I’m sure you’ve heard of the 80/20 rule. For example, 80% of your results come from 20% of your efforts. Well… in the real estate world, 20% of investors do 80% of the deals. And that 20% make a heck of a lot more money than the other 80%.
So how do they do this?
It has to do with the ‘secret’ that every salesman uses whether you’re in real estate or another profession. And that simple secret is following up. I’m not talking about following up once with a letter or phone call, but being tenacious and following up until the person gives you the deal or tells you to get lost.
For example, sometimes I will come across a real estate deal that I really want. It’s in the perfect neighborhood where I like to buy, it would have great cash flow and I’d love to hold it for the next 30 years in my buy and hold portfolio. But… the seller isn’t quite motivated enough yet.
Here’s what I do:
I start sending a letter to the seller every 30 days no matter what. I also change the look of the letter and envelope. One month I’ll use a regular #10 white envelope, the next month I’ll use a large brown envelope, after that I might use a Priority envelope and so on.
With the letter I use a white piece of paper, then a yellow legal pad, then a small handwritten note on a pad.
I literally do this until a seller tells me he’s not interested. The longest I ever did this was for 8 months and I ended up getting the deal. It was a subject-to deal on a townhouse which I still own to this day.
Also, this follow-up method works in whatever you’re trying to achieve.
Not too long ago I had an idea for Donald Trump (you have to think big). So, I started sending out my letters (I did them weekly) and I sent multiple letters to him and I finally did get a response. He wasn’t interested but I still got an answer.
So, the next time you come across a deal that would make you a heck of a lot of money and the sellers just need a little more time to get motivated, I highly encourage you to start a letter campaign to them. And don’t stop it until they give you an answer one way or another.
Personally, I’d send letters for years if that’s what it took. And if you start doing this too, you’ll quickly join the 20% of real estate investors who make 80% of the money.