If you want to be a successful real estate investor, you have to follow up on your leads. There’s no question about that. However, most people don’t understand what leads they should be following up on, and exactly how they should be doing it.
First off, the most important thing you need to determine is who is motivated and who’s not motivated at all and will never, ever sell you their house. For example, if you get a call from a person and you make them an offer and they laugh like crazy and don’t counter offer and don’t seem that interested in selling – then that’s your clue they’re “tire kickers” and don’t really need to sell their house.
On the other hand, if you get a call from someone who sounds serious and needs to sell for a reason such as a divorce, or job loss of they’re getting ready to move, then you know that person has a certain degree of motivation.
Plus, if you offer them $150,000 for the house and the lowest they’ll go is $160, 000 – again this means you are close to the amount they want and there’s a good chance you’ll close the deal.
My point is…
If for some reason you can’t close a deal initially with someone who seems motivated or who you’re pretty close to agreeing with, then these are the type of people you need to follow up with. You don’t follow up with folks whom you know you will never get a deal from.
So let’s say you got a call from a seller, who’s going through a divorce, but for one reason or another you just couldn’t make the deal work initially, but you’re very close. What should you do?
Put that person into your follow-up spreadsheet. (You need to keep organized.) Then, after 30 days you will send them a ‘yellow letter’ that says something along the lines of “Dear Mr. Smith, A little over a month ago we spoke on the phone about buying your house at 123 main street. I just wanted to follow up with you and see if you’re still interested in selling. As I mentioned when we first spoke, I’m a private real estate investor, etc. etc.”
But what happens if you don’t hear from the seller from your letter?
Well, then 30 days later you send them another piece of direct mail. It could be a typed letter or a postcard. And again, you’ll say how you’re still interested in buying their house and wanted to see if they were ready to sell yet.
How many times do you follow up? I would follow up no less than three times, if you really want to get results and make money. Remember, in this business time increases motivation. I’ve done more deals than I can remember from people who weren’t ready to sell at day one but were begging me to buy their house at day 60.