When I got started in this business of investing in real estate, I was told that fully 80% of my income would be made from deals that came to fruition on the 2nd-7th follow-up. Well, this business has changed in the past 5 years, and I can tell you that I think those numbers are a load of bull feathers. Why? Because in my experience it actually takes 4 – 12 follow-ups with a seller to consummate a deal! Think about what that means…all the work…how many sellers you quit following-up with prior to that point, and get this…how many of your competitors are actually doing that much follow-up?
If You Don’t Have an Automated Method of Following-Up with Sellers, then You are Missing Out on at Least 4 Deals for Every Deal that you Close.
So why am I writing about this? First of all, it’s a noteworthy reminder for all of us to be more diligent in how we run our businesses, but I recently closed a deal that required over 6 months of follow-up every 1-2 weeks. By the way, I made $21,000 when I closed the deal, but it got me thinking…I almost never follow-up with a seller for a period of 6 months, so I had to ask myself the incredibly difficult question “How many deals have I lost simply because I didn’t follow-up adequately?”
How Many Deals Have You Lost Due to Your Being Dis-Organized?
Go ahead…go through your files and look at your old leads of motivated sellers that never resulted in a deal. This might hurt, but the reality is that at least half of those leads would have resulted in a deal if you had just stayed in touch with them! I highly recommend that you spend at least one hour per day reaching out to those sellers to see how many of them you can revive and capitalize on! I know that I’m doing that in my business right now.
Enough Crying over Spilled Milk…Now What Are You Going to Do About It?
Anyone that has worked for me or been one of my students knows that I always say, “Don’t tell me about a problem/challenge unless you also have a suggested solution.” The same goes for everyone reading this blog…including me! Because everyone runs their business differently, I can’t give specific instructions on how to adjust your follow-up systems, but I can tell you what I’m doing in my business to make sure I don’t miss out on any more deals. Here’s a brief list of what I’m doing in my business to follow-up with leads. Some of it is new and some is old:
- Set Calendar reminders for all follow-up calls.
- Set “tickler” reminders even once a deal is “dead” (usually every 2-4 weeks)
- Setup email auto-responders for sellers that are based on the level of interaction we had.
- Weekly review of the DITW (Deals In The Works) file, which are deals that in negotiation.
Those are pretty basic yet pretty darn effective means of follow-up. I recommend that you do at least that much in your business, as well!
To YOUR Success,
Jim “JimmyZ” Zaspel