
Tip #2: Personalize the Message
The advantage of not automating is you can personalize the message. An example of this would be,
“We talked six months ago. At the time you were looking for a buyer. It looks like you haven’t sold it yet. Are you still looking to sell?”
If you have their phone number you can text them, otherwise send an email. The benefit of texting is that text will sit there and even though they may not respond immediately, they see it and think, “That person remembered me and my situation.” The important thing is you personalized it, and that is so powerful.
Follow-Up is the Key to More Deals
The reality is that follow up IS real estate investing, so you need to make time for it. This is a simple concept, but it is so powerful. Don’t over-complicate this, it’s not difficult and you will find that follow up is the key to getting more deals.