This month I am sharing some Mental Gems that I know would be of great use to you. It has to do with the misconception that…BIGGER is BETTER and/or Quantity over Quality.
Just this past month I was speaking with one of my platinum students in Dallas, TX. We were discussing his marketing when I shared this view with him to make a clear point. You see, he was having a problem that most of us have at one point or another in our investing career. We begin to doubt that we are doing enough and start to believe that we need to do a LOT more because the deals are not knocking the door down. You see, one thing that we have to be clear on is the understanding that the deals will come as long as we are consistent in our marketing!
If we do not get a deal right away then we start complaining and listening to non-investors that have tried the business before and gave up almost immediately. They start to analyze the “whys” as a novice and pretty soon reality sets in (bills, car notes, day-to-day expenses, etc.) Shutting down your marketing is a deadly mistake that most investors, new or seasoned, make from time to time. However, with a proper tracking system of your marketing, this can easily be corrected. Here’s an example: If you have been keeping track of your marketing and you see that when you send out 500 post cards, you get 50 calls and out of those 50 calls you get 2 deals and they make you at minimum of $3,000.00 each…you can not only see that this works, but that this can be predictable. This is what you have been doing for the last 2 months and things were going good. Now, for the third month you have decided not to do your postcards and at the end of the month, at this particular time, you only had 5 calls and no deals! You start to ask yourself, “Has the market dried up?” You then turn to other investors that you know and ask them the same questions. Hopefully you will know some that are consistently marketing. It is important that you ask someone who consistently markets so that you do not get misinformed and start to believe the hype – that it is a sellers’ market and there are not any good deals or some other foolishness. My point is, when you look back at your own track record you can see the difference in outcome based upon your own research. Now I know you may be asking, “What about the 5 calls?” or “How did they come in?” If you didn’t do the mail out, understand this: people will call when they need to, not when you want them to, or when you need them to.
I have bought houses from sellers who have said that they have had my card or letters for months. One in particular said she had met me and held onto my card for 2 years before she needed to sell!
This brings up another point in your marketing. Keep the same number even if you have to pay a monthly fee to use it, especially if you have done a lot of marketing with that number. Even today I can still ride on some back street and see some signs I put up 6 years ago that are still up! You may ask, “How do you know?” I know because back then I took the calls myself and I used my cell number that I still have today.
See, when you understand that a little tracking of your marketing will SAVE you a lot of headaches, this will all make sense and make you money. (That is what you want, CASH, not cents, right?!) In addition, my personal trainer helped instill in me this principle that when I was complaining about the weight of the barbells it was usually during an exercise. It was better to use a little less weight and have proper form and in turn have lots of positive results, rather than to use a lot of weight and use improper form and risk injury. (Just because the ladies were watching!) The ego must be kept in check!!!!
Also, when it comes to working out in general, it is better to work out a little, like 30 minutes 3 times a week, rather than to work out 3 hours once a month! This is the same situation as the person who goes out and puts up three hundred signs one weekend and never does it again because he did not get any deals. For one, he put them on each pole, all on one street, like Cascade, and they were so annoying that they were taken down. The signs were taken down the next week by the neighbors and code enforcement. For the record, this is a true example of what I have done myself and they were going in both directions. I never saw the number in the area again, which I knew would be the case. Why? The why is because I ran hard and fast. I was burned out before I could even get started. I believed Bigger is Better. Don’t believe the hype. Stop super sizing everything. My trainer shared this point with me. It is better to eat smaller portions rather that to eat bigger portions. Instead of eating 2 – 3 big super sized meals, eat 6 smaller portions a day and stay energized!
So now you may be asking, “How does this apply to Real Estate Investing?” Instead of going out and finding 100 vacant houses (which is considered a lot) and doing NO research, which in turn means no money, go out and do a little driving. Find maybe 25 houses and then come back and do a little research. You can come up with a couple of prospects and a small deal, which in turn could blossom into a lot of money! This is how a little can create a lot! You must also remember to be consistent.