Just ask any great coach what are the secrets to consistent victory and most will point to understanding and mastering some underlying fundamentals. Starting and building a successful wholesaling and real estate investing business is no different. Understand and excel in the fundamentals and victory is nearly guaranteed. Ignore or lose track of the fundamentals and find yourself frustrated with failure imminent.
Business in general and especially real estate investing and wholesaling has three fundamentals. They are Lead Generation, Lead Management, and Lead Leveraging. Most every problem or challenge with a struggling business owner or real estate investor can be traced to a serious and negligent miscalculation of the importance of one or even all three of these fundamentals.
Lead Generation – in simple terms – the process of finding and attracting people that need what you have to offer. Lead flow is the lifeblood of a real estate investing and wholesaling business. In your market, research the number of closed transactions over the last six months and you can pretty much be sure that in the next six months around the same number is about to take place. If you want to get in on your piece of the next several thousand transaction in your market area – then lead generation is key to begin. You need to find and attract those leads before the competition. This means “daily lead generation”. Generating leads is not something to be done once a week – it needs to happen consistently everyday!
Lead Management is the next fundamental and is best described as knowing what to do with your leads and how to do it. For the real estate investor it means successfully processing inbound buyer leads to get proof-of-funds and/or pre-qualification letters on every buyer, understand where they are interested in buying, and creating a lead specific game plan for every buyer that has sent you that proof or pre-qualification letter. When it comes to seller leads it means how to quickly find the story behind the house, create an offer that will match the seller’s story and simultaneously meets the needs of one or more of your buyers. It then means understanding how to manage this process to multiple and consistent closings month after month.
Lead Leveraging is the idea of learning how to make money from all or most of your leads. Before the last real estate bubble burst, you found many real estate investors cherry-picking deals trying to make their riches through property values appreciating. Today, you must learn to create cash flow from your lead flow consistently and this means understanding how to outsource and leverage each type of inbound lead into the right funnel that will return the highest possible cash per lead. Whereas before big money was made on a few deals, today and into the near future, consistent cash flow comes from leveraging your leads to maximize revenue per lead.
Take a look at your organization’s daily activity and look for immediate ways to improve upon the execution of the three fundamentals. Question every process, build new ones, or strengthen existing ones that do these well. Turning in your best performance and excelling in Lead Generation, Lead Management, and Lead Leveraging will ensure you have the best chance to take advantage of every opportunity independent of which way the market moves now or in the future.
Marc Imhof , also known as The Wholesale Coach, teaches investors how to build their real estate investing business around multiple niches using advanced techniques, strategies, and tools.