When I first started out in real estate investing my process was slow — sometimes painfully slow. If you’re new to the industry you can probably relate. The idea of flipping one property was so big and overwhelming that, really, I couldn’t focus on anything else. A second property? No way. I couldn’t imagine taking that on until I’d successfully flipped that first property. Then, I thought, I’d go back to square one. I’d find another property, fund another property and, eventually, flip that property. Then I’d do it all over again.
And that method worked, at least in the beginning. I was making four and five figures by simply chugging along and closing my one-off deals. But I knew I wanted more — I knew I wanted real estate investing to be my career and not just a hobby. Which meant I had to up the pace of my deal-closing fast.
How to Grow Your Business? CLOSE MORE DEALS.
At the end of the day, real estate investing is simple. You close deals, you make money. You close more deals, you make more money. Easy breezy, right?
But then, of course, there’s the big question — how do you close more deals? It’s not like you can snap your fingers and get a few more amazing properties at equally amazing prices. So…what’s the answer?
In short, there’s no one way to close more deals. If you can master a few, though, you’ll be well positioned to start scaling your real estate investing business — and close lots more deals as a result.
#1. Streamline (and Script…) The Process
As a real estate investor, you’re going to spend a lot of time on the phone with prospective sellers. No matter the property or how the conversation ultimately goes, the mechanics are more or less the same. You’re considering buying the property from them and they’re considering selling the property to you. To determine how it all shakes out, you’ll need to assess the deal and see if it makes sense for you and your business. How do you that? By asking the same few questions of every prospective seller, in an effort to both gain information about the property and keep the momentum going.
One of the easiest ways I’ve found to maximize these calls? Use a script.
I’m not suggesting you read word for word from some formal document. But I am suggesting that each time you get on the phone with a prospective seller, you have that script outlined and in front of you. This will ensure you ask all the questions you’re going to need answered and, equally importantly, ensure that you’re moving the conversation forward in a positive, productive way. It’s easy to get caught up in conversation and start to lose your way, especially in the beginning. Your script prevents these veer-offs and helps you make the most of your telephone time. As you get better at these calls, you’ll likely be able to ditch the script. But for now, stick to the script and get the job done.
#2. Look For Low Hanging Fruit
If you’re trying to play the volume game, focus on the lowest hanging fruit — that is, the most motivated sellers. During your initial (scripted!) conversation, try and suss out how motivated a seller is. While every seller wants to sell, some need to sell — and need to sell fast.
More often than not, a motivated seller leads to a quick, buyer-friendly close. It’s such a powerful combination that, often, you can close and flip two, three or even more motivated seller-driven deals than you can one “traditional” sale. For my time and money, I know which route I’d choose…
#3. Focus On The Follow Up
It’s easy to let a rejection throw you, especially in the beginning. You work yourself up, lob a fair offer and WHAM! The seller rejects it outright — and is sometimes, even, a little prickly (or downright RUDE…) in their response. So what do you do?
You could move on to another seller and try to close a deal, investing lots more time and money in finding a property, engaging the owner and pulling the pieces together. OR you could give it the old college try and take one more crack at the deal that’s on the table. Why not, right? You’ve already invested your time and talent on getting to this point.
Often getting that flat out NO to a YES is easier and more efficient than starting from scratch with a brand new seller. Sometimes giving a seller a day or two to cool down then re-approaching them with an offer — either the same or slightly different — is all it takes to get them to sign on the line. So don’t ditch that NO. Instead, move it down the list and come back to it in a few days. You’ll probably make a few extra deals as a result.
#4. Be CONSISTENT
Above all, be persistent and consistent in your real estate investing efforts. The more deals you close, the better you’ll get at closing deals. And, like anything else, the better you get at closing deals, the easier and faster it will be to close even more deals in the future. As you get increasingly proficient and efficient, juggling a handful of flips will be a snap — the entire process will be so second nature to you, that you won’t have to think twice about anything.
So if you’re struggling to manage one deal at a time now, don’t worry. With consistency comes proficiency and with proficiency comes an uncanny ability to find, fund and flip deal after deal without batting an eye. You’ll get there — just stay the course.
Another way to boost your deal-closing ability? Firm up your real estate investor education and overall know-how. Understanding the ins and outs, tips and trends, and industry best practices will help make you a better investor, and give you a leg up on the competition. Whether you’re just starting out, a seasoned pro or somewhere in between, there’s always something you could learn and gain about this process — and that’s why so many real estate investors enroll at the Nick Vertucci Real Estate Academy (NVREA).
At the Academy, we unpack a host of deal-making tactics and strategies, from how to find the right properties to assessing sellers’ motivation levels to funding your investment properties and more. So if you haven’t been — or need a brush-up on your skills — check out my site for enrollment dates and schedules.
See you there.